IndiGrid’s Q3 Profit Rises 27% to ₹1.19 Billion on the Back of Acquisitions
The company aims to add ₹2.4 trillion transmission projects to the grid by FY 2030
January 31, 2023
IndiGrid, the Indian power sector’s first infrastructure investment trust (InvIT), said its profit jumped 27% year-over-year (YoY) to ₹1.19 billion (~$14.59 million) in the third quarter (Q3) of the financial year (FY) 2023.
The company’s Chief Executive Officer, Harsh Shah, attributed the performance to robust operations and steady acquisitions, which would help the firm meet its FY23 distribution guidance of ₹13.20 (~$0.162) per unit.
For the October-December period, the company’s revenue grew by 4% YoY to ₹5.91 billion (~$72.46 million).
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹5.36 billion (~$65.71 million) in Q3 FY 2022, up 4% YoY. The growth was driven by steady operational performance and robust availability.
“We are delighted to announce the deal signing of IndiGrid’s 15th transmission asset, Khargone Transmission, the last of the framework assets with Sterlite. These acquisitions and the GR partnership are in line with IndiGrid’s growth plan and strategy to focus on operating assets with long-term cash flows and minimal counterparty risk,” Shah said.
Recently, the company executed a share purchase agreement for 100% equity interest in Khargone Transmission (KTL) with Sterlite Power Transmission for ₹14.98 billion (~$183.66 million). KTL consists of 6 elements across 626 circuit km of the transmission network and a 765/400 kV substation. This acquisition would boost IndiGrid’s portfolio to ~₹227 billion (~$2.8 billion) and is expected to add ~₹ 850 million (~$10.42 million) yearly to IndiGrid’s net distributable cash flow.
Upon acquisition, IndiGrid’s asset portfolio would consist of 17 power transmission projects with a total network of 46 power transmission lines and 13 substations extending over ~8,420 circuit km and 17,550 MVA capacity, along with 100 MW of solar generation capacity.
In 2021, IndiGrid had signed a share purchase agreement to acquire NER–II transmission project from Sterlite Power for about ₹46.25 billion (~$567.03 million).
During the quarter, the company also signed a framework agreement with GR Infra for the acquisition of the Rajgarh Transmission. Along with this, it completed the acquisition of the Raichur Sholapur line for ₹2.5 billion (~$30.65 million).
IndiGrid aims to maintain stable operations for predictable and sustainable distribution while looking for value-accretive acquisitions. It also aims to add nearly ₹2.4 trillion (~$29.42 billion) worth of transmission projects to the grid by FY 2030.