Powergrid Infrastructure Investment Trust (PGInvIT) has announced its financial results for the first quarter, demonstrating consistent performance and maintaining its commitment to unitholder returns.

Financial Highlights

PGInvIT reported a consolidated income of ₹3,250.00 million for Q1, comprising ₹3,133.00 million in revenue from operations and ₹117.00 million in other income. The trust's net distributable cash flow (NDCF) at the PGInvIT level stood at ₹2,758.00 million for the quarter.

Distribution Announcement

The trust has declared a distribution of ₹3.00 per unit for Q1, aligning with its guidance of ₹12.00 per unit for the fiscal year. This marks the 16th consecutive quarterly distribution since PGInvIT's listing, bringing the cumulative distribution to ₹49.50 per unit since its IPO.

The distribution comprises:

• ₹1.76 of interest component
• ₹0.37 of taxable dividend
• ₹0.07 of exempt dividend
• ₹0.78 of repayment of SPV debt
• ₹0.02 of treasury income

This distribution represents 99% of the NDCF at the PGInvIT level for the quarter, exceeding the minimum 90% threshold mandated by SEBI regulations.

Operational Performance

PGInvIT's portfolio consists of five special purpose vehicles (SPVs) operating transmission assets that include 11 transmission lines spanning approximately 3,699 circuit kilometers and three substations with a combined transformation capacity of 6,630 MVA. The average remaining life of the transmission service agreements (TSAs) is over 27 years.

Based on provisional data, the average availability during Q1 exceeded 98% across all SPVs, surpassing target benchmarks. The quarter was also accident-free across all five SPVs, underscoring the trust's commitment to safety.

Financial Position

As of the end of the quarter, PGInvIT had external borrowings of ₹10,702.00 million, with a net borrowing ratio of approximately 5.21%. The trust maintains the highest credit rating (AAA with stable outlook) from ICRA Limited, CRISIL Rating, and CARE Rating.

Growth Initiatives

PGInvIT is exploring new avenues for growth, including:

1. Participation in tariff-based competitive bidding (TBCB) projects: The trust has received in-principle approval to form a consortium with POWERGRID for up to two TBCB projects with an aggregate estimated cost of ₹500.00 crores.

2. State transmission asset monetization: PGInvIT is actively engaging with stakeholders to explore opportunities in state transmission markets, although this is expected to have a longer gestation period.

3. Ongoing project implementation: One of PGInvIT's SPVs, PPTL, is currently implementing a project under the Regulated Tariff Mechanism, which is expected to be commissioned within the scheduled timeframe.

Management Commentary

Naveen Srivastava, Chairman of POWERGRID Unchahar Transmission Limited (the Investment Manager to PGInvIT), stated, "PGInvIT is committed to delivering consistent, stable, and predictable returns to its unitholders. We continue to explore value-accretive growth opportunities while maintaining our focus on operational excellence and financial prudence."

The management has reiterated its distribution guidance of ₹12.00 per unit for the fiscal year, consistent with the total distribution made for the previous fiscal year.

As PGInvIT continues to navigate the evolving landscape of the Indian power transmission sector, it remains focused on its vision of building a business model that prioritizes operational efficiency, value-accretive growth, and an optimal capital structure to deliver stable returns to its unitholders.

Power Grid Infrastructure Infrastructure Investment Trust (PGInvIT) has released its quarterly financial results, showcasing robust performance across its portfolio of transmission assets. The trust, which operates five transmission projects, has maintained high operational efficiency while delivering strong financial results.

Operational Highlights

PGInvIT's portfolio consists of 11 transmission lines spanning 3,699 circuit kilometers and three substations with a total capacity of 6,630 MVA. The trust has demonstrated exceptional operational performance, achieving an average availability of over 98% across all projects during the quarter. This high availability is crucial for the trust's revenue generation, as its income is based on an availability-linked tariff structure.

Financial Performance

PGInvIT reported impressive financial results:

• Total income: ₹2,758.00 million
• Net Distributable Cash Flow (NDCF) at SPV level: ₹3,250.00 million
• NDCF upstreamed to PGInvIT: Over 90%

The trust's financial position remains strong, with a total debt of ₹10,702.00 million as of June 30. PGInvIT's conservative financial management is reflected in its low net borrowing ratio of 5.21% (as of March 31), providing ample headroom for future growth and acquisitions.

Distribution to Unitholders

PGInvIT has announced a distribution guidance of ₹12.00 per unit, demonstrating its commitment to delivering stable returns to unitholders. Since its listing, the trust has already distributed ₹49.50 per unit, including the recent declaration of ₹3.00 per unit in August.

Unitholding Pattern

As of June 30, the trust's unitholding pattern reflects a diverse investor base:

This diverse ownership structure underscores the trust's appeal to various investor segments.

Growth Initiatives

PGInvIT is actively pursuing growth opportunities to enhance unitholder value:

1. Expansion Project: The trust is working on a ₹25.00 crore expansion project at the Parli substation, which involves adding a 1 x 400 kV line bay for renewable energy interconnection. This project is expected to be completed by December 31.

2. Acquisition Strategy: PGInvIT is exploring acquisition opportunities, including potential consortium arrangements with POWERGRID for projects worth around ₹500.00 crores. This strategy aims to leverage the trust's strong balance sheet and capitalize on growth opportunities in the transmission sector.

Outlook

With its strong operational performance, stable financial position, and strategic growth initiatives, PGInvIT is well-positioned to continue delivering value to its unitholders. The trust's focus on high-quality transmission assets, coupled with the backing of its sponsor POWERGRID (a Maharatna CPSE), provides a solid foundation for sustainable growth in India's evolving power sector landscape.

Investors can look forward to consistent distributions and potential capital appreciation as PGInvIT executes its growth strategy while maintaining its commitment to operational excellence and financial prudence.