Summary of Results

Summary

 

Consolidated Income Statement

 

Statement of Comprehensive Income

 

Consolidated Balance Sheet (Group)

 

Review of performance

FY 2023 vs FY 2022

Total property income increased by ₹2.5 billion (21%) to ₹14.4 billion mainly due to:

  • income from Arshiya Warehouse 7, which was acquired in March 2022;
  • income from Industrial Facility 1 in Mahindra World City (“MWC”), which was acquired in May 2022;
  • income from Block A, ITPH which was completed in January 2023;
  • income from ITPP-H which was acquired in May 2023; and
  • higher rental income of existing properties compared to the same period last year.

In SGD terms, total property income increased by 11% to S$234.1 million. The SGD appreciated by about 9% against the INR compared to same period last year.

Total property expenses increased by 35% to ₹3.3 billion (S$54.4 million) mainly due to higher operations & maintenance expenses and property management fees.

Net property income increased by 17% to ₹11.0 billion (S$179.6 million) due to the factors described above.

Trustee-manager's fees increased by ₹149 million (14%) to ₹1.2 billion (S$19.4 million), which is in-line with higher net property income and portfolio value as of 31 December 2023.

Other operating expenses increased by ₹150 million (70%) to ₹364 million (S$5.9 million) mainly due to higher other trust expenses in FY 2023.

Finance costs increased by ₹1.4 billion (37%) to ₹5.0 billion (S$81.8 million) mainly due to increase in borrowings and interest rates.

Interest income increased by ₹388 million (13%) to ₹3.4 billion (S$55.4 million) mainly due to higher interest income from long term receivables and fixed deposits.

Net exchange differences and fair value on derivative financial instruments-realised of ₹1.8 billion (S$28.8 million) arose mainly from settlement of SGD denominated loans. Realised exchange gain or loss is recognised when borrowings that are denominated in currencies other than the INR are settled together with the settlement of JPY Medium term notes, partially offset by foreign exchange forward contracts entered by the Group to hedge the foreign exchange exposure arising from the income repatriation from India to Singapore.

As a result, ordinary profit before tax was ₹6.1 billion in FY 2023, a decrease of 12% as compared to ₹6.9 billion in FY 2022. In SGD terms, ordinary profit before tax decreased by 19% to S$99.1 million.

Income tax expenses increased by ₹1.2 billion (28%) to ₹5.3 billion (S$87.0 million) mainly due to higher deferred tax liabilities arising from annual revaluation; together with the higher income tax from increased net property income and interest income.

Distribution adjustments:

  • Income tax expenses of ₹2.3 billion (S$37.3 million).
  • Trustee-Manager's fees of ₹581 million (S$9.5 million) to be paid in units. The Trustee-manager has elected to receive 50% of its base fee and performance fee in units and 50% in cash; hence 50% of the fees are added back to the income available for distribution.
  • Realised loss on settlement of loans of ₹1.8 billion (S$29.0 million) was added back for distribution purpose. This pertains to refinancing of SGD-denominated loans that have not been hedged into INR. Exchange gain/loss is recognised when borrowings that are denominated in currencies other than the INR are revalued. The exchange gain/loss is realised when the borrowing matures, is prepaid, or swapped to INR denomination.
  • Income due to non-controlling interests of ₹418 million (S$6.8 million) is deducted from income available for distribution.

Income available for distribution decreased by 3% to ₹5.8 billion, mainly due to higher NPI partially offset by higher trustee-manager's fees, other operating expenses, current income tax and net finance cost. In SGD terms, income available for distribution decreased by 10% to S$85.2 million.

Income available for distribution per unit was ₹4.40 or 7.16 S₵. DPU was ₹3.96 or 6.45 S₵ after retaining 10% of income available for distribution, representing a decrease of 15% and 21% in INR terms and SGD terms respectively. If the preferential offering impact is excluded for FY 2023, DPU decreased by 5% to ₹4.43 and decreased by 12% to 7.21$₵ in INR terms and SGD terms.

2H FY 2023 vs 2H FY 2022

Total property income for 2H FY 2023 increased by ₹1.4 billion (23%) to ₹7.6 billion mainly due to:

  • Income from Arshiya Warehouse 7, which was acquired in March 2022;
  • income from Industrial Facility 1 in MWC, which was acquired in May 2022;
  • income from Block A, ITPH which was completed in January 2023;
  • income from ITPP-H which acquired in May 2023; and
  • higher rental income of existing properties compared to the same period last year.

In SGD terms, total property income increased by 15% to S$123.6 million. The SGD appreciated by about 7% against the INR over the same period last year.

Total property expenses increased by 33% to ₹1.8 billion (S$29.6 million) mainly due to higher operations and maintenance expenses and property management fees.

Net property income for 2H FY 2023 increased by 21% to ₹5.8 billion (S$94.0 million) due to the above factors.

Trustee-manager's fees increased by ₹111 million (21%) to ₹640 million (S$10.4 million), which is in-line with higher net property income and portfolio value as of 31 December 2023.

Other operating expenses increased by ₹87 million (78%) to ₹198 million (S$3.2 million) mainly due to higher other trust expenses in 2H FY 2023.

Finance costs increased by ₹550 million (27%) to ₹2.6 billion (S$42.0 million) mainly due to an increase in borrowings and interest rates.

Interest income decreased by ₹15 million (1%) to ₹1.6 billion (S$25.5 million) mainly due to higher interest income from fixed deposits partially offset by lower interest income from long term receivables.

Net exchange differences and fair value on derivative financial instruments-realised ₹734 million (S$12.0 million) arose mainly from the settlement of SGD-denominated loans. Realised exchange gain or loss is recognised when borrowings that are denominated in currencies other than the INR are settled together with the settlement of JPY Medium term notes, partially offset by foreign exchange forward contracts entered by the Group to hedge the foreign exchange exposure arising from the income repatriated from India to Singapore.

As a result, ordinary profit before tax was ₹3.2 billion in 2H FY 2023, a decrease of 11% as compared to ₹3.6 billion in 2H FY 2022. In SGD terms, ordinary profit before tax decreased by 16% to S$51.9 million.

Income tax expenses increased by ₹923 million (31%) to ₹4.0 billion (S$63.9 million) mainly due to higher deferred tax liabilities arising from annual revaluation, together with the higher income tax from increased net property income.

Distribution adjustments:

  • Current income tax expenses of ₹1.3 billion (S$20.4 million).
  • Trustee-manager fees of ₹313 million (S$5.1 million) to be paid in units. The Trustee-manager has elected to receive 50% of its base fee and performance fee in units and 50% in cash; hence 50% of the fees are added back to the income available for distribution.
  • Realised exchange loss of ₹734 million (S$12 million) was added back for distribution purpose as it pertains to refinancing of SGD-denominated loans that have not been hedged into INR. Exchange gain/loss is recognised when borrowings that are denominated in currencies other than the INR are revalued.
  • Income due to non-controlling interests of ₹211 million (S$3.4 million) is deducted from income available for distribution.

Income available for distribution for 2H FY 2023 decreased by 3% to ₹2.8 billion compared to ₹2.9 billion, mainly due to higher NPI, higher exchange loss and fair value on derivative financial instruments-realised partially offset by higher net finance cost and current income tax expenses. In SGD terms, income available for distribution decreased by 10% to S$45.7 million.

Income available for distribution per unit for 2H FY 2023 was ₹2.10 or 3.43 S₵. DPU was ₹1.89 or 3.09 S₵ after retaining 10% of income available for distribution, representing a decrease of 16% and 21% in INR terms and SGD terms respectively when compared to ₹2.25 or 3.91 S₵. If the preferential offering impact is excluded for 2H FY 2023, DPU decreased by 6% to ₹2.12 and decreased by 12% to 3.45$₵ in INR terms and SGD terms.

2H FY 2023 vs 1H FY 2023

Total property income for 2H FY 2023 increased by 12% to ₹7.6 billion (S$123.6 million) mainly due to the additional income contribution from Block A, ITPH and ITPP-H which were completed and acquired in January 2023 and May 2023 respectively; together with the higher rental income for existing properties in 2H FY 2023.

Total property expenses for 2H FY 2023 increased by 19% to ₹1.8 billion (S$29.6 million) mainly due to higher operations and maintenance expenses and property management fees during the period.

As a result, net property income for 2H FY 2023 increased by 10% to ₹5.8 billion. In SGD terms, net property income is S$94.0 million.

Income available for distribution for 2H FY 2023 decreased by 7% to ₹2.8 billion, mainly due to higher current tax resulting from increased NPI and higher net financial cost in 2H FY 2023, partially offset by current period's increased NPI. In SGD terms, income available for distribution decreased by 7% to S$45.8 million.

Income available for distribution per unit for 2H FY 2023 was ₹2.10 or 3.43 S₵. DPU was ₹1.89 or 3.09 S₵, after retaining 10% of income available for distribution. This represents a drop of 9% in INR and 8% in SGD terms respectively when compared to 1H FY 2023.

 

Commentary

With the recent SEZ regulatory changes, we expect leasing activity in the coming months to increase. Based on the market research report by CBRE South Asia Pvt Ltd (“CBRE”) for the period ended 31 December 2023, some of the key highlights (compared to period ended 30 June 2023) include:

Bangalore

  • In Whitefield (the micro-market where ITPB is located), vacancy increased to 19.6% as of 31 December 2023, from 17.8% as of 30 June 2023, due to new supply and limited leasing activities. Average rents slightly increased in non-SEZ sectors, while it remained stable in SEZ sectors. CBRE expects rents to increase across select quality supply owing to strong occupier demand for such assets.

Chennai

  • In Old Mahabalipuram Road (the micro-market where ITPC is located), vacancy decreased to 13.3% as of 31 December 2023, from 15.5% as of 30 June 2023, due to increase in leasing activities. Rental values slightly increased in the non-SEZ segment. CBRE expects rental values to remain stable in the coming quarters.
  • In Grand Southern Trunk (the micro-market where CyberVale is located), vacancy slightly decreased to 44.7 % as of 31 December 2023, from 45.2% as of 30 June 2023, due to increased leasing activity amidst negligible supply addition. Rents remained stable across both SEZ and non-SEZ segments. CBRE expects rental values to remain stable in the coming quarters.

Hyderabad

  • In IT Corridor I9 (the micro-market where ITPH, CyberPearl and aVance Hyderabad are located), vacancy decreased to 12.3% as of 31 December 2023, from 14.8% as of 30 June 2023, due to increased leasing activity amidst negligible supply addition. Rents remained stable across both SEZ and non-SEZ segments. CBRE expects rental values to remain stable in the coming quarters.

Pune

  • In Hinjawadi (the micro-market where aVance Pune and ITPP-H are located), vacancy decreased to 28.6% as of 31 December 2023, from 32.0% as of 30 June 2023, due to increased leasing activity amidst negligible supply addition. Rents remained stable across both SEZ and non-SEZ segments. CBRE expects rental values to remain stable in the coming quarters.

Mumbai

  • In Navi Mumbai (the micro-market where Building Q1 is located), vacancy decreased to 28.7% as of 31 December 2023, from 30.4% as of 30 June 2023, due to strong leasing demand by domestic tenants. Rents remained stable across the Non-IT, IT and SEZ segments during Q4 2023. CBRE expects rents to increase across the IT segment in the coming quarters.

The performance of CLINT is influenced by its tenants' business performance and outlook, condition of each city's real estate market and global economic conditions. CLINT will continue to focus on enhancing the competitiveness of its properties to distinguish itself from competitors, while maintaining financial discipline, and seeking growth opportunities.

Notes
  1. Includes HITEC City and Madhapur.