What's In Store For Indigrid In FY25? | NDTV Profit
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00:00Let's now move on to the first management that we will be speaking to, and that is Indigrid,
00:04which is the first infrastructure investment trust focused on power transmission. And to
00:08talk about the quarter gone by, we're joined by the CEO of the company, Mr. Harsh Shah.
00:12Good morning. Good afternoon, Mr. Shah. Good afternoon, Meheka.
00:16Yes. Let's just talk about a strong set of numbers. What was the main reason for the
00:20revenue and EBITDA growth this quarter? The main reason for EBITDA and revenue
00:26this quarter is the acquisitions that we did last year. Last year, we increased our renewable
00:31energy capacity from 130 megawatts to over a gigawatt peak. And this is the first quarter
00:39in which we are seeing the full quarter contribution that's coming in, in comparison
00:44to the quarter one of last year. So that's where you see the significant growth coming in.
00:49Okay. And you know, the company's record date for distributions was yesterday. Distributions
00:54were at 3.75 rupees per unit. What would be the total cash outflow from this? And
01:01what will be the guidance for FY25? Sorry, it's 3.75 rupees a unit.
01:06Guidance for the year is 15 rupees a unit, and quarterly that translates into 3.75 rupees a unit.
01:13So this is something which comes approximately 300 crores of distribution per quarter,
01:19give or take around 1200 crores distribution annually that we make.
01:23Okay. And you know, the company also has a 978 crore repayment in FY26. From which
01:32avenue will the repayment be made? Will it be from your cash in hand?
01:36So we are leveraged at around 60% of our debt to AEM, which is significantly lesser than most
01:43infrastructure companies are listed. And we are still at AAA. So more likely than not,
01:48we would look to refinance this and put longer maturity borrowings as it comes into picture. So
01:54it won't be dipping into the company's operating cash flows. It will be refinanced at
01:59near the maturity dates. Okay. So this 978 crore,
02:03which has been set aside for repayment, there's a chance it could go for refinancing as well?
02:08It will certainly go for refinancing. Okay, got it. And could you also like kind of give
02:14your outlook on India's power demand, given the company's strong revenue dependency on it?
02:19So first, our revenue is not dependent on power demand. Our revenue is on take-or-pay contracts
02:25largely. And therefore, even in the worst case scenario, our revenue EBITDA and cash flows
02:31remains protected. The outlook in general for the sector is phenomenally positive. We have not seen
02:38such a positive outlook over the last decade or two in the sector, where the renewable energy
02:45costs are coming down for the sake of energy security, as well as energy transition and
02:52promises of climate change. India is contributing tremendously in renewable energy, which is
02:57requiring us to invest a lot of capital on the electric transmission, as well as battery energy
03:04storage capacities, which are one of the few core areas for India to target on. So we are looking at
03:10at least around 95,000 crores of bidding pipeline over the next year or two, which is one of the
03:18largest bidding pipelines that we have seen over the last two decades. So we are pretty
03:22positive on the outlook, not just for energy demand, but also as the investment that's going
03:28to be made in the sector to meet the energy transition goals for the country.
03:33Yes, thank you, Mr. Shah. Also, I want to know and understand your current portfolio
03:38set mix, you know, between power transmission and, you know,
03:42solar power sets, and what is the targeted mix going forward?
03:47At this point in time, the solar to power transmission ratio is around 20% and 80%,
03:53approximately in that range. And we would remain in the 75-25 range. So we are pretty much there.
03:59So we look forward to maintain this ratio in the years to come back.
04:05And when you talk about, you know, the growth outlook for the two segments that you're
04:09currently, you know, focused in, what's the growth outlook for FY25 for both
04:14power transmission as well as solar cells?
04:17Growth outlook is, as I said, it's phenomenal. It's been an exciting time to be in this industry.
04:22We are seeing a tremendous amount of opportunities coming for investment and growing.
04:27We ourselves have grown almost 20-25% year on year over the last few years.
04:32So we do see that the growth outlook is positive and we plan to continue.
04:36We already have one pipe projects over the last six months,
04:41which will be starting to contribute revenue from FY26 onwards, and we'll look to bid for more.
04:47Considering a wider pipeline, we are pretty confident that there will be enough for us to grow.
04:52Could you give us more, you know, perspective on what the current
04:54bidding pipeline looks like for the company?
04:57So the current bidding pipeline, not just for us but all market participants,
05:02is approximately 95,000 crores over the next 12-18 months.
05:06And these are identified projects by bid process coordinators and customers.
05:10They're coming for auction. So yeah, that's the significant size that we're talking about.
05:16And, you know, with respect to the renewable space, you know, given the focus in India,
05:20apart from solar, are there any other pockets that the company, you know, would like to, you know,
05:25tap into?
05:27At this point in time, we are focused on battery storage and solar. We are not looking to
05:32diversify in, let's say, other sectors within renewable energy at this point in time.
05:38And the company, like you mentioned, battery storage is one of the,
05:41you know, areas that the company is focusing on, 400 megawatt hours of projects.
05:45What's the outlook there and, you know, the growth capabilities in that segment as well?
05:50We are looking at approximately 4-5,000 crores of projects that are coming for bid,
05:55and we look to do bidding to acquire those projects.
06:00We have developed a strong internal capability to execute these battery projects,
06:05and we are pretty confident that we'll be able to work and increase the size.
06:12Well, thank you so much, Mr. Shah, for joining us and giving us the
06:14outlook of the company, and we wish you all the best.
06:16Thank you.