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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.

What's In Store For Indigrid In FY25? | NDTV Profit

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