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IndiGrid, announced its results for the quarter ended September 30, 2022. The consolidated revenue for the quarter was up 6% YoY in Q2 FY23 to ₹ 5,807 million while the consolidated EBITDA also increased by 6% YoY to ₹ 5,354 million. The net distributable cash flow saw a 25% increase YoY to ₹ 2,798 million during the quarter supported by lower finance costs.
The Board of the Investment Manager also approved a Distribution Per Unit (DPU) of ~₹ 3.30 for Q2 FY23 to unitholders in line with the distribution guidance of ₹ 13.20 per unit for FY23. The record date for the distribution is November 16, 2022 and shall be paid as ~₹ 3.11 per unit in the form of interest and ~₹ 0.19 per unit as capital repayment. With this, IndiGrid has distributed ~₹ 65.1 per unit to its investors over the last 5 and a half years since its listing, a total return1 of ~105% on the issue price.
IndiGrid continued its track record of accretive acquisitions and completed its acquisition of RSTPCL transmission asset for ~₹ 2,500 million. It is an ISTS TBCB transmission project consisting of 765kV single line circuit with a line length of ~208 ckms. Post this acquisition, the AUM stands at ₹ 213 billion. The consolidated net debt / AUM stood at 57% as of September 30, 2022, leaving significant debt headroom for future growth.
Commenting on the financial results, Mr. Harsh Shah, Chief Executive Officer, said, “I am pleased to report that we reported a solid performance during the quarter with steady YoY growth. Our robust operations allowed us to maintain the growth momentum and keep us on track to meet the FY23 distribution guidance of ₹ 13.20 per unit.
We welcome IRDAI’s move to separate the investment limits for debt securities and units issued by InvITs/REITs as well as increasing the limit for debt instruments at single InvIT/REIT level. It will enable insurance companies to widen their exposure across InvITs as well as InvITs to expand their sources of borrowings and become more competitive in the infrastructure space.
Going forward, we will continue to focus on generating superior and sustainable returns for our investors on the back of our AAA rated balance sheet, resilient operations and accretive acquisitions. We remain optimistic about the growth potential of the power sector in India on the back of supportive regulatory push and envision sizeable growth opportunities in our AUM, while ensuring stability and predictability in the platform.”
Financial Highlights – Consolidated Results (in ₹ million):
|₹ Mn||Q2 FY23||Q2 FY22||% change|
|DPU(₹ per unit)||3.30||~3.192||4%|
1) Total return is the sum of all distributions since listing till Q1FY23 and change in price till Sep 30, 2022
2) Q2 FY22 DPU of ₹ 3.1875 rounded off to ₹ 3.19