Cube Highways Trust — Q4 FY26

Cube Highways Trust Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=84NBKbl2Bfw Published: 3 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 FI26 Investor call of 0:07 7 seconds Cube Highways Trust hosted by Cube Highways Fund Advisor Private Limited, Investment Manager to 0:16 16 seconds Cube Highways Trust. From the investment manager, we have with us Mr. Ven Seeker, 0:23 23 seconds Chief Executive Officer, Mr. Panka Jasani group chief financial officer Miss Richer Gupta Rotagi company 0:32 32 seconds secretary and compliance officer Mr. Sra Bansilan joint executive vice president capital structure and budgeting Mr. 0:42 42 seconds Abijit Sate joint executive vice president finance and accounts Mr. Sarup Kumar vice president strategy and 0:51 51 seconds investor relations Mr. Deepen Sha Vice President Legal. We also have with us 0:58 58 seconds Mr. Bowen Kumar CEO, Mr. Makul Shastri, Group General Council and Mr. Anoj 1:06 1 minute, 6 seconds Maitri, head of operations from the project manager of the trust. 1:12 1 minute, 12 seconds As a reminder, all participant minds will be in the listen only mode and you'll have an opportunity for you to ask questions after the presentation concludes. 1:21 1 minute, 21 seconds Should you need assistance during this conference call, please signal the operator by pressing start then zero on your touchstone phone. This conference 1:30 1 minute, 30 seconds call may include forward-looking statements reflecting the company's current beliefs, views, and expectations as on date of this call. 1:39 1 minute, 39 seconds These statements are subject to risk and uncertainties and not the guarantees of future performance and may differ materially from actual results. 1:48 1 minute, 48 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 1:54 1 minute, 54 seconds Veni Shaker, Chief Executive Officer for his opening remarks. Thank you and over to you Mr. Faker. 2:02 2 minutes, 2 seconds Thank you. 2:04 2 minutes, 4 seconds Good evening everyone and thank you for joining us. 2:08 2 minutes, 8 seconds Cube Benwit's portfolio comprises of 27 road assets, 18 total, six hybrid annuity and three annuity projects 2:16 2 minutes, 16 seconds covering 8,754 lane kilm across 12 states and one union territory. The portfolio has a 85 is to 2:25 2 minutes, 25 seconds 15 total to meeting is being recorded with an average residual concession life of 18 years. This provides visibility 2:33 2 minutes, 33 seconds into a diversified inflation hedged and long-term cash flow profile. 2:41 2 minutes, 41 seconds Further strengthening the platform, we have signed definitive agreements to acquire three toll and one annuity asset 2:48 2 minutes, 48 seconds from our sponsor and sponsor group entities. These assets will be transferred to the trust in exchange for units subject to satisfaction of 2:57 2 minutes, 57 seconds customary transaction consider conditions precedent. 3:02 3 minutes, 2 seconds The aggregate enterprise value of these four assets put together is 7,292.5 crores as of March 31, 2026. 3:12 3 minutes, 12 seconds The transaction is expected to be accurative to yield, improve NAV by over three rupees per unit and reduce net 3:20 3 minutes, 20 seconds debt to AUM to 44.8% on a performer basis. 3:27 3 minutes, 27 seconds This will create additional headroom for future acquisitions. 3:30 3 minutes, 30 seconds With this, our portfolio will expand to 31 assets across 13 states and one union territory, adding another thousand lay kilometers of highquality assets. 3:43 3 minutes, 43 seconds In parliament, we have initiated the uh the proposed transition from a privately listed invict to a public invit marked 3:50 3 minutes, 50 seconds by the filing of the draft offer document with SEI and and a proposed offer for sale of rupees 5,000 crores 3:58 3 minutes, 58 seconds subject to requisite regulatory and other approvals. 4:03 4 minutes, 3 seconds Over the last few years, we have continued to institutionalize the platform to strengthen governance internal controls, technology systems, 4:11 4 minutes, 11 seconds valuation discipline, and risk management frameworks consistent with the requirements and expectations of a large public market infrastructure platform. 4:19 4 minutes, 19 seconds The trust has also negotiated a right of first offer for three additional sponsor assets subject to commercial uh negotiations and regulatory approvals. 4:28 4 minutes, 28 seconds During this quarter, we declared a distribution of 3.57 rupees per unit, taking the annual 4:35 4 minutes, 35 seconds distribution to rupees 13.77 rupees per unit. This is our highest annual distribution since listing. 4:44 4 minutes, 44 seconds Since listing, Cubin bit has delivered cumulative distributions of 34.86 rupees per unit and a total return of rupees 4:52 4 minutes, 52 seconds 77.09 rupees per unit over 3 years. 4:57 4 minutes, 57 seconds This translates into an IRRa of 23.7% reflecting consistent value creation for our unit holders. 5:06 5 minutes, 6 seconds Our balance sheet remains robust. Net debt to aum aum stands stable at 46.82% 5:14 5 minutes, 14 seconds with the AAA ratings from Crystal, Ikra and India ratings. Our weighted average cost of debt improved meaningfully over 5:22 5 minutes, 22 seconds the year, declining by 66 basics points from 8.19% to 7.53% due to the issuance of fixed rate 5:30 5 minutes, 30 seconds instruments at favorable rates during the course of the year. 5:35 5 minutes, 35 seconds The distributions are underpinned by the portfolio's strong operational performance during the fourth quarter 5:42 5 minutes, 42 seconds driven by 9.2% 2% year-on-year traffic growth. That translating into a 10.8% 5:49 5 minutes, 49 seconds year-on-year revenue growth. For the full year, traffic grew 8.1% year-onear while revenue grew 10.6%. 5:59 5 minutes, 59 seconds With this, we outperformed the projected revenue for FI26 by over 3%. 6:06 6 minutes, 6 seconds Within the portfolio, various assets such as Gajibad Aliga and the moderate to Kanyakumari corridors continue to benefit from structural tailwinds 6:15 6 minutes, 15 seconds including improved service levels, growth in warehousing and industrial clusters around Razabad and a sustained reduction in traffic violations. 6:26 6 minutes, 26 seconds At the same time, the Jaipur to Maha stretch saw the expected reduction in traffic during the period due to the 6:32 6 minutes, 32 seconds commissioning of the Banduku spur of the Delhi Mumbai expressway that connects Delhi to Japur. 6:41 6 minutes, 41 seconds The claims on account of annual pass have started stabilizing. 78% of the claims of the year for the year totaling 6:48 6 minutes, 48 seconds up to 176.9 crores have already been settled by NHI as on 31st March 2026. 6:56 6 minutes, 56 seconds The cycle time has reduced to approximately 40 days. 7:01 7 minutes, 1 second Considering the evolving geopolitical situation in West Asia, we undertook a comprehensive reassessment of our traffic growth, inflation assumptions 7:10 7 minutes, 10 seconds and maintenance budgets across the portfolio to ensure that our projections and valuations remain conservative. 7:17 7 minutes, 17 seconds We have moderated our GDP growth in our FI27 projections to 6.5% compared with the 7.6% 6% that we have 7:26 7 minutes, 26 seconds delivered in FI26 or rather that has been that we've witnessed in FI26. 7:33 7 minutes, 33 seconds Uh this along with calibrated adjustments for expected traffic diversions from upcoming corridors such 7:40 7 minutes, 40 seconds as the Delhi Daradun Expressway and the Ganga Expressway. Uh our traffic projection for FI27 is or the traffic growth projection for FI27 is 3%. 7:54 7 minutes, 54 seconds This compares this is significantly conservative compared to the 8.1% that the portfolio has delivered in FI26. 8:02 8 minutes, 2 seconds Against backdrop we expect toll revenue to be 6.4% across the 17 assets in FI27. 8:11 8 minutes, 11 seconds Having said that toll collection for FI27 through the first uh couple of months in April and and part part of May as we speak remains quite robust. 8:23 8 minutes, 23 seconds uh we've seen a growth of over 10% year on year against the projection of 6% for the year 6.4% for the year. We have not 8:33 8 minutes, 33 seconds seen any structural slowdown in traffic across our toll plazas at the time at this point in time. 8:39 8 minutes, 39 seconds Bitin prices however are sharply risen by around 50% recently and we've conservatively factored in the possibility that elevated levels will 8:47 8 minutes, 47 seconds persist over the next three years as they gradually revert to historical norms. Our team's relentless focus on 8:54 8 minutes, 54 seconds operational efficiency and scale benefits have delivered a 5.4% saving against the budget on our operating and maintenance costs. 9:04 9 minutes, 4 seconds Importantly, these savings are structural embedded through procurement efficiency, centralized controls and sustained operational discipline across 9:12 9 minutes, 12 seconds the portfolio. We believe that this more than adequately compensates for the potential impact of elevated bitment prices in the medium term. 9:22 9 minutes, 22 seconds Despite the potential for elevated wholesale inflation numbers in the near term, as seen in the 8.3% print in April 9:30 9 minutes, 30 seconds 2026, we continue to hold our long-term view of inflation interest and have made no changes and interest rates and have made no changes. 9:39 9 minutes, 39 seconds Toll and hybrid annuity assets are naturally hedged with either an inflation pass through by way of a of the toll rate increase or an interest 9:47 9 minutes, 47 seconds rate pass through by way of the interest on annuity that is paid on a hybrid annuity assets. This feature makes our 9:54 9 minutes, 54 seconds portfolio very resilient and we have witnessed robust performance during past high inflation cycles. 10:01 10 minutes, 1 second We derive a lot of comfort from this. 10:05 10 minutes, 5 seconds Finally, largely driven by the traffic outperformance in the last year, our NAV has increased to 145.8 rupees per unit, 10:14 10 minutes, 14 seconds up from the 142.7 rupees per unit in the previous quarter. 10:20 10 minutes, 20 seconds With that overview, I would now like to invite Pankage to take you through our financial performance and updates. 10:31 10 minutes, 31 seconds Thank you, Vet. Good evening everyone and welcome to Cuban with earning call for quarter 4. Let me take you through some of the key financial highlights for the year. We have continued a strong 10:40 10 minutes, 40 seconds performance during the financial year with sustained momentum across our tool assets and have received full payment of all 18 annualities deals during the 10:47 10 minutes, 47 seconds year. Revenue from operations stood at 4,239 cr up 28% y while total contract 10:54 10 minutes, 54 seconds income was 4359 crores. Our average daily collection was 9.95 crores in Q4 while ETC collection stabled at 97.1. 11:04 11 minutes, 4 seconds Traffic trends remain stable to positive across most corridors. Assets acquired during the year have been fully integrated and have also benefited from 11:12 11 minutes, 12 seconds continued centralization of operational control technology monitoring procurement efficiencies and portfolio wide operating. 11:20 11 minutes, 20 seconds While annual toll revenue grew 10.6% 6% Y traffic growth saw an increase of 8.1% 11:27 11 minutes, 27 seconds Y aida for the year rose to 3092 crores and ament of around 30% Y as when I 11:34 11 minutes, 34 seconds mentioned our total AUM grew to 36,842 cr which is up 14% Y liquidity remains 11:42 11 minutes, 42 seconds strong with net debt including debit payment stable at 17,768 cr and net by EV ratio maintained at 46.82% to 11:51 11 minutes, 51 seconds purchase giving adequate headroom to fund future acquisition. As when I also noted our valuation framework continues to incorporate conservative assumptions 12:00 12 minutes regarding traffic growth, inflation, maintenance cost and discount rate with independent valuation support and periodic reassessment of macroeconomic conditions. 12:09 12 minutes, 9 seconds As you are of course aware, the trust funds distribute at least 90% of the NDC periodically making it one of the prime indicators of any trust performance. To 12:18 12 minutes, 18 seconds reiterate some of the key principles behind the calculation of NDCF. 12:23 12 minutes, 23 seconds First, NDCF for Boot and POT assets is generally stable on a quarteronquarter basis supported by predictable traffic pattern and operating structure. That 12:32 12 minutes, 32 seconds said, there can be some seasonality in toll revenue driven by factors such as traffic trends and festival periods as well as to rate escalation that occur at 12:41 12 minutes, 41 seconds different points during the year across our assets. Second are annuality based assets which naturally have a variance aligned with the timing of annoty 12:50 12 minutes, 50 seconds receive and are considered for NDC only on active business. Third SPVS are allowed to create reserve for specific 12:57 12 minutes, 57 seconds business and generated requirements such as towards MMR or towards operational expenses in annot. 13:04 13 minutes, 4 seconds Last any restricted cash or free cash including annuities received prior to acquisition forms part of the opening cash utilization which is governed by 13:13 13 minutes, 13 seconds invert regulation. The NDCS calculation for each STV and the trust are part of the results and can be found on others. 13:21 13 minutes, 21 seconds Now let me quickly present a summary of the NDCS generated uh for the year ended 31st March 25th. Our total inflow stood 13:29 13 minutes, 29 seconds at 4,943 crores. Comprising total receipt across 18 operational assets of 3,45 cr. Annual receipt was 1,423 crores 13:39 13 minutes, 39 seconds and other income 115 cr. Our total expenses of 1,193 cr including onm expense of 735 cr 13:48 13 minutes, 48 seconds management fee and trust expense of 173 crores comprising PMP of 101 crores, IMP of 43 crores and trust expenses of 29 13:55 13 minutes, 55 seconds crores. Periodic maintenance expenses were 122 crores while annually reserved defra and AP lean mark funds amounted to 14:03 14 minutes, 3 seconds 168 cr taxes working capital and other adjustments were another 5. Accordingly the net balance to 3750 cr debt 14:12 14 minutes, 12 seconds servicing during the year amounted to 224 cr. This included principal repayment of 6919 crores, interest of 14:20 14 minutes, 20 seconds 1,384 crores and processing another fee of 21 crores resulting in available cash for distribution of 1,726 crores. From 14:29 14 minutes, 29 seconds this Western UK and MBL cash of 100 crores remain non-distributable with the capital reduction process currently 14:36 14 minutes, 36 seconds underway. This amount is expected to flow to the trust enabling us to allocate these funds at sheet. 14:41 14 minutes, 41 seconds Accordingly, the total distributable cash for the year stood at 1,626 crores. In addition, distribution from opening cash amounted to 176 crores. 14:52 14 minutes, 52 seconds This represents expenses of 150 crores from GU and 22 crores from PB which are considered to have been funded from their opening cash balance that is prior 15:00 15 minutes to receipt of first annual post acquisition by further 50 cr was released from Desra fund through a bank guarantee replacement. After the 15:09 15 minutes, 9 seconds distribution made in Q1, Q2 and Q3 aggregating to 1,371 crores, the net available balance for 15:16 15 minutes, 16 seconds distribution in Q4 stood at 481 crores and we declared a distribution of 80 cr of this per unit it was 3.57 as V 15:26 15 minutes, 26 seconds mentioned and this comprised of 1.74 per unit as interest, 1.55 as return of capital and 27 per unit as dividend and 01 per unit as treasury income. 15:38 15 minutes, 38 seconds A very quick recap on our distribution history. In financial year 24 we had 18 assets. Uh our DPU was 10.09 totaling to 15:46 15 minutes, 46 seconds 1,32 crores. Of this 1,52 crores which is 8.15 was from NDCF while 250 crores 15:54 15 minutes, 54 seconds which is 1.94 came from open cash. The distribution mix was essentially interest at 70% return of capital at 19% 16:02 16 minutes, 2 seconds dividend 10% and treasury income 1% making up the balance. Moving to 25, the portfolio expanded to 25 STV, 18 for the 16:10 16 minutes, 10 seconds whole year, six projects for about 10 months and n for one and a half months. 16:14 16 minutes, 14 seconds DPU rose to 11 with total distribution of 1,468. 16:19 16 minutes, 19 seconds Of this 1,83 crores, which is 8.11 was from NDCF while 385 per which is 2.89 came from open cash. The composition 16:28 16 minutes, 28 seconds shifted with interest at 52%, return of capital at 43% and dividend at 5%. for financial year 26 the current year with 16:36 16 minutes, 36 seconds 27 FPS including the two unit highway assets acquired effective 1 of June 25 and full year contribution from N and AM 16:43 16 minutes, 43 seconds we now have distributed 13.77 per unit totaling to 1,851 crores of this 1,625 crores was from 16:52 16 minutes, 52 seconds NDCF while 226 crores came from reserves and open cash while a large part around 57% is interest loan the balance 17:00 17 minutes comprises of dividends return of capital and other end. We believe that these outcomes reflect our portfolio's resilience, disciplined capital 17:09 17 minutes, 9 seconds management, and the team's consistent execution. We remain grateful to our investors, partners, and stakeholders for their continued trust in supporting 17:16 17 minutes, 16 seconds us. With that, I hand over the call back to the moderator for the Q&A session. Thank you. 17:23 17 minutes, 23 seconds Thank you very much. We will now begin the question and answer session. 17:28 17 minutes, 28 seconds Participants connected on the audio bridge may press star and one on their touchstone telephone. Those joining through the webcast may click on ask a 17:37 17 minutes, 37 seconds question tab at the bottom of your screen. 17:40 17 minutes, 40 seconds Before asking your question, please state your name and organization and kindly limit yourself to a maximum of two questions so the management can 17:49 17 minutes, 49 seconds accommodate as many participants as possible. 17:54 17 minutes, 54 seconds Ladies and gentlemen, we will wait for a moment while the question Qsembles. 18:12 18 minutes, 12 seconds We take a first question from the line of Danel Ra from the Lauren Gocha stock broking. Please go ahead. 18:18 18 minutes, 18 seconds Hi. Uh I had two questions. One was regarding uh the IPO and was the timeline expected for the SEB approval 18:27 18 minutes, 27 seconds and when you all will convert to a public input and the second would be the timeline for adding your four assets 18:34 18 minutes, 34 seconds plus the roof assets. So by when can we expect the assets to be added into the init? Thanks. 18:42 18 minutes, 42 seconds Yeah, both of these are uh so as you know we've already filed for the SEI uh for with SEI with our draft of a 18:51 18 minutes, 51 seconds document uh in March. Uh we I don't want to speculate on how long SEI will take but uh we will our intent 19:00 19 minutes is to move forward as as soon as we have all the on both of these as soon as we have all of the regulatory approvals in place. 19:09 19 minutes, 9 seconds Okay. And what about the assets? Yeah. 19:13 19 minutes, 13 seconds Yeah. Again, as said, uh we we are uh we've already got uh approval from CCI. 19:17 19 minutes, 17 seconds We also have got uh we but we are in the process of getting the other approvals that are required for transfer especially from the concessioning 19:26 19 minutes, 26 seconds authorities. Uh the idea will be to again as I said move uh quickly with the closure of these assets as soon as all of these approvals are in place. 19:36 19 minutes, 36 seconds Okay. And like these assets that are being uh handed over to you all, what's the operation life like? Is it more than 10 years or is it less than that? Yeah. 19:48 19 minutes, 48 seconds Yeah. We've put out all the details. Uh yes, it is more than 10 years. Uh I think uh uh sorry if you can just uh 19:56 19 minutes, 56 seconds Yeah. I think uh just maybe by there are total four assets. Uh two b two bot. the sole asset is a life more than 30 years 20:05 20 minutes, 5 seconds each and the B nut and one more gold asset is basically maturing in FI31. So I think all the specific details again 20:12 20 minutes, 12 seconds presented as part of our acquisition of data. 20:16 20 minutes, 16 seconds Okay, thank you so much and all the best for the future. Thank you. 20:22 20 minutes, 22 seconds Thank you. Participants, you may press RN1 to ask a question. And participants joining through the webcast may click on 20:31 20 minutes, 31 seconds ask a question tab at the bottom of your screen. 20:43 20 minutes, 43 seconds Next question is from the line of Viral J from Share India Securities. Please go ahead. 20:49 20 minutes, 49 seconds Um hello, good afternoon. Um I had regard u one question there is a um litigation going on in one of your 20:57 20 minutes, 57 seconds asset. Um it was about that u the traveler are paying the full toll um 21:04 21 minutes, 4 seconds when uh even though they are exiting um in midway. So just uh wanted to know uh which which was uh which one of the 21:12 21 minutes, 12 seconds asset it was and if the court rules uh not in our favor then what would be the 21:20 21 minutes, 20 seconds revenue impact or um cash flow impact on us thank 21:32 21 minutes, 32 seconds I not really sure I'm not if I'm able to identify which uh litigation that uh is being refered too. Okay. She depend. No, I think depends on the call. 21:42 21 minutes, 42 seconds I think uh this is regarding FR. I think uh most likely uh is that the litigation you're referring to uh for it identity. 21:54 21 minutes, 54 seconds Yeah. Yeah. 21:59 21 minutes, 59 seconds some notes in the sorry uh actually I'm not sure about the asset but it was like um distance based 22:08 22 minutes, 8 seconds um litigation going on like they were exerting I mean 22:16 22 minutes, 16 seconds um as as you would know effectively generally the way toll function is that effectively if you follow if you cross 22:23 22 minutes, 23 seconds the toll plaza uh you are supposed to basically pay as per the uh uh toll fee 22:31 22 minutes, 31 seconds which is uh notified for the toll. So effectively doesn't matter how much distance you cover except for a closed 22:38 22 minutes, 38 seconds system uh which effectively is not the case for FRL. Uh I am assuming that is the litigation you are referring to but 22:46 22 minutes, 46 seconds uh I mean if you have any specific sort of uh information that can help us identify this litigation more happy to sort of throw more light on it. 22:56 22 minutes, 56 seconds Okay. Okay. Um, currently I don't have it but I will reach out to you if I get this. 23:05 23 minutes, 5 seconds Thank you. Thank you. 23:10 23 minutes, 10 seconds Participants from the audio bridge may press star and one to ask a question. 23:15 23 minutes, 15 seconds Participants connected on the webcast may click on ask a question tab at the bottom of your screen. 23:38 23 minutes, 38 seconds Ladies and gentlemen, you start in one to ask a question. 23:46 23 minutes, 46 seconds Participants on the webcast may click on ask a question tab. 24:09 24 minutes, 9 seconds Anyone who wishes to ask a question may press R1. 24:16 24 minutes, 16 seconds Participants on the webcast may click on ask a question tab at the bottom of your screen. 24:31 24 minutes, 31 seconds Ladies and gentlemen, we'll wait for a moment. 24:39 24 minutes, 39 seconds Next follow-up question is from the line of Dan Ra from the Lauren Brocha. Please go ahead. 24:45 24 minutes, 45 seconds Hi, thank you for the opportunity. I had a question regarding your inflation adjusted assets like the toll and ham. 24:54 24 minutes, 54 seconds Suppose there's a WPI index given on April. So when does that reflect on your portfolio like what's the time frame like? 25:04 25 minutes, 4 seconds Sure. So uh there are uh uh largely there are two categories of assets that we have. uh the the majority are the the 25:14 25 minutes, 14 seconds the newer assets uh which essentially have uh the the inflation formula is a 25:21 25 minutes, 21 seconds three three rupees fixed hike and a 40% link to infl to inflation index right uh 25:28 25 minutes, 28 seconds now this uh total uh rate is applied or changed in April of every year based on 25:36 25 minutes, 36 seconds the December print right so yes April uh this April we did get date but for these assets what will matter is what number 25:44 25 minutes, 44 seconds gets printed in December right that's one uh the second uh category of assets that we have is are the older and we 25:52 25 minutes, 52 seconds have I think four such assets uh there there is a 100% pass through on inflation uh there the revision happens 26:00 26 minutes in the on the 1st of July based on the print of March every year so the March 26:07 26 minutes, 7 seconds number is is what is applied so in in Uh therefore yes so currently the April number is not going to be used for any 26:15 26 minutes, 15 seconds of the assets. Uh it will be either the March number where you'll have next either the December number which which 26:22 26 minutes, 22 seconds will be there or the March number which we use for our assets and this applies for the entire financial year or the calendar year 26:31 26 minutes, 31 seconds whatever it yeah for the yeah for a year for 12 months after the revision. So the April to March is a cycle for the new assets 26:39 26 minutes, 39 seconds and July to June is a cycle for the older assets. Okay. Thank you. Okay. Thank you. 26:49 26 minutes, 49 seconds Thank you very much participants. You may press star one to ask a question or click on ask a 26:57 26 minutes, 57 seconds question tab at the bottom of your screen. 27:02 27 minutes, 2 seconds Next question is from the line of Jayan Via. 27:07 27 minutes, 7 seconds Kindly unmute your line. Announce your company name and proceed with your question. Hello. Can you hear me? 27:14 27 minutes, 14 seconds Yes sir. 27:16 27 minutes, 16 seconds Yeah. My name is Chan. I'm from family office. My uh question is on regarding the four aspects that we are going to 27:23 27 minutes, 23 seconds add. uh what's the higher of the operational period that we 27:31 27 minutes, 31 seconds are envaging from the website what's the kind of payback period that we have in mind and incrementally 27:39 27 minutes, 39 seconds uh in our cash flow maybe on our total distribution how much uh addition do you 27:46 27 minutes, 46 seconds think this assets will make sure I think uh so we've disclosed these details in the past when we we took our 27:54 27 minutes, 54 seconds unit holder approvals for uh acquising the assets. Uh these assets are uh uh so we have obviously we have Ernston Young 28:03 28 minutes, 3 seconds which has done the fair valuation for these assets. Uh we will effectively be acquiring these assets at a at a uh 5 to 28:10 28 minutes, 10 seconds 7% discount to the fair value. Uh this will translate into an NAV gain of over 28:16 28 minutes, 16 seconds 3 rupees for the trust. Uh I hope that answers your question. The details are available uh in our earlier disclosures. 28:26 28 minutes, 26 seconds All right. I'll take I'll take it from them. Thank you. Yeah. Perfect. Thank you. 28:34 28 minutes, 34 seconds Next question is from the line of Gorang Meta. 28:38 28 minutes, 38 seconds Kindly unmute your line and answer your company name and proceed with your question. 28:45 28 minutes, 45 seconds Hi, this is Goran from from family office. Uh you understand the I'm sorry to interrupt your voice is 28:52 28 minutes, 52 seconds echoing. Can you please speak through the answer? Uh I'm actually speaking on a computer. 28:59 28 minutes, 59 seconds Uh can you come a little closer if you don't mind? Sure. Is this any better? Yes, much better. Thank you. 29:05 29 minutes, 5 seconds Okay, great. So I just want to understand the cost of debt a little bit better. From what I understand the principal source is is blank loans which 29:14 29 minutes, 14 seconds are floating rate. what are they benchmark to and how should we think about cost of debt and overall debt levels over the next 12 months. Sure, 29:24 29 minutes, 24 seconds let me give you a sense on that. So, uh about 70% 72% of our debt is through 29:32 29 minutes, 32 seconds bank loans. Uh the remaining 30% approximately are all fixed rate instruments. uh the bank loans are uh 29:40 29 minutes, 40 seconds are a mix of either uh linked to uh bank NCLR NLRs or the repo right so we have a 29:48 29 minutes, 48 seconds mix of both of these instruments there now the reason why we have this 7030 split in terms of both our fixed uh rate 29:56 29 minutes, 56 seconds instruments as well as uh uh between our floating rate and the fixed rate instruments is that uh our uh we get 30:04 30 minutes, 4 seconds almost 70% of our revenue from um little more than 70% of our revenue from toll and and and hybrid annuity assets and 30:13 30 minutes, 13 seconds and of course the remaining would be from our annuities which are traditional annuities. The traditional annuities have a fixed top line so that doesn't 30:20 30 minutes, 20 seconds change in an inflationary environment whereas toll assets as well as uh as well as hybrid annuity assets are uh in 30:29 30 minutes, 29 seconds a way inflation hedged or interest rate hedged. Uh so yes there could be some timing mismatches uh and therefore you 30:36 30 minutes, 36 seconds could uh have one or the other happening a little ahead of the other but over a longer period of time typically inflation and and interest rates tend to 30:44 30 minutes, 44 seconds move together and therefore this portfolio is typically quite resilient to interest rate changes especially on the higher side. uh so yeah so 70% as I 30:54 30 minutes, 54 seconds said 70% of our revenue is uh is is uh inflation or interest rate hedge as well 31:03 31 minutes, 3 seconds great thank thank you 31:11 31 minutes, 11 seconds next follow-up question is from the line of chaitan vary Yeah. 31:22 31 minutes, 22 seconds May I request mute your line and proceed with the question? Yeah. Can you help now? Yes sir. 31:28 31 minutes, 28 seconds Okay. Uh my question is on the uh apart from adding the four assets are we uh 31:35 31 minutes, 35 seconds based on our financial position are we any sizing any more asset addition during FI27? 31:43 31 minutes, 43 seconds Uh that's that's my first question for me. 31:46 31 minutes, 46 seconds So uh we have uh as I said in my earlier uh so to speak uh address we have signed a right of first offer for three more uh 31:55 31 minutes, 55 seconds assets from the sponsor group. Uh these are uh uh assets these are large assets. 32:01 32 minutes, 1 second The FI25 revenue for these assets is almost 880 crores. Uh so these will be 32:08 32 minutes, 8 seconds large assets that uh uh that we have a right of first offer on. Uh of course we 32:16 32 minutes, 16 seconds have not yet uh uh we've not yet started the work on the right of first offer but those are available for us. Uh we will 32:24 32 minutes, 24 seconds pick it up after uh we complete this process. Uh we are also uh uh actively looking for other investment 32:31 32 minutes, 31 seconds opportunities, other opportunities for acquisition. uh we have not yet uh disclosed anything but [clears throat] uh we will whenever we have something 32:38 32 minutes, 38 seconds material we will disclose that that at all right and my second and the last followup question is that on the cost of 32:46 32 minutes, 46 seconds following up on the question by the previous participant yes uh any more uh uh 32:54 32 minutes, 54 seconds the cost of debt the cost of debt that we are advising FI27 from the current level 66 basis point is what we by March. 33:05 33 minutes, 5 seconds Yes. Any any further reduction of any? 33:09 33 minutes, 9 seconds Uh no, we have not projected for any further reduction. Uh I think uh at this point we've not uh uh projected for any 33:17 33 minutes, 17 seconds further reduction. Just one fine update on this as a capital number which we have already disclosed as part of industry presentation for this reduction 33:25 33 minutes, 25 seconds that 7.53 has gone to 7.49. It's already part of our investor disclosure which we have published as part of the annual update. So that's where we are and we are not accepting anything further. 33:35 33 minutes, 35 seconds All right. No. Thank you very much. 33:40 33 minutes, 40 seconds Thank you very much. Participants on the audience in webcast 33:50 33 minutes, 50 seconds may click on ask a question tab at the bottom of your screen. 34:16 34 minutes, 16 seconds Next question is from the line of Shabbam Sonkar from Kodak alternate assets. Please go ahead. 34:23 34 minutes, 23 seconds Yeah. Hi team. Uh so my question is on the uh valuation assumptions slide on the in the presentation. So if I just 34:31 34 minutes, 31 seconds compare the March end valuation as compared to the December end valuation and I see the WPI assumptions like I 34:38 34 minutes, 38 seconds mentioned uh has been moderated and from 4.2 to 4.1 but with the similar traffic growth assumption I see the revenue 34:46 34 minutes, 46 seconds growth assumptions in uh in the March number being as high as 9.4 as compared to the 9% number in the December quarter 34:54 34 minutes, 54 seconds valuation. What could be the rational behind a higher revenue growth with a similar traffic growth assumption? 35:09 35 minutes, 9 seconds Show slide number 22. Slide number 22. 35:30 35 minutes, 30 seconds I'm talking about the revenue assumption today. 35:45 35 minutes, 45 seconds Just one second. You're just looking at Yeah. 35:59 35 minutes, 59 seconds I shot. 36:22 36 minutes, 22 seconds Uh I think uh while the while sort of pulls out the number I think broadly I I'll just react broadly. We've not 36:28 36 minutes, 28 seconds changed our our uh the BPI assumption going forward. Uh our traffic base has overperformed for the year. Uh and that 36:37 36 minutes, 37 seconds is being incorporated into our valuation. Uh the the growth has not materally changed. Uh now in terms of 36:44 36 minutes, 44 seconds the uh the number that you're referring to, we'll just have a look at it and come back to 36:53 36 minutes, 53 seconds give us some time. We'll just come back to you. Sure. 37:11 37 minutes, 11 seconds Nothing here. Thank you. 37:20 37 minutes, 20 seconds A reminder to all the participants, you may press star and one to ask a question or click on ask a question tab. 37:57 37 minutes, 57 seconds Thank you. 37:59 37 minutes, 59 seconds As there are no further questions, we will now conclude the call. On behalf of Cube Highways Trust, we appreciate your participation. 38:08 38 minutes, 8 seconds Thank you for joining us. You may now kindly disconnect the meeting. Thank you. 38:18 38 minutes, 18 seconds Thank you.