16 Nov 2021

IndInfraviT

IndInfravit has 11 toll projects and 2 annuity projects located in Maharashtra, Telangana, Karnataka and Rajasthan. Sponsor of the IndInfravit is L&T Infrastructure Development Projects Ltd and investment manager is LTIDPL INDVIT Services Ltd, who has 2 decades of experience in managing infrastructure projects.

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Team INRBonds
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IndInfravit has 11 toll projects and 2 annuity projects located in Maharashtra, Telangana, Karnataka and Rajasthan.� The growth in traffic in the overall portfolio in passenger car unit (PCU) terms stood at 4.5% between October 2020 and February 2021 compared with the traffic during the same period a year ago, supported by robust growth in passenger vehicle category. With the second wave of Covid-19 impacting traffic across the country, the toll collections in IndInfravit toll road assets have also witnessed a decline in April and May 2021.

Sponsor of the IndInfravit is L&T Infrastructure Development Projects Ltd and investment manager is LTIDPL INDVIT Services Ltd, who has 2 decades of experience in managing infrastructure projects. IndInfravit trust has been rated AAA by ICRA. Debt repayment for 2-3 years stood at Rs. 3000 million p.a.

 

Revenues from the initial projects reported at Rs. 9248 in Fy21 and projected revenues for Fy22 are to reach Rs.11485 million, 24% growth YoY. With the second wave of Covid-19 impacting traffic across the country, the toll collections in IndInfravit toll road assets have also witnessed a decline in April and May 2021.

Dividend and interest pay-out history

Credit Positives

        Liquidity profile of the trust

        Operational collection

Credit Negatives

        Higher maintenance costs & periodic capex

        Rising inflation & fuel cost (lower traffic)

        Further leverage

Distribution of income mechanism to Unit holders

        Distributed of income will be in form of interest, dividend and capital repayment.

        90% of net distributable cash flow will be distributed to unit holder.

Tax Treatment

        Any dividend or interest income from an InvIT is completely taxable as per income tax slab rate.

        Dividend payment by SPVs to InvITs are exempted from TDS.

        If unit holder sells InvIT units and earns capital gain, then unit holder has to pay tax.