Page 46 - Index

Undertaking value accretive acquisitions
PGInvIT aims to provide stable, consistent, and visible returns to its unitholders and acquisition of assets are an important means to achieve that. During the year, the Trust acquired the balance 26% equity shareholding in PVTL for a consideration of ` 3,307.85 million following the completion of its lock-in period of five years of operations. Further, following the approval by Hon’ble CERC and prudence check by LTTC, the Trust through its SPVs acquired rights for additional revenues accruing to three of its SPVs viz., PPTL, PWTL & PJTL for an aggregate consideration of ` 3,041.50 million. With this PPTL, PWTL and PJTL will now earn additional annual transmission charges at the rate of 2.787%, 3.445% and 5.226% respectively.
The acquisitions were funded by a mix of internal resources and external debt. For the external debt portion, PGInvIT tied a loan facility for ` 7,000 million from HDFC Bank Limited.
FINANCIAL REVIEW
Revenue, EBITDA and PAT
The SPVs of PGInvIT are in the business of power transmission. These SPVs earn revenues, i.e. availability based transmission charges, pursuant to the TSAs, from the DICs irrespective of the quantum of power transmitted through the transmission line. In addition, maintaining availability of the assets in excess of 98%, gives them the right to claim incentives under the TSAs. The transmission charges are contracted for the period of the relevant TSAs, which is 35 years from the COD of the relevant power transmission project, and is subject to renewal in accordance with the relevant TSA and the CERC regulations.
The total income of the Trust at a consolidated level was ` 12,434.13 million in FY 2021-22. Of this, ` 260.74 million was other income. EBITDA and PAT for the year stood at ` 11,653.53 million and ` 4,633.14 million respectively. EBITDA margin on consolidated basis is around 93.72% for power transmission assets with key cost components being repair & maintenance, insurance expenses, and IM fees.
Net Distributable Cash Flow (NDCF) and Distribution Per Unit (DPU)
Net Distributable Cash Flows (NDCF) is the free cash flow generated from underlying operations. Cash flows received by PGInvIT can be typically in the form of interest income, dividend income and principal repayment. In line with InvIT Regulations and Distribution Policy of PGInvIT, it is required to distribute at least 90% of the cash flows received by it, to its Unitholders. During the period, the Net Distributable Cash Flow was ` 9,629.45 million. DPU amounts to the cash flows distributed on a “per unit” basis to the Unitholders. The Trust distributed DPU of ` 10.50 per unit for FY 2021-22. Total cash distribution to unitholders for FY 2021-22 was ~ ` 9,554.99 million.
Assets Under Management
The registered valuer, RBSA Capital Advisors LLP, carried out the valuation as an independent valuer and valued assets of PGInvIT at ` 1,02,295.30 million as on March 31, 2022.
Assets AUM (` in million)
PVTL 21,832.20
PKATL 4,515.90
PPTL 25,508.50
PWTL 28,701.20
PJTL 21,737.50
Total 1,02,295.30
Borrowings
The consolidated borrowings as on March 31, 2022 stood at ` 5,755.85 million. The borrowing is a part of ` 7,000 million loan facility tied up by PGInvIT with HDFC Bank Limited.
Credit Rating
PGInvIT is rated as “CCR AAA/Stable’’ from CRISIL, ‘’ICRA AAA/ Stable’’ from ICRA and “CARE AAA(Is)/Stable” from CARE.
Further, the Long-Term Bank facility for an amount of ` 7,000 million has been assigned a rating of CARE AAA; Stable (Triple A; Outlook: Stable) by CARE.
Strategies and Outlook
PGInvIT’s business strategies are structured around a focussed business model with operational efficiencies to enhance returns while capitalising on value-accretive growth through acquisitions and maintaining an efficient capital structure - all this towards a single-minded focus of providing consistent, stable, and visible returns to the unitholders.
Power transmission projects characterised by low levels of operating risk and enjoying the benefit of a well-established regulatory regime with minimal counterparty risk ensure long-term visibility on returns and predictable cash flows.
Particulars
Total Revenue
Operating Expenses
EBITDA
EBITDA Margin (%)
PAT
PAT Margin (%)
Net Distributable Cash Flows (NDCF)
Distribution per unit (`) for FY 2021-22
Market Capitalisation*
*As per closing price on NSE on March 31, 2022.
(` in million)
FY 2021-22 Consolidated
12,434.13
780.60
11,653.53
93.72%
4,633.14
37.26%
9,629.45
10.50
1,21,848.89
44 Annual Report 2021-22