Latest News | IndiGrid Net Profit Falls 64 Pc to Rs 85 Cr in Sept Quarter

New Delhi, Nov 3 (PTI) IndiGrid, the country's first infrastructure investment trust in the power sector, on Tuesday reported over 64 per cent decline in its consolidated net profit to Rs 85.5 crore for the September 2020 quarter.

The company had registered a consolidated net profit of Rs 240.5 crore in the corresponding quarter of the previous financial year, it said in a statement.

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Its consolidated revenues in July-September 2020 increased to Rs 384.8 crore, compared with Rs 372.9 crore in the year-ago period.

The firm reported higher depreciation in the second quarter of 2020-21 at Rs 102.2 crore, against Rs 36 crore a year ago, mainly due to more acquisitions.

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The expenses (including one time) also rose to Rs 47.4 crore in the quarter, from Rs 25.5 crore a year ago due to more acquisitions.

The finance cost in the quarter also rose to Rs 148.8 crore, compared with Rs 110.7 crore as borrowing also increased to fund new acquisitions.

The quarter was also marked by an overall improvement in power demand and normalisation of collections to 113 per cent, leading to a growth of 16 per cent in the net distributable cash flow to 197.4 crore over the same period last year, it said.

IndiGrid's board of investment manager approved a distribution per unit (DPU) of Rs 3 per unit for the September 2020 quarter, entirely payable as interest to unit holders.

With this, IndiGrid has distributed Rs 39.56 per unit to its investors over the past 14 quarters since its listing, a total return of 42 per cent from listing date till September 30, 2020.

Its Chief Executive Officer Harsh Shah said, "We are pleased and encouraged with our performance underpinning the resilient growth in this quarter. Our operations have remained steadfast despite COVID-19 and remote working environment."

He added that on the acquisition front, the entity added two more projects worth Rs 140 crore to its asset portfolio during the quarter. "In addition, IndiGrid's growth plans have been reaffirmed by the successful induction of Esoteric II (an affiliate of KKR) as a sponsor, marking an extension of IndiGrid's strategic relationship with KKR."

Shah also said, "While considerable market volatility persists, we are confident of delivering predictable cash flows with the tailwinds of a recovery in power demand and improvement in collection efficiency."

IndiGrid is the first infrastructure investment trust in the Indian power sector. It owns 11 operating projects consisting of 28 transmission lines with more than 6,280 circuit kilometres of length and nine substations with 11,460 MVA transformation capacity.

IndiGrid has assets under management (AUM) worth Rs 13,900 crore. The investment manager of IndiGrid is majority owned by KKR.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)