IndiGrid, the country's first InvIT in the power sector, on Wednesday reported an over two-fold increase in consolidated net profit for the March quarter at Rs 99.7 crore on the back of higher revenues. The company, which had reported a net profit of Rs 37.6 crore during the corresponding quarter last fiscal, has announced distribution of Rs 3 per unit to its investors for the period under review.
Revenues for the quarter increased to Rs 328.4 crore from Rs 170.5 crore in Q4 FY2019, mainly on the back of value accretive acquisitions made by the infrastructure investment trust (InvIT) during the fiscal.
"The landscape of power transmission remains one of the safest sectors to remain invested to attract private capital. Even during the current COVID scenario, since transmission was also declared as an essential service and is not linked to power flow, so our revenues have not been impacted," IndiGrid CEO Harsh Shah told reporters during a post-results conference call.
For the fiscal 2020, the company reported revenues of Rs 1,242.7 crore and a profit after tax (PAT) of Rs 505.7 crore, as against Rs 665.6 crore and Rs 153.9 crore respectively in FY2019.
With distribution of Rs 3 per unit for the quarter, IndiGrid has delivered on its guidance of Rs 12 per unit for FY20. Including this distribution, the company has distributed Rs 33.56 per unit, delivering a total return of 32 per cent since listing three years ago.
"This has been a transformational year for IndiGrid which saw accretive and sizeable asset acquisitions of over Rs 6,200 crore leading to a more than twofold jump in distributable cash flows to Rs 720 crore for the financial year.
"This was made possible on back of successful preferential allotment of Rs 2,510 crore equity from long term investors such as KKR, GIC and other capital market investors," Shah added.
On the company's outlook for FY2021, he said IndiGrid is evaluating selective acquisition opportunities in the solar sector with state-run firms like NTPC and SECI.
"While we would continue to remain a transmission utility, we intend to expand in the solar space. We have not yet acquired any asset but we have an opportunistic mindset that if there are good projects available at high return we would consider those...we are seeking solar assets with government-backed counterparties, such as NTPC and SECI," Shah added.
Over the past three years, the company's assets under management (AUM) have grown from Rs 3,700 crore to Rs 12,000 crore.
"With a strong shareholder base and favorable regulatory environment, we remain committed to having an AUM of Rs 30,000 crore over the next two years as we acquire projects under framework agreement and beyond.
"Our outlook for FY21 remains positive where in addition to the portfolio growth and robust asset management, our focus will be on sustainability, maintaining adequate liquidity to mitigate current uncertainties as well as strengthening balance sheet," he said.
The company is focusing on diligence and monitoring of framework assets worth Rs 6,500 crore of Sterlite Power's Gurgaon Palwal Transmission (GPTL), Khargone Transmission (KTL) and NERSS.
"We want to create a pipeline of transmission projects besides the existing pipeline of projects. We may also look at raising funds as we have a strong balance sheet with low leverage, high cash available as well as profitable," he said.