Cube Highways Trust (543899) Q3 24/25 earnings summary

Executive summary

• As of December 31, 2024, the portfolio comprises 25 assets across 12 states, totaling 1,940 km and 8,450 lane km, with an average residual concession life of 19.6 years and AUM of INR 314.61 billion.

• Net distributable cash flows (NDCF) for the quarter ended December 31, 2024, were Rs. 8,136.88 million, with a distribution of Rs. 3.25 per unit approved post-period end, aggregating Rs. 4,336.96 million.

• Q3 FY25 saw a 7.5% year-over-year increase in toll revenue and a 5.5% year-over-year rise in traffic volumes, with 96.5% electronic toll collection adoption.

• The Trust completed the acquisition of 100% equity in six Hybrid Annuity Model (HAM) SPVs for Rs. 11,709.19 million, expanding its portfolio to 24 SPVs.

• The trust maintains a AAA credit rating from CRISIL, ICRA, and India Ratings.

Financial highlights

• Q3 FY25 toll revenue grew 7.5% year-over-year, and average daily revenue increased from INR 72.67 million to INR 78.16 million.

• Consolidated revenue from operations for the nine months ended December 31, 2024, was Rs. 24,611.23 million, up from Rs. 21,581.23 million year-over-year.

• Net profit for the quarter ended December 31, 2024, was Rs. 520.05 million, compared to a net loss of Rs. 299.01 million in the previous quarter.

• Weighted average daily traffic rose from 31,385 to 33,115 PCUs, a 5.5% year-over-year increase.

• Impairment loss on intangible assets for the quarter was Rs. 7,438.02 million.

Outlook and guidance

• The trust targets predictable distribution per unit and sustainable growth, leveraging technology and operational efficiency.

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

• The Trust expects continued growth in NDCF and distributions, supported by recent acquisitions and refinancing activities.

• Management remains focused on optimizing cash flows and maintaining high credit ratings.