Vertis Infrastructure Trust (VERTIS) Q2 24/25 earnings summary

Executive summary

• The Trust manages a portfolio of 13 road projects across multiple Indian states, operating under BOT, HAM, and annuity models, with a focus on long-term infrastructure investment and stable cash flows.

• As of September 30, 2024, the Trust's unitholding is led by Galaxy Investments II Pte. Ltd. (52.21%), with other significant institutional investors.

• The Trust is sponsored by Galaxy Investments II Pte. Ltd., a KKR affiliate, and managed by Highway Concessions One Private Limited.

Financial highlights

• The fair enterprise value (EV) of the SPVs as of September 30, 2024, is INR 99,489 million, with an adjusted EV (including closing cash) of INR 105,912 million.

• The valuation uses the Discounted Cash Flow (DCF) method, with WACC ranging from 7.5% to 10.5% depending on the SPV.

• Sensitivity analysis shows EV is most impacted by changes in WACC, expenses, and toll revenue assumptions.

Segment performance

• Toll SPVs derive revenue from toll collections, highly dependent on traffic forecasts and macroeconomic factors.

• Annuity SPVs receive pre-determined payments from NHAI, providing stable and predictable cash flows.

• HAM SPVs receive a mix of construction payments, annuities, and O&M revenue from NHAI.