Infra Sector - NHAI Awards 6,003 Km Of Highway Projects In FY23; Asset Monetisation In Focus: Motilal Oswal

Motilal Oswal Report

Project awarding activity picked up pace in Q4 FY23, with National Highway Authority of India awarding total projects of 6,003 km in FY23, marginally below its FY23 target of 6,500 km.

The total of projects awarded by NHAI was Rs 1.26 trillion in FY23, down ~15% YoY. NHAI’s highway construction pace increased ~13% YoY to 4,882 km in FY23.

Toll collections have been improving, with FASTag-based toll collections of Rs 541 billion in FY23 with a daily run rate of ~Rs 1.5 billion. In April 2023, daily average toll collections stood at Rs 1.7 billion.

NHAI's primary focus is on asset monetisation to raise funds outside of budget resources. In FY24, NHAI Infra Investment Trust aims to raise ~Rs 75-80 billion in the third round of asset monetisation. In the previous two rounds, NHAI InVIT successfully raised Rs 94.3 billion in total during FY22 and FY23. Furthermore, NHAI InvIT raised an additional Rs 15 billion through the issuance of non-convertible debentures in October 2022.

In FY24, NHAI intends to monetise 1,987 km of highways and has identified 30 national highway sections as part of its plan.

Dedicated Freight Corridor Corporation of India Ltd. has revised the timeline for dedicated freight corridor projects, and they are now expected to be completed by June 2024.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.