It gives me immense pleasure to write to you and present the second Annual Report for
Anzen India Energy Yield Plus Trust ("Anzen Trust" or "Anzen")
for FY 2024.
In FY2024, India firmed up its position as an attractive global investment destination,
maintaining a strong growth momentum in an uncertain economic and geopolitical
environment. Key structural reforms in both physical and digital infrastructure have
notably enhanced productivity. Focus on infrastructure investments has become a key driver
of economic expansion. This boost, together with an uptick in corporate capital
expenditures and a rebounding real estate sector, is expected to help the economy maintain
a sustained growth rate of 6-7% in the foreseeable future.
As India takes strides to become the world's third largest economy in the next few
years and a developed nation by 2047, decarbonisation and sustainable growth have emerged
as one of the key enablers of this journey for a green future. I believe that the Indian
energy sector offers massive growth potential with the government's commitment to reach a
net zero status by 2070. The Indian government has targeted development of 500 GW non
fossil fuel-based capacity and 5 mtpa of green hydrogen by 2030. This provides an
investment opportunity of ~Rs 28 tn across the energy sector including generation,
transmission, and storage.
Investor appetite in InvITs and REITs continues to grow at a robust pace, driven by the
prospect of stable returns, growing infrastructure investments and a favourable regulatory
framework.
Anzen Trust has been set up with an objective of investing in a diversified portfolio
of quality renewable energy and transmission assets capitalising on India's energy
transition. I am confident that Anzen is well positioned to deliver predictable yields and
sustainable growth for its investors through its well-defined investment strategy, support
and experience of the Sponsor and the robust regulatory framework for power transmission
and renewable energy generation in India.
On the operational front, we continued to demonstrate strong performance, both our
portfolio companies reported average availability ranging from 99.77% to 99.86% exceeding
the target availability of 98%, thereby earning incentives. Our accreditations to the ISO
14001, ISO 45001 & ISO 55001 standards were reconfirmed - a testament to our
commitment towards the environment and health and safety of employees. During the year,
our portfolio company, DMTCL received 3 awards at the 8th Annual HSE Excellence & ESG
Global Awards 2023 by OHSSAI1 in Hyderabad in February 2024.
1
Occupational Health, Safety, Sustainability And Industrial Hygiene
The Trust has completed one full year of operations since listing in November 2022. In
terms of financial performance, consolidated revenues and EBIDTA were Rs 2521 mn and Rs
2229 mn respectively for the period ending March 31, 2024. The Trust has distributed INR
13.46/unit (Rs 2.1 bn) to unitholders since listing (INR 9.8/unit in FY2024).
The Net Debt / AUM as on March 31, 2024, stood at ~ 28%, giving us ample headroom to
fuel our next leg of growth. During the year, Crisil ratings and India Ratings have
reaffirmed AAA ratings on the Non-Convertible Debentures issued by Anzen Trust.
We remain committed to pursue acquisition of quality assets that provide long-term,
predictable cash flows and help us deliver superior risk adjusted returns for our
Unitholders. My deepest gratitude to all our stakeholders for their continued support, as
we continue our growth journey over the coming years.
VENKATCHALAM RAMASWAMY