Page 30 - Index

CEO’s Review
Dear Unitholders,
It is my pleasure to present to you our first annual report as we complete our one year of operation.
We started FY 2021-22 with the Initial Public Offering, the first-of-its-kind InvIT IPO from POWERGRID, a Maharatna CPSE, in April-May 2021 which received overwhelming response from both institutional and non-institutional investors, despite being launched in the midst of a very difficult pandemic and volatile market conditions. We are humbled by the continued confidence reposed in us by the investor community and happy to see that our investors have been rewarded with both capital appreciation in unit price and consistent distributions. I thank all the investors for their support and belief in us.
Performance highlights FY 2021-22
The year started with a very challenging second wave of the COVID-19 pandemic. However, our Project Manager ensured excellent performance for our assets, while maintaining all safety protocols for employees and stakeholders.
On the operational front, all five of our SPVs (PVTL, PKATL, PPTL, PWTL and PJTL) reported average availability ranging from 99.12% to 99.99%, exceeding the target availability of 98%, thereby earning incentives. Highest level of safety protocols were followed in operation and maintenance of all assets, and no accidents were reported through FY 2021-22.
In line with our aim of providing stable, consistent and visible returns, we declared and paid three distributions aggregating to ` 10.5 per unit for the period of operations of the Trust i.e. May 13, 2021 to March 31, 2022, which results in annualised distribution of around ` 12 per unit. In March 2022, we completed two acquisitions viz. 26% stake in PVTL from Sponsor, POWERGRID at consideration of ` 3,307.85 million, and rights for additional transmission charges accruing to PPTL, PWTL and PJTL, for an aggregate consideration of ` 3,041.50 million. The additional annual transmission charges are applicable at the rate of 2.787% for PPTL, 3.445% for PWTL and 5.226% for PJTL.
These acquisitions, carried out with the approval of unitholders, were funded by a mix of internal resources and an external debt of nearly ` 5.7 billion, borrowed at a competitive rate of less than 6%, as on the date of drawal and on attractive repayment terms. Post this borrowing, our balance sheet continues to remain significantly underleveraged giving us significant headroom for future debt-led acquisitions. We are also undertaking a new project that has been allotted by GoI to our SPV, PKATL, on regulated tariff mechanism.
Coming to the financial performance, we reported a total income of ` 12,434.13 million in FY 2021-22, at the consolidated level and EBITDA of ` 11,653.53 million. As against the requirement to upstream not less than 90% of NDCF at both SPV to Trust and Trust to Unitholder level, PGInvIT upstreamed ~98% at SPV level and distributed nearly 100% at the Trust level.
Focus on long-term, stable growth
Moving ahead, we aim to make stable distributions and create long-term value for the unitholders. Efficiency in our operations and expansion will be key to it. In the immediate future, we intend to acquire remaining 26% stake in PKATL which completes five years of its commercial operations in July 2022. We also look forward to new acquisitions from our Sponsor which will be looking to monetise ~` 75 billion assets in FY 2022-23.
Closing comments
I thank the Unitholders for trusting us and our stakeholders, especially POWERGRID for supporting us through this journey. We seek your continued support and guidance as we look forward to a stable and sustainable future.
Warm Regards,
Purshottam Agarwal
Chief Executive Officer
28 Annual Report 2021-22