IRB Infrastructure Developers Ltd

NSE:IRB

Earnings Call Transcript 2024-Q1

[Operator]

Good morning, ladies and gentlemen, and welcome to IRB Infrastructure Developers conference call for discussing the financial results for the quarter ended June 30, 2023, along with recent developments. We have with us on the call today Mr. Virendra Mhaiskar, Mr. Dhananjay Joshi, Mr. Sudhir Hoshing, Mr. Anil Yadav, Mr. Mehul Patel, Mr. Tushar Kawedia, Mr. R.S. Sharma; and Mr. Amitabh Murarka. [Operator Instructions] Please note that this conference is being recorded. [Operator Instructions].

I now request Mr. Yadav to give you an overview of the significant development during the quarter. Thank you, and over to you, sir.

[Anil Yadav, executive]

Thank you. Good morning, everyone. I welcome all the investors and analysts to our earnings call for Q1 of financial year '24. Hope you all have been able to go through our detailed numbers as well as the presentation, which we have released yesterday. I will briefly -- I'm pleased to inform that IRB Golconda Expressway Limited, the SCV incorporated to implement prestigious Hyderabad outer ring road project [indiscernible] remain with Hyderabad.

[Operator]

Sir, sorry to disturb you. Sir, we are losing your audio.

Participants please [indiscernible] while we rejoin the management back to the call.

Ladies and gentlemen, thank you for your patience. Apologies for the disconnect. We have the management reconnected. Sir, go ahead.

[Anil Yadav, executive]

We are extremely sorry for the inconvenience. I think there was some disturbance in the telephone line. Hope I am audible.

[Operator]

Yes, sir, you are.

[Anil Yadav, executive]

Good morning, everyone. I welcome all the investors and analysts to our earnings call for Q1 of financial year '24. Hope you all have been able to go through our detailed numbers as well as the presentation, which we which were released distributed. I briefly cover the key highlights for the quarter. We are pleased to inform that IRB Golconda Expressway Private Limited by SPV, incorporated to implement the prestigious Hyderabad Outer Ring Road project has now executed the concession agreement with Hyderabad Metropolitan Development Authority for the project of tolling, operation, maintenance and transfer of Nehru in Hyderabad-Telangana Strait. Financial closure for the project is in an advanced stage. Samakhiyali Tollway Private Limited, the SPV has also executed the concession agreement with NHAI for the project comprising of upgradation of six laning with paved shoulder of NH27 from Samakhiyali to Santalpur section in Gujarat. Financial closure for the project is expected soon.

Recently, investment manager of Private InvIT has taken a definitive step to issue units aggregating up to INR 2,862 crores by way of rights issue the proceeds of this issue will be utilized for including equity in Hyderabad ORR project. We ensured that both these projects 1 BOT, 1 TOT will commence during the second quarter. This will meaningfully contribute to construction vertical as well as toll revenue. And full impact will be visible in Q3 onwards.

Further, as you are aware that the second half of the year is normally more robust than the first half in terms of EPC as well as toll revenue.

Meerut Budaun Expressway Limited, that is Ganga Expressway project SPV has allotted NCD of INR 542 crores on a private placement basis to the company and GIC affiliates as a part of equity for the project. The company and GIC affiliates have contributed INR 276 crores and INR 266 crores, respectively. The construction activities are progressing well on this project.

Toll assess in IRB witnessed 15% growth year-on-year in toll revenue in Q1 of FY '24 as compared to Q1 of FY '23. The lower traffic growth in Mumbai-Pune is on account of construction activity on Expressway and the temporary closure of the connected road, that is Mumbra bypass, which acts as a feeder route for NH4. For the assets of the private InvIT, we have witnessed stronger growth in toll revenue, which were higher by 22% in Q1 of FY '24 as compared to Q1 of FY '23.

We envisage continued strong growth for all assets across the portfolio. The order book for company now stands at INR 33,700 crores. Within this, EPC order book is roughly INR 8,500 crores, providing good revenue visibility for two to three years for the construction segment and further bolstered by 3 years executable O&M order book of close to INR 2,500 crores to INR 3,000 crores. The strong order book position provides high visibility for construction segment and is supported by a favorable trend in toll revenue. Added to this -- the commencement of recent project win, that is Hyderabad ORR and SS BOT, which are set to contribute meaningful to both the segments [ shortly ] . These factors will give us a confidence for a healthy performance in Q3 and Q4 for financial -- of this financial year.

Now I will just touch upon onetime income impact and how the things look like. Q1 of FY '24 is not comparable with Q1 of FY '23 due to onetime impact of claim income on account of Amritsar-Pathankot of INR 418 crores in Q1 of FY '23. This led higher revenue to the extent of INR 418 crores, EBITDA by INR 373 crores and paired by INR 279 crores. If we adjust onetime income, Revenue growth is around 11%. EBITDA growth is around 17% and [ fair ] growth is 15%.

Now I will request Sri Tushar to cover the financial highlights for Q1 FY '24. Over to you, Tushar.

[Tushar Kawedia, executive]

Thank you, sir. I'll now take you through the financial analysis of Q1 FY '24 versus Q1 FY '23. The total consolidated income for Q1 FY '24 has decreased to INR 1,745 crores from INR 1,995 crores for Q1 FY '23, decreased by 13%. After adjusting the onetime income, the consolidated income for Q1 FY '24 has increased to INR 1,745 crores from INR 1,578 crores, increased by 11%. The consolidated total revenues for Q1 FY '24 have increased to INR 613 crores from INR 527 crores, an increase by 16%. The consolidated construction revenue for Q1 FY '21 -- Q1 FY '24 has decreased to INR 1,133 crores from INR 1,468 crores, a decrease by 23%. After adjusting onetime income, the total construction income for Q1 FY '24 has increased to INR 1,133 crores from INR 1,050 crores, an increase by 8%. EBITDA For Q1 FY '24 decreased to INR 889 crores from INR 1,131 crores, a decline of 21%. After adjusting onetime income, EBITDA for Q1 FY '24 has increased to INR 889 crores from INR 759 crores, increased by 17%. Interest cost has slightly decreased to INR 381 crores in Q1 FY '24 from INR 385 crores, down by 1%. Depreciation has increased to INR 237 crores in Q1 FY '24 from INR 203 crores in Q1 FY '23. PBT has decreased to INR 271 crores in Q1 FY '24 around INR 543 crores in Q1 FY '23, down by 50%. After adjusting onetime income, PBT for Q1 FY '24 has increased to INR 271 crores from INR 171 crores, increase of 59%. PAT after share of JV has decreased to INR 134 crores in Q1 FY '24 from INR 363 crores in Q1 FY '23, a decline of 63%. After adjusting onetime income, the PAT after share from JV loss for Q1 FY '24 has increased to INR 134 crores from INR 84 crores, an increase of 59%.

Now I request moderator to open the session for question and answer.

[Operator]

[Operator Instructions] The first question is from the line of Alok Deora from Motilal Oswal.

[Alok Deora, analyst]

Sir, just some color on the order pipeline now. So what's the outlook for this year considering we have the upcoming elections? So how are you looking at the order inflow or any guidance on the order inflow target for this year? And also which kind of projects we are looking at to be bidded out in this financial year?

[Virendra Mhaiskar, executive]

I think you touch upon a very important point. When it comes to the order intake, our preference will continue to be BOT, TOT and HAM in that order. At the moment, the order book seems to be quite robust and has the good visibility of next two years given the construction order book of almost INR 8,500 crores and add another INR 3,000 crores of O&M order book that would be executed. The focus of the company certainly to establish a more stable order book which will emanate out of TOT projects because that order book will have a much longer shelf life and also better margins. So keeping that in mind, as I said, the focus will be BOT, TOT and HAM that order. Coming to the order possibility, I think at the moment, NHAI has talked about INR 6,000 crores of -- 6,000 kilometers of order outflow for the whole year. And they have also talked about monetizing almost 40 packages on TOT basis, which would continue to be a part of interest to us. And I think given the best capitalized balance sheet, we would like to put more resources to work and establish a good portfolio of revenues and [ rating ] assets and also thereby generating a good amount of order book for providing vertical.

[Alok Deora, analyst]

Sure. So any broad number we are looking at for order inflow?

[Virendra Mhaiskar, executive]

So I think the way we always do that is try to build back order book at least 20% higher than what we will be burning out in the present financial year. So at least INR 5,000 crores to INR 6,000 crores of order intake is what we would like to build back assuming 80% of that will be our burn rate for the present year.

[Alok Deora, analyst]

Sure. And also this new project, we are expecting it to start from quarter 2. But technically, we have seen during the monsoon period, projects don't really get started. So any slippage there we can be -- there is a chance of any slippage there in getting -- these certain new project getting started on time?

[Virendra Mhaiskar, executive]

So both these projects are -- one is a TOT project. So there is not much CapEx that is involved. So it's more of take -- achieving the financial closure and taking over the project. And even the other projects Samakhiyali-Santalpur is also a 4 to 6 lane project where the total revenue to come in from [ day 1 ] and it is an operational [indiscernible] to be upgraded. So I practically -- it's not a HAM project with greenfield kind of nature where we have to wait for that acquisition and monsoons to repeat. These packages, our sense is that there are something which can be tackled immediately upon achieving the financial close.

[Alok Deora, analyst]

Sure. Just last question. So what kind of growth we are now looking at after some of these new projects are also getting into the execution side. So what construction growth we are looking at for this financial year and next financial year?

[Virendra Mhaiskar, executive]

Construction, I think the vertical continues to grow at around 15% to 20% CAGR rate that we have been able to maintain over the last 15 years.

[Operator]

[Operator Instructions] Next question is from the line of Aditya Mongia from Kotak Securities.

[Aditya Mongia, analyst]

My first question related more to the private invIT. It would be useful to get some sense on a full year basis last year as well as 1Q, what would be the aggregate numbers of, let's say, revenue, EBITDA and net debt. The endeavor is to understand the pace at which cash flows can be generated from that portfolio for the parent?

[Anil Yadav, executive]

Yes. I think private InvIT is doing a run rate of roughly INR 200 crores and on a monthly basis. And on a full year basis, we are expecting around INR 2,500 to INR 2,600 crores of revenue from the private InvIT. And roughly 700-odd cores will be revenue share. So then around INR 1,800 crores to INR 1,900 crores will be EBITDA. And -- sorry, will be the net toll collection and thereafter, roughly INR 200-odd crores will be O&M expenditure. INR 1,500 crores to INR 1,600 crores will be EBITDA. And private InvIT of now has only a little less than INR 10,000 crores of debt. And considering that kind of debt, there will be a surplus in the private InvIT and the debt repayment are back-ended. And in fact, last year, we have refinanced INR 2,000 crores of debt, where there is a bullet repayment and interest cost is also fixed at [ 8.7 ] %. Considering all those things, the private InvIT will have a positive cash flow, and this will be used for distribution to the unitholder.

[Aditya Mongia, analyst]

Understood. So the [ asset ] are the incremental projects that are going to be added, will [indiscernible] funding through separate means, [ later as rights ] that you are doing? And the existing projects should basically start generating cash flows from FY '24 onwards, right? And the way you were suggesting is probably a 9% blended interest cost on a INR 10,000 crore book, you're probably be generating INR 500 crores to INR 600 crores of cash flows, slightly less so post tax. Is that a fair way of understanding?

[Anil Yadav, executive]

Yes. That's a fair way of understanding. And as you rightly mentioned, the surplus will be utilized for distribution. And the equity requirement will be through our rights issue.

[Aditya Mongia, analyst]

Understood. Again, just a clarification, the two projects that you were talking about financial closures being imminent, there is -- be booked as revenue in the private InvIT. We won't be impacting the toll [ influx ] for the [ consolidated entity]. Am I right on that?

[Anil Yadav, executive]

Yes, you are absolutely correct. But that will reduce the share of JV from the private InvIT which gets [indiscernible] consolidated of IRB.

[Aditya Mongia, analyst]

Yes. So if today, you are doing on a reported basis, a INR 50 crore loss, right, in 1Q, that's a number from the private InvIT and everything put together. When do you [indiscernible] this number starting to become a positive number?

[Anil Yadav, executive]

I think in INR 50 crores, there is a onetime expense of around INR 20 crores net impact roughly, the loss is in the range of close to INR 20 crores to INR 25 crores. And that has started improving. If you look at the previous quarter, the loss was around INR 35 crores, INR 37 crores that has now reduced to INR 25 crores or so. This financial year, we are expecting the loss will get nullified considering the start of Hyderabad ORR project and the Samakhiyali project.

[Aditya Mongia, analyst]

Understood. So the way I understand it is that this is a naturally reducing trajectory of losses and with the two projects that you have won, starting to contribute that will only get accelerated. And let's say, by the end of the fiscal year, this line item may start turning around on the other side?

[Anil Yadav, executive]

Yes.

[Operator]

[Operator Instructions] The next question is from the line of Prem Khurana from Anand Rathi.

[Prem Khurana, analyst]

[indiscernible]...

[Operator]

Prem, you're not audible at all. May I request you speak through the handset, please.

[Prem Khurana, analyst]

Is it better?

[Operator]

Yes.

[Prem Khurana, analyst]

So just a small clarification on this question. I'll continue with losses in private InvIT. So what was the one-off in this quarter due to which the losses went up in this quarter?

[Anil Yadav, executive]

Yes, there was a fair value loss on account of payable and that was close to INR 40 crores to INR 45 crores at [indiscernible].

[Operator]

Sir, sorry to interrupt you, we are losing your audio.

[Anil Yadav, executive]

Hello?

[Operator]

Yes, now it's fine.

[Anil Yadav, executive]

So Prem, there was a onetime impact of INR 40 crores to INR 45 crores. And due to that, the impact -- 51% impact was on the share of minority. So that was roughly INR 20 crores, INR 25 crores. And if you remove that, the losses is in the range of around INR 25 crores, which has reduced from INR 37 crores to INR 25 crores.

[Prem Khurana, analyst]

Sure. Okay. That explains it -- and second was eventually if I was reading this media article where in it comes as of -- I mean, someone seems to have filed a PIL against our narrow outer ring road project. So if you could, I mean, explain why that is issuing? And second is, I mean, would that delay the process of kind of getting that project coming to you? I mean, let's say, not material delay, but then could it be as a [indiscernible] some time before you would get to have it come to us?

[Virendra Mhaiskar, executive]

We have not heard of any stay or any restraining orders with regard to the PIL, which you just mentioned. And it is more to do with the procedures pertaining to the bit that HMDA had run. They wanted whatever public knowledge we have about to save [indiscernible] part of that. So what talked about is about disclosing the IECV and letting the public know what the IECV was. Now you know that NHAI also has a policy of not disclosing by IECV which, HMDA seems to have followed. So it's more about what we can say letting people know about what the process procedure is, and lack of that knowledge probably has led to this PIL, that is what it primarily looks like.

[Operator]

Next question is from the line of Nikhil from HDFC Securities.

[Nikhil Abhyankar, analyst]

Am I audible?

[Unknown Executive]

Yes, yes, Nikhil.

[Nikhil Abhyankar, analyst]

Sir, I just wanted to check with you on the guidance plan for the full year to the inclusion that you are coming to the margins and the revenue side. So if you can throw some light on that?

[Unknown Executive]

Yes. So Nikhil, your question is on the revenue side or construction revenue for this year?

[Nikhil Abhyankar, analyst]

Yes, sir. For '24 your revenue guidance, your margin in the [indiscernible] that you are planning to do.

[Unknown Executive]

So on the revenue guidance, what we have given even the last time as well, it remains in the range of, say, 12% to 15% higher than what we have achieved last year. So somewhere between INR 5,000 crores to INR 5,500 crores should be the construction revenue, what we are targeting for this year. margins should remain stable as we are seeing the material prices have now gone in a declining trend. So we don't foresee any further impact on the margin as such. It should remain stable over what we have been delivering the last two -- one or two quarters as well. So on the construction front, the margins will be stable what we have been delivering.

[Nikhil Abhyankar, analyst]

Okay. equity inclusion guidance?

[Unknown Executive]

Execution guidance? I didn't get your question. Can you come back?

[Nikhil Abhyankar, analyst]

So your equity inclusion guidance?

[Unknown Executive]

Yes. Okay. Equity inclusion. So for FY '24, we are expecting an equity inclusion of around INR 800 crores to INR 1,000 crores. And for next year, around INR 300 crores to INR 500 crores. This is excluding Hyderabad ORR.

[Nikhil Abhyankar, analyst]

Excluding, right?

[Unknown Executive]

Yes, this is excluding.

[Nikhil Abhyankar, analyst]

And what would be the amount for Hyderabad ORR?

[Unknown Executive]

Close to INR 1,500.

[Nikhil Abhyankar, analyst]

1,500.

[Unknown Executive]

Yes.

[Operator]

[Operator Instructions] The next question is from the line of Parikshit Kandpal from HDFC Securities.

[Parikshit Kandpal, analyst]

My first question is on [indiscernible] pipeline. So what is the active pipeline right now?

[Virendra Mhaiskar, executive]

Active pipeline of bids, as I mentioned earlier, I think 6,000 kilometers of bidding pipeline is what NHAI has talked about. Other than that, there are some 40-odd projects which will be offered on TOT basis. So that is another opportunity which is available. And this is a broad visibility that we are able to figure out at this point in time.

[Parikshit Kandpal, analyst]

So [indiscernible] identify BOT opportunity out of 6,000 kilometers?

[Virendra Mhaiskar, executive]

Identified in the sense you are aware that we have been building for all the TOTs that have come up for bidding as of now. And today, IRB enjoys a market share of almost 37% in the TOT market, given the upfront amount that we have committed. So certainly, that is one area of interest for us, and we'll continue to explore those possibilities. At the moment, there are two bids which are active on TOT basis, which we are evaluating.

[Parikshit Kandpal, analyst]

Okay. On the BOT side, how do you [indiscernible] because there has been talks that you ramp up the BOT share in the profit award mix, Any sense on this year, what could be potentially the BOT pipeline for us?

[Virendra Mhaiskar, executive]

We have not yet seen any -- while they have been talking about coming up with a few projects on BOT, we have not seen any big advertisements coming up. But our communication with them suggests that they will be soon coming out with two BOT projects per share.

[Parikshit Kandpal, analyst]

On the right is on the private InvIT INR 2,862 crores. So how do you refund our share of this? And also, if you take some more TOT projects, so what is the appetite for the [indiscernible] money. So how big can -- I mean, how big can [indiscernible] become further in case because you're saying there is so many [indiscernible] TOT which coming. So I don't think there's enough appetite in the market to have those kind of bids, so from a capital allocation point of view, how much is our appetite and how much will be [indiscernible] putting more money beyond the [ INR 2800 ] crores [indiscernible]?

[Virendra Mhaiskar, executive]

Yes. Yes. So I'll give you a little flavor on this. So you are very right that the TOT market size is not that big, and it's confined to a few large funds who also have been bloating with the assets that they have been winning in the recent past. So this is a very interesting opportunity that comes up for IRB given the a well-capitalized balance sheet that IRB enjoys today. And certainly, with a partner like [ GIC ] who has a good amount of appetite available to deploy more capital. I think this will be the best opportunity that will play out for IRB, and we are quite good about it. So I think you have seen that we have been participating in all the TOTs in the past, and we will continue to participate in the upcoming TOTs. And I think, as I mentioned earlier, it offers us two good possibilities. One, like Anil said, the existing private InvIT portfolio has now started generating surplus cash, which will get ramped up significantly with more projects becoming stable. And it will start generating surplus cash available for distribution, which will be again, become a part of source to part deploy that surplus back into growing the portfolio. Other than that, the existing IRB assets also are showing a good amount of cash, particularly Bombay-Pune. So given the existing cash on hand and the surpluses that the portfolio will be generating, no doubt there will be a good amount of dividend distribution strategy also for the shareholders. But even after considering dividend distribution, we will have good capital available to keep growing the book. And given the scarce availability of participants I think this will be a very interesting opportunity that we would like to play out.

[Parikshit Kandpal, analyst]

So in terms of FSI [indiscernible]a big churn about [INR 150 crores to INR 200 crores ] or the rights issue for your share and no bids coming a bigger shift. So we see answer location in terms of like all these efforts which are becoming mature and you are seeing part of that is going to grow in part in the dividend. So what could be the mix in terms of growth in terms of dividend? And do you think that [indiscernible]capital to deploy?

[Virendra Mhaiskar, executive]

While this Might sound -- it is premature to talk about. But I think we have now created a sizable portfolio of projects, which are getting into a zone where they are self stabilized revenue generating cash positive portfolio. Now it will actually unleash a flurry of opportunities. I can give you some flavor but with a word of caution that there is nothing crystallized or as an approved strategy on hand. But if we just go by the way these portfolios work across the world a sizable portfolio, you can always look at selling stakes at the project level to unlock a significant amount of cash which can be deployed to grow the portfolio. It's not necessary that every time there has to be a fresh inflow of money or IRB putting back money from its balance sheet. The portfolio has acquired a size where with some support and some fresh capital at every time. The multiplier effect can be achieved by just rebalancing the portfolio equities itself. Certain amount of top-up money also can be raised because of the surplus cash that the portfolio is generating. And given all these opportunities, I think the ability of the portfolio to add more assets, which will be value creative. I think the portfolio ability [ demand ].

[Parikshit Kandpal, analyst]

Just one thing, sir, I mean, because you already have a private invIT [indiscernible] you were talking about [indiscernible] opportunities will be largely restricted at the [indiscernible] private InvIT level or [indiscernible]?

[Virendra Mhaiskar, executive]

Private InvIT level. I'm saying the assets itself because we have seen our partners doing that in their geographies and this is something which is a very interesting opportunity, which we will, as I said, with the word of [ KBS ] that there is no specific plan at this point in time. But tomorrow, if there are multiple opportunities that come our way. It is not necessary for us to add all times, keep looking at raising capital and depend on IRB to pump money, the portfolio itself is now getting into a zone where it can generate resources for growth.

[Parikshit Kandpal, analyst]

[indiscernible] that you are opened -- you and partners are open to basically selling out stake [ HVC level ] Level within the private InvIT.

[Virendra Mhaiskar, executive]

Yes, that is one large possibility we can sell down the project to public InvIT if there is a need to raise additional capital. So having a completely evolved machinery that IRB is able to create, where you have an execution vehicle, you have a development vehicle, you have a stable asset portfolio of private -- public InvIT. I think the way the assets can be played, the possibility is infinite for IRB. We can actually optimize the capital structure and keep creating value inventory. And that's the plan for going forward how we will play it out.

[Parikshit Kandpal, analyst]

You have a structure in place [ public ] -- private InvIT and the stand-alone. So now [indiscernible], I mean, a private level now stabilizing the asset margin, but from there to move on into a private, public invIT. So I don't know how that thing can be tackled. So -- because we have heard for that core of the company?

[Virendra Mhaiskar, executive]

All of this will depend on what opportunities come our way. Right now, as I said, each individual vertical is doing well for itself. They are all well funded. The capital has been optimized. Tomorrow depending on how much opportunities we are able to take in we can always expand this structure in a very, very efficient way given the way the structure exists. That's the only point I'm trying to make here.

[Parikshit Kandpal, analyst]

At some part of time is there somewhat the possibility of private InvIT itself become public?

[Virendra Mhaiskar, executive]

Private InvIT already is a listed with [indiscernible].

[Parikshit Kandpal, analyst]

But yes, it's listed, but I'm saying more like even retail and others [indiscernible] operators.

[Virendra Mhaiskar, executive]

We don't want to do that. I think the InvIT level equity, I don't see it going to see much change, where both IRB and the [ JIP ] are comfortable owning their 51 and 49. But the InvIT assets can generate significant amount of surplus. Asset monetization can generate significant amount of cash flow, whether you sell a stake in the SPV, you sell a whole of SPV. But that is the opportunity where invIT can generate cash flow to take care of its growth.

And something more that whenever the private will grow and takes any more assets it automatically spins off order book for IRB to execute the CapEx and OpEx part of it.

[Operator]

Next follow-up question is from the line of Aditya Mongia from Kotak Securities.

[Aditya Mongia, analyst]

my question links more around the ROEs, the company reports, and I understand that's not the best way. But do you envisage over the next few years, these ROE numbers are starting to become a lot more stable in the mid-double-digit kind of zone for yourself as things pan out the [indiscernible]?

[Virendra Mhaiskar, executive]

Aditya as you very correctly said, I completely endorse that view that ROE is not a parameter or the barometer to check the company's performance. We are not a pure EPC company. We are -- we have a solid asset book, and we have deployed significant capital on these assets, and these are long-gestation assets of 20, 30, 35 years. So for them to start generating significant amount of cash is going to take time. And the majority of those assets have now become stable and have started generating positive cash. So as we roll forward, this is only going to go up much stronger and this portfolio will generate immense amount of wealth. So ROE kind of benchmarking will not be the right benchmark to my mind, the DCF of the assets is the right approach to buy mind. Just to throw a number, we were just working out few and we realized that the private InvIT has a shelf life till 2059 in terms of the asset concession life. And over this period of concession, we would be generating a net revenue -- net revenue means, net of premiums -- against watching of projects which are premium payable. Net of the premium, we will be generating a cash flow of more than INR 3 lakh crores. And that is the kind of revenue visibility that this portfolio has. So I think the return will be significant. But as I said, this is a long gestation project on which the capital has been deployed. And if you try to look at the return on equity generated from this capital which has been deployed for long-term assets like a EPC company, then I think we are looking at a very wrong benchmarking to my mind. And as you yourself endorsed, that would not be the most right way to look at it. I think the DCF that the portfolio is generating is the parameter that has to be looked at, what is the DCF accretion happening with additional capital getting deployed.

[Aditya Mongia, analyst]

Understood,. The next question was more kind of near term in nature. I see the traffic growth, whichever portfolio of yours I take up, Now it appears to be kind of moderating down probably below 5%. There may be project specific issues that you've highlighted, but is there something more than that, that makes you kind of think through these numbers on a recurring basis at a lower our growth level versus 5%, 6% that you may have or otherwise?

[Anil Yadav, executive]

I think, Aditya, I will highlight a few of the assets of the private InvIT and that there are trial move to the IRB asset. And if you can [indiscernible], we have got almost 13.4% high. And if I will remove the 5% time revision, the traffic growth was 8.4%. In Yedeshi-Aurangabad, there was no tariff revision only 5% from first of April. 24.3% is the growth. If I remove the 5%, the traffic growth is 19.3%.

Then I move to Hapur-Moradabad, there also the traffic growth is very healthy. But because of the tariff revision, that is not reflecting the true picture, but traffic is more than double digit.

Now coming to Udaipur Shamlaji there is 10.4% growth if I remove the 5%, then around 6% is the traffic growth.

And then we move to Kishangarh-Gulabpura that is also not comparable, then we move to Solapur Yedeshi. Solapur Yedeshi has a 18.9% revenue growth. If I remove 5%, it's a 13.9% traffic growth. So then definitely, there are projects in the portfolio, I think, more than six assets out of nine, which are generating more than double-digit kind of traffic growth. Yes, there are few assets like Agra Etawah where we had -- there was some temporary disturbance. And due to that disturbance, there is only 7% growth. If I remove 5%, the traffic growth is only 2%. But I think that was a temporary nature, and that will basically improve in the coming quarters.

Now moving to the IRB asset. Ahmedabad Vadodara has delivered a 5%, around 10% revenue growth or 5% was contributed by the traffic. Mumbai-Pune, I have already explained because of the -- some work going on Expressway and the connector route to the NH4 was closed for a temporary basis. that has led a very slow growth on the Mumbai-Pune. I think the traffic growth still remains robust, and we expect that the traffic will grow in line with the [ GDP ] or even if [ GDP ] is growing at faster pace. It can be for lead between 1x to 1.1x to the [ GDP ].

[Aditya Mongia, analyst]

Understood. And the next question that I had was more on the private InvIT. When you said INR 10,000 crores of debt, this is the gross take number, right, that you're focusing upon?

[Unknown Executive]

Yes.

[Aditya Mongia, analyst]

And is there any standalone entity over here is this only a combination of project level debt side we should be considering? Or is there any other element beyond project debt that we need to consider?

[Unknown Executive]

As of March, all the debt were at project level. And as we have discussed in last con call also, we are in process of migrating some project level debt to be [indiscernible]. But as of March, all the debts were at project SPV level only. And in project SPV debt also there are two kind of debt. One that is this is external debt, seconded debt is, debt extended by the trust. That we should not count while counting the project level debt because that is the extended by the private invIT side.

[Aditya Mongia, analyst]

Okay. Could you give me a sense of how much support has been given? So what is the interparty number on an aggregate basis? So let's say, INR 10,000 crores is the net external debt, what is the add-on support given from the parent to these assets?

[Unknown Executive]

There is no add-on support required for the private InvIT asset. And when we did a transaction with GIC, the proceeds utilization was INR 3,000 crores of debt prepayment at the SPV level. And that we -- whatever the money was raised, INR 3,000 crores was utilized to prepay the debt at SPV level. It was not kind of shortfall funding. It was repayment of the debt. And that INR 3,000 crores debt was repaid, and that was funded by way of unit capital at trust level.

[Aditya Mongia, analyst]

Sure. I guess I do require the debt numbers on a project level basis, either on the call or otherwise, I can take it from you because our numbers are slightly higher. But up to you whether you want due disclose numbers of these [indiscernible] projects right now, we can probably do it offline?

[Unknown Executive]

The total debt is close to INR 9,700 crores -- INR 9,500 crores, it's already part of the presentation. And -- so on there on Slide #33. But as you rightly mentioned, you want project wise debt, we will share the same. The INR 9,500 crores, what we have mentioned is a net debt. Gross debt will be roughly INR 9,700 crores.

[Operator]

As there are no further questions, I would now like to end the conference. Over to Mr. Virendra Mhaiskar for closing comments.

[Virendra Mhaiskar, executive]

So I would like to thank all the callers and shareholders who participated in this con call, we wish you a good weekend, and we hope to see you on the next con call as well. Thank you.

[Operator]

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using Researchbytes conferencing service. You may please disconnect your lines now. Thank you, and have a great day.