IndiGrid reports strong Q2 FY22 performance

IndiGrid [BSE: 540565 | NSE: INDIGRID], India's first power sector InvIT, announced its earnings for the quarter ended September 30, 2021. The consolidated revenue grew by 43% YoY in Q2 FY22 at INR 5,476 million on the back of acquisitions. In tandem, the consolidated EBITDA for the quarter was up 49% YoY at INR 5,040 million driven by steady operational performance and robust availability. The net distributable cash flow remained steady at INR 2,241 million during the quarter supported by healthy collections at 105%.

The Board of the Investment Manager also approved a Distribution Per Unit (DPU) of ~INR 3.19 (up 6% YoY) for Q2 FY22 to unitholders. The record date for the distribution is November 02, 2021 and shall be paid as ~INR 1.86 per unit in the form of interest, INR 1.28 as capital repayment and ~INR 0.05 per unit as dividend. With this, IndiGrid has distributed ~INR 52.15 per unit to its investors over the last 18 quarters since its listing, a total return of ~90% on the issue price. Total return is sum of all distributions since listing till Q1 FY21 and change in price till September 30,2021.

The management remains committed to maintain AAA credit rating on the back of strong balance sheet, prudent asset management and operational excellence. The Net Debt/AUM as of September 30, 2021, stood at ~57%, significantly below the 70% cap as per SEBI InvIT regulations thereby providing ample headroom to fund future growth.

Commenting on the financial results, Mr. Harsh Shah, Chief Executive Officer, said: "We are on track to meet the increased FY22 distribution guidance of INR 12.75 per unit on the back of >50% growth in EBITDA in H1 FY22. I am pleased to share that over the last six months, we have reinforced our operational capabilities through implementation of DigiGrid and strengthened our balance sheet by raising pre-emptive growth capital. We have also substantially diversified our sources of debt and reduced the weighted average cost of borrowing by ~70 bps YoY.

We 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. Going forward, we remain optimistic about the growth potential of the power sector in India on the back of supportive regulatory push. We believe we are well-positioned to tap into the opportunities in transmission and solar sector in the country."

IndiGrid continued its track record of successful acquisitions by completing the purchase of its first solar asset (FRV) in July 2021 for INR 6.60 billion. This along with the INR 69 billion worth of acquisitions in FY21, has taken the total AUM to ~INR 214 billion. In April 2021, IndiGrid raised ~INR 12.84 billion of capital by way of Rights issue which was subscribed over 1.25 times to create headroom for growth. Separately, in May 2021, IndiGrid also successfully launched the first Public NCD issue by any REIT/InvIT in the country to diversify its sources of debt and increase the debt tenure.

Source : Equity Bulls

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IndiGrid InvIT Distribution Q2FY22 Performance