Powergrid Infrastructure Investment Trust Q4 FY2025-26 Earnings Conference Call

Ajouté : 2026-05-23

[00:00:01]Ladies and gentlemen, good today and welcome to Power Grid Infrastructure Investment Trust Q4 FY26 earnings conference call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.

[00:00:18]These statements are not the guarantees of future performance and involve risk and uncertainty that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Nadisha from ICICA securities.

[00:00:47]Thank you and over to you Misha.

[00:00:50]>> Yes. Uh thank you Randy. Good morning.

[00:00:52]On behalf of ICI security, we welcome you all to the Q4 FI26 earnings call of power grid infrastructure investment trust. Today we have with us from the management Mr. Navin Shivata chairman, Mr. Sanjay Sharma, director, Mr. Amit G, director, Shrimati Nilad, Chief Executive Officer, Mr. Gorav Manit, Chief Financial Officer and Mr. Kumar, company secretary and compliance officer. Without much delay, I'll hand over the call to the management for brief opening remarks which will be followed by a Q&A session. Thank you and over to you.

[00:01:35]>> Thanks Miss Nisha.

[00:01:38]Good morning everyone.

[00:01:40]On behalf of Powergit Uchaha Transmission Limited, PUTL, the investment manager to PG Invit, I extend a warm welcome and sincere thanks to all the participants for joining us today.

[00:01:55]I'm joined by Mr. Sanjay Sharma and Mr. Amit Blood, directors of PTL.

[00:02:02]Mrs. Niladas, CEO, Mr. Gorav Malik, CFO, Mr. Shaitan Kumar, company secretary and compliance officer along with other senior colleagues.

[00:02:13]On 15th May 2026, results for quarter and financial year ended March 31st 2026 along with the distributional details for Q4 FY26 were announced.

[00:02:28]The results are available on the website of BSC, NSC and PG invit. A detailed investor presentation has also been uploaded. I will briefly touch upon the key highlights.

[00:02:42]PGNIT has continued to see a steady investor participation with the number of unit holders increasing from around 15,000 at IPO to over 2.7 lakhs as on March 31st, 2026.

[00:03:00]We truly appreciate the continued trust shown by our investors.

[00:03:06]For those who are very new to PG Invit, PG Invit is a infrastructure investment trust sponsored by Powergate Corporation of India Limited.

[00:03:17]Powergate transmission limited or we call as PTL a 100% subsidiary of powergate acts as a investment manager of PGNIT and IDBI trusty ship services limited is the trustee.

[00:03:34]Powergate is also the project manager of PGNVIT.

[00:03:39]The trust currently holds 100% equity in all the five of its SVBs namely Visak Transmission Limited, Kalam Transmission Limited, Pearly Power Transmission Limited, Vura Transmission Limited and Jabalpur Power Transmission Limited.

[00:04:03]These assets includes 11 transmission lines spanning approximately 3,699 circuit kilometers and three substation with a total capacity of 6,630 MBA across five states namely Himachal Pradesh, Andhra Pradesh, Telangana, Madhya Pradesh and Maharashtra.

[00:04:29]All assets are operational and backed by a long-term agreement with an average residual life of over 26 years.

[00:04:38]These ISTS operate under TBCB framework on a boom basis with a contract tenure of 35 years which provides a strong revenue visibility and limits tariff related risks.

[00:04:54]Backed by Power Git's expertise, the assets continue to demonstrate reliable performance and operational stability with a high safety standards with a fixed tariff model and relatively low leverage. PG Invit is positioned to generate predictable cash flows while maintaining flexibility to pursue growth through acquisitions. Our objective remains straightforward that is delivering consistent and stable returns to our unit holders.

[00:05:31]Moving to the distribution for Q4 FI26.

[00:05:36]On May 15, 2026, a distribution of rupees 3 per unit was declared for the quarter ended March 31st 2026.

[00:05:46]This marks the fourth distribution for FY 2526 and the 19th consecutive quarterly distributions since listing.

[00:05:57]The payout will be made on or before May 27, 2026.

[00:06:03]With this BGIT has distributed accumulative rupees 58.50 50 per unit since IPO issue price rupees 100 per unit amounting to more than rupees 53.23 23 billion in total distributions.

[00:06:23]The total payout for FY 2526 stand at rupees 12 per unit in line with the guidance shared earlier.

[00:06:32]We intend to maintain this level and target a distribution rupees 12 per unit for FY 2627 as well.

[00:06:44]All distributions continue to be aligned with PG invit's distribution policy and SBN init regulations which requires at least 90% of the net distributable cash flow to be distributed to unit holders.

[00:07:01]Accordingly, distributions are declared and paid at at least once every quarter.

[00:07:10]Let me tell about the highlights for the quarter and the financial year ended March 31st, 2026.

[00:07:18]On the operational front, the project manager has ensured efficient and reliable functioning for all transmission assets supported by the use of advanced technologies and a strong focus on safety.

[00:07:33]The average availability across all SVVS remained above stipulated benchmarks.

[00:07:40]Based on the pre provisional data, the average availability of for FY26 exceeded 90% 98% across all SPVS.

[00:07:52]These figures remains subject to final confirmation pending receipt of monthly availability certificate from certain regional power committee RPCs for the period January to March 2026.

[00:08:08]Now I'll come to the project under regulated tariff mechanism being being executed EPL involving the implementation of a 400 KB line at 765 by 400 KB per new substations for renewable energy interconnections.

[00:08:29]The project has been completed within the schedule time that is on 31st December 2025.

[00:08:36]Tariff petition for the same has been filed with CRC.

[00:08:42]Billing to the beneficiaries will start after the tariff order is being received.

[00:08:48]I'm also happy and proud to share that no accidents were reported during the entire year FY 2026 reflecting our consistent emphasis on safety.

[00:09:03]Next on the CSR front, PG Invit has supported 11 primary health centers, PSC's, community health centers, CSC's, rural hospitals across various states by providing medical equipments.

[00:09:22]The total CSR expenditure across SPV was around rupees 5.87 87 crores achieving full compliance with the statutory requirements under the company act for yet another year.

[00:09:40]Now I come to the financial highlights for Q4 FYI 202526 PG init reported total consolidated income was Rs 3,200 million revenue from operation was Rs 3,114 million and other income of Rs 86 million total consolidated expenses stood at rupes 1,131 million For the financial year 2526, total consolidated income was Rs 12,966 million.

[00:10:21]Revenue from operation was Rs 12,580 million. Another income was Rs 386 million. So consolidated expenses stood at Rs 3,565 million. Profit after tax excluding reversal of impairment for FY 2526 is rupees 7,92 million compared to rups 6,639 million for the financial year 2526 uh 2425.

[00:10:58]Earning per share is rups 10.02 for the financial year 2526.

[00:11:05]Total assets is rupees 1 lakh75 million for financial year 2526.

[00:11:15]The NDCF net distributable cash flow stood at rupees 2761 million for the Q4 FY26 and rups 10,906 million for the financial year 26.

[00:11:32]More than 90% of NDCF generated at the SPV level was upstreamed to the trust by March 31st, 2026. In line with the regulatory requirements, the Q4 distribution of rupees exempt the dividend rupees 0.09. 09 repayment of capital SPV depth rupees 0.77 and treasury income of rupees 0.02 02.

[00:12:11]The distribution exceeds the minimum regulatory requirement, reaffirming our commitment to consistent payout.

[00:12:21]As of May 31st 2026, the total outstanding external borrowing stood at rupees 10,640 million which includes rups 5,612 million loan from SDFC Bank raised in March 2022 and rupes 5,28 million loan raised in December 2024 for acquisitions.

[00:12:49]Both loans are floating rate linked to 3 months treasury bill and repo rate respectively with an average cost of depth at 6.97% for financial year 26 with a low net depth to ratio. PGN bits remains a flexibility to fund future acquisitions through depth while maintaining financial discipline.

[00:13:20]The trust continues to hold the highest credit rating of AAA with a stable outlook from Ikra Kaisil and care.

[00:13:30]Bill trade receivable stoods at rupees 6,47.28 28 million representing approximately 90 days of 19 days of billing.

[00:13:43]Now I'll come to some highlights on the outlook.

[00:13:46]Our growth strategy continues to focus on acquiring operational power transmission assets align with init regulations and unit holder interests.

[00:14:00]As we have continuously communicated at present the availability of such operational assets remains limited which cons continues to be a key constraints.

[00:14:10]However the overall sector looks outlook remains very encouraging.

[00:14:17]CA recently published a transmission plan for integration of about 900 gawatt non- fossil fuel capacity by 203536 which emphasize an additional investment of rupees 7.93 lakhs over next 10 years for integration of renewable power. The master plan for evacuation of power from hydroelectric plants in bhat braatrautrain as prepared by CA also emphasize an additional investment of rupees 1.91 lakh crores up to 2035 and 4.52 lakhs beyond 2035.

[00:15:01]The tariff based competitive bidding has picked up pace and currently 84 ISTS projects are under implementation including 41 by private players. As these projects become operational, they are expected to provide a steady pipeline of acquisition opportunities.

[00:15:21]We are actively tracking these developments to stay prepared for future acquisition opportunities.

[00:15:29]In addition, state level assets monetization presents another potential avenue. If it state choose to monetize operational assets, it could open a new opportunity for PG& for the same various state authorities and stakeholders are continuously being contacted and persuaded with strong financial position, ample depth headroom and a diversified investor base. PG Invit remains well placed to capitalize on emerging opportunities.

[00:16:00]All potential acquisition will continue to undergo rigorous due diligence covering operational regulatory and governance aspects to ensure they are value accurative and aligned with unit holder interest.

[00:16:18]Now let me tell you about some guidance.

[00:16:20]We would like to mention our distribution guidance of rupees 12 permits for financial year 2627.

[00:16:30]Thank you. And now I would like to hand over to the moderator for further proceedings.

[00:16:37]Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on a touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. As a reminder to all the participants, please restrict yourself to two questions.

[00:16:58]Ladies and gentlemen, we'll wait for a moment while the question assembles.

[00:17:06]The first question comes from the line of Palash Jen with ICA securities.

[00:17:10]Please go ahead.

[00:17:12]>> Yeah. uh thank you for the opportunity and congratulations on a consistent performance. So my first question is that uh in the last con call as well as in the PPT uh of this uh this quarter uh it is me management mentioned that in principal approval has been received from power grids board for the consortium right so has there has the consortium agreement been finalized or have any specific projects been identified or bit submitted just a color on the timelines and uh specific projects would be helpful yeah that's my first question >> uh you know that Uh yes, power grid has board has given uh you know clearance for uh for the projects with aggregate cost around 500 crores and this was the first step uh towards that and now this is already gone for the ministry and for the approval and it is on the advanced stage and and surely uh very shortly we are going to get the nod and we'll start doing it in that direction. So have has there been any uh uh pipeline which pipeline visibility like uh any any color on uh what the specific projects could be or any bids have been submitted for that?

[00:18:29]of course for the uh primary for the transmission projects which is you have I have already in my uh you know speech we have told you that lot of the projects are going to come for the 900 gawatt CAS also broad lines and uh a lot of projects are coming in TVCBM and surely we will be interested in uh those projects >> okay uh that's helpful uh my second question is with regards to the state asset monetization plan which was also mentioned uh in the last corn call uh Is there any near-term visibility of the pipeline or as or the assets uh to be monetized?

[00:19:07]We are continuously in touch with I already explained to the uh you know various authorities uh if they we are putting it if they are ready to give it to us and uh not only state authorities but also for other agency who are transmission licences which are including private licences which they want to give it to us and uh surely we'll come out with uh some good uh proportions because you can see that uh these transmission integration plants of which is very you can see that investment of around 7.93 lakhs cr or ramputra basin there is another 1.9 million so the next 5 to 10 years lot of projects are coming up so of course when these becomes operational there people wants to uh you know demonetize it so we will be there to take up that question.

[00:20:08]>> Thank you Mr. Chen. Please rejoin the queue for more questions.

[00:20:12]Next question comes from the line of Danil Route with Skull and Patcha Stock Broking Private Limited. Please go ahead.

[00:20:20]>> Yeah. Hi. Uh I have two questions specifically related to the impact on IR due to interest rates rising in the current scenario and the rising cost of inflation. So what would that impact be on the projects that are going on right now? That would be my first question.

[00:20:41]>> Rising cost of inflations because it's operational assets and and power grid is we power is our you know project manager presently I don't see any much impact on our operational this way.

[00:20:58]I don't feel any any impact on that.

[00:21:02]>> Okay. And uh my sex uh I have another question. So like in the industry around what amount of uh like what amount would be expected in the transmission industry by the government in the coming years as you mentioned till 20 2035. There are two projects that you mentioned. So can you give a maybe a range of numbers?

[00:21:28]I I'll come to the first question again.

[00:21:30]I'll tell you the because of these crisis you understand that energy transitions always pleasure overloads when people will the demand will increase of course generation will come.

[00:21:40]So anyway transmission will come out the assets will and the this power industry will have a positive impact on that. So I don't feel any uh rising cost in uh it is having in in that way. And what was your second question? Can you repeat? uh how much inflow is the government expecting into the transmission industry as such >> that I already told you now that you must have seen the transmission plant by CA that is giving a very lucrative figure of 7.93 lakhs cr up to 23536 only in the transmission sector and secondly it is uh you can see that it is not only having interest rates also having ISTS both are coming up in that way and lot of projects are coming under TVCB they as far as I know I'm not very sure of the figure but almost 1.5 lakhs or three lakhs figures are under bidding which is going to come and they will be operational after 24 or 30 months these projects will going to come to us and once the Brahmaputra vas will pick up that will also bring around two lakh crores by 2035 so it's a very impressive figures which is coming out and it will be very good for the transmission sectors and when the people start making it when they want a new projects and all. Of course, they will uh surely will they will monetize so that they will get a good equity and they will uh invest in future projects.

[00:23:05]>> Thank you Mr. Ra. Please rejoin the G for more questions. Next question comes from the line of Nilles toshi with Prospero Tree AMC. Please go ahead.

[00:23:16]>> Thanks for the opportunity sir. Thank you for maintaining the guidance of distribution of rupees 12 for FY27s.

[00:23:23]However sir um you are repeated in every call you are mentioning that you are find you are searching for the new operational asset and it is not available but sir we are now the PG invites old invit and uh could not find the single operational asset though the PG power grid itself is a sponsor and in this field since last many years and interest rate cycle was also on the lower side. So for the continuity of the init business the addition of the new asset is must and we are not finding the any proper asset. Please share your thought and you are still you are mentioning about the 2035 there was some opportunity and you you may find the good opportunity but sir we are in the 2026 our tariff rates are fixed and it is going to reduce. So how we will maintain the future uh distribution? So I think that an investor you must add some or you should find because in the same field some indicate is finding the best opportunity or adding the at new operational asset at regular interval.

[00:24:36]Please share your thoughts sir.

[00:24:38]Sir, let me tell you that we are uh you know well distined to see that unit holders interest are being taken care for that only we have gone for in principal approval of uh uh consortium with power grid uh to uh straightway invest in this uh you know PG in the TBCB projects because we can see these number of projects are coming up at least we can go one two three projects we if we are quoting it then we'll get some assets uh and our project manager is powering gate. So there is no doubt this is the area where we are further moving in that direction and secondly the assets which are already operations we are in touch with lot of uh agencies and we'll see that some good results will come out surely we we have to wait and watch because I cannot take we have to see the interest of the unit holders I cannot go and straightway take up the assets which is not very lucrative to us we have to see we have to find it out I have also told in address that the interest of unit holders is to be seen and we are going in that direction. I'm making you sure that surely some results will come in.

[00:25:52]>> Sir I hope uh the new asset will be added within a short time. Sir my last question is that regarding the uh NAV sir the latest valuation report reflects the NAV of rupees 90 rupees 79 pesa last year it was 94 rupees 12 12 pesa and in 2023 24 it was 83.24 24 P. So why there is a change as our all projects has a fixed tariff rate and so the cash flow is more or less the fixed is it because of the discount rate or anything else because the cash flow will remain the same there was a 83 rupees 24 pesa then it's to 94 rupees then now it is 90 rupees 75 79 pesa this year I can understand that because the one year has passed so one year less available with the init and less cash flow But why there was a jump in last year and now it is it has come down and what the termination value the valuer is taking because the I think that we have a um it's not the we have we need not to transfer the asset to the sponsor at the end of the life.

[00:27:04]>> So sir basically you are very correct when you pointed out that the valuation is primarily fluctuating due to the change in the whack. Now whack is a dynamic thing which can fluctuate at any given point in time keeping into consideration the present situation and what the valuer expects the future to be. So at March uh 25 I suppose it was 8.95 and then it fell down to 8 due to the cooling off of interest rate and there was a corresponding increase in the valuation which you can see. So that was the part which explains the fluctuation and also the fact that you know the year cash flow has already been taken out.

[00:27:45]Having said that there is one more dynamic because you know the terminal value also prepawned gets preponed by one more year and as far as the valuation of terminal value goes you are you know these projects are on the boom basis. So the assets remains with the trust there is no portion of transferring it back to the sponsor or through any other agency. Now how the valuer is working out the terminal value is that on the last year of the you know the the transmission service agreement uh it is typically of 35 years. So as on the last year whatever the abeta is it is you know uh it is uh forecasting it for the eternity and maintains the capex equivalent to the depreciation as on the last year and that in that manner it is calculating the terminal value. However, having said that uh you know whatever happens to these assets after 35 years will be the call taken by the system planner. If these assets continue to hold value and continue to serve the grid at large these projects will be you know the life will be further extended.

[00:28:54]We will be incurring the corresponding capital expenditure and that there will be corresponding inflow of the revenue.

[00:29:01]So that is how the transmission sector will be working out.

[00:29:07]>> Thank you Mr. Doshi. Please rejoin the queue for more questions.

[00:29:11]Next question comes from the line of Nav Singh Pundir with Tailless Venture.

[00:29:16]Please go ahead.

[00:29:17]>> Uh good morning sir. Thank you so much for the uh guidance of FI27. Sir I want to uh pursue on the same lines as my predecessor. So you mentioned that the uh foremost interest of unit holders is what the management is aiming for. So but the thing is unless we add some uh ongoing projects in the next one year our distribution is more likely to go down. So it's it's good that we talk about FI35 etc. But by that time half of the current management will either retire or go back to the parent. So we don't want to be left hanging in a situation where the current management promises a lot about FI32, Fi35 and the distribution goes down because uh we what my predecessor uh has asked is is correct that we keep repeating these lines that we are open for all opportunities but we are not finding anything. How how do we not find anything when our competitors are actually finding some opportunities and also there's a tremendous push by the government to uh you know uh to promote init among the retail because we are the people who are putting in real money at work. If my distribution goes down my my my capital gets eroded. So what exactly is the current management doing? Thank you.

[00:30:34]>> It's not who told you it is zero. It's not that we are uh discussion is being held with various stakeholders and we are addressing the key concerns and all we are going in the process I'm telling you and uh that's why we are going for the consortium also we see that another area where we can further move in that directions we are monetizing we are continuously pursuing that so that some uh people come out for uh unless these uh figures you know transmission plans and all it will not come. This is also become a very added advantage for us because they are telling these much of projects. So they require some money for that. They require equity. So people will come to monetize their assets and we are continuously in touch with and uh surely we'll come out with some good figure and uh where we are uh monetize our uh you know some of the assets. We see that we are continuously in touch not only with the uh states but also some of the private transmission licences also so that uh we get some assets in our basket and we'll bring those and surely uh this consortium will be effective very shortly if once the approval comes from DPM and we'll surely work in that and we start investing in that direction also.

[00:31:51]Huh your point is very correct that from next to next from 2027 there is a little bit dip in the because of the appreciation cost but we are more concerned we are also concerned equally and to see that uh some assets add to us yes I agree with you >> sir uh just just a small followup I'll not take more time we know that we got the approval with power consortium a few months back a few quarters back nothing has moved sir we we operate in a public uh public uh environment where getting an approval for a consortium is one thing but signing the dotted line is different. It takes a lot of time. So can you can your CFO tells me that if nothing happens and since we are admitting that there is a likely dip in the distribution beginning next year what is that number because we don't want to be in a situation that you maintain 12 rupees for FY28 but that is you know that is being taken out from our our capital reserve somewhere so what is the more likely number if nothing materialize in this financial year because if there was some uh opportunity at the anvil which might have concluded you must have mentioned it. So let us let us get a figure if if if you can kindly provide >> so Mr. Nep uh I mean uh the figures are very much available in the valuation report if you are if you happen to see those I mean there is no hiding of the fact that the from uh fiscal 2728 there will be a dip in the revenue top line of approximately how much 23 24 odd%. So uh maintaining 12 rupees will not be possible without addition of the new assets. Yes. And for the further uh digging into the uh number crunching you know the valuation report is available in the public domain. So you can have a look at those numbers and we should uh why we are seeing it will not be done.

[00:33:50]It is very clear that it is not only uh government also once that init will be uh it's coming up and consortium is in advanced phase of approval. I'm I'm telling you we are pursuing it that once it's come out from the ministry and immediately we'll take up this issue. No issue if we think in that direction it will be a negative part of that. I'm sure that these are going to consium once B of power grid has cleared it and it will come out from ministry also that so that they also want some good competitors in between that is also there so they will get a good because they have to invest around 7.9 lakhs crores how if they don't have investors they'll not be there so it is very clear that in near future EG will be in a better position >> thank Thank you Mr. Punil. Please rejoin the queue for more questions.

[00:34:44]Next question comes from the line of Sunil and individual investor. Please go ahead.

[00:34:49]>> Hi uh good morning. Uh I think uh the management has done pretty well given that the government's flip-flop on you know uh monetizing the P uh power assets.

[00:35:05]But uh do you see that given you know current budget situation given the crisis in the Middle East and probably the government finances going to get impacted and they may have to sell the you know power grid as monetize the power grid to raise more capital if they are planning like 8 lakh crores of investment. Do you see government changing their illogical like security national security issue uh and you know allow power grid to sell assets uh that are already operational?

[00:35:42]Thank you Sil this is it's a very tricky question. I cannot say about government what government is but I see the positive part when the crisis occurs the people will be shifted towards the energy transition. You know what what happened last last day there was a peak has increased from 256 to 258 means it is and we are expecting the peak will go around to 65 to 70 means it is keep on increasing the uh from the energy transition people are uh all the uh authorities are putting up the clear picture the road shows which we are telling that 7.98 crores in this area as well as from uh it is not including the states intra states uh the figures which is also they daily you are seeing that one PG in bit TVCB projects is coming in. So there is no doubt they require equity and uh PGIT we see a very uh bright thing that once they come with the new projects they want to they surely will come out to monetize their you know old assets which is in operations and we are ready to take them. it is it is really if it is useful to us and it is uh you know useful to the unit holders so we'll surely go into that direction so it's a positive direction I can see that uh and we are very telling you that we will not be jumping into deals without checking the right boxes this is very clear and which is suitable uh uh on the basis of the operational history as well as the statutory requirements keeping in mind the overall interest of the unit holders >> thank you uh one additional question is that uh I understand I mean like the constraints uh especially given that you are part of a PSU and how the process works but uh I think the only thing like what we investors need is at least an uh one acquisition from PG init of a private player you know private asset I think that would change a lot of sentiment uh uh do you see that happening like uh before any state government monetization one like at least buy even if it is a small one a private uh you know distribution asset I cannot uh declare it right now but we are in touch with uh two or three private owners and they have shown interest in that and we are in touch with them we are under discussion and uh if it is become uh you know metalized we'll surely come it with uh uh and I am really agree with your concern. Yes.

[00:38:22]Only going uh towards the public sectors of power uh you know private transmission agencies also and we are uh working on that we are somewhere we are continuously in touch and surely I'm telling you that you will see results in that direction also.

[00:38:50]Thank you Mr. Sil. Please rejoin the queue for more questions.

[00:38:55]Next question comes from the line of Kumar Gupta with APMG and associates.

[00:38:59]Please go ahead.

[00:39:02]>> Uh good morning.

[00:39:05]>> My question that my question is that inituting more than earning. So capital is eroding and we are talking about new acquisition. So so what will be the for that whether in which will issue further units or it will in the shape of some loans.

[00:39:29]>> No uh Mr. Gupta we are not distributing more than what we are earning on the cumulative basis if you see we have been distributing almost what we are earning.

[00:39:39]So and for the second part of the question whenever we go with the acquisition for any acquisition we have ample headroom available for that race as per the init regulation we can go up to the uh 70% limited limit for uh the asset under management that we hold. So it will be a huge uh uh debt headroom that we have as of now. So primarily it will be debt funded whatever the new acquisitions we are going to make.

[00:40:09]We are having certain cash reserve. It is approximately around 350 crores cash reserve. We are having it. You can see the this thing also in your balance sheets and clearly >> it is more than 400 kores at SPV level and 224 K at the trust level.

[00:40:24]>> So there is ample cash if you subtract the 273 K distribution that was declared by the board still we have you know roughly about around 350 odd KES of cash available with us. So there's no and there's no question that any acquisition will be held up for want of the monies that is out of question is less than face value were >> the voice is breaking Mr. Gupta >> uh uh I'm uh just asking the NAV is less than the issue price of unit.

[00:41:03]>> Yeah. So it's very confirmed that the capital is eroding.

[00:41:10]>> So sir NA is a function of market valuation which is dependent upon the weighted average cost of capital used to discount the cash flows. You know in a given annual projects whenever the cash flows keep outflowing from the product the value is bound to decrease. So your concern is well taken care of and I think the chairman sir has you know elaborated it time and again that the invit is looking for the new acquisitions and uh hopefully there will be some good news to be given to the unit holders soon and uh the valuation will increase consequent upon the Speakers also speakers we cannot hear you.

[00:42:16]>> No. No.

[00:42:17]>> Hello. We are not. Can you hear us? Can you please go ahead? Yes.

[00:42:21]>> Oh no, it's okay.

[00:42:23]>> We we have replied replied.

[00:42:28]>> Uh Mr. Gupta, are you done with the questions?

[00:42:34]>> Since there's no reply from the line of Mr. Gupta, we'll move to the next participant.

[00:42:41]A reminder, please restrict yourself to one question. Next question comes from the line of Amit Chakraati, an individual master. Please go ahead.

[00:42:49]Hi uh thank you thank you for taking a call from indigenous investor sir my question is little bit different because we already talked about NMP and asset and monetization my question is now power power and renewable power and dees is kind of integrated even the new government contracts also when they are making transmission line they are telling to builds and capacity and all that so power grid itself uh is corporation itself is bidding and in BSS this area. So isn't plan for the power grid in to also look into this area because this is going to be future the way we like it or we don't like it. ESS and renewable power is going to be for future. So how can tab in that area?

[00:43:36]Uh yes I should not comment uh from the power grid side but uh of course power grid is uh moving in that direction that transmission business is their core business. they are working maximum on the transmission sets. You will see TBC projects they are gaining and all and uh BSS they are going because recently there is a regulation from the you know uh which we should not comment whether whether how long they are going in that direction but yes there's no doubt we are also evaluating the possibility in diversification in this area no doubt >> thank you Mr. Sakarati please rejoin the queue for more questions.

[00:44:23]The last question comes on the line of Bhat Lakman and individual Nves. Please go ahead.

[00:44:30]>> Uh good morning. Uh yes my question is like if you see when we purchase all these asset it's sale of assets but uh in the due course they change to sale of revenue rights. So I think uh when one like five quarters or six quarters before uh there was a discussion with the power grid they were not in a position to transfer the assets because of the revenue of rights with 18,000 VST but in all these uh quarters we have been saying that there are 7.93 lakhs of cr uh transmission lines are going to come but eventually power grid is not interested to sell it anything to PG because 18% GST is already there okay when they do the sale of revenue rights I want to know why we keep saying this and second one what how this is going to be different when you say state uh power transition whether that is also in the sale of revenue rights whether that also will attract 18% GST then that is a mismatch because each of the sponsors saying that they want to have the interest of their uh shareholders and PG team which says that we want to look into our uh interest of our shareholders. So there is a mismatch which I couldn't understand.

[00:45:53]Let me I I should not comment on behalf of powergate but that is clearcut that powergate has clearly expressed their preference toward the secretization and over in this monetization that is their you know fundraising strategy but it does not mean that others are also having the same way because maybe power grid is having a good uh uh you know to go in situation there will be more benefit side but it's not necessary the others will have otherwise other will will not be talking to us. So it is it is not that and uh we are further moving in that direction action. Key uh this clearly these the road map which is shown by CA or by the uh you know bul preservation and all it is really a big opportunity for ready investment for the vehicles like APG and bit to step in one by the TBC project secondly by the acquiring the operational assets. So I want to say that even some of the state utilities also because they have to bring out infrastructures I'm telling you uh they want that some operational assets can be given because new projects can be coming in the TBC but the old which is an operation which is their equity come out they will get some equity if they come to PG and bit so that is also area where uh they will like to uh give it to us for uh you know therefore they are meeting their capital expendable features and fund requirements. So we we are moving in that direction. It's not necessary that power grid what is doing will be done by or will we be uh you know for others also. So we anticipate that this progress of course uh it's a multistakeholder decisions and we are surely we are taking it and whoever will come out and we'll see that if it is in the interest of units we'll take it up.

[00:47:45]Uh just to supplement on that uh we have when we are mentioning 7.93 lakh cr or whatever it is not only about par not only about states currently the number of projects which are under construction by the private sector developers is significantly much higher than it was 2 years back. So that increases your expected acquisition pool going forward.

[00:48:09]So the more and more the works come up the the pool from which you can actually start discussing and choosing to pick projects increases. So that is why so every time when our respected analysts and investors they raise this particular question that why are you mentioning this? We are mentioning this because by hap by this kind of investments more and more the diversity of uh project developers also increases and the overall opportunity size also increases for us for look at acquisitions.

[00:48:42]Thank you.

[00:48:44]>> Thank you ladies and gentlemen. That was the last question for today. We have reached the end of question and answer session. I now hand the conference over to the management for closing comments.

[00:49:02]Thank you. Thank you very muchi for and your team for organizing organizing this call. Thank you every investor everyone for their time and participation. We truly value your continued engagement in with the power grid and look forward to interact with you in the future call as well. As a PGN, we remain committed to deliver consistent, stable and visible returns to all our unit holders.

[00:49:31]We sincerely appreciate your continuous trust and support. Thank you very much.

[00:49:38]>> Thank you on behalf of ICICA Securities.

[00:49:41]That concludes this conference. Thank you for joining us. You may now disconnect your lines.