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India Grid Earnings Call

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

Published on 25 May 2022 .Views 5 .Comments 0
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  • 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.

 

 

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