IRBINVIT — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

IRB InvIT Fund

Transcript of 4th Annual General Meeting (AGM) of IRB InvIT Fund (“Trust”) held on August

26, 2021 at 11.00 am through Video Conferencing (“VC”)

Welcome address by the Chairman

Good Morning to all the esteemed Unitholders, I welcome all of you to the 4th Annual General

Meeting of IRB InvIT Fund held through Video Conferencing in compliance with the applicable

provisions of the SEBI (InvIT) Regulations & circulars.

I now introduce my co-directors on the Board of Investment Manager, who are present with me

through this video conference.

Vinod Menon, Whole-time Director and CEO and Mr.

Tandon, Independent Director.

We have also requested Mr.

Virendra Mhaiskar, Chairman of the

Sponsor to be present in the meeting.

The Trust has enabled the Unitholders to participate at the 4th AGM of the Trust through the video

conferencing facility provided by KFin Technologies Private Limited Registrar and Transfer Agent.

The proceedings of the AGM are also being web-casted live for all the Unitholders.

Since requisite

quorum is present, I, with your permission, declare that the meeting is in order and commence the

proceedings of the meeting.

The Notice and auditor report along with the Audited Accounts are with

the permission of the Unitholders, considered as read.

On behalf of the Board of Directors of Investment Manager, it gives me great pleasure to share the

performance highlights of the IRB InvIT Fund (“the Trust”) for the financial year 2020-21 with you.

During the Financial year 2020-21, the rapid spread of COVID-19 pandemic led to an adverse impact

on businesses across the globe.

Financial year 2020-21 was an exceptional and unprecedented year

due to the pandemic.

Despite the challenges it posed, your Trust ensured a distribution of Rs. 8.50 per

unit for the year.

In relation to the Surat - Dahisar project we have received the expected extension from National

Highway Authority of India (NHAI).

Due to the ongoing farmers’ protest, tolling in Amritsar - Pathankot project was affected and

collections were halted.

We have intimated NHAI of this event and sought compensation under the

Force Majeure clause of the Concession Agreement.

The Trust continues to enjoy AAA rating for its

For the Financial year 2020-21, we were hoping to acquire some projects which in turn would extend

remaining concession period of the portfolio, but in spite of our diligence for number of projects, it

was not possible to find a good project which could have given us a reasonable return.

ahead for better opportunities for acquisition of good projects which will enable us to earn good

returns than what we are earning today depending upon the favorable Government policies and the

pandemic situation.

To conclude, I once again express my sincere gratitude to all the unitholders for continued faith in the

Trust and the valuable support and guidance from time to time.

I now request the Company Secretary to brief the members regarding the arrangements made for the

Company Secretary

Dear Unitholders, The Trust has enabled the unitholders to participate at the 4th AGM of the Trust

through the video conferencing facility provided by KFin Technologies Private Limited, our

Registrars and Transfer Agent.

The Unitholders have been provided with the facility to exercise their

right to vote by electronic means, both through remote e-voting and e-voting at the AGM as per SEBI

The Unitholders joining the meeting through video conferencing, who have not already cast

their vote by means of remote e-voting, may vote through insta-poll e-voting facility provided at the

Mihen Halani, Partner of M/s.

Mihen Halani & Associates, Practicing Company Secretary,

has been appointed as the Scrutinizer to report on the combined voting results of remote e-voting and

the Insta-Poll for each of the items as per the notice of the AGM and Insta-poll would be disabled 15

minutes after the termination of the AGM.

I request Moderator to keep the floor open for the speakers.

We will aggregate the questions/

comments first from all speakers and reply them together.

Also, Insta-poll is active now and the result

of the Poll and evoting will be announced by August 27, 2021.

Question and Answer

Some Unitholders have raised few questions/queries which were answered by the Chairman and CFO.

Following is the summary of Q&A.

What will be the payout for FY22 considering the impact of 2nd wave?

Reply: We would not be able to provide any firm guidance in this behalf.

However, our endeavor

is to better the payout in comparison to FY21 which was Rs. 8.50 per unit.

What is outstanding loan as on March 31, 2021?

Reply: Outstanding loan as on March 31, 2021 was Rs. 1,476 Crs.

What is the average rate of interest and further need some clarification reduction of

interest, if any?

Reply: The average rate of interest for Financial Year 2020-21 was ~7.60%.

reduction will be dependent on policy rate set by RBI and the extent benefit passed by our

Rating assigned to the trust and whether there is any threshold in the rating?

Reply: The Trust continues to enjoy AAA rating by CARE and India Ratings.

threshold in the rating, however this would depend on the type of asset acquired by the company

and the quantum of debt availed by the Company.

Any update on new acquisition in coming years?

Reply: As a growth strategy the investment manager of the Trust is always looking for

opportunities of acquiring new assets under InvIT.

On interaction with the investors and their

views and opinion about the new acquisition, unanimously most of them were of the opinion that

the trust should acquire only mature assets generating good cash flows and are yield accretive

They prefer new asset should not be impacting the existing returns to the

Considering the expectations of the existing investors the investment manager is also

looking for assets outside the sponsors assets.

We are looking for HAM projects to provide

stability in cash flows and confidence of investors.

What was NAV as on March 31, 2021

Reply: NAV provided by the Independent Valuer as on March 31, 2021 was Rs. 104.75 per unit.

What is the tariff increase for projects undergoing revision for FY22?

Reply: The tariff increase for 4 projects i.e.

Tumkur Chitradurg, Jaipur Deoli, Pathankot Amritsar

and Talogaon Amravati Project has got a tariff revision of ~ 3.8% applicable from 1st April 2021.

From 1st July 2021 the tariff revision for IDAA is 7.9%.

For IRBSD and MVR, rate revision will

be 1.5% and 7.9% respectively from 1st September 2021 onwards.

What was Cash balance as on 31st March 2021?

Reply: On console basis, cash balance as on March 31, 2021 was Rs. 396 Crores.

What is impact of 2nd wave on toll collection?

Reply: In the 1st Quarter (April and May) of FY22 there was a decline, however since the 2nd

week of June there was recovery which further improved in the month of July and August.

When we can expect Distribution in the form of Dividend?

Reply: As per provisions of the Companies Act, the Company would be eligible to distribute

dividend once the Company starts generating book profits.

As per the original projections, we had expected to distribute the dividend to unitholders in FY21

assuming the annual growth rate to be in the range of 9.5 to 10% p.a.

However, due to Covid-19

pandemic, there has been decline in the traffic.

This has further deferred the distribution in the

form of dividend.

With 10% revenue growth assumption for FY22, we expect to pay dividend

from next financial year.

Details of Distribution made since listing and for the Financial year 2020-21?

Reply: Since listing the Trust has distributed Rs. 41.30 per unit (Rs. 30 as interest and Rs. 11.30

as return of capital) till 31st March 2021.

In financial year 20-21, Trust has distributed Rs. 8.50 per

unit (Rs. 6.50 as interest Rs. 2.00 as return of capital)

I would like to add that if the pandemic situation comes under control and if the traffic recovery

continues as per the expectations, hopefully we will be able to achieve the growth of ~10% and it will

be possible for us to distribute the dividend.

Our toll collection through FASTag (ETC) has reached more than 90%.

This has increased

operational efficiency and transparency.

I would now request Mr.

Virendra Mhaiskar, Sponsor’s Chairman to share his thoughts on

opportunities and activities in the sector.

Sponsor’s representative - Mr.

Virendra Mhaiskar

Good morning to all of you.

About the developments & opportunities in the Sector, the FASTag has

been a very revolutionary thing in the whole country as more than 90% of the toll collection has

shifted through FASTag and this has also eased congestion at the toll plaza improvising experiences

With regard to new growth and assets, the focus has to be on value accretive asset

As we look at the existing portfolio of InvIT, all projects are toll road projects.

contemplating to offer HAM projects which can change the revenue composition of the InvIT

As some of the Toll Road Projects in the portfolio will give high growth of traffic post

pandemic, on the other side HAM projects can offer InvIT the steady revenue stream – given the

annuity nature of revenue they have.

We as the sponsor can offer eligible projects to the trust and we

are working towards it as there are few HAM projects which would be completed in future and we

would endeavor to offer to the Trust and see if the Trust management is interested in taking over those

As far as the overall traffic scenario is concerned, post 2nd wave of Covid-19 and seeing the amount of

vaccinated people in the country; I am optimistic and looking forward to the growth and the business

coming back to the expected levels.

I am thankful to all the Unitholders, stakeholders, lenders to support us and help us to make this 1st

InvIT Trust a great success.

I am happy to note that Rs. 41.30 per unit is distributed by the Trust to its

Unitholders since Listing and the endeavor for better distribution in coming years.

Now, I propose a vote of thanks to the Directors, the Sponsor, the Trustee and above all, the

Unitholders of the Trust.