Indigrid Infrastructure Trust (540565) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the India Grid Trust Q2 FY '23 Results Conference Call, hosted by Axis Capital. [Operator Instructions] I now hand the conference over to Mr. Jiten Rushi from Axis Capital. Thank you, and over to you, sir. Thank you, everyone.

Good evening, everyone. On behalf of Axis Capital, I would like to welcome everyone for the Q2 FY '23 earnings conference call of India Grid Trust. From the management, we have with us today, Mr. Harsh Shah, CEO and old-time Director; Ms. Divya Vedi Verma, CFO; Ms. Meghana Pandit, Chief Investment Officer; and Mr. Satish Talmale, Chief Operating Officer. We thank the management for giving us this opportunity. We shall begin with the opening remarks from the management followed by Q&A session. I would like to now hand over the call to the management for opening remarks. Thank you, and over to you, sir.

Thank you everyone, for joining the call. I will take through the presentation in the initial part and then I will have my colleagues Meghana, Satish, and Divya talk about some of the specific aspects of the business in the presentation. And we will take question and answer at the end of the presentation. Starting from Slide #3 of the presentation, where we are depicting our vision, which is to become the most admired yield vehicle in Asia. And we believe we are able to do before kind of strategy, which is focused on the business model, the long term contracts and low operating risks, focus on value accretive growth, keep providing predictable distribution and manage the risk and manage an optimal capital structure, we believe we'll be able to become the most admired yield vehicle in Asia. Specifically, to this quarter on Slide #5. We have closed the Acquired Raichur Sholapur Transmission Limited for about INR 250 crores on 9th November '22. This deal was signed in quarter 2, but we have been able to clear it in November 22. This is a very unique asset, which connects the [indiscernible] grid to the Southern grid, a very crucial asset. And if it is acquired from 3 [indiscernible] sector developers. So it was a consecutive transaction that took some time, but we are pretty happy about the value add which we acquired and the synergies with our portfolio that are going to rise. On the financial performance side, our revenue and EBITDA was 6% of year-over-year growth basis. Collections we got back better versus last quarter. We are at about 96% this quarter. In terms of DPU that we increased early on this year continues to track record, we're distributing people INR 3.30 a unit, which is about 3.5% year-on-year growth versus last year. And Net Debt/AUM at 57% still provide sufficient headroom for us to grow and acquire assets. Our AUM has increased marginally because of the acquisition that we spoke about and other factors that continue to that. Average availability maintained at 99.3% EBITDA, which will be covered by Satish in subsequent slides. We achieved 1 million safe man hours milestone achieved, we are [indiscernible] and hopefully, we can take this to 10. In terms of our implementation of DigiGrid which is digital asset management portfolio, which we have rolled out to entire portfolio now, and we are expecting to yield synergies of this in the coming quarters in the year. In general, all these initiatives are contributing to what we really stand for a superior total returns, sustainable increase in DPU and stable operations. On the next slide, Slide 6, quarter 2 FY '23 and this year date. In general, the peak power sector seems to be in a pretty exciting place. Our demand is increasing. In general, a lot of initiatives taken by the government, including increasing the share of green as well as the liability upgrade, it is heading into a substantial amount of impact on the sectors that we operate in. In general, the transmission spend is substantially higher in the next 5 years and we estimate to be about INR 1.4 trillion. The overall additions, both in terms of ckt kms and MVA in FY '23 are in line, but we expect these are going to increase as we go ahead because all the energy highways that they need to build or achieving the transition energy transition, both would eventually relating to substantial CapEx investment in the transmission space as well. The region, which is unique at has come out over the last quarter and the Ministry of Power has come out with guiding principles for monetization of transmission assets in the public sector through AOMT which is (Acquire, Operate, Maintain, Transfer) based Public-Private-Partnership model. Basically, what this means is that MOPs provided guidance on how space facilities can prioritize certain assets without giving the assets completely to [indiscernible] sector and eventually having a buyback or a transfer back to the government, which we believe is going to open up more downstream monetizations of utility assets in the country. So that's about what's happening in the industry and how we are approaching it. On the quarter 2 FY '23 operational performance I will invite Satish, Chief Operating Officer, who will take you through the performance of the quarter.

I am happy to present the operational performance for Q2 FY23. Starting with safety, we achieved 1 million safe man hours milestone and we would like to maintain the same status quo or make it better with a 0 incident quarter. So we had no major incident in quarter 2. Regarding availability, portfolio-wide, we achieved 99.3%. I will take your attention on the right-hand side where the bar chart of availability is shown. So you can see majority of the assets are more than 98% normative availability target. RTCL, which is -- there was a highway diversion job, which was undertaken. The impact of that you are seeing in the availability numbers, but this is commercially already recovered from NHAI. So practically, there is no impact on RTCL as a concern. The next asset JKTPL, where you were seeing 97.44 -- that is due to outage caused by the transformer. So this was a rarest of the rare fault, which was encountered into transformer. So we could be able to attend that and it got resolved in the month of October. And on the NER, as we discussed in the last quarter, there was a first outage due to the unprecedented flood. So happy to share that the circuits of NER are restored with the in temporary ERS - emergency restoration system and the permanent activities are ongoing and expected to be completed in the month of February. Coming back to the item side, on reliability, I think we are achieving one of the best benchmark data point on it trips/line and on this time to make it better as we move quarter-over-quarter. On digital asset management, all assets are now monitored via digital platform. So all digital field operations activity, including the HS quality, the entire process of operations are being monitored through a mobile application as well as from the back-end enterprise asset management platform. On the emergency preparedness, while we did our ERS installation, I have to share that now we have our own team, we point them as a quick reaction team, and they are trained now on how to build the emergency restoration system in the shortest possible time. In this quarter, we also measured our GHG emissions across the portfolio as a part of our ESG initiatives. And if you look at the numbers, we are one of the lowest contributor to these emissions. And we will put our efforts to improve on that as well. On the key indicators, which is there on the right-hand side table, the number of trips/line, we are at 0.15 side. This is increased compared to last year quarter because of the increased frequencies of understands and the lightning events across the country. And we are working at long-term mitigative actions on these challenges as well. The focus on training continued in the quarter on the ERS largely. Again, LTI is 0. We are maintaining the track record of 0. There is an improved reporting concern on unfit conditions and earnings, which is more of a proactive management of all the [indiscernible] across the portfolio. So rooftop solar generation also has increased compared to last quarter. Overall, on utility solar, 100 megawatts, there is a slight increase in generation as well and also our CUF percentage overall. So we are maintaining consistent track record as well as availability and reliability of the assets are concerned. Thank you, and we'll forward it to Divya.

Thank you, Satish. Good evening, everyone. I'm happy to present the quarter to financial performance for the trust. We have prompted a revenue of INR 580 crores for the quarter with an EBITDA of INR 535 crores comparing to the same quarter last year, it was as growth of 6% in revenue and EBITDA. NDCF generated for the quarter stands at INR 280 crores which is okay, the growth of 25%. This is on a real-term basis, excluding an item because in previous year quarter, we have repaid the [indiscernible] So the growth is almost same NDCF sales. DPU for the quarter stands at INR 3.30 as compared to the previous quarter, previous year, we were paying 3.19% at a percentage change growth of 4%. Collections for the quarter are at 96% as compared to last year of 105%. But we see a good catch-up in here because the quarter 1 was at 77% of the collections. DSO days at September 22 stands at 66 as compared to 52 days last year at September 21. For long term collections if you see from July 79% to August [indiscernible] and overall quarter at 96%. So this financial performance also gave us a belief and showcase a stable revenue EBITDA in year-on-year basis. Now I will move to Slide #9, which details about our DPU for the quarter. DPU for the quarter is approved by the move with INR 3.30, which will be paid in the form of interest of 3.11, and a capital repayment of INR 0.19. Outstanding units at the end of the quarter at INR 700.2 crores, which we made a gross distribution of INR 231 crores. The record rate for quarter 2 distribution would be 16 November and a tentative distribution rate would be on November 25. The NAV for the quarter at further on stood at INR 135.30 which increased from 133. With this distribution, we would have overall distributed about INR 65.11 per unit with the total amount into INR 3415 crores distribution to investors since listing. On the right-hand side, our quarterly distribution trends year-on-year growth, which is scaling up on an average rate of 3% to 4%. And we are on track to increased DPU guidance of INR 13.20 per unit. Moving to the next slide. Is it showcased NDCF Waterfall from EBITDA to a lease year generation. EBITDA at SPV recorded at INR 531 crores. No adjustments of finance costs, working capital movement, CapEx, tax at SPV, generation in SPV1 expenses at IGT and the finance cost and tax at IGT. The generation for the quarter stood at INR 280 crores for our guidance, we continue to distribute INR 231 crores for this quarter, we replenishing a result of around INR 49 crores. Last quarter, we were [indiscernible] our reserves and this year we are [ repleshing ] our reserves. So at gross level, we have some new reserves to each for any unforeseen connection, disparities for any other factor. That's for the quarter. And for the subsequent slides, I request Meghana to take it over.

Hi, good evening, everyone. I'm on Slide #11. -- spending a couple of minutes on the balance sheet position. IndiGrid remains strictly rated by all the 3 rating agencies. The average cost of debt at the portfolio level for debt of around INR 13,000 crores is about 7.51%. At the end of earliest September, we closed with a cash balance about INR 1,151 crores, which includes around INR 230-odd crores for distribution for Q2, almost about INR 380 crores for better and additional amount that we utilize for acquiring RSTCPL, which allows in the month of November. Out of the total INR 13,000 crores of loss borrowing almost 77% is a core, which allows us to insulate against the interest rate environment currently, which is on the highest center. So we are at a very healthy net debt to 1 percentage of 57%, leaving significant headroom for acquisitions with a cap of 70% at project generation, along with that, the interest coverage ratio and the [indiscernible] 2.19x. The incremental debt that we raised in Q2 the cycle which we also stood at around 7.5%. Looking at the [indiscernible] side, the gross borrowing proportion between [indiscernible]is almost about 60%, 40%, even amongst entities it's a [indiscernible] between mutual funds, corporate retail insurance companies, banks similarly loans from public sector banks as well as private sector banks. Looking at the graph towards the bottom, the retained in refinancing schedule. As you can see, there is no bank maturity, which we have been working towards over the past several quarters. And we may sure that in any particular view the refinancing percentage does not move from 10 -12% be the gross border. FY '23 remains as on 30th of September at a Repayment/Refinancing Schedule of about 2.73 bps as we speak, already stands finance. So we have a very well diversified in terms of borrowing profile as divested -- moving on to Slide #12. We continue to deliver Superior Risk-Adjusted Total Returns to Investors. Total return is depicted with the distribution, which is almost 62% that has delivered since the time has got relisted till the end of September and the price change of almost 43%, which translates into an annualized return of 14% compared with [indiscernible]debt securities on the midterm side [indiscernible]. Similarly, on the right-hand side, compared with co-pay equity in the C5a B2C utility revenue company. [indiscernible] continues to deliver risk and detainees. -- risk being the [indiscernible]you can see in digits, is only most close to be compared to the other on equity in business as well as other equity acts. Moving on to Slide 13. This is about the RSTCPL Acquisition that we recently completed. Raichur Sholapur Transmission Company Private Limited (RSTCPL), is a TBCB transmission project which was in 2014. It has been operational since 2014. ISTS TBCB transmission project which connects Raichur in Karnataka and Sholapur in Maharashtra. It is a 765 kV single circuit line with a line length of 208 kms. This project also has also awarded on a BOOM basis, built on operating metering and is also part of the PoC mechanism by CTU. The PFS of 35 years balance remaining of [indiscernible]-- we acquired this project from a consortium of key private developers for air engineer in tension setups and transport. And of the project or the enterprise edition was close to about INR 250 crores. We are expecting that this acquisition will add INR 10 crores to INR 11 crores of net distributable cash flow per year. Being the ISTS TBCB projects pipe into the integrated state of acquiring operation assets, which has had a history of one selling to similarly the [Technical Difficulty]. With our existing portfolio in the state of Maharashtra and on the Western side per se, there are significant operations inverts, which this project also led to the reason. Moving on to the business outlook that what we are looking at 3, 4 aspects that we are looking at. One is focused on maintaining stable operations with the perspective of predictable and sustainable distribution while looking for value accretive acquisitions. And again delivering on increased DPU Guidance of ? 13.20 for FY23 On the acquisitions or the growth 529, we are seeing a significant activity in the transmission of talks with almost INR 1,400 million of transition projects, which are looking at it to the grid, which essentially means that care developers as in the [indiscernible] will monetize these projects and we will begin to look at awarding them. In additive to that, under the National monetization plan, also the to be a healthy growth count of almost INR 450 million. In addition to power transmission, we are also exploring acquisition opportunities in power transmission and adjacent spaces like utility-scale battery storage. [indiscernible] to the growth strategy and just look at improving the balance sheet strength by looking at on optimizing interest cost and elongating tenures for incremental acquisitions look out -- so we maintain an adequate liquidity to mitigate any uncertainties or unpredictable scenario that may come about. On the resilient asset management side, our focus continues to be on the more than 99.5% availability similarly maximize events across each of the projects. With DigiGrid getting implemented across the portfolio either to improve and expand its functionality in order to imposing as well as focus on ensuring welcome of the interest in net practices. The policy initiative we continue to be -- to continue to remain active. We are working with all the regulators to try to streamline tax anomalies between equity and InvITs, similarly certain other initiatives like indexing, specifically for InvITs/REITs which will allow improving the debt in the market is something that we are also working on. All of it, focusing on assented returns, sustaining increasing the IndiGrid operations. We will stop here and will invite to get into the Q&A session, please.

[Operator Instructions] The first question is from the line of Rahul Marathe from ICICI Prudential.

Congratulations on a good set of numbers. So I was looking at the slide for EBITDA to indicate waterfall Slide 10. So in that, we can see that finance cost has some impact of ECB loan refinancing. So can you spell out the impact as in the quantum there.

So basically, as we have repaid our ECB and this time in a was completely hedged. This interest cost is net of the ECB hedge income, which we have on because of scaling up the former contract. So that was around INR 9 crores to INR 10 crores.

Okay. And do we have any outstanding ECB or all the ECBs repaid?

Everything is repaid.

Yes. That was ECB question from my side.

The next question is from the line of [ Ravi Chandra ].

Most sense of that. The question is looks like the acquisition plan is not in a very near future 23-24. We could differ. [Technical Difficulty]

One of them is a same asset which we are looking at, which is about INR 1,500-odd crores for [indiscernible]. So that is one of the largest acquisition that we are looking at right now. Besides that, also, there are certain acquisitions we're looking at, but they are not at a stage where we can disclose about it. But [indiscernible] already disclosed in part of the framework assets. So that's something which is lineate.

Okay. And the government monetization plan MOP, it looks like it is more of means rather than direct acquisition. So cost of acquisition might get ready visited...

Not really sure of that because it is going to be largely in the way the roads that have been monetized in India, right? Like it [indiscernible] that you acquire a role, you acquire write of a particular period in they pay back. In any case, the moment there is a contract [indiscernible] live. The difference between a [indiscernible] is relatively lesser in terms of the overall cost. So I won't read much into that.

The next question is from the line of Pratik Kothari from Unique Portfolio Manager.

So we had the practice of sharing this indicative DPU over a lifetime. I mean any intent to restart the practice again maybe on some frequency?

I'm sorry, can you repeat the question, we have a practice of sharing DPU.

Indicative BP across the -- across assets, what are on revenue would be to share...

Yes... Correct. No, I think it's a good projection. We used to share it very early on. It is not a guidance or an indication of how it may look from current assets growth assets. Is that what you're referring to? Yes. No, I think it's a good position. We will try to see if we can publish it.

Fair enough. Sir, for now to put it different in the 13.2% that we do on an annual basis, this is sustainable for how long, giving no new asset content.

So this typically when the use projection or increase, we worked in a way that at least it is sustainable for 5 to 7 years. And similarly, I think even this is done with the same assumption in mind.

Okay. Fair enough. Just last to confirm, there is no factoring that we did this quarter, right?

No.

Okay. Great. Thank you.

The next question is from the line of Prateesh, an individual investor.

So first question regarding we saw a certain movement in management [Technical Difficulty] and then was appointed the CEO and again, within a couple of months in there is a change. So I just wanted to know if there is any material reasons with respect to that. [Technical Difficulty] with respect to AUM to continue over the next couple of years or crore... Long project, then what would be a rough time line for that for acquisition-- so yes...

So the last one, I'll take first. The [indiscernible] project, I think it's very difficult to give a time line on when we acquired it, but it looks like that we will be able to do it by the end of the quarter, which you also have an agreement until then a counterparty to acquire by December 22. So hopefully, it should happen by those. The other project, which we have acquired is about INR 200 crores, INR 250 crores, that is going to be finished by quarter 3 of next year. And over next 1 year, I would say that we clearly have visibility of about INR 17 crores or INR 1,800 crores of AUM getting added, which is around 7%, 8% growth. I think beyond that, -- as we have said before, we are not into a year-on-year AUM growth business, we would look for assets which are reasonably priced and meet the criteria. Looking at what is happening in the interest rate scenario and are, we are hoping that we would find the taxes going forward. So we will look to acquire as and when we get something which is reasonably tied. On the management change, I would say, a lot of things are public already. But I can say there is nothing which is a big material development [indiscernible] So that would be a clarification.

In the main growth rate, are you looking to in the addition to Catalano we are 58% all now. [indiscernible]. But would that be on the cards I am in one of the slides that with respect to the investor leaders we are working for in risk alternate mark Q3 also margin on the SPV is not allowed on -- it did allow some loss for anything algos listed after it. So this question we ask an earlier con call take a little push of level for not push but like we would in respect to that the[indiscernible] in the increment on par with other listed.

Sure... I think on the second point, I'll take first on the margin. And as we said before, it is not appropriate, and we have been talking to exchanges and steady results. But as a company, there is very limited that we can do on it. I think it is investors prerogative should write about it because at the end of the study to protect investor interest. So the investor can rightfully [indiscernible] say that we do want this done. I'm sure they'll do something about it. But beyond the point that we rightly put it, it's very awkward for the company to go and put steady that allow this to be treated as a security for pledge. But I think the informal interaction is that investors should approach regulators. That's the feedback that we have given that why the company approaching, let investors approach. So that would be my 2 bits on that to right to say, they are very receptive on opinion from investments, especially on these kind of things. So it would be great if you guys right, it would help the call. On the earlier question you mentioned on reusing. So I think 57% is substantially lower and we get to use it as and when we see assets. I mean [indiscernible].means that we can acquire 60,000, INR 70,000 crores of assets without raising equity. I'm not exact to 6%, 59%, which as very close to our limit. So it's a good headroom available for us to grow whenever there are large M&A assets available. And we will look to acquire when the price is right. The asset is right and we keep the flexibility with us.

Okay. Also take it [indiscernible] of transformer events, they are available on material revenue effect to health. Part to…

I can give you perspective of JKPCTL size in the overall size of the revenue of IndiGrid about 2%. We are talking about point -- we are talking about 2% or 2%, right? So it's definitely not material. I don't think it needs to be a topic...

The next question is from the line of [indiscernible] Capital.

I just have one can question, there was an impact due to outage there was a utility issue over there. So just wanted to understand how all this impact in the financials like you and internally penalty which you guys have to pay to making your ability...

So okay. So I just answered that question in the last participant. But JKPCTL put together an annual basis about 2% of the top line for digit's fairly small. And the amount of revenue losses in 0.01-0.02% -- it's fairly small. It doesn't impact overall profitability or sustained India. It's a very small asset. We are just disclosing it in spirit even smaller assets deserve the disclosure on that. So that's why it could close Otherwise, it's fairly small.

So do we take any precaution to provide any major issue on some other [indiscernible] some questions.

We really, I mean, we take a lot of precautions that Satish described in his presentation. But at the end of the day, we are operating 54 lines and substations, right? So at any point in time, they can be up flood or earthquake or something somewhere. But because of our , we ensure that while we take precautions, none of the assets are really large enough to make a big debt. And if there are certain assets aligned which allow we ensure that there are double precautions taken [indiscernible].

The next question is from the line of Rahul Marathe from ICICI Prudential.

So there are certain news articles where we can see that KKR is tying up with Starlite power to create a renewable energy platform. And we also are exposed -- a small portion of our portfolio is exposed to the renewal power segment. So do we see any kind of conflict of interest that we have a sponsor, which is creating a separate platform outside of this...

Sure. One to answer, I mean, one question, KKR and a sponsor has limited lower dividend they are more as a manager Second, we always have, I mean, we have always flexibility to do other platforms within [indiscernible] we are addressing a very, I'd say, limited set of opportunities in the power space, right? One is transition, second as within renewable also only select counterparties, right, good counterparties. So we are addressing out less than 5%, 10% of overall the mutuality market where we are looking to acquire. Whereas, again, why I understand the JKPCTL which is done with ICT [indiscernible] is to address C&I opportunities, which is more private contracts and bilateral contracts, which are in low way in targets or even size or invite to be acquired. So I think it's fairly, I would say, independent of what we don't see a potential conference of that...

The next question is from the line of [indiscernible]

Yes. So could you just help me reconcile the INR 11 crores plus on the new asset. So as per my understanding, the revenue is INR 38 crores and 7% to 8% operational expenses, about INR 3 crores of operational expense. And even if you assume we take INR 250 crores or debt at 7.5%, that's about INR 19 crores. So INR 19 crores, INR 21 crores plus should be about INR 16 crores, right? Or am I missing something?

So this asset also has a decline. So the -- this is the NBC number that we give as an average over a period of time and that how it comes to INR 36 crores -- billion-- so on average, that's the industry model.

Okay. So in the first 2 years, you will be higher, right, than the INR 11 crores number that...

Yes. If I can add on that. I think what you are calculating is on an entire INR 250 crores as a consideration, whereas the INR 250 crores included certain cash because the transaction was agreed or signed some time ago. And therefore, it includes certain cash on which there is no interest to you pay. So if the liability will be lesser than what you have completed?

Right. So in the first year, maybe our surplus will be closer to INR 20-odd crores, right?

Exact numbers... Right? I think we can guide you directionally how to do the maths, but can't be enough...

Secondly, the assumption that we do not acquire any of our assets, how much debt are we retiring every year.

So at a consolidated level, we are not retiring any debt because we are at 57%. We would start retiring that when we reach 55%, 58%, then rolling it makes sense. [indiscernible]

The next question is from the line of [indiscernible], an individual investor.

Sir what will happen to the asset after the [indiscernible]. I mean, you said that this average of 29 years in the presentation. And some of [indiscernible]

So let me try to address it in a very concise manner. But in some of the earliest [indiscernible] elaborated in debt -- many of the assets, especially the interesting transformation system assets are on a boom basis. So we will remain continued owner of those assets. There can be potentially peak in assets. One is that there is a replacement value type of [indiscernible]. Second is, there is a cost-plus regulated tariff that is allocated to them. And third is that we do need the transmission line, then we just sell the beta pay the distribution to the investment. In either of the cases, there is a substantial chunk. And as we disclosed in our presentation, the overall tie of metal that there is about 30,000 tonnes of steel and about 121,000 metric tonne of aluminum. You were to see it even the value of today evaluate a substantial size of our market cap. And therefore, on a footplates with a little bit of inflation will be a significant payment. If the line's life is not having I mean it's 30 years ahead, difficult for any of us to project it, but the principles are same that the assets belong to us and either will be compensated for respectable tariff from that? Or you will end up selling the metro [indiscernible]. one time value of that. It could be a -- our more predicated debt is that the electricity will continue to be required to be transmitted in a tire voltage. And therefore, there will be a reasonable amount of compensation that will be made to be as…

So I just had a question around the waterfall for the NDCF and the gross borrowing slide. So as for FY '19, we have announced [indiscernible] crores of repayment. And then in the NDCF, we have 2 finance costs that are being sold on under SPV level and [indiscernible] cost level. So that is around INR 239 also at the cost level and around 12 or so at the SPV level. So just wanted to understand how to read this because it looks like we will be almost repaying everything for this for, right? But should we look at the trust finance cost? Or is it the final cost? Or is it the sum of both from the SPV and Drs.

So let me address that in a simple way as we can. You see interest expense at the SPV level because in last quarter, we had one loan at the SPV level of [indiscernible], which we have repaid this quarter. And this or next quarter onwards, the finance costs at the [indiscernible] will be zero, the confusion will go away, right, before they used to borrow at both levels and that -- that's the reason that you see it in motion. The second question, last on the refinancing. I think it has no impact. We just refinanced it INR 900 crores, about less than 10% of our overall borrowings. So that we are able to refinance as an ashore. I hope that addresses question...

Yes. So I think from the next quarter onwards, the finance cost at the [indiscernible] level will be the more sudden matter, right?

Right now also, that's not matter, but there the 14.1% might confuse me because that's our [indiscernible] FTE. So that's getting -- that's already refinanced this quarter. So next quarter, then will be 0 over there.

The next question is from the line of Pradyumna Dalmia from Lansdowne Investment.

My question was about regarding the management shuffle that we've seen in the last quarter. Just was wondering if you could throw some light on why it happened and then this provides some reassurance to investors that going forward, there will be more stability in the management.

So I think, as I said, a lot of it is public already, but we see [indiscernible] the reasons are already made public for my resignation and that's something which is there. And as there was considering the alternative over there, there was a vacancy to get that completed. And I think that was an action I would say, a choice for me considering that I've been here the longest term [indiscernible]. So that was it. I think going forward, there is also I think the way investors can read it is that the individual created over last 6 years, and I have played out [indiscernible] role in that. It is not people specific, right, at the end of the day, it is kind of near as an institution. We have a very deep management team at [indiscernible] therefore, at the end of the day, there are always people related changes that business goes through -- but the way the institution is created, and I'm talking about dependent on me or anybody else for that matter, is that the business and the stability will continue to be our people. And therefore, I would rather comfort investors on that, that they shouldn't worry about beyond the point in terms of 1 or 2 changes in the management. And I think that the business is robust systems and processes are robust. So we have created the platform for 30, 40 years or longer, and that will continue to deliver what we had planned for. So I hope that addresses the question.

There's a lot further clarification here, but I can only say from my investors point of view that we hope to have you for as long as possible [indiscernible] that indeed have created this platform really very, very pleased and happy with the way things have panned out.

The next question is from the line of Pratik Kothari from Unique Portfolio Managers.

Please throw some light on -- over the last maybe a year or 2, we did see a dry up in terms of deals that we made so in terms of inquiry keeper pipeline, it has been flowing in the right way. we did talk about in the presentation that there's a lot of assets coming on, but then in the future any change that you see in terms of what we can bid for.

Again, I'll start with first point of view. We are focused on delivering stable expense and these are getting evaluated, not early investments to evaluate based on how many thousand crores of assets is getting acquired every year. We will acquire which is something makes sense. And many a times, as you would see an even normal market investments. The review for on the assets, and you may not want to acquire because they are not available at the right size of it, too much competition and several factors take place. So I would suggest that please do not evaluate us based on how many thousand crores we acquired year each year or each quarter. Maybe in the 3 to 5 year is a bit of horizon to look at because that provides sufficient time frame for investment manager or management to acquire the right set of assets for the right [indiscernible]. So that's just an opening remark on that. Coming to the sector, I think IndiGrid will do well when considering we are -- the way we are structured, the balance sheets that we have acquired assets to now. We will do well relatively interesting kinds of volatility, where there is cash crunch, higher interest costs, lesser asset value volatility because that is the time for us to look for table assets at a reasonable size. And that's something which would be an environment we would love. At least we're looking at them again as we don't predict macros, but looking at the economics, that macroeconomic scenario that goes on, maybe increased cost, less and liquidity might result in more volatility in the market, which might show up better opportunities for us to acquire, right? So I would say, I don't know whether that's going to happen in 3 months or 2 years, but at least the [indiscernible] are seeming to be favorable over there. So that's one. Second, in terms of what is in our control and our strategy is that what we are doing is to figure out sectors and assets which we can add value to. And therefore, we did renewables some time ago. We are looking at battery storage projects, which we think are the future and they are part of almost section kind of transmission projects of electricity projects. So we do see those bids coming out actively. Again, we can't guarantee a win because it depends on the return and that operate in that sector. But we do see that opening up well, and we are looking to bid for that, right? And if we bid that will be a chunkier asset that they are [indiscernible] portfolio. Because that, as you might have seen, we are also doing a little bit of development, and we acquired 1 project over last year on under-construction stage. And that's going on well as we'll be finishing that next year, when at the platform level, it's a very small project, just about INR 200 crores, INR 250 crores. But it is a very strategic move for us because we want to build those capabilities, confidence and team to ensure that we can, however, small, do development as well because we'll remain within the framework of steady and 90% operating assets, but with 10% throws a good opportunity for us to bid for us, execute by then and have a better accretion. So and the last one is we are pretty happy about the announcement and the policy of monetization, at least to be clear about what should be done. So again, time lines can be 1 year to 5 years of when public monetization takes place. But as and when come, it can be significant. So the way to look at it is we are looking at playing within an acquisition of transmission assets that we did in the past. We are looking at a little bit of diversification on renewable [indiscernible] storage. How we are looking at bidding for some of the transmission assets, which is a significant pipeline. And the fourth is public asset monetization. So between all of these 4, again, we don't know which one will fire well, but we believe as long as we have enough value shop in all these 4, 1 or 2 will result into a reasonable amount of growth for us.

So in terms of the macro environment, you mentioned where we might do well, your liquidity can hire interested rate [indiscernible] etc. -- so that has not come in. In terms of deal flow that you are seeing, as what it was signed to 18 months at...

Yes, regarding in that's evident in the market, right? So hopefully, it...

The next question is from the line of Prateesh, an individual investor and.

Yes. So just coming now to JKPCTL, I know the other one into revenue integrated. So just to understand, if the line efficiency is not maintained, and we lose the revenue for the entire quarter. I mean that would be correct on the other assets, right, for it. So I just wanted to understand how much [indiscernible].

So it's all proportionate. It is support to what we do. We don't lose revenue for the whole quarter. So again, theoretically speaking, if in the quarter, your revenue was INR 7 crores or INR 10 crores. Instead of 99.75%, you have 97%. You lose 97% by 100%, about 3%, 4% of that quarter. So it is on a proportionate basis. It is not on quarter revenue that we use.

Okay. Okay. No, what I understood was that if we know a particular cash level, the availability is not there, then we are losing significant amount of revenue for the quarter. I think the performance in kind of a [indiscernible]so that understanding is not correct.

No, it is a proportionate one... So you have a target availability given the annuity, so that's a proportionate one that we lose. It's not as it only a…

Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.

Thanks a lot for everybody to join the call. I believe today was [indiscernible] call. So thank you for taking out time. We said that we are committed to predictable distribution and growing that, and we are focused on that [indiscernible] that and look forward to your critical support on...

Thank you. On behalf of Axis Capital, we would like to thank you for joining us. You may now disconnect your lines.