IRB InvIT Fund (540526) Q2 FY23 Earnings Concall Transcript

IRB InvIT Fund  (NSE:540526) Q2 FY23 Earnings Concall dated Oct. 18, 2022

Corporate Participants:

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Anil Yadav — Director of Investor Relations

Rushabh Gandhi — Chief Financial Officer

Analysts:

Mohit Kumar — DAM Capital — Analyst

Dhiraj Dave — Samvad Financial Services — Analyst

Satinder Singh — EON Investments — Analyst

Dhwanith Chawla — Individual Investor — Analyst

Saurabh Chatri — Individual Investor — Analyst

Jinesh Shah — Individual Investor — Analyst

Niraj Kamtekar — ProsperoTree — Analyst

Presentation:

Operator

Good evening ladies and gentlemen. Welcome to the IRB InvIT Call hosted by the company for discussing the Financial Results for Q2 FY 23.

We have with us on the call today, Mr. Vinod K. Menon, Mr. Anil Yadav, Mr. Rushabh Gandhi and Ms. Swapna Vengurlekar from IRB InvIT team.

As a reminder, all participant lines will be in the listen-only mode. And after the opening remarks by the management, there will be a question-and-answer session. Please note that the duration of the call would be 45 minutes and any queries left unanswered after the call, can be subsequently mailed to the management for adequate response and resolution. Please note that this conference is being recorded.

I now request Mr. Menon, to give you an overview of the significant development during the quarter. Over to you, sir.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yeah, thank you. Good afternoon everyone. I would like to welcome all the investors and analysts on this call. Hope you have reviewed the detailed numbers as well as the presentation.

During the quarter ended September 2022, Omallur-Salem project has received tariff rate revision of almost 15%, which was effective from September 1, 2022. As compared to the corresponding quarter of the previous year, we have received 19% growth in the toll revenue on a like-to-like basis, that is excluding Bharuch-Surat, Surat-Dahisar and the Pathankot-Amritsar project. September quarter, being monsoon quarter is generally softer on the [Technical Issues]

Operator

This is the operator. Mr. Menon, we are not able to hear you. This is the operator. Mr. Menon, we are not able to hear your audio.

Anil Yadav — Director of Investor Relations

September quarter being a monsoon quarter is generally softer on traffic side as compared to the other quarters of the year. Pathankot project has witnessed softening of the traffic, primarily because of the monsoon. We have witnessed historically very robust growth in the second half of the year. With respect to Tumkur-Chitradurga project, the honorable arbitral tribunal in its interim award has removed the existing embargo on the operation of the escrow account and permitted withdrawals towards taxes, O&M payment and debt servicing and also allowed withdrawals for the payment of premium and revenue share to the NHAI. Moreover, the honorable tribunal has also permitted operation of the escrow account to continue as per waterfall mechanism provided in the escrow agreement.

With respect to compensation of the Farmers’ agitation for Amritsar-Pathankot project, the Company has received interim relief of INR36 crores from NHAI. The company is under discussion with NHAI for the balance amount. With respect to Ahmedabad Vadodara Kim HAM asset addition to our InvIT, the resolution for acquisition of VK1 is approved by 99.99% of the votes in the favor of the resolution. 93% of institutional unitholder had casted their votes. And on behalf of the Board of IM and the management, I would like to thank all the investors for casting their votes. We express our sincere gratitude for extending the wholehearted support to the above-mentioned acquisition. We expect to complete the transaction in all respect very soon.

Considering the previous year’s trend, the second half of the fiscal seems to be promising and leading to a strong generation of cash flow. Considering the upcoming festive season, we have started witnessing uptake in the traffic movement already, providing the comfort and traction for the coming quarters.

Now I will request Rushabh Gandhi to take you through the financial performance for the quarter. Over to you, Rushabh.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I’m sorry that the call dropped. I am back. Thanks Anil for filling in. Over to you, Rushabh.

Rushabh Gandhi — Chief Financial Officer

Thank you sir. I would like to present the financial analysis for the quarter ended September 2022.

The total consolidated income for the quarter ended September 2022 declined to INR203 crores from INR328 crores in the corresponding quarter of previous year. The consolidated toll revenue for the quarter ended September 2022 declined to INR199 crores from INR313 crores in the corresponding quarter of previous year. This was basically due to handing over of two assets; Bharuch-Surat and Surat-Dahisar project on completion of their expected concession period. EBITDA for the quarter ended September 2022 stood at INR164 crores from INR269 crores in the corresponding quarter of previous year. Interest cost which include interest on premium deferment for the current quarter stood at INR36 crores as compared to INR13 crores in the corresponding quarter previous year. Depreciation for the current quarter has reduced to INR53 crore from INR166 crores in the corresponding quarter of previous year. Profit after tax for the current quarter increased to INR74 crores as compared to INR73 crores in the corresponding quarter of previous year.

I would now request the moderator to open the session for Q&A.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] First question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

Mohit Kumar — DAM Capital — Analyst

Yeah. Good evening sir and congratulations on a good set of numbers, especially maintaining the DPU at quarter one. Sir, my question, the first question is on the DPU for the fiscal year ’23, are we keeping the guidance of INR8 for the entire fiscal. Is that the number which we should look at?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thanks Mohit. As guided, we will look borrowers to paying INR8 this financial year per unit basis to the unitholder.

Mohit Kumar — DAM Capital — Analyst

Secondly sir, on the acquisition side, what is the status of the debt tie-up and if we have tied-up the debt, what are the kind of rates you’re paying, interest rates you are paying on the debt?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think Mohit, the interest rates are in-line with our expectation which we have basically trying to tie-up for the debt that have been already done and probably within, very soon we will be closing this transaction. And debt will be roughly 8.25% to 8.4%.

Mohit Kumar — DAM Capital — Analyst

And sir, will the treatment of this debt of INR9 billion I assume fully back in the rate. So will it give us sufficient room to increase our DPU over the next 12 to 18 months?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think Mohit, we have to understand two things; one is the debt at SPV level and which will be close to 7.5% to 7.6% which is close to INR9.55 billion and the acquisition debt of roughly INR200 crores, that will be close to 8.4% and there the repayment will be back-ended and the project considering the interest rates has increased. So now on the annuity, we will be eligible for higher interest rate. Accordingly, the overall distribution should also improve. And I think on per annum basis, we should be able to add INR0.50 to INR0.60 per unit from this project itself.

Mohit Kumar — DAM Capital — Analyst

And sir, any outlook on the next set of acquisition, some guidelines, I think is it possible to share, some tentative we know — you are looking to acquire one or two assets over the next 12 to 24 months. Is that a fair assumption?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think Mohit, after this acquisition also we will have still debt capacity of roughly INR3,500 crores. And with that kind of debt capacity, we can try to add two or three assets and probably we will be looking after for the third-party asset and our intent used to at least add if not three, at least two assets within a span of one year.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Thank you and all the best. Thank you.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thanks, Mohit.

Operator

Thank you. The next question is from the line of Dhiraj from Samvad Financial Services. Please go ahead.

Dhiraj Dave — Samvad Financial Services — Analyst

Yeah. Good afternoon sir. Thanks for providing an opportunity. My question is, why the distribution issue we get this time at 90%, what is this — are we looking at funding the savings, the debt percent in new projects acquisition. Can you throw some light on that?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think as we have talked about in past also that we will be making 90% distribution which is basically mandated by the SEBI. And as we have also taken unitholder approval that we will be funding part equity called the new acquisition through our retained, whatever we have retained so far. Considering that, we will be utilizing that money for the acquisition purpose. And going forward, depending upon as guided of INR8 distribution, depending upon the cash flow available, we will try to distribute between 90% to 95%.

Dhiraj Dave — Samvad Financial Services — Analyst

And sir, if you can give us broad outline basically what was the total cost, how much is internally funded, what is the new debt which we are taking if you have something, basically your AGM motive did provide it, but if you can just run with the latest figure, how much is the total enterprise value you are funding, what is the debt which was there already on the Kim project and how much additional debt we are taking. So if you can just update us, it could be [Technical Issues].

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yeah. So basically, as provided in the resolution, total debt was INR9.55 billion, that is INR955 crore and equity value was INR342 crores and enterprise value was [Technical Issues] crores and out of INR955 crores debt that is the SPV level, INR342 crores is the acquisition price and which will be further funded through internal accrual and part debt taking by the trust itself. So roughly close to little less than INR200 crores we will take our debt and balance INR150 odd crores will get funded through retained internal accruals. And out of the retained internal accruals, then additional debt to be taken by the trust, this acquisition funding will be done.

Dhiraj Dave — Samvad Financial Services — Analyst

Okay, thanks a lot. Wish you all the best.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thank you.

Operator

Thank you. The next question is from the line of Satinder Singh from EON Investments. Please go ahead.

Satinder Singh — EON Investments — Analyst

Congratulations on yet another stable quarter and also for your successful approval of the acquisition [Technical Issues].

So one question on this Talegaon-Amravati. So I understand the monsoon impact, but if we do a quarter on — year-on-year comparison for the same quarters and if we exclude the increase in the annual [Indecipherable] 10%, it seems to be about a 10% drop on the [Indecipherable] for Talegaon-Amravati and about 1.5% fall in overall traffic. Any material reasons for this, all of the tolls are doing fine. So just seems there is any cause for concern on this or is this business-as-usual and you expect this to bounce back again?

Anil Yadav — Director of Investor Relations

So in the case of Talegaon-Amravati project, as explained in earlier calls also, there are some restrictions for Nagpur due to the ongoing metro works. So that restrictions are still going on. So we expect that restrictions to uplift by December. So considering that and because of monsoon quarters also, the traffic is softer in case of Talegaon-Amravati project.

Satinder Singh — EON Investments — Analyst

[Technical Issues] same quarter last year?

Anil Yadav — Director of Investor Relations

Last year same quarter that kind of strict restriction was not there. And your observation is correct. Typically, the restriction is on plying of the heavy vehicles. The light vehicle and other vehicles ply regularly, but there are restriction in terms of the heavy vehicle because of the [Speech Overlap].

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yeah. I will add to this. The major diversions have happened very recently. Previously, the diversions have not happened because the project that is now on the verge of completion, so the diversion — heavy vehicles have been diverted, some of the heavy vehicles.

Satinder Singh — EON Investments — Analyst

Okay, that helps. And now our average rate of borrowing for the [Technical Issues] that we currently have at the [Technical Issues], what is the current rate and kind of — and does it incorporate the latest movements, REPO going up to 5.90%, is all of that built into our current rate?

Rushabh Gandhi — Chief Financial Officer

Basically, our current rate of interest is 7.95%, but earlier it was 8.25% [Phonetic]. If you consider the average rate for the current year, it will be close to 7.6%.

Satinder Singh — EON Investments — Analyst

Okay. And this 7.95% remains now stable for the next one year or does it go out with the immediate recent increase in REPO or the future REPOs at least for the next 12 months?

Rushabh Gandhi — Chief Financial Officer

It will remain stable for the next six months. And post six months, there will be a reset.

Satinder Singh — EON Investments — Analyst

There has been the — NAV has not been measured. So normally we undergo valuations at the end of September and March. So has the valuation exercise been undertaken already [Speech Overlap].

Rushabh Gandhi — Chief Financial Officer

Sure sir. So the valuation exercise has been completed. We’ll be uploading the valuation report in a couple of days and along with NAV.

Satinder Singh — EON Investments — Analyst

Okay. And you mentioned that Tumkur-Chitradurga, the interim award or whatever, okay. So is there anything still stuck at least with all the money flowing through in a waterfall mechanism now and there is no money getting stuck there at the moment?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yes. Embargo has been lifted by the arbitral tribunal. So whatever is — sanity has returned to the operations of the escrow account, it is as per the waterfall mechanism.

Satinder Singh — EON Investments — Analyst

Okay. And finally on Pathankot-Amritsar, last question. So we talk of the interim relief of about INR36 crores, our claim is about INR80 crores or so, okay. Is there any difference of opinion that has caused this interim relief. So what’s the best of this interim relief, please.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Difference of opinion is there, but it will be resolved in the continuation.

Satinder Singh — EON Investments — Analyst

Okay, fine. Thank you very much and congratulations once again. Thank you, Mr. Menon. Thank you, Rushabh.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thank you, Mr. Satin.

Operator

Thank you. The next question is from the line of Dhwanith Chawla, an Individual Investor. Please go ahead.

Dhwanith Chawla — Individual Investor — Analyst

Team, firstly congratulations on maintaining the about INR2 DPU, especially when that we have offloaded [Phonetic] two major projects. My question is, I have a single question and it is with regard to the VK1 Project. I just wanted to know that since, when will we start seeing proper measurable revenues coming in from VK1 and when will it start getting reflected in our DPU? And secondly, for the cost of the project, given the current interest-rate scenario, is there any issues which we can foresee while raising funding for this particular project in terms of the cost of project being escalated than what we had previously imagined?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

So I think you have two questions. First, I will take the first question where regard to the numbers for VK1 will start reflecting from the Q3 of this current financial year. And as we have talked about that this will improve the [Indecipherable] by INR0.50 per unit from the — on per annum basis [Technical Issues] six months, after considering the cash flow, I think around INR15 crores it should add to the cash flow.

And now with regards to the second question, I think with respect to the VK1, there is no cost escalation as such. Whatever the cost as per NHAI formula that is already paid and we will be getting annuity on that particular cost. So we had considered only the amount where we will get annuity from the [Technical Issues]. So we expect the annuity amount and interest thereon. And considering that now improvement in the interest rate, bank rate has also improved by 100 basis points from when we have taken — we have gone for the approval and finally based on this last revision by RBI. So now considering the bank rate, the interest which you will be getting from the NHAI is 9.15% and that will definitely improve the IRR for the VK1.

Dhwanith Chawla — Individual Investor — Analyst

Thank you. [Technical Issues]

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thank you.

Operator

Thank you. The next question is from the line of Saurabh Chatri, an Individual Investor. Please go ahead.

Saurabh Chatri — Individual Investor — Analyst

Hi. is my voice audible?

Operator

Yes, very much. Go ahead please.

Saurabh Chatri — Individual Investor — Analyst

Okay. Hi, first and foremost thank you for providing me this opportunity and congratulations on steady state of numbers as well as for the acquisition. I got two questions. First is that, how much would be the total cash on books at trust level after this acquisition is funded, like VK1 after that acquisition, how much —

Rushabh Gandhi — Chief Financial Officer

Yeah. So basically one should consider the cash post-acquisition of VK1 and this current payout because whatever the cash will be lying on September 30 that will get paid to the unitholder large and will paid to the unitholder also. Post payment to the unitholder and the acquisition of VK1, we will have a surplus cash of roughly INR40 crore on the balance sheet, which is available either may be used for future acquisition or maybe used for the payment to the unitholder.

Saurabh Chatri — Individual Investor — Analyst

Okay. And none of this would be subsidized, right, all of it like it’s not — it doesn’t count embargo and everything, right. We are not considering [Speech Overlap].

Rushabh Gandhi — Chief Financial Officer

Yeah. Basically to explain you, we have a debt also of INR50 crore, so the total cash will be more than INR90 crores, INR95 crores, that is INR50 crores there is the embargo and it’s towards debt what we had taken, we have not included that amount, INR40 crore amount is free amount, which will be either available for distribution or for acquisition of the new asset.

Saurabh Chatri — Individual Investor — Analyst

Okay, thank you. The second question is as I understand like you know from management like for VK1, we can expect that there will be INR0.50 increase in DPU and considering that the effect on the DPU will be available from Q3 of this quarter. So the initial, at the beginning of the year we had like INR8 DPU as the expectations. So can we expect now INR8.25 or is it too — like that INR8 was considering this INR0.25.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think as of now we are only guiding for INR8 distribution. And if as explained earlier, the second half typically is better in terms of revenue collection. If we collect more than what we have envisaged, then definitely we can think about increasing the distribution, but it will be difficult to comment on that as of now. I think probably once we cross the Q3, then we can discuss in more detail whether we can increase INR8 or not, but as of now, we expect to pay INR8 for the current financial year.

Saurabh Chatri — Individual Investor — Analyst

Okay. And one last question if I can squeeze in please. I can see that more than 95% of your toll collection is happening with FASTag. So are we as a company taking any measures to have those 5% as well in FASTag. As I understand, it will add to more efficiency. So are we taking any steps for the same.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yeah. We are taking the steps, but sometimes what happens, people do not have appropriate balance in their FASTag. And other challenge is, what happens in case of overloading. Overloading sometimes if they don’t have proper balance or even the vehicle is overloaded, for that also you have to collect cash. But our endeavor is that we should reach 100% collections with FASTag, so that we can reduce some manpower also.

Saurabh Chatri — Individual Investor — Analyst

Okay. So it is not any technology challenges, actually users challenge that we are talking about. Our digital infrastructure is in place to have 100% transactions, but it is more of the reasons that you mentioned which is actually at the user side and not at the ours, like Trust side.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yes. So I think if user can be more disciplined, we can reach to 100% level.

Saurabh Chatri — Individual Investor — Analyst

Okay, thanks a lot and all the best. That’s it from me.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thank you.

Operator

Thank you. The next question is from the line of [Indecipherable] from Wealth First Advisors. Please go ahead.

Unidentified Participant — — Analyst

Congratulations sir firstly for giving such great result. I have one question. In the valuation report that you provided last time, there about the Omallur-Namakkal project, the cost structure of the project is based on an old toll policy because of which the monthly pass is very less attractive and the revenue contribution for monthly pass is less and the highest component of revenue contribution comes from single-gen [Phonetic]. Is there a way that you can change the policy or is it like — is it the standard that is followed in that project. Can you explain that?

Anil Yadav — Director of Investor Relations

The policy cannot be changed, madam. It is as per the toll policy at the time of signing of the consistent agreement, so that will prevail.

Unidentified Participant — — Analyst

Okay, thank you. And the second question is regarding the Pathankot-Amritsar project. So in the valuation report, since you’ve given some forecast revenue numbers and the forecast for FY 2023 was above — the toll revenue was about INR170 crores. And if we take the half year forecast, we will be somewhere about INR85 crores and of which we collected about INR76 crores. So are we expecting about 10% more in fees and toll revenue in the next half and is this only due to monsoon or is there any other factor that is impacting the traffic and toll revenue collection in Pathankot-Amritsar.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Well. I think with respect to, let’s say, first half is typically impacted by the monsoon and because of the festive season coming in second half, Diwali and post that New Year and other festival, clearly the second half revenue is much better and typically we see a combination of 45%-55% in some project or 48%-52% kind of — 48% in first half and the 52% in second half. That kind of revenue mix is there between first half and second half. And if that whole [Indecipherable] for this financial year, we should be able to collect that kind of revenue from the Amritsar-Pathankot.

Unidentified Participant — — Analyst

Okay. Thank you so much sir and all the best. Thank you.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thank you.

Operator

Thank you. The next question is from the line of Jinesh Shah, an Individual Investor. Please go ahead.

Jinesh Shah — Individual Investor — Analyst

Yeah. Good evening sir and congratulations for really good set of numbers and again, congratulations for adding projects to the portfolio. My question is more on a broader base, basically the toll tariffs basically are linked to the installations and how do we read the toll growth, I mean they are saying in terms of tariff going ahead and I mean, saying, how many of our projects already have attracted or has passed on this tariff revision and how are we placed when we are looking at from let’s say next year or two years like how does the projects are stacked up for the tariff revisions if you can just give some idea about.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

So I think I will dissect your question in probably three parts. With respect to the tariff policy for the project, four projects are tariff revisions happened for April 1 and it is 3% fixed plus 14% of the WPI. And one project is directly linked with the WPIs which is in our project, that is the only project which is linked with WPIs and tariff revision effective date is from September 1. Now if we talk about WPI, if we look at past three, four years, WPI was on a lower side and some year it was negative also. But now we are seeing some kind of catch-up effect in the WPI and because of that this year we have got around 10% tariff revision for the project, which was 3% fixed plus 14% of WPIs and MVR was directly linked with the WPIs, there we got close to 14.5% kind of tariff revision. And now for the coming year, as the tariff revision for quarter four project is due on April 1, 2023, probably we may see around 6% to 7% kind of tariff revision, considering the WPI is on higher side.

Jinesh Shah — Individual Investor — Analyst

Okay. But this revision happens annually or like, I guess [Indecipherable] kind of reset happens.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

So basically the revision is already mentioned in the contract and there is pre-determined formula provided in the contract and it happens annually on the date which is provided in the contract. So that is April 1 every year for our projects and September 1 for MVRs.

Jinesh Shah — Individual Investor — Analyst

Okay. So maybe if I have missed some data, so for the first half whatever the toll collection growth we have like I’ve been saying, how have we activated to the volume and value like a breakup, can we — like I’m seeing a pricing increase and the volume increase on the overall portfolio side. I mean, leave apart projects which have already gone out, the continuing project part.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yes. If I can dissect project-wise, Tumkur-Chitradurga total revenue up is around 18%, out of that 10% was on account of tariff and around 8.25% was on account of traffic. MVR projects, the total uptake is around 21% from last September, but the tariff revision has happened from September 1, only one month impact is there in terms of the tariff is concerned. So I think MVR will be around 14% to 15% traffic increase. And with respect to Jaipur Deoli, the traffic increase is around 17%, as overall increase is 27%. And as we have discussed, Talegaon Amravati because of the some traffic restriction, there the traffic is on lower. If I reduce the number, the traffic growth will be a little negative side on.

Jinesh Shah — Individual Investor — Analyst

Okay, thank you. And just maybe to get again the fact correct. The DPU which you’re talking about is INR8 for full year. It will be after considering this phase-out of the project. So can you consider like a sustainable kind of cash flow, I mean on the existing projects, which will drive this DPU going ahead. Is that what should we take it?

Rushabh Gandhi — Chief Financial Officer

This is the valuation report, we can consider it that way.

Jinesh Shah — Individual Investor — Analyst

Sorry.

Rushabh Gandhi — Chief Financial Officer

Even if we look at the independent valuation report, we can calculate DPU for future years.

Jinesh Shah — Individual Investor — Analyst

Yeah, no. I’m just saying, I understand that. My question is that the current cash flows are not building any kind of one-off kind. I am saying it’s more recurring kind of a cash flow from the existing business and that we can take it for future calculation of DPU. Is that what should we consider?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yes, absolutely correct.

Jinesh Shah — Individual Investor — Analyst

Okay, thank you.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thank you.

Operator

Thank you. The next question is from the line of Dhiraj from Samvad Financial Services. Please go ahead.

Dhiraj Dave — Samvad Financial Services — Analyst

Thanks again to provide me opportunity to ask questions. But it is just one suggestion, it is not a question. Basically if it is possible if you can put down like the other peer group of invite and we do put forward a slide on how much is total debt and how is to be paid and how much is fixed and floating. That would really appreciate us to take understanding of the cash flow. So just one suggestion in future if it is possible if you can provide because the things are moving now, it was not so important couple of years back, but now the way interest rates revision is going on, basically if you can provide some weighted-average cost and like what is the repayment schedule and what is the kind of repayment, that would be appreciated. Just one suggestion. Wish you all the best.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yes, thanks for your suggestion. We are including the cost of debt I think in the presentation. Even the value asset report has that, but as suggested by you, we will try to include now there debt at the SPV level also, and Trust level also. We will try to provide more breakup so that it will be better to understand for the investors and analysts.

Dhiraj Dave — Samvad Financial Services — Analyst

Thank you.

Operator

Thank you. The next question is from the line of Niraj Kamtekar from ProsperoTree. Please go ahead.

Niraj Kamtekar — ProsperoTree — Analyst

Hello.

Operator

Yes.

Niraj Kamtekar — ProsperoTree — Analyst

Thank you for the opportunity. I have one question. Regarding the Pathankot-Amritsar toll, the toll revenue is de-growth by 20% quarter-on-quarter because of monsoon or volume [Indecipherable] sand mining, illegal sand mining in Punjab?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think one thing we have to understand typically during the monsoon season mining is almost very negligible traffic is there. So considering that we feel that it’s a more of monsoon effect. I think we have to look at the future quarters as well whether there will be any kind of impact because of the ban on the illegal mining. I think legal mining still continues and I don’t think so that will have any bearing, but we have to look at for one or two quarters more.

Niraj Kamtekar — ProsperoTree — Analyst

Okay, thank you. And one more question. [Indecipherable] two more assets within one year, right [Speech Overlap].

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

We had a plan to add couple of assets within a span of one year.

Niraj Kamtekar — ProsperoTree — Analyst

Borrowing from internal approvals?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think the entire acquisition may not be possible through internal approval, because we don’t want to use the unitholders’ money to acquire the assets and it will be probably largely funded through growers [Phonetic].

Niraj Kamtekar — ProsperoTree — Analyst

Okay. What is the expected debt-to-equity ratio?

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

I think we are allowed to borrow till up to 1:1 debt-equity and today the trust is [Indecipherable]. I think the Trust can add another debt of roughly INR3,000 odd crores.

Niraj Kamtekar — ProsperoTree — Analyst

Okay, thank you. That’s all I had.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Thank you.

Operator

Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.

Vinod Kumar Menon — Executive Director and Chief Executive Officer of the Investment Manager

Yes. Thanks to all the participants in today’s call. Looking-forward to hear from you again very soon. I’d like to also wish you all a very happy Diwali and take care. Thanks.

Operator

[Operator Closing Remarks]