(Alliance News) - Infrastructure India PLC said Friday its net asset value fell over its recently ended financial year due to a drop in value of investments and a weak performance at core investee Distribution Logistics Infrastructure Ltd.
As at March 31, the India-focused investment firm reported a net asset value per share of 16 pence per share, down 42% from 28p the same date the year before, and down 23% from 21p at the end of September.
Meanwhile, Infrastructure India reported a fall in the value of investments at the end of March to GBP179.4 million, down 20% from GBP223.0 million the prior year.
The net asset value decline was mainly due to delayed completion schedules for Distribution Logistics, as well as the prospective effect following the securing of USD105 million in loan financing completed in April.
During the year, DLI's performance was constrained as the lack of funding meant there was little construction progress.
"As a supply chain transportation and container infrastructure company, DLI, our principal investment is well placed to benefit from the sharp rise in container growth in India. The Indian government's relaxation of cabotage, increased coastal cargo movements and growing containerisation of cargo are cumulatively contributing to this increase all of which further underpins the rationale for expanding DLI's capabilities and infrastructure," said Chief Executive Sonny Lulla.
"After a longer than expected period, we now have the necessary funds to invest in DLI's expansion plans and we believe this will be the main driver for further NAV growth," Lulla added.
Shares in Infrastructure India were untraded on Friday, last quoted at 2.00 pence in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Infra.india (IIP)