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<dhhead>Message from the Chairman </dhhead>
Dear Unitholders,
It gives me immense pleasure to present the Third Annual Report of
Shrem InvIT. The year saw Shrem InvIT steadily progressing on its mission of offering an
organised and reliable road platform to enable investors to earn superior and stable
returns with utmost safety. I express my gratitude for your continued support and am
delighted to announce the conclusion of another successful year of our operations.
At Shrem InvIT, we invest in and manage Road infrastructure projects
which are the backbone of the nation's economy. Road facilitates trade, supports
industries, promotes regional development and enhances the quality of life for millions.
We are proud to say that Shrem InvIT contributes to India’s growth by aligning with
the Government’s vision of ‘Viksit Bharat’. By addressing challenges and
investing in sustainable and efficient road infrastructure, we aim to further propel India
towards economic growth and development.
During the year, we completed the acquisition of the remaining 51%
stake in four SPVs, namely DBL Chandikhole Bhadrak Highways Limited, DBL Bangalore
Nidagatta Highways Private Limited, DBL Nidagatta Mysore Highways Private Limited and DBL
Rewa Sidhi Highways Private Limited. We have also acquired a 49% stake in Pathrapali
Kathgora Highways Private Limited. These accretive acquisitions coupled with acquisitions
made in FY 23, have helped us built a well-balanced and diversified pool of assets
generating healthy and predictable cash flows. With its consistent and rigorous efforts,
Shrem InvIT has maintained the highest standards in asset management, resulting in timely
collections of annuities without any significant delays and deductions. For FY 24, 91% of
the total cash flow was received through annuities.
In addition, Shrem InvIT signed binding documents to acquire 5 hybrid
annuity model (HAM) assets from APCO Infratech Private Limited and Chetak Enterprises
Limited at an Enterprise Value of H 3,866.87 crore. These acquisitions are expected
to be completed shortly.
Speaking of our financial performance, I am pleased to share that we
recorded consolidated revenue of H 2035.32 crore, up from H 1433.91 crore in FY 2024.
EBITDA has also substantially increased, reaching H 1686.99 crore in FY 2024 compared to H
1113.80 crore in the previous year which denotes a robust and well-managed cash flow and
low operational expenses. Additionally, our net profit stood at H 1051.46 crore.
Our consistent performance is reflected in our AAA rating from India
Ratings since inception and a healthy Debt Service Coverage Ratio indicating our robust
financial ability to repay our debt obligations in a timely manner. We have also
maintained our track record of timely distributions, paying out INR 13.34 (per unit) from
our distributable cash flows to our unitholders.
Over the period, we have consistently worked on implementing a robust
internal control system to effectively manage our operations, financial management and
compliance requirements. We have clearly defined roles and responsibilities for all
managerial positions and take prompt action to address any issue. Regular internal checks
are conducted to ensure that responsibilities are executed efficiently. The audit
committee of the Investment Manager's Board of Directors periodically reviews the adequacy
and effectiveness of our internal control systems and suggests improvements to further
strengthen them. This comprehensive approach allows us to maintain strong governance and
oversight over our activities.
At Shrem InvIT, we deeply value our environmental, social, and
governance responsibilities. Towards this objective, we encourage tree plantations and the
use of renewable sources of energy to minimize the environmental impact due to
transportation on roads. The SPVs under the Trust have established the Shrem Sewa
Foundation, which prioritizes animal welfare, especially caring for stray animals. The
foundation offers shelter and food to nearly 2,000 stray cattle at their gaushala near
Biaora. Shrem Seva Foundation is also working on a skill development program to awaken the
potential within each seeker.
Committed to building a diverse and inclusive talent pool, we foster a
supportive work culture where all employees feel valued, respected and empowered to
deliver their best. We believe that diversity not only enriches our work culture but also
inspires consistent innovation.
Looking ahead, we remain dedicated to achieving stable and sustainable
growth by continuously exploring opportunities to expand our portfolio through the
acquisition of new road assets, emphasising annuity-based road projects that generate
stable and predictable cash flow. We will continue to focus on the efficient operation and
maintenance of new projects through our associate companies.
To conclude, I reiterate that our commitment to expanding our footprint
with steadfast stability, consistency and growth. I would like to thank the Board Members
and Management team of the Investment Manager for their valuable guidance and insights in
sustainably accomplishing the goals. I would like to thank the Central, State & Local
Governments, Authorities, Regulatory Bodies, Banks, Trustee, Project Manager, Sponsors and
the Unitholders of Shrem InvIT for their continued support and cooperation. I would also
place on record my sincere appreciation for the total commitment, dedication, and hard
work put in by every member of the Shrem InvIT Family.
Best regards,
Mr. Nitan Chhatwal
Chairman-Shrem Infra Investment Manager Private Limited (Investment
Manager to Shrem InvIT)