Cube Highways Trust (543899) Q2 24/25 earnings summary

Executive summary

• Achieved 7.6% year-over-year toll revenue growth and 5.2% traffic volume growth in Q2 FY25, with 6.9% and 4.8% growth respectively for H1 FY25 compared to H1 FY24.

• For the half year ended September 30, 2024, total income was Rs. 16,890.55 million, with a net loss of Rs. 260.41 million attributable to unitholders, compared to a net profit of Rs. 1,074.28 million in the previous half year.

• The period saw the acquisition of 6 Hybrid Annuity Model SPVs for Rs. 11,709.19 million, consolidated as asset acquisitions.

• Distribution per unit for Q2 FY25 was INR 2, with total H1 FY25 distributions at INR 534 Cr (INR 4 per unit).

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

Financial highlights

• Assets under management (AUM) stood at INR 315.94 billion as of September 30, 2024.

• Revenue from operations for the half year was Rs. 16,115.97 million.

• Net debt/AUM ratio at 39.9%; Debt/EBITDA at 4.4x; average cost of debt at 8.36%.

• Net worth as of September 30, 2024, stood at Rs. 121,476.07 million.

• DSCR at 1.76x, reflecting strong cash flow coverage.

Outlook and guidance

• Revenue growth rate of 9.2% projected for overall concession life, with 5.0% traffic growth and 4.2% WPI CAGR.

• The Trust expects continued integration of newly acquired HAM SPVs and ongoing capex funding.

• Distribution policy remains to pay at least 90% of Net Distributable Cash Flows annually.

• Long residual concession life of 19.8 years supports resilience through economic cycles.

• Continued focus on sustainable growth, operational efficiency, and maximizing unitholder returns.