India Grid Stable AUM, DPU guidance improved by 3.5% in FY23, looking into battery storage space

• Q4 FY22 Revenue & EBITDA grew by ~10% YoY and ~29% YoY respectively
• Q4 FY22 Normal DPU increased by ~3% YoY to ~INR 3.191 vs INR 3.10 YoY
• Q4 FY22 Collections healthy at 110%; in line with seasonal collection trends.
• Power demand growth has been robust with ~3.2% YoY growth in Jan-Mar FY22 over same period during FY211
• Mar’22 power demand grew on rising temperatures and early onset of summers
• Q4 demand led by higher commercial & industrial activity and easing of lockdown restrictions
• Peak power demand met rose to ~199 GW in Mar ’22, ~194 GW in Feb ‘22 and ~192 in Jan ’22.
• As per NMP (National monetisation plan) , ~8% share is targeted from transmission valued at ~Rs 45,000 Cr  - Likely to be monetized using two approaches InvIT and ToT.
• Harsh Shah has resigned as CEO and WTD to pursue opportunities outside the organization. Jyoti Kumar Agarwal, our current CFO, will take over as the new CEO and WTD w.e.f. July 1, 2022. Divya Bedi Verma, will take over as the new CFO w.e.f. July 1, 2022.
• AUM relatively unchanged at ~INR 21,100 Cr QoQ
• Net Debt/AUM as of 31st Mar ‘22 at ~56%; significantly below the 70% cap as per SEBI InvIT Regulations.
• AAA rated by CRISIL, India Ratings and ICRA.
• Average availability maintained at ~99.0% in Q4 FY22. Overall FY 2021-22 average availability at ~99.6% and majority of assets achieved 99.75% availability.  
• FY23 DPU Guidance raised to INR 13.20; increase by ~3.5%.
• Outlook: 1.) ~INR 40,000 Cr worth of tenders already notified and ~INR 45,000 Cr identified under National Monetization Pipeline till FY25, creating healthy pipeline for bidding and acquisition respectively.2.) Focus on acquisition of framework asset (KTL), other operational solar and transmission assets. 3.) Evaluate bidding opportunities in power transmission with partners and explore opportunities in adjacent spaces such as utility scale battery storage. 4.) Deliver on increased DPU Guidance of INR 13.20 for FY23.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF.

LEGAL DISCLAIMER:

Use of this information is at the users own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.

DISCLOSURES UNDER SEBI (RESEARCH ANALYST) REGULATIONS, 2014:

Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349. Disclosure with regard to ownership and material conflicts of interest

1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;

2. Neither Research Analyst nor the entity nor its associates or relatives have actual / beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;

3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.

Disclosure with regard to receipt of Compensation

1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.

2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.