Cube Highways Trust Closes FY24 On Strong Note

The quarterly and annual results for Cube Highways Trust, which concluded on March 31, 2024, have been released. Ordinary unitholders will receive a Distribution Per Unit (“DPU”) of ₹3.94 from the Investment Manager’s Board of Directors, for a total distribution amount of ₹508 crores. This distribution is made up of ₹1.79 for interest, ₹0.20 for dividends, ₹1.94 for loan repayment to the SPV, and ₹0.01 for treasury income per unit.

“With a reported total consolidated income for the year at ₹3,074 crores, consolidated EBITDA at ₹1,956 crores, and annual distribution of ₹1,302 crores, we have a solid close to the first financial year post listing,” said Pankaj Vasani, Group CFO of Cube InvIT. Traffic increased by 6.5% and toll collection increased by 11.9% in FY 24. With a 34 percent Net Debt/Enterprise.

Value as of March 31, 2024, there is sufficient headroom for expansion. We are optimistic that we can maintain this momentum into 2025.” The ₹10.09 yearly announced DPU for FY24 is made up of ₹7.10 in interest, ₹0.99 in dividends, ₹1.94 in SPV loan repayment, and ₹0.06 in treasury income per unit.

“Cube InvIT’s unique portfolio of high-quality infrastructure assets is designed to deliver high near-term yields along with long-term inflation protected growth for its unitholders,” stated Vinay Sekar, CEO of Cube InvIT. With the necessary regulatory and unitholder permissions, we intend to purchase seven additional road assets, six of which are based on NHAI.

Hybrid Annuity Model, whose revenues are not reliant on traffic and therefore would increase revenue stability and yields. One of the pillars of our success has been our commitment to our people and culture. We are especially proud of the renowned distinction we have received as a `Great Place to Work,’ which is the result of our persistent commitment. Looking ahead to FY 2025, our goal is still quite clear: to be India’s.

Cube Highways Trust (“Cube InvIT”) concluded the fiscal year 2023-24 (FY24) with robust financial performance, reflecting its strategic asset management and operational efficiency.

Financial Highlights:

• Total Consolidated Income: ₹3,074 crores
• Consolidated EBITDA: ₹1,956 crores
• Annual Distribution: ₹1,302 crores

The Board of Directors declared a Distribution Per Unit (DPU) of ₹3.94 for the fourth quarter, bringing the total annual DPU to ₹10.09. This distribution comprises ₹7.10 per unit as interest, ₹0.99 per unit as dividend, ₹1.94 per unit as repayment of SPV loan, and ₹0.06 per unit as treasury income.

The fiscal year witnessed a toll collection growth of 11.9% and traffic growth of 6.5%. As of March 31, 2024, the Net Debt to Enterprise Value ratio stood at 34%, providing substantial capacity for future growth.

Strategic Developments:

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Cube InvIT plans to acquire seven additional road assets, subject to regulatory and unitholder approvals. Notably, six of these assets are based on the National Highways Authority of India’s Hybrid Annuity Model, ensuring revenue stability as they are not contingent on traffic volume

Emphasizing its commitment to organizational excellence, Cube InvIT has been recognized as a “Great Place to Work,” reflecting its investment in people and culture. Looking ahead, Cube InvIT aims to sustain its growth trajectory and solidify its position as India’s leading Infrastructure Investment Trust, delivering consistent and attractive returns to its unitholders.

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