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Flat NAV at Infrastructure India

IIP : Flat NAV at Infrastructure India

Infrastructure India’s results for the year ended 31 March 2014 have been published today. As the figures are almost six months old they probably aren’t much use for investors but the company has released more detail on the progress of its investments.

The net asset value decreased marginally from 63p to 62p per share. They say the toll road and the small hydro and wind projects “performed in line with expectations” with tolls up by 9.2% and electricity production up 12.5%, aided by a 4MW plant coming on stream. Although there were grid connection problems with one wind farm in Tamil Nadu.

Vikram Logistics & Martime Services struggled with its financing and had to renegotiate its borrowing facilities after the year end but the fund raising that IIP carried out in August allowed it to repay this money. Vikram has now been renamed Distribution Logistics Infrastructure Private Limited . The original dam project, Shree Maheshwar Hydel Power Corporation ,  was written down to £14.1m. The lenders to the project are refusing to restructure the project’s debt without an infusion of equity from the backers, including IIP.  Infrastructure India announced, on 7 August 2014, that India Hydropower Development Company’s Darna plant in Maharashtra suffered extensive damage as a result of heavy monsoon rainfall and abnormally high inflows to the Darna reservoir on 30 July 2014 and is currently out of operation. This plant is just 7.9% of overall production capacity however.

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