IndiGrid Q3 results: Net profit down 28% at Rs 94.58 cr; firm declares Rs 3.10 distribution per unit

IndiGrid Q3 results: Net profit down 28% at Rs 94.58 cr; firm declares Rs 3.10 distribution per unit

Infrastructure investment trust IndiGrid on Friday posted a 28 per cent drop in consolidated net profit at Rs 94.58 crore for the December quarter, mainly due to higher depreciation and finance cost on account of acquisitions.

The consolidated net profit of the firm was Rs 131.83 crore in the quarter ended December 2019, as per a BSE filing.

A company spokesperson said “PAT (profit after tax or net profit) is lower due to higher depreciation and finance cost on account of acquisitions.”

Total income rose to Rs 439.03 crore in the quarter from Rs 344.91 crore in the same period a year ago.

With collections at 112 per cent for the quarter, net distributable cash flow (NDCF) grew to Rs 221.6 crore, up 44 per cent year-on-year, the company said.

The Board of the Investment Manager has approved an increase in distribution per unit (DPU) by 3.3 per cent to Rs 3.10 for the third quarter of FY21, entirely payable as interest to unitholders in tandem with the increased NDCF on account of accretive acquisitions over the last few quarters.

With this, IndiGrid has distributed Rs 42.67 per unit to its investors over the last 15 quarters since its listing, a total return of over 70 per cent. Total return is the sum of all distributions since listing and change in price, till date, it added.

The record date for this distribution will be January 28, 2021 and payment will be made on or before February 6, 2021.

The board has also approved capital raising of up to Rs 1,500 crore by way of rights issue, subject to regulatory approvals.

This is in line with IndiGrid’s strategy to raise timely capital to maintain leverage headroom and fund acquisitions, it said.

Markets regulator Sebi had in January 2020 issued guidelines for rights issuance by listed infrastructure investment trusts (InvITs), thereby enabling another source of equity funding for such entities and allowing retail investors to participate in their growth potential.

The board also approved an enabling resolution to raise up to Rs 1,400 crore through issuance of commercial papers, public or private issuance of debt or non-convertible debentures, subject to receipt of necessary approvals.

“Value accretive acquisitions over the last several quarters have enabled an increase in net distributable cash flows. In line with our strategy of providing a steady increase in DPU with visibility of sustaining the same, we have decided to increase the DPU by 3.33 per cent to Rs 3.10/unit.

“With a good quality asset and a robust pipeline of acquisitions, we are confident of delivering sustainable DPU and growing it over a period of time,” IndiGrid CEO Harsh Shah said.

He added that IndiGrid has acquired Rs 8,500 crore assets since the last capital raise, “including Rs 7100 crore of Framework/ROFO projects from Sterlite Power.”

IndiGrid is the first infrastructure investment trust in the Indian power sector. It owns 12 operating projects consisting of 30 transmission lines with more than 6,740 ckms (circuit kilometers) length and 9 sub-stations with 12,290 MVA transformation capacity.

IndiGrid has assets under management (AUM) worth Rs 15,000 crore (USD 2 billion). The investment manager of IndiGrid is majority owned by KKR.

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