Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Sahu from HDFC Securities. Thank you, and over to you, sir.
Hi. Thank you. On behalf of HDFC Securities, I welcome everybody to Q3 and nine months FY 2026 earnings conference call for Capital Infra Trust. We have from the management, Mr. Hare Krishna, Chief Executive Officer, Mr. Amit Kumar, Chief Financial Officer, and Mr. Nilesh Khemka, Director of Finance. I now hand over the call to Mr. Hare and the management team for their opening remarks, followed by the Q&A session. Over to you, sir.
No, thank you, Aditya. Good afternoon, everyone, and thank you for joining us. In January, the Trust has completed its first IPO anniversary, and we would like to thank all the unit holders for their participation in IPO and subsequent fundraisers. Q3 FY 2026 has been a strong and value-accretive quarter for Capital Infra Trust, driven by solid operations, disciplined balance sheet management, and continued progress on our acquisition-led strategy. Five annuities pertaining to the quarter and aggregating to INR 347 crore were received. We completed three high-quality HAM acquisitions for INR 2,350 crore and expanded our AUM to INR 6,733 crore with NAV rising to INR 72.31 per unit. These outcomes were supported by INR 345 crore preferential issue and the INR 1,250 crore QIP and the prepayment of INR 420 crore of borrowings, collectively strengthening our financial position and supporting long-term growth.
Before I move into the detailed updates, let me briefly summarize our performance on key matrices. Firstly, our yields are now fully normalized, with distributions reflecting steady-state annuity cash flow. The DPU for Q3 stood at INR 2.34 per unit, comprising INR 0.89 per unit of interim distribution and INR 1.45 per unit for the quarter. Cumulative distributions since listing now total INR 33.09 per unit. As we had guided earlier, the higher payouts in FY 2025 were supported by IPO-related cash reserves, while the FY 2026 run rate now reflects a stable, normalized annualized yield of 11%-12%, fully backed by recurring annuity-driven cash flows. This positions the Trust comfortably in leading position with regards to benchmarking with cash yields and reinforces the long-term predictability of our distribution. Secondly, our NAV saw healthy growth driven by accretive acquisitions and continued deleveraging.
Our NAV increased to INR 72.31 per unit this quarter, a 7.2% rise over Q2 FY 2026. Notably, the reported NAV does not include the GST -CIL indemnity claim from NHAI of INR 60.6 crore, which is fully contractually protected and expected to be realized between Q4 of this financial year and Q2 FY 2028, providing additional upside in the periods ahead. Thirdly, debt management remains our priority, and we have progressed substantially on this front. We have rationalized our debt in last quarter by INR 410 crore through equity capital raise and internal accruals. We have undertaken fresh borrowing of INR 1,100 crore to finance ROFO asset acquisitions. The additional borrowings were completed in January this year at floating interest rate of 6.85% PAPM linked to three-month T-bill and repo rate.
Additionally, we have firmed up our plan to refinance our INR 933 crore of debentures through a mix of debentures and rupee term loan, again at an interest cost of 6.85% PAPM. As such, during Q3, our net debt-to-EV ratio improved to 43.34%, and by March end, our effective interest rate per annum will reduce to 7.35% from 7.82% in September 2025, with overall saving of 47 basis points, reflecting our disciplined deleveraging. With an average debt tenor of 11.2 years, the Trust is well positioned with long-term funding stability and adequate headroom for future acquisitions. Our objective is to maintain leverage in the 45%-47% range in the medium term while realizing interest savings of around 47 basis points, thereby strengthening the free cash flows and enhancing the predictability of future distributions.
Fourthly, our acquisitions and growth strategy remains in play, and we have successfully acquired three assets within 12 months of our listing. The acquisition of three ROFO assets, namely Jodhpur Ring Road in Rajasthan, Hasanpur-Bakhtiyarpur in Bihar, and Champa-Korba in Chhattisgarh, which were approved in October 2025, were at 9.3% discount to the enterprise value assessed by independent valuer as of August 2025. These additions expanded our AUM by 57%, from INR 4,282 crore in September 2025 to INR 6,733 crore in December. These assets are fully operational and immediately cash flow accretive. With this, our portfolio now comprises 12 operational HAM assets across eight states, covering 847 km with a strengthened residual concession right of 13.4 years. We continue to see strong visibility for future acquisitions through a well-defined pipeline.
Seven ROFO assets are expected to be ready for acquisition by FY 2027, with another seven likely to be available by H1 FY 2029, and diligence on two of these will begin in Q4 FY 2026. We are also evaluating third-party HAM-based road assets to further diversify the portfolio, and the series annuity inflows. Together, these opportunities position us well to scale up to 17 assets by next financial year and move towards our medium-term AUM target of around INR 9,000 crore-INR 10,000 crore. Operationally, the portfolio performance remains stable and resilient. NHAI's independent engineer inspections across the portfolio have confirmed good road conditions and smooth ride quality. Traffic volumes increased by 15% following the integration of new assets with the portfolio, carrying around 28 lakh vehicles per month. Our ESG efforts continue to progress well with an additional 1.15 lakh plants added during the quarter, taking the total to over 4.1 lakh.
Briefly on the industry environment, it remains very supportive for annuity-based platforms like ours. The union budget has increased road sector allocation to INR 3.09 lakh crore, reaffirming the government's focus on national highways. NHAI plans to bid out 124 projects worth INR 3.45 lakh crore this year, with about 74% under the HAM model, creating one of the strongest acquisition pipelines in recent years. With continued momentum in InvIT-led monetization and over 100 HAM projects expected to reach COD or PCOD in the next two years, the medium-term outlook for annuity assets remains robust and well-aligned with our growth strategy. With that, I would now like to hand the call over to Amit, who will walk us through the financial performance.
Thank you, Hare. Good afternoon, everyone. I will take you through the key financial updates for the quarter. On a standalone basis, the trust reported a total income of INR 129 crore for Q3 financial year 2026, compared to INR 102 crore in the previous quarter. This increase was primarily driven by higher dividend inflows from SPVs, as well as increased interest income on fixed deposits. Standalone EBITDA for the quarter stood at INR 128 crore, and net profit came in at about INR 285 crore, reflecting the direct flow-through of incremental treasury and SPV income to the bottom line. On a consolidated basis, the trust recorded total income of INR 182 crore in Q3 financial year 2026, broadly stable compared to previous quarter. However, EBITDA declined to INR 48 crore and net profit stood at INR 11 crore, primarily due to reversal of modification recorded in Q2 financial year 2026.
As highlighted earlier, Q2 benefited from a modification gain, whereas in current quarter, a modification has been recognized, leading to higher operating expenses and a sequential dip in the profitability. Moving to the distribution update. The board has approved a total distribution of INR 2.34 per unit for Q3 FY 2026, comprising a quarterly DPU of INR 1.45 per unit and interim DPU of INR 0.89 per unit. The gross payout for the quarter amounts to INR 71 crore. With this cumulative distribution since listing aggregates to INR 33.09 per unit. In total, INR 976 crore returned to unitholders. During the quarter, all five annuities due across the portfolio were received in line with the contractual timelines, and the trust continued to benefit from the stable cash flows from SPVs.
At the standalone level, its outflow remained minimal since distributions from SPVs to the trust are tax-free and taxes payable only on the treasury income. Overall, Q3 FY 2026 reflects the continued financial strength of Capital Infra Trust, supported by operational stability, consistent annuity inflows, active balance sheet optimization, and successful integration of recently acquired assets. The trust remains well-positioned for sustainable growth driven by disciplined growth, capital allocation, accretive acquisitions, and ongoing refinancing initiatives. Thank you all for your attention. All additional details are available in our investor presentation. We can now open the floor for any questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, please press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. Our first question comes from the line of Nisha Shah, an individual investor. Please go ahead.
Thank you for the opportunity, and congratulations on completing the acquisition. My first question is: What level of acquisition pipeline visibility do you have through FY 2027 to FY 2029?
Hello. Thanks for that. See, going forward, we are looking for acquisitions in essentially three more. One, the ROFO assets from the sponsor. There are 14 HAM assets which are currently being developed by a sponsor on which we have ROFO, of which seven would be ready in FY 2027 and the residual seven by the second half of FY 2029. On these seven, two would be ready for acquisition by the end of this financial year itself, and we intend to initiate our due diligence on them. Additionally, we have started looking at acquisition of third-party assets as we speak. Right now, we are on the screening stage, and we are evaluating them. We are in the discussion with multiple parties, and we are in the review stage right now.
Overall, for the next 12 years, we intend to add in our AUM up to INR 9,000 crore - INR 10,000 crore, which currently stands at around INR 6,733 crore. We plan to add at least four to seven assets in the next financial year.
Thank you, sir. My next question is: What IRR thresholds are guiding the future acquisitions?
See, the IRRs are pretty much linked to the market. Right now, our strategy continues to acquire HAM assets. With HAM assets, the future cash flows are pretty much linked to the RBI bank rate. As we stand right now, we have pretty much gone through the substantial part of the rate cut cycle. From here on, we can expect a nominal rate cut, or in a year or two again, there will be a rate up cycle. Having said that, pretty much we anticipate to get 11.5%-12% IRR on the third-party acquisitions which we are pursuing.
Sir, will you be raising further equity for these acquisitions?
Yes, we would require to raise additional capital. As of now, in the medium term, we are targeting our average ratio of 45%-47%. Post-June, when we have made six distributions, we can enhance our leverage up to 70%. At that point of time, we will redo our leverage ratio and then look at how much additional equity and debt we require for new acquisitions.
Okay, sir. Thank you so much. That is all from my side. I will join back the queue.
Thank you.
Thank you. The next question comes from the line of Satish Poddar, an individual investor. Please go ahead.
Hello? Hello?
Yes, Satish, you are audible. Please go ahead.
Yeah. I have a couple of questions. Firstly, earlier a guidance was provided that in H2, a DPU of INR 7.75 will be provided. Just wanted to check that are we still maintaining that guidance? That is number one. Number two, in the investor presentation, a cash yield of 11%-12% is mentioned in terms of DPU. Just wanted to check what is the base value. Is it the INR 99 per unit, which is the issue price of the unit, or is it something else?
Yes. With regards to the guidance given earlier in the beginning of the year, since that, we have witnessed rate cut by RBI, which impacts our revenue potential per se. Thereafter, we had capital raise and addition of asset as well. So we are looking to modify the guidance which were given earlier. Therefore, right now as we speak, we are looking at 11%-12% cash yield for this financial year. This 11%-12% guidance for this financial year is based on IPO price of INR 99 per unit.
Okay. In future, the guidance will be based on the, so in future as well-
Next financial year we give fresh guidance in the March quarter.
Okay.
Yes.
Okay. Thank you. Thank you for your response. Thank you.
Thank you. The next question comes from the line of Rohan Shah with RS Investment. Please go ahead.
Hi, sir. Thanks for the opportunity. Sir, my question is regarding NAV. Sir, the NAV has increased to INR 72.3 per unit. Could you help us understand how much of this improvement was driven by recent acquisition versus the impact of deleveraging?
Yes. See, the way we have given on slide number 11 of the investor presentation. Right now, our current NAV stands at INR 72.3, of which the acquired assets NAV as of 31st December would be approximately around INR 85.1 per unit, whereas the portfolio NAV would be around INR 65.4 per unit. We have raised through preferential issue, INR 345 crore, which was used to repay the debt itself. That has nominally increased the NAV, and that combined effect shows to around INR 65.4 per unit as of December for the existing portfolio of the trust.
Okay, sir. That's helpful. Sir, my another question is regarding the residual life. The average residual life is now around 13 years compared to earlier 11 years. Is there any maintenance CapEx plan for FY 2027?
Yes. We need to plan two major maintenance cycles for each project across the duration of their concession. From the beginning to end, the concession for each of these projects is 15 years. We have already planned for each project. In the next financial year, for Bangalore, one of our SPV, we will be incurring the major maintenance per se, and for the others, we will start partially budgeting in from the next financial year. They are scattered over the next three years, the first major maintenance cycle over for the entire 12 assets.
Okay, sir. Understood. Sir, one more question. How do you see NAV trending in FY 2027? Any ballpark figures as two ROFO assets will be ready for acquisition by end of this year?
See, as mentioned earlier, we are planning to acquire around five to seven assets by FY 2027. Of which four to five would be the ROFO assets and two to three from third-party acquisitions. It's a little bit difficult to forecast the NAV or the impact of the future acquisitions on the NAV as we speak, because it's a function of how we are able to negotiate with the sellers, plus at what price we are doing the equity raise. Because for all the future fundraise for the trust, we would require to raise equity and debt capital, both of them. Therefore, it would be difficult to comment on the NAV post-acquisition in future.
Thank you, sir. That's from my side. Thank you, sir.
Thank you. The next question comes from the line of Priyam Shah with Value Equity. Please go ahead.
Hello.
Yes, I hear you. Please go ahead.
Yeah. Thanks. So thanks for the opportunity. I just wanted to ask, as our asset base are expanding, would our DPU be aligned to that rates that we are normally giving out? Would the run rate be sustainable? That's question number one.
With regards to the run rate, that's what we have mentioned in the investor presentation as well and mentioned earlier. We are looking at target at a cash yield of 11%-12% going forward. The way we look at is that based on the current portfolio and the cash generation capability of the assets, we are quite confident of maintaining this going forward.
Okay. Understood. My next would be for the cash yield for the coming year, FY 2027. How do you planning to benchmark? Would the same be benchmark to the IPO price?
For FY 2027, we are yet to come out with our forecast, and we will be publishing that in the March quarter results, possibly. Over there, we will look at the weighted average cost because our initial IPO was at INR 99, and subsequently, we have raised gross capital at around INR 80 per unit, and QIP was at INR 72.3 per unit. So we would be looking at weighted average price going forward from FY 2027.
Okay. The last question. We have raised funds via QIP and pref, correct? Just wanted to know how much of these funds remain unutilized as of now, and how are we planning for the unutilized fund to be allocated for the future acquisitions or anything like debt repayment?
The fundraise undertaken by us in last quarter, they were for specific purposes. The preferential issue capital was used for repayment of existing debt of the trust, which was completed in December 2025 itself. The QIP amount of INR 1,250 crore was raised in December, and again, that was only for acquisition of the three ROFO assets. Part of that amount, about INR 660 crore, was unutilized as of 31st December . However, as of today, that has been fully utilized and pretty much we have completed the utilization as of today of all the funds raised in last quarter.
Okay. Any fundraise or such kind of event in the next financial year that we look out for? Or I think that whatever the last would be sufficient.
I will say for fresh acquisitions, we would require additional equity capital, and that is linked to the acquisitions as well. Next financial year, we do plan to acquire assets and we will be raising capital. Right now, we will be able to give you specific guidance once the binding term sheet or some form of term sheet for third-party assets or ROFO assets are being executed, then we will be able to provide you better guidance on those timelines.
Got it, sir. So that is all from my side, and I wish you guys all the best.
Thank you.
Yeah.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Anant Mundra with Mytemple Capital. Please go ahead.
Hello. Thank you for the opportunity, sir, and congratulations on the fantastic acquisition. Just wanted to understand, so you have some leverage to reduce our borrowing cost like you have guided . Could you just mention for each instrument what the current cost is and what is the benchmark that it is linked to? So we have two entities and two rupee term loans. If you could just give the breakup of what their borrowing cost is and what benchmark are they linked to. That was question number one. The second question was on, so the acquisition that we have completed in the previous quarter, has been done at really attractive valuations to the unit holder. Can this be taken as benchmark for future acquisitions as well? Are these the IRR range that we would be looking at?
And the third was, you mentioned that you are also looking at some third-party assets. So when it comes to third-party assets, how do we think about IRRs, the risk? Because these would be assets which are constructed by a third-party entity. Would the O&M also be undertaken by the third party itself, or would we take over the O&M, and how would we manage those risks? Thank you. These were the three questions.
Yeah. Starting with your first question with regards to the debt profile. See, as of September, we had two series of debentures. One series will continue for next two years from today, which is approximately INR 963 crore of our debentures. That is at a fixed interest rate of 7.75%. The second series of debentures, we have pretty much firmed up how to refinance it. Of that, INR 250 crore will continue at interest rate of 6.85% PAPM. In addition, by March end, we would have rupee term loan one of around INR 1,150 crore, which is a floating interest rate, again, at 6.85% PAPM linked to three months T-bill, and rupee term loan two, which is for INR 617 crore, again at 6.85% PAPM into repo rate. So this is overall debt profile of ours, which is going to be as of March end, totaling to INR 2,980 crore approximately.
Moving on to your second question with regards to the future acquisitions. See, we cannot assure that going forward, we would be able to transact at 9% or 10% discount to the enterprise value. There would be some discount for sure we will try to negotiate, but again, these are linked to market conditions, and we cannot assure on that part. Our endeavor would be to target accretive acquisitions or those acquisitions wherein some value addition potential is there, we can turn them around and increase the future returns. For third-party acquisitions, the IRR target would be somewhere around 11.5%- 12%. And what you mentioned is correct, that for third-party assets, we need to be really cautious about the quality of construction, because these assets which we inherit, we will have to maintain for another 13- 15 years.
Therefore, we need to focus on the due diligence of the asset quality, of the compliance with the concession terms. We need to reassess and look deeper into the potential operations and maintenance costs, which needs to be incurred on such projects going forward. Our strategy right now would be to engage our sponsors as project manager, even for third-party acquisitions, so that we have consistency across the platform. And that is our strategy right now.
Got it. Sir, you also mentioned in the presentation that our target to keep net debt to AUM is around 45%-47% for the medium term. Just want to understand, because like you mentioned, after June, you can take the leverage up to 70%. By this medium term, is the timeline just six months, or in spite of having the leverage to go up to 70%, do you still continue to maintain at 45%-47%? Just want to understand this point better.
No. Just to clarify, as of now, without any asset acquisition, if we are to continue the portfolio with existing 12 assets, we will stick to 45%-47% debt-to-leverage ratio. Going forward, whenever we have to acquire additional assets, for example, for ROFO asset acquisition, anyways, we would be seeking unit holders' consent and then only we would be acquiring the ROFO asset. So at that point of time, we will reassess another long-term strategy for our debt ratio. Secondly, as of today, as per the SEBI guidelines, we need to maintain a debt ratio within 49% mark. So that's why within 49% mark, our preference would be to maintain it in the range of 45%-47% range.
Okay, got it. Sir, just a follow-up on the 11.5%- 12% IRR that you mentioned for third-party acquisition. Just want to understand this better. So 11.5%- 12%, because we have the benefit of having an unit structure and there can be tax saving, ultimately, what does this boil down to as potential returns for unit holder of the trust? Because I understand there will be some tax savings and then there will also be some unit level expenses. So this 11.5%- 12% could potentially be 13% or 14% or something for the unit holder. Just want to understand this better.
See, when I am mentioning 11.5%-12%, that essentially refers to all the distributions which would be made by trust to the unit holders. From this-
Oh, okay.
12% IRR, any tax which is applicable to the unit holder or which are in the hands of the recipients, those will be deducted from this 12% IRR, is based on distributions which would be made by trust to the unit holder.
Okay. Got it. And this assumes a financing at 70/30 ratio like it is done in the valuation report or it is a 50/50 financing that you are doing?
No. As of now, our financing, which is the current portfolio, is anyway based on a 45% mark. The fresh acquisitions we will review. Our preference would be to keep it somewhere between 55%-60% so that we are more efficient in managing our capital.
Got it. That's it from my end. Thank you.
Thank you. The next question comes from the line of Tarun Sisodia, with Chanakya Niti. Please go ahead.
Good afternoon. Could you throw some more light on the interim distribution from which bucket is this being distributed? Because I would understand that the distribution of INR 1.45 is being done from the NDCF. So what is the source for this interim distribution?
See, one of the annuities which was due prior to December but was received in January. Therefore, we are budgeting interim distribution out of that receipt, and we are using that to pay right now. Because this annuity receipt was not there in December, there was a delay of few days. It was due towards the end of December but was received in January. Therefore, we are distributing the residual part from that project as interim distribution because this could not be accounted for as of 31st December .
Oh, this is just an accounting entry?
Yes.
Okay. Second question is pertaining to your strategy that you said that you would ideally be targeting yield or IRR of 10% and excess depending on market condition. But if I go back one quarter when we didn't have this acquisition done, there was no additional equity raised. In the first half, you had already distributed about INR 6.9 as the DPU. You had a guidance of about slightly upwards of INR 7 for the second half. Which would mean that the full year you were looking at 13%- 14% kind of distribution. If that was the yield that you were actually looking forward to give to the investors who had invested at INR 99. Are you trying to say that this acquisition is resulting in dilution of years to everyone?
Okay. Just to give you another perspective. NAV is a benchmark which shows what is the value of my future cash flows at any point of time. Courtesy these three acquisitions, which we are seeing our NAV has improved by around 7% to INR 72.3, which demonstrates that they are accretive in nature. With regards to distribution, we had given around 13.5% - 14% guidance in the beginning of this financial year. However, due to the rate cut, even the distributions on that part had decreased. Therefore, going forward, we are going to maintain a cash yield distribution of 11% - 12%, which is sustainable, which is supported by annuity receipts in our portfolio, and this would be a stable long-term nature.
Okay. Fair enough. Thank you.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question comes from the line of Rohan Shah with RS Investment. Please go ahead.
Thank you for the follow-up question opportunity. Sir, could you outline the extent of new term loans that are being planned and what will be their borrowing cost compared with the existing two series of NCDs which we have?
Yeah. See, the second series of NCD had put call option at the end of first year, and its anniversary is coming on 4th March. Of that, around INR 933 crore would be outstanding as of March. Of that, we are retaining INR 250 crore as NCD and the residual would be replaced by term loan, again, from two banks. And even the term loan is at 6.85% PA PM, resulting in effective interest rate on an annualized basis for the entire debt of the Trust to around 7.35% per annum.
That's helpful, sir. Thank you.
Thank you. Participants, if you wish to ask a question, you may press star and one. The next question comes from the line of [Anjali Singh] with Bansal Family Office. Please go ahead.
Hi. Thanks for the opportunity. So my first question is, were there any opera-
Sorry, can you please repeat the question? We lost you for the last 30 seconds.
Oh, sure, sir. So my question is, were there any operational challenges at the asset level that impacted performance during Q3?
Our operations continue to remain stable. In the 12 projects which we have, they are in concession from NHAI. Even NHAI has a very detailed process to monitor the road assets. Pretty much independent engineers appointed by NHAI, they conduct inspections and they frequently visit the site, plus different officials from NHAI as well. As per all inspections and everything, our road quality remains robust and the riding quality is smooth. That is from the operations part. Similarly, the annuities which were due, we have pretty much received 100% of the amount which were due on the five assets. Keeping apart the annuities which were due at the end of December, two annuities, they were received in January.
But in terms of the quantum, we were pretty much in line with our estimates and there were no knockdowns or deviations or penalties by NHAI on these 12 assets.
Okay. One more question. Considering the standard portfolio, how sustainable is the current DPU and should you expect an improvement in distribution next year, even a broad range would help.
Yes. Our portfolio is backed by HAM assets, which have quite predictable cash flow. Going forward, for next financial year, we will be providing fresh guidance in the month of March. As of now for this financial year, we are targeting somewhere between 11%-12% cash yield. We are confident of achieving that mark for this financial year.
Okay. Do you see bidding activity for HAM assets? Could you please throw some light on this? Also, how do you assess opportunities in this HAM landscape?
Yeah. With regards to the bidding for HAM projects, clearly, in the last six to nine months new project bid out by NHAI on HAM model has been substantially less compared to earlier. However, the way we see the current budget proposed by the union government, the allocation to the road sector has increased. As per our understanding, NHAI would be bidding out more projects in the coming quarters. Having said that, these new bid outs would impact our future. As of now, there are enough number of projects, about 100 + HAM projects, which are nearing completion over the next two years, which we can acquire right now, of which say 14 projects are with our sponsors itself. Plus, there are some much more projects with third-party developers, which we intend to acquire.
Therefore, in the medium term, from one to three years, we have enough opportunity to acquire from the projects which have been already awarded in the past, and there is a robust pipeline for multiple InvIT players to acquire from. We are also well-placed in that regard, given our access to at least 14 projects which are being managed by our sponsors.
Thank you so much, sir, for answering and all the very best. Thank you. That's all from my side.
Thank you.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Rahul with Alt Capital. Please go ahead.
Hi, sir. Thanks for the opportunity. I have a couple of questions. One was the dividend of INR 2.34 or distribution of INR 2.34. Does the NAV include the same? That was question number one, and second was, can you just help me understand in terms of the taxability of the dividend which is being distributed, the INR 1.5 dividend? These were the two questions from my side.
I am sorry, your line was not clear. Can you please repeat the question?
Sure. Yeah. Is it better now?
Yes, it's better now.
Sure. I have two questions. First question was, does the NAV include the dividend which is being distributed, the dividend of INR 2.34? The second question was, taxability of the dividend. Dividend of INR 1.5, which is being distributed. What portion will be taxable, what portion will not be taxable?
Yes. See, the DPU of INR 2.34 is included in the NAV. The NAV which we have shown is as of 31st December . Distribution is happening now, so the NAV amount does include the distributions. With regards to the taxability, around-
INR 0.59 is taxable, INR 0.06 is non-taxable. INR 0.59 is taxable, INR 0.06 is non-taxable.
Around INR 0.06.
Non-taxable.
INR 0.06 of dividend is non-taxable. The residual dividend which we have declared, that would be taxable, which is INR 0.59.
Okay. Got it. So it is fairly minimal in that context. Thank you.
Yes.
That is it from my side.
Of the 12 assets in our portfolio, only two are in old tax regime. The residual are in new tax regime, and that is how we have inherited in our portfolio. Therefore, this component is less.
Minimum. Understood. Thank you, sir. Thanks a lot. That is it from my side.
Thank you. A reminder to all participants that you may press star and one to ask a question. The next question comes from the line of Tarun Sisodia with Chanakya Niti. Please go ahead.
Yeah. Hi. Thanks for the second round of questions. I had a question related to claims that you keep raising with NHAI. As per the IPO document, you had around INR 600 crore worth of claims. Can you give us an update on status? Have you received all of it or is there still some pending claims with the NHAI?
Yeah. See, with regards to the claims which are with NHAI, most of them largely pertain to GST-related claims. The way we have negotiated with the sponsor, [come SEZA] , because right now the 12 assets in our portfolio, they have all been acquired from the sponsor, is that they have indemnified the draft if the claims were not to be approved by NHAI. As of today, in our portfolio right now, of the seven older SPVs, we have received approval of the initial claims. There are still some residual amounts which were indemnified by the [SEZA] but has not been approved by NHAI. For that, we would be raising indemnity to the sponsors.
This amounts to around INR 60.6 crore and is due over the next 12 months from today, for which we are seeking final opinion from a legal counsel and tax advisor so that the final amount be raised as claimed from the sponsors because they have not been approved by NHAI as of today.
Thank you. Just a corollary to that, your estimate of 11%-12% yield, does it include all these receivables that you have likely, or this thing is likely to be over and above the 11%-12% that-
This specific amount, we have budgeted in the GST-CIL amount, which have been approved by NHAI in the SPVs as of today. Those which have not been approved, but we can claim from the sponsor, these amounts are not budgeted in the cash yields here, and there is a timeline when these would be due to us. As and when they are due, then we will modify our estimates and include them in our projection.
In a sense, there is a potential upside to whatever you are guiding as of now.
That's correct. Yes.
Thank you. Thank you very much.
Thank you. The next question comes from the line of Mayank Sharma with Punjab National . Please go ahead.
Sir, can I speak in Hindi?
Yes, sure.
[Non-English content]
[Non-English content] we have distributed, including the current distribution, of around INR 33 per unit. For overall return perspective, what we can suggest is that one needs to look at the total return. Total return includes not only the return on the unit price, but includes the distributions as well. If you add these two together, then the total return is positive as of today, and is more than the IPO price of INR 99.
Yes, sir. [Non-English content]
The three projects which we have acquired, all three are operational.
Yes, sir.
And in them, we have already received three annuities. They are pretty much operational in nature, and there is no time lag per se. It is just that the acquisition happened in December. After that, one of the projects' annuity has been received. These annuities are semi-annual in nature. Therefore, the other two, the annuities are due in subsequent months, and we are yet to receive. To answer your question, these all are operational assets, and we are receiving annuities on them as well.
Okay. Thank you, sir.
Thank you. Ladies and gentlemen, if you wish to ask a question to the management, please press star and one. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you all for joining this conference call. Just to summarize, looking ahead with optimized leverage, lower borrowing costs, and immediate contribution from our new assets, which gives us a solid base to scale further. We see a structurally stronger growth phase for Capital Infra Trust in days to come. On that note, I would like to thank everyone for joining this call. Thank you very much.
Thank you. On behalf of HDFC Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.