Latest news with #IndiGridInfrastructureTrust
Business Standard
6 days ago
- Business
- Business Standard
IndiGrid Infrastructure Trust consolidated net profit declines 46.06% in the June 2025 quarter
Sales rise 0.57% to Rs 839.85 crore Net profit of IndiGrid Infrastructure Trust declined 46.06% to Rs 72.37 crore in the quarter ended June 2025 as against Rs 134.16 crore during the previous quarter ended June 2024. Sales rose 0.57% to Rs 839.85 crore in the quarter ended June 2025 as against Rs 835.13 crore during the previous quarter ended June 2024. Particulars Quarter Ended Jun. 2025 Jun. 2024 % Var. Sales 839.85835.13 1 OPM % 82.8890.84 - PBDT 349.43419.41 -17 PBT 74.01146.12 -49 NP 72.37134.16 -46
Reuters
21-07-2025
- Business
- Reuters
India's investment trusts to expand debt fundraising as yields drop, analysts say
MUMBAI, July 21 (Reuters) - Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said. The real estate investment trusts (REIT) and infrastructure investment trusts (InvIT) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database. "Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates. "The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments." Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates. Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market. Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks. Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm. The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns. Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers. "The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility. With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform. ($1 = 86.1700 Indian rupees)
Yahoo
19-05-2025
- Business
- Yahoo
IndiGrid Infrastructure Trust (BOM:540565) Q4 2025 Earnings Call Highlights: Strong Revenue ...
Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. IndiGrid Infrastructure Trust (BOM:540565) successfully commissioned India's first utility-scale battery energy project in Delhi, demonstrating timely execution and quality. The company reported a year-on-year revenue growth of 11.3% and an increase in operational revenue by 1.6%, showcasing financial growth. Collections for Q4 2025 were strong, with 115% for transmission assets and 89% for solar, boosting net distributable cash flow. The distribution per unit (DPU) guidance was increased to INR 16, reflecting a 6.7% growth over previous guidance. IndiGrid Infrastructure Trust (BOM:540565) maintains a robust balance sheet with a AAA rating and a net debt to AUM ratio of 59.1%, providing significant headroom for growth. The average quarterly transmission availability was reported at 98.4%, which is lower than expected due to disruptions in certain assets. There is a conservative approach to distribution guidance despite having reserves equivalent to one quarter's distribution, which may limit immediate returns to investors. The company faces statutory limits on the amount of under-construction projects it can undertake, potentially restricting growth. Operational challenges were noted in two assets, GPTL and JKPTL, which are undergoing restoration. The company has a high leverage ratio, with gross borrowings of around INR 19,900 crore, which could pose risks if interest rates rise. Warning! GuruFocus has detected 13 Warning Signs with BOM:540565. Q: Can you elaborate on the management compensation structure and the tariff upside mentioned in your valuation report? A: A significant portion of our long-term incentives and acquisition-linked incentive payments are deferred, and many senior team members have invested in unit ownership. Regarding the tariff upside, there are potential gains from GST changes and other regulatory matters that could positively impact our solar assets. - Unidentified_3 (Managing Director) Q: Is there any provision for escalation in transmission charges due to extraordinary circumstances like inflation or currency depreciation? A: There are change-in-law clauses in the model concession agreement, but inflation and currency depreciation are not considered changes in law. Specific items like GST changes could qualify. - Unidentified_3 (Managing Director) Q: Why is there a difference between the reported revenue and operational revenue? A: The difference arises from accounting requirements for under-construction projects, where revenue and associated margins are accounted for separately. This adjustment helps show the operational performance more accurately. - Unidentified_4 Q: Why create a separate entity, Integrad, for new projects instead of doing it within IndiGrid? A: IndiGrid, as an InvIT, has statutory limits on under-construction projects. Creating Integrad allows us to undertake larger projects without these constraints, enabling better growth opportunities. - Unidentified_3 (Managing Director) Q: How do you ensure fair value when selling projects from Integrad to IndiGrid? A: There is a partnership approach between Integrad and IndiGrid to win projects. The terms are set at the time of bidding, ensuring transparency and fair value for both entities. - Unidentified_3 (Managing Director) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
