Cube Highways Trust (543899) Q1 24/25 earnings summary

Executive summary

• Achieved 6.2% year-over-year toll revenue growth and 4.4% year-over-year traffic growth as of Q1 FY25, with 96% electronic toll collection adoption.

• Declared INR 2 per ordinary unit distribution for Q1 FY25, totaling INR 2,669 million.

• Maintained AAA credit ratings from CRISIL, ICRA, and India Ratings.

• Net Asset Value (NAV) per ordinary unit grew 28.2% since inception.

• Consolidated net profit for Q1 FY25 was Rs. 38.63 million, a significant decline from the previous quarter, mainly due to a large impairment reversal in intangible assets.

Financial highlights

• Assets under management (AUM) reached INR 311.97 billion as of June 30, 2024.

• Revenue from operations for Q1 FY25 was Rs. 7,919.46 million, up from Rs. 7,580.14 million in Q4 FY24.

• Net Debt/AUM stood at 38%, with a Debt Service Coverage Ratio (DSCR) of 1.8x and Debt/EBITDA of 4.6x.

• Average cost of debt was 8.21% for trust-level borrowings.

• Net distributable cash flows at the Trust level for the quarter were Rs. 1,305.15 million.

Outlook and guidance

• Revenue growth rate for the overall concession life is projected at 9.2%, with a 5.0% traffic growth assumption and 4.2% WPI CAGR.

• Long residual concession life of 20.3 years supports resilience through economic cycles.

• The Trust continues to focus on asset acquisitions and refinancing to support growth and maintain distributions.