CHIEF EXECUTIVE OFFICER
Dear Unitholders,
It has been yet another eventful year of achievements and constructive
progression for all of us.
Globally, the world economy has witnessed an immense volatility. The
continuing COVID lockdown in China impacted supply chains. Effects of Russia - Ukraine
conflict was felt globally with high commodity prices, energy costs leading to very high
inflation and further disruptions in supplies. The economies across the world had adopted
monetary policy tightening in response, leading to higher interest costs.
While the challenges are expected to continue in FY 2024 leading to
lower growth globally, India is expected to show resilience with one of the highest GDP
growth projections in the coming year amongst major economies.
Post COVID, the Indian economy is showing signs of speedy recovery
across sectors. For us, this is reflected in the surge of vehicular traffic, particularly
commercial trucks & heavy vehicles.
"One IndInfravit. One Ecosystem" - was the theme which
synergised our actions across functions and companies of the Trust. We focused on
championing strategic initiatives in building our organisational capabilities. These will
hold us steady in our pursuits of high-performance outcomes as against a default future.
A key initiative undertaken was the establishment of in-house Project
Manager for the efficient asset management of various Special Purpose Vehicles (SPVs) of
the Trust. We successfully acquired IndInfravit Project Managers Private Limited
(Previously Known as Sadbhav Tumkur Highway Private Limited and Sadbhav PIMA Private
Limited) ("IPMPL') which swiftly created an organisation structure of dedicated
experienced technocrats capable of managing all current and upcoming assets of the Trust.
Confidence in the Indian infrastructure sector is best demonstrated by
continuing support of all long-term stakeholders. Our efforts in pursuing further
acquisition of large assets were stoically backed by our Board, Investors as well as major
institutional lenders. We entered into definitive and binding agreements for acquisition
of 5 operational National highway projects, comprising three toll roads and two annuity
roads. We have successfully completed acquisition of 4 projects during the first quarter
of FY 23-24, significantly adding to the current portfolio of assets besides enhancing our
presence in more states.
Established Systems and Processes are critical for consistent
performance besides integrating projects and functions swiftly. We are pleased to inform
about simultaneous implementation of 'best-in-class ERP software: SAP' across 17 locations
and SPVs of the Trust. This was under the aegis of "IRIS" our digital drive. In
a short span of time, Trust has been recognized at "Innovative CIO 100 Awards
2023", which is one of the most prestigious and coveted awards in information
technology (IT). The award acknowledges enterprise excellence and recognizes
ground-breaking projects in enterprise IT.
This year we were successfully audited by the certified accreditation
body and assessed as fully compliant to the 5 ISO certifications (ISO 9001:2015-Quality
Management System; ISO 14001:2015- Environmental Management System; ISO 39001:2012-Road
Traffic Safety Management System; ISO 45001:2018-Occupational Health and Safety Management
System; and ISO 31000:2018-Risk Management) received across all our companies and offices.
We have created a certified talent pool of over 100 internal Auditors and 32 ISO
accredited professionals who would immensely add to furthering processes across companies.
An important initiative at IndInfravit is promoting gender diversity at
workplace. We focused on fostering a safe and comfortable environment for women inturn
encouraging career opportunities across locations. At Bhilwara-Rajsamand Tollway Private
Limited (BRTPL), an all-women shift is operated to achieve operational excellence and such
grassroot initiatives foster harmonious growth; create a mature socio-economic fabric as
well as create a new wave of inspiring leaders within local communities.
We have taken significant strides in promoting safety and health
awareness across projects including with various vendors and contractors associated with
us. During FY 2023, there has been significant rise in enhancing organisation wide safety
measures. Key accomplishments include reduction in the incident rate by 25% as compared to
last year, rolling out Zero Tolerance Policy and Traffic Safety Manual for our employees.
An online ISMART Application has been launched at SPVs for monitoring performance of
assets and to undertake various activities in respect of safety and increasing
productivity at SPVs.
The Trust, through its comprehensive ESG Framework, is fully committed
to ensuring responsible growth and making a difference to all its stakeholders and the
environment at large. Towards sustainable growth and development and to reduce carbon
footprint, we have taken the initiative to establish Electric Vehicle (EV) charging
stations at 3 of our SPVs and are targeting to establish more in upcoming year. On
Greenhouse gas (GHG), inventorization and monitoring of GHG emissions was undertaken
across all 13 project SPVs and 4 other offices.
In addition, to encourage best-in-class practices and to recognize
efforts put in by top performing Concessions across the country, Ministry of Roads
Transport and Highways (MoRTH) and National Highways Authority of India (NHAI) annually
evaluate the consistency of performance and rank the Concessions. We are pleased to share,
during FY 2023, Krishnagiri Walajahpet Tollway Private Limited has won award for
Excellence in Project Management-Public Private Partnership. Under the "National
Highways Excellence Awards (NHEA) for FY 2022 initiative", 7 of our SPVs has been
nominated under 5 categories for 12 awards (Excellence in Green Highway, Operation and
Maintenance, Safety, Toll Management and Project Management) for the upcoming year.
Through prudent steps Beawar Pali Pindwara Tollway Private Limited has received Final
Completion Certificate.
During the year, multiple sessions were undertaken across all projects
to deepen the understanding on Anti-Bribery and Corruption (ABAC) policies, Environment,
Social and Governance (ESG) and Compliance.
The financial performance of Trust was noteworthy during the year.
The Trust has achieved a revenue of INR 19,696.33 million and made a
distribution of INR 11.06 per unit to the unitholders.
During the year, toll collection through FASTag has reached around 98%
as compared to 94% previously, which has increased operational efficiency and
transparency.
The Board with the view to expand its expertise during the year
inducted Mr. Sanjay Ganesh Ubale as an additional Independent Director. I take this
opportunity to welcome Mr. Sanjay Ganesh Ubale on the Board of Directors.
I would like to place on record our sincere gratitude to the Board of
Directors for their guidance and to all our unit holders for their continuing faith in
IndInfravit. We remain committed to the journey of excellence.
With Best Regards,
Pawan Kant
Chief Executive Officer LTIDPL IndvIT Services Limited (Investment
Manager of the Trust)
MESSAGE FROM
CHIEF FINANCIAL OFFICER
Dear Unitholders,
I am delighted to present to you, the performance and highlights of
IndInfravit Trust ("the Trust") for the financial year (FY) 2022-23.
The last FY has been a year of implementation of our strategic
objectives, optimization of operations and a year of growth for the Portfolio.
During the year under review, and as committed in the previous year
report, the Trust has successfully implemented and integrated Enterprise Management System
across its entire operations and locations and I am pleased to mention that it is first
InvIT to undertake this exercise. The Trust has also kept its focus on digitization and
over the last year has digitized its Compliance, Risk management as well as Toll
Reconciliation Operations.
With a view to streamline and optimize the operations, the Trust has
also acquired and internalized, the project management capabilities. This acquisition
would also give a fillip and confidence to the Trust to take on more complex and larger
projects and operations while reducing reliance on 3rd party service providers.
In the year under review, the Trust has also completed the refinancing
of its short-term fixed cost borrowing with a Long tenor variable Loan from new set of
financial institutions. This exercise not only enhances our presence in the financial
markets but also places us in a position to benefit from any compression in interest rates
in near future.
As part of its continued growth focus, during the year, the Trust has
signed definitive and binding agreements for acquisition of five operational National
highway projects comprising three toll roads and two annuity roads for an enterprise value
of INR 89,409 million and I am pleased to inform that the Trust has received all
regulatory approvals and completed the financial closure for this acquisition. Out of the
five assets, the trust has acquired four assets in the first quarter of FY 2023 and the
addition of this portfolio would almost double the Enterprise Value of the Portfolio and
increase the operational footprint to new growth corridors of India.
We are pleased that the team has demonstrated our ability to execute
the plans and commitment to carry out our strategy as articulated.
The Key financial highlights of FY 2022-23 as follows: