IndiGrid powers ahead with Q2 EBITDA up by 84 pc q-o-q

IndiGrid, India's first power sector infrastructure investment trust (InvIT), has reported a consolidated revenue of Rs 373 crore for the quarter ended September 30, up 81 per cent quarter-on-quarter while the consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) was Rs 347 crore up 84 per cent.

The board of Sterlite Investment Managers Ltd acting as investment manager of IndiGrid approved Rs 3 distribution per unit for Q2 FY 20 payable as interest. "With this, IndiGrid is well on track to achieve its stated distribution per unit guidance of Rs 12 per unit for FY20," it said.

On the back of framework agreement with Sterlite Power, IndiGrid is on track to grow its assets under management to Rs 17,000 crore over the next two years from its existing assets of Rs 11,056 crore.

"This quarter has been transformational for IndiGrid," said Chief Executive Officer Harsh Shah. "On one hand, we achieved the highest quarterly EBITDA for IndiGrid as NRSS XXIX Transmission Ltd and Odisha Generation Phase II Transmission Ltd (OGPTL) acquisitions in Q1 contributed a full quarter of revenue."

On the other hand, regulators are showcasing increased confidence in InviTs, said Shah. "We believe the progressive decision by Securities and Exchange Board of India to reduce the lot size for InvITs is likely to go a long way in enhancing liquidity for units and attracting wider participation from investors," he said.

"With the Reserve Bank of India enabling banks to lend to InvITs and external commercial borrowings to be used for rupee refinancing, InvITs with good quality assets will have better access to debt capital both in terms of cost and tenures," said Shah.

"Our outlook remains positive with a strong shareholder base, a robust pipeline for growth and conducive market and regulatory environment. We have delivered superior risk-adjusted total returns to investors by distributing Rs 27.56 per unit with consistent quarterly performance," he said.

IndiGrid owns eight operating projects consisting of 18 transmission lines with more than 4,900 circuit km length and four substations with 7,735 mega volt amp transformation capacity. It is managed by Sterlite Investment Managers Ltd which is majority owned by KKR.

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