abrdn New India Investment Trust plc

Seeking world-class, well governed companies at the heart of India's growth

 

Why invest in India?

Aspiration

India's population is the largest in the world with an expanding middle class which will drive consumption growth.

Building India

Urbanisation and infrastructure development have multiplier effects for job creation and the wider economy.

Renewables

India has committed to meeting half of its energy needs from renewable sources by 2030.

Domestic opportunities

Global businesses are investing in, and shifting production to, India, drawn by a wealth of incentives and opportunities.

Exporting talent

India's giant tech service sector, built on a highly educated and diligent workforce, drives the export of services by helping global companies keep pace with the fast-changing tech innovation landscape.

Digitalisation

India has made immense progress in digital investments, which will underpin its rise to be one of the largest global economies by the middle of the century.

 

Why invest in abrdn New India Investment Trust plc?

Robust financial strength and sustainable competitive advantage

Indian companies meeting a quality threshold are included in the portfolio, displaying both strong financial characteristics and a consistent competitive advantage in attractive industries or sectors.

Engaged Management

Quality of management is a key attribute sought in portfolio companies. The management of the best companies in India is world-class and understands the importance of sustainability and good governance to drive the best outcomes for investors and other stakeholders.

Return of growth stocks

The portfolio's focus on those Indian companies with the desire and capacity to expand will drive performance. As interest rates peak globally, investors will seek out growth stocks which are set to benefit.

 

Performance Highlights

Performance (total return in Sterling terms)

​	Six months ended	Year ended
​	30 September 2024	31 March 2024
​	%	%
Share priceA	+23.6	+27.3
Net asset value per Ordinary shareA	+18.6	+27.8
Adjusted net asset value per Ordinary shareA	+22.8	+31.9
MSCI India Index (Sterling adjusted)	+11.6	+34.4
A Considered to be an Alternative Performance Measure.  ​ ​
Source: abrdn plc, Morningstar & Factset ​ ​

 

Performance (total return in Sterling terms) for year(s) ended 30 September 2024

​	1 year	3 year	5 year	10 year
​	% return	% return	% return	% return
Share priceA	+38.5	+22.5	+63.8	+184.0
Net asset value per Ordinary ShareA	+34.0	+30.4	+72.5	+204.3
MSCI India Index (Sterling adjusted)	+28.2	+41.7	+100.5	+218.4
A Considered to be an Alternative Performance Measure.  ​ ​ ​ ​
Source: abrdn, Morningstar & Factset  ​ ​ ​ ​

 

Financial Highlights and Financial Calendar

Financial Highlights

​	30 September 2024	31 March 2024	% change
Equity shareholders' funds (net assets)	£489,081,000	£427,054,000	+ 14.5
Share price (mid-market)	806.00p	652.00p	+ 23.6
Net asset value per share	972.34p	819.56p	+ 18.6
Adjusted net asset value per shareA	1,033.78p	841.58p	+ 22.8
Discount to net asset valueAB	17.1%	20.4%	​
Net gearingA	2.1%	4.1%	​
Ongoing charges ratioA	0.94%	1.00%	​
Rupee to Sterling exchange rate	112.41	105.36	- 6.7
A Considered to be an Alternative Performance Measure.  ​ ​ ​
B Based on unadjusted net asset value per share. ​ ​ ​

 

Financial Calendar

Financial year end	March 2025
Expected announcement of annual results for the year ending 31 March 2025	June 2025
Annual General Meeting (London)	September 2025

 

Chairman's Statement

Dear Shareholder

India continues to shine as one of the brighter spots in the Asia-Pacific region. The economy is growing steadily, driven by well-known structural trends such as a booming real estate market, robust infrastructure development, and supportive public policies that have gradually reduced the cost of doing business. The stock market has also been performing exceptionally well, ranking among the best-performing emerging markets in recent quarters.

In the six months ended 30 September 2024, your Company's net asset value ("NAV") rose by 22.8% in sterling terms (total return), after adjustment for Indian capital gains tax accruals, continuing the strong turnaround witnessed in performance over the last 12 months. The Company's share price increased by 23.6%, resulting in a discount to NAV of 17.1%, an improvement on the figure of 20.5% at the end of March. I am pleased to report that, in addition to delivering strong absolute returns, your Company has also significantly outperformed the MSCI India Index (the "Benchmark"), which rose by 11.6% in total return terms. A further consequence of the Company's higher net assets at 30 September 2024, as compared to 31 March 2024, is a pleasing reduction in the ongoing charges from 1.00% to 0.94%.

While India has delivered impressive market performance, many investors are understandably concerned about valuations. Indeed, stocks do appear expensive in many market segments, particularly in the small-and-mid-cap space. However, your Manager remains optimistic, believing that in many cases these valuations are well-supported by earnings growth. Corporate India is in good shape, with good growth prospects, healthy balance sheets, low debt, and competent management teams, justifying the prevailing stock prices of high-quality companies including those held in your Company's portfolio.

Overview

The six months under review witnessed an unexpected election upset. Prime Minister Narendra Modi's Bharatiya Janata Party ("BJP") was compelled to form a coalition government after failing to secure an outright majority. Despite this, cabinet selection, where most of the major ministries remained with the BJP, indicated political continuity. This was further reinforced by a surprise victory for the BJP in the subsequent Haryana state election.

With further, important state elections on the horizon, any unforeseen defeats in those polls could magnify scrutiny of PM Modi's leadership of the coalition government. In the first budget announced by this new government, fiscal consolidation remained on track and capital infrastructure spending was robust. The government also introduced measures aimed at addressing gaps in the economy, particularly around consumption, rural demand, and employment.

Another key development was the US Federal Reserve's 0.5% rate cut in September, signalling a shift towards monetary easing in the world's largest economy. This move could provide a short-term boost to the Indian stock market and attract more foreign investment. Over the longer term, it is likely to prompt the Reserve Bank of India to follow suit with rate cuts which would lower borrowing costs, thereby supporting economic growth. India's economy grew by 8.2% in the fiscal year 2024, surpassing the previous year's rate of 7%. While growth has since moderated, on a quarterly basis, the outlook remains robust.

During the period, the Indian Rupee has been weak due to the strength of both Sterling and the US dollar, despite India's strong domestic fundamentals. With strong foreign exchange reserves, the Reserve Bank of India ("RBI") is well-equipped to intervene in the markets as needed. This capability allows the RBI to manage liquidity to contain excessive volatility and alleviate sharp depreciation of the rupee, thus ensuring stability.

Performance

Delving deeper into your Company's performance for the six months, I am pleased to report that the largest positive contributions to relative returns came from good stock picking in the energy, financials, and real estate sectors. Your Manager's off-benchmark investments in some of these sectors have paid off, as has the decision to avoid holding Benchmark bellwether Reliance Industries.

In particular, the investments in small-cap and-mid-cap stocks were among the top contributors over the six months. Financial services firm KFin Technologies, and energy company Aegis Logistics performed well. Anticipating structural opportunities, your Manager proactively increased the holdings of both companies, despite the inherent short-term volatility of such stocks.

The real estate sector, where the portfolio has a significant exposure compared to the Benchmark, once again emerged as a top contributor to your Company's outperformance. As I highlighted in the previous 31 March 2024 Annual Report, India is experiencing a long overdue recovery in residential property sales and the long-term prospects remain bright. Additionally, the portfolio's core telecommunication holdings in Bharti Airtel and its subsidiary Bharti Hexacom performed satisfactorily, supported by solid fundamentals. Following the elections in June, Bharti Airtel, along with other Indian telecom operators, raised mobile tariffs for the first time in three years, helping to boost topline growth. Further information on performance drivers and changes made to the portfolio during the six months is available in the Investment Manager's Report.

The Board and I remain confident in the Company's long-term growth potential. Your Manager has adapted the portfolio to prevailing market conditions while considering new ideas that are poised to benefit from positive structural trends.

Gearing

The Company's present bank facility, for up to £30m, is due for renewal in August 2025. At 31 March 2024, the Company had borrowed £26m of this facility but, in June 2024, £6.5m was repaid to leave £19.5m drawn down. While the Board considers that employing gearing, over the long term, contributes to returns for shareholders and is an important differentiating feature of investment companies, this is balanced against the higher cost of bank interest incurred.

Conditional tender offer

In March 2022, the Board announced the introduction of a five-yearly performance-related conditional tender offer. Following discussions with the Investment Manager, the Board decided that, should the Company's NAV total return underperform the Company's Benchmark over the five-year period from 1 April 2022, then shareholders should be offered the opportunity to realise up to 25% of their investment for cash at a level close to NAV. For these purposes, the Company's NAV per share was to be adjusted for Indian capital gains tax (the 'Adjusted NAV') to enable a like-for-like comparison with the Benchmark. The Board monitors the Company's performance and is pleased to report that, from 1 April 2022 to 30 September 2024, which marks the halfway point of the five-year measurement period to 31 March 2027, the Adjusted NAV total return was 48.3%, ahead of the Benchmark's total return of 41.1%.

 

Impact of Indian Capital Gains Tax

The Company, along with other investment vehicles, is subject to both short-term and long-term capital gains taxes in India on the growth in the value of its investment portfolio. These taxes are only paid when the underlying investments are sold and profits are crystalised, however, accounting standards require that funds accrue for any unrealised long term capital gains taxes. These accruals are deducted from the net asset value of the portfolio and therefore also affect the Company's performance figures. By contrast, taxes on unrealised capital gains are not accrued for or reflected in the Benchmark. Regrettably, the Indian Government increased the rates for capital gains tax in July 2024 which, added to the increase in the value of the investment portfolio over the period, has resulted in a significant increase in the tax accrual (see note 4 for further information).

Board

The Board was pleased to announce, on 20 November 2024, the appointment of Irina Miklavchich as a Director of the Company following a search conducted by an independent recruitment consultancy. Irina brings to the Board considerable and relevant investment management experience, with a particular focus on emerging market equities, including India.

Shareholder Engagement

The Board encourages shareholders to visit the Company's website (www.abrdnnewindia.co.uk), other social media channels (including X, formerly Twitter, and Linked-In) for the latest information and access to podcasts, thought-leadership articles and monthly factsheets. The Board is seeking to improve the information available to shareholders and to encourage greater interaction. Further to this, the Board has supported the enhancement of the website, alongside more frequent updates by the Investment Manager.

Discount and Share Buybacks

The Board continues to monitor actively the discount of the Ordinary share price to the NAV per Ordinary share and pursues a policy of selective buybacks of shares where to do so, in the opinion of the Board, is in the best interests of shareholders, whilst also having regard to the overall size of the Company.

Over the six months, the discount to NAV narrowed from 20.5% to 17.1% as the Company bought back 1.8m Ordinary shares for holding in treasury, resulting in 50,299,638 Ordinary shares with voting rights and a further 8,770,502 shares held in treasury. Unfortunately, the discount remains volatile and was 20.3% as at 26 November 2024, the latest practicable date before approval of this Report.

The Board believes that a combination of stronger long-term performance and effective marketing communication should increase demand for the Company's shares and reduce the discount to NAV at which they trade, over time.

Outlook

India presents numerous compelling attractions for investors, some of which have already been highlighted. The country boasts favourable demographics, including a large, relatively young population and a growing middle class. Rising disposable incomes are driving consumption to become increasingly aspirational. Indian corporations are becoming more sophisticated, expanding their presence beyond its borders, and starting to compete on an international level.

However, investing in India requires accepting market volatility and a degree of risk. Some of the potential near-term challenges include a spike in global energy prices, due to heightened tensions in the Middle East and a slowdown in the global economy, where India is affected as a net oil importer. There also remains concern, from certain quarters, that valuations of Indian companies are high and this has been reflected to a degree in recent falls in the market.

President-elect Donald Trump's return to the White House in January 2025 increases uncertainty. While geopolitics remains a concern, India's international standing is comparatively robust, supported by strong ties with the US, Europe, and ASEAN. Moreover, India remains more insulated from global macroeconomic concerns due to its growing domestic economy.

Your Board is confident that your Manager has assembled a portfolio of high-quality companies with strong balance sheets that can profit from pricing power at each stage of the economic cycle.

 

Michael Hughes
Chairman
27 November 2024

 

Investment Manager's Report

Market review

In the six months ended 30 September 2024, the Company's net asset value ("NAV") rose by 22.8% in sterling terms (total return), adjusted for Indian capital gains tax.

Since the beginning of 2023, the Company has clawed back a substantial part of the previous underperformance  witnessed over calendar years 2021 and 2022, as we have stuck to a long-term quality investment philosophy and by repositioning the portfolio towards structurally attractive segments with long growth runways. The Company delivered strong absolute returns over the six months that were significantly ahead of the 11.6% total return for the Benchmark.

As the Chairman notes in his Statement, India has had an exceptionally strong run in recent years. GDP growth for the last fiscal year surpassed 8% while the stock market has outperformed its emerging market peer China, as well as the broader Asia-Pacific region, since 2021. Though we have seen some slowdown in growth momentum according to the most recent quarterly GDP figures, there remain ample signs of a resilient domestic economy.

For one, corporate India remains in relatively good shape, with good growth prospects, healthy balance sheets and competent management teams. Earnings growth has been robust, with the MSCI India delivering around 20% earnings growth for the fiscal year 2023-2024. This has moderated around the election period, as was expected, and over the medium term, estimates suggest about 12% earnings growth across the board should be achievable. We believe that the quality of growth will be sustainable. Moreover, signs are emerging of a gradual pick-up in private sector capex, which would provide an additional leg to growth alongside the government-led spending into infrastructure development.

Meanwhile, some parts of the market are looking hotter than usual, such as the small-and-mid-cap segment that has benefitted from strong domestic flows pushing up share prices in recent years. We have remained selective in our exposure to this part of the market, and this has largely paid off for this interim period.

On the flip side, demand in rural India remains soft, which in turn has affected the broad-based recovery in domestic consumption. The election outcome - with the formation of a BJP-led coalition government - and the subsequent budget announcement in July offer encouraging signs of policy support being directed towards reviving rural consumption. 

Performance overview

The strongest returns came from stock selection in the energy, financials, real estate, and communication services sectors, which helped to offset the weakness from consumption.

Aegis Logistics emerged as the top stock performer as investors finally recognised what we had long seen - that this was a high quality, high growth small-cap stock that had been mispriced in the market. We scaled up the holding due to our strong conviction, despite the inherent volatility of small-cap stocks. With our long-term approach, we are prepared to endure short-term volatility and maintain our position.

We took a similar approach with our off-benchmark position in financial services firm, KFin Technologies, which rose following good results supported by a strong domestic equity market and steady mutual fund flows. This is a relatively new initiation into the portfolio in the small-cap space, where we have remained selective considering how expensive the segment has become. While KFin trades on quite a high valuation multiple, we could see several factors supporting this such as the growth of domestic asset management, a buoyant capital market, and opportunities abroad. To reflect our growing conviction, we proactively scaled up the holding and have been well rewarded in terms of the stock's performance over the period

Within the banking sub-sector, our holdings in higher quality private lenders such as ICICI Bank and HDFC Bank performed better than their lower quality peers in the market amid concerns over the impact on the latter of interest rate cuts on deposit costs.

Our repositioning of the portfolio towards industrial names and capex proxies did well over the period. We previously identified the industrials sector as a beneficiary of the pick-up in government spending on infrastructure development. The Company's core telecommunication services names, Bharti Airtel and its subsidiary, Bharti Hexacom, were among the top stock performers in the portfolio. Both names have relatively robust balance sheets and growing momentum in non-cellular businesses. Recently, after the June parliamentary elections, Bharti Airtel, along with its peers, hiked mobile tariffs. This move, the first one in about three years, is in line with our investment thesis that consolidation and rational competition would pave the way for tariff increases in the sector, particularly given that mobile data prices are exceptionally cheap compared to other markets.

Elsewhere, property holdings also added to performance. Godrej Properties and Prestige Estates both benefitted from the ongoing recovery in the residential property market where we continue to see a plethora of tailwinds. To that effect, we introduced a new property name, Brigade Enterprises, towards the end of the review period.

Not holding Reliance Industries was the second largest stock contributor to returns. This Benchmark bellwether has been weak due to lower margins in its oil refining division margins while its retail business growth has also slowed over the last few quarters. We avoid the name, and its subsidiaries, on corporate governance grounds and concerns around capital allocation.

Meanwhile, healthcare cost us some performance as Global Health (Medanta) corrected due to slower-than-expected margin ramp-up at some of its developing hospitals, partially offsetting the positive performance at its mature hospitals. Vijaya Diagnostic Centre, on the other hand, did well after reporting good results including high-teens organic revenue growth that is well ahead of the industry.

Performance in the consumer sectors was relatively soft. Within consumer discretionary, not holding online food delivery platform Zomato and retail company Trent proved costly. This was partially offset by Mahindra & Mahindra, which performed well thanks to continued progress in its core autos business. Auto parts maker Uno Minda also contributed to performance.

Overall, the underlying fundamentals of our portfolio remain sound, and our companies continue to report healthy earnings growth, mostly in line with expectations.

Portfolio activity

During the period, we continued introducing attractive stocks that met our quality criteria from a bottom-up perspective and supported by favourable structural trends. In the property sector, we introduced Brigade Enterprises, which has businesses in residential, office, retail, and hospitality segments and a strong management. We also added one of India's leading plastic processing manufacturers, Supreme Industries. This company supplies pipes to the property sector, amongst others, so is a second order beneficiary of the upswing in the property cycle.

Within health care, we initiated Poly Medicure, a manufacturer and supplier of single-use medical devices with a strong history of growing annual revenues. Meanwhile, we introduced hospitality company Indian Hotels, which has evolved from a single brand luxury hotel to encompass brands across the hospitality range, catering to different price segments.

Finally, we participated initial public offering in Bharti Hexacom's. which is the cleanest way to play improving fundamentals in the Indian telecom sector.

To partially fund the new initiations, we exited our positions in Fortis Healthcare, Affle India, and the Container Corporation of India as our conviction in these names fell. 

Outlook

India remains one of the world's fastest-growing major economies, supported by a resilient macro backdrop. Growth momentum is driven by supportive central government policies following a decade of painful, but necessary economic reforms. In July 2024, the new coalition government's first budget indicated fiscal consolidation was on track, with robust capex allocation for infrastructure development, while efforts were made to address consumption, rural demand, and employment.

That said, at the time of writing, we have seen a pullback in the equity market, driven by various factors including a rotation into China and the outcome of the US presidential election. What we are watching closely is a slowdown in Indian corporate earnings growth based on the latest reporting season. We expect the softness to remain for the next couple of quarters, but our base case is that the growth returns sometime in 2025.

Meanwhile, we are still finding plenty of pockets of good growth and quality across various sectors and sub-sectors. The Company's downside is well-protected given our quality focus, and our defensive holdings are in a good position in case of profit taking. In our view, any correction in the market would be an opportunity to add to the holdings. The consistency of earnings growth of the overall portfolio remains healthy and company fundamentals, such as pricing power, balance sheet strength, and the ability to sustain margins, remain solid and where they may have faltered, we have taken action to resize or exit the positions to insulate the portfolio.

India faces near-term external risks, such as potentially higher global energy prices and a global economic slowdown. Oil prices turned volatile in September due to the escalating conflict in the Middle East. The key to leveraging this market's potential is bottom-up stock picking backed by fundamental research, aligning well with our investment approach.

The Company's downside is well-protected given our quality focus, and our defensive holdings are in a good position in case of profit taking. Furthermore, any correction in the market would be an opportunity to add to the holdings. The consistency of earnings growth of the portfolio remains healthy and individual company fundamentals, such as pricing power, strong balance sheets and the ability to sustain margins, remain solid.

 

 

James Thom and Rita Tahilramani

abrdn Asia Limited

Investment Manager
27 November 2024

 

Investment Case Study

 

Pidilite Industries

In 1959, Pidilite founder Shri B K Parekh started his business by selling a single product; a white synthetic resin or glue called Fevicol. From these humble beginnings, the company has now grown into the dominant player in the domestic adhesives and sealants market with Fevicol becoming a household brand, instantly recognisable across the country by consumers. Pidilite now offers thousands of products across a portfolio of more than 25 brands. 

Why do we like the investment?

As investors in India, we seek out high quality businesses with strong market positions and clear sustainable sources of competitive advantage. Pidilite checks all these boxes. It has a portfolio of very strong brands with often dominant market share in its categories. It is run by a proven management and consistently maintains a solid balance sheet. Primarily a distribution-driven branded adhesives products business, Pidilite is a play on housing and renovation demand, which has both cyclical and structural tailwinds given the government's affordable housing drive and the strong upswing we are seeing in the Indian property market currently. The company has an enviable track record of creating brands that are synonymous with the category and management aspires to continue doing the same by entering underserved categories within the home improvement market. It is the clear leader in its core business and generates enviable returns and cash flows, reflecting its ability to manage crude oil-based input costs that can swing margins.

Pidilite has a diversified product portfolio across three categories. Core refers to established brands with high market maturity and strong share position, such as Fevicol. Growth includes emerging categories with significant potential for market growth or share gain, such as waterproofing products like Dr Fixit (with a marketing campaign fronted by actor and former politician Amitabh Bachchan). Finally, Pioneer brings together embryonic product lines with attractive market creation opportunities such as epoxy grouts and industrial adhesives and solutions for stone surfaces. This is where Pidilite management's strategy of forming partnerships and joint ventures with European companies, most recently Tenax (solutions for stone, granite and marble surfaces) and Litokol (epoxy grouts for floors and walls) stands out. Its foreign partners transfer their intellectual property (IP) to Pidilite, which excels at adapting the IP for the fast-moving local Indian market and establishing a dominant market share. We believe this is a key competitive edge that sets Pidilite apart from its rivals, and places it well for growth in the years ahead.

Meanwhile, Pidilite tracks well on the ESG front, too. It has been disclosing its sustainability goals, strategy and progress against goals since FY 2018-19. In FY2024, it focused on combating climate change, serving people and communities and responsible value creation. For example, Pidilite has set up a 1.8MW off-site solar farm in Upleta, Gujarat. It has also minimised the use of virgin plastic in its product packaging and began using Post Consumer Recycle plastics.

 

Ten Largest Investments

As at 30 September 2024

ICICI Bank	​	Power Grid Corporation of India
ICICI Bank has been delivering superior growth and returns improvement without compromising on asset quality. It has leveraged on its scale as well as retail and digital franchise to grow in mortgages and also growing off a low base in business banking and SMEs.	​	Power Grid Corporation of India forms the backbone of India's electricity infrastructure.  It is poised to play a key role in the growth of renewable energy delivery to the grid over the next few decades as the government plans ambitious renewable targets for the electricity sector.
​	​	​
HDFC Bank	​	Tata Consultancy Services
HDFC Bank is India's leading private sector bank that now has a complete suite of retail banking products after the merger with HDFC, India's leading provider of mortgage finance. The bank has solid underwriting standards and a progressive digital stance, further strengthening its competitive edge.	​	A top-class Indian IT services provider with the most consistent execution and lowest attrition rates. It is a long-term compounder with a decent outlook for revenue growth and order wins over the medium term.
​	​	​
Mahindra & Mahindra	​	Bharti Airtel
​With two main operating divisions, autos and farm equipment, Mahindra & Mahindra is expected to enjoy the benefits of a strong SUV model cycle, new line-up of electric vehicles and capital allocation improvement from the group level.	​	Bharti Airtel remains the leading telecom service provider with a pan-India reach and sophisticated customer base with higher average mobile spending.
​	​	​
Infosys	​	Aegis Logistics
One of India's best software developers, it continues to impress with its strong management, solid balance sheet and sustainable business model.	​	A strong and conservative player in India's gas and liquid logistics sector, Aegis Logistics has capacity to expand.  In addition, the government's push for the adoption of cleaner energy has boosted its liquefied natural gas business.
​	​	​
SBI Life Insurance	​	Godrej Properties
Among the leading domestic life insurers, SBI Life's competitive edge comes from a wide reach of SBI branches, highly productive agents, a low cost ratio and a reputable brand.	​	​Indian property developer Godrej Properties remains well positioned to be a key beneficiary of the domestic real estate industry's up-cycle with a strong brand, established platform, good access to capital and the lowest cost of debt in the sector.

 

Portfolio

As at 30 September 2024 ​ ​ ​
​	​	2024	​
​	​	Valuation	Total assets
Company	Sector	£'000	%
ICICI Bank	Financials	39,161	7.7
Power Grid Corporation of India	Utilities	26,757	5.2
HDFC Bank	Financials	26,464	5.2
Tata Consultancy Services	Information Technology	25,841	5.1
Mahindra & Mahindra	Consumer Discretionary	25,823	5.1
Bharti Airtel	Communication Services	25,233	5.0
Infosys	Information Technology	23,855	4.7
Aegis Logistics	Energy	22,665	4.4
SBI Life Insurance	Financials	19,715	3.9
Godrej Properties	Real Estate	17,144	3.4
Top ten investments	​	252,658	49.7
Vijaya Diagnostic Centre	Health Care	14,774	2.9
UltraTech Cement	Materials	14,639	2.9
Axis Bank	Financials	14,018	2.8
KFIN Technologies	Financials	13,881	2.7
Cholamandalam Investment and Finance	Financials	13,591	2.7
J.B. Chemicals & Pharmaceuticals	Health Care	12,302	2.4
Hindustan Unilever	Consumer Staples	12,116	2.4
Siemens	Industrials	11,869	2.3
KEI Industries	Industrials	11,003	2.2
Havells India	Industrials	10,886	2.1
Top twenty investments	​	381,737	75.1
Hindalco Industries	Materials	10,360	2.0
Indian Hotels	Consumer Discretionary	9,251	1.8
Info Edge	Communication Services	9,177	1.8
Nestlé India	Consumer Staples	9,088	1.8
ABB India	Industrials	8,978	1.8
Phoenix Mills	Real Estate	8,301	1.6
Tata Consumer Products	Consumer Staples	8,247	1.6
Pidilite Industries	Materials	7,585	1.5
Titan	Consumer Discretionary	7,500	1.5
Global Health India	Health Care	7,485	1.5
Top thirty investments	​	467,709	92.0
APAR Industries	Industrials	7,009	1.4
PB Fintech	Financials	6,757	1.3
UNO Minda	Consumer Discretionary	6,516	1.3
Prestige Estates Projects	Real Estate	6,280	1.2
Bharti Hexacom	Communication Services	5,899	1.1
Aptus Value Housing Finance	Financials	5,711	1.1
Supreme Industries	Materials	4,793	0.9
Syngene International	Health Care	4,412	0.9
Coromandel International	Materials	4,394	0.9
Coforge	Information Technology	4,388	0.9
Top forty investments	​	523,868	103.0
Brigade Enterprises	Real Estate	3,303	0.6
Maruti Suzuki India	Consumer Discretionary	2,813	0.6
Poly Medicure	Health Care	2,564	0.5
Total investments	​	532,548	104.7
Net liabilities (before deducting prior charges)A	​	(23,996)	(4.7)
Total assetsA	​	508,552	100.0
A Excluding loan balances. ​ ​ ​

 

Other Matters

Investment Objective

The investment objective of the Company is to provide shareholders with long term capital appreciation by investment in companies which are incorporated in India, or which derive significant revenue or profit from India, with dividend yield from the Company being of secondary importance.

Investment Policy

The Company primarily invests in Indian equity securities. Further information on the Company's investment policy may be found on page 12 of the Annual Report for the year ended 31 March 2024 (the "Annual Report") which is published on the Company's website.

Principal Risks and Uncertainties

The principal risks and uncertainties associated with the Company are set out in detail on pages 14 to 16 of the Annual Report. The principal risks and uncertainties may be summarised under the following headings:

·  Strategic risk

·  Market risk

·  Poor investment performance

·  Discount

·  Single country risk

·  Supplier risk

·  Financial and regulatory

·  Gearing; and

·  Unlisted securities

In addition, the Board has identified, as an emerging risk which it considers is likely to become more relevant for the Company in the future, the implications for the Company's investment portfolio of a changing climate. The Board assesses this emerging risk as it develops, including how investor sentiment is evolving towards climate risk within investment portfolios and will consider how the Company may mitigate this risk, together with any other emerging risks, if and when they become material.

These principal risks and uncertainties, and emerging risks, are not expected to change materially for the remaining six months of the Company's financial year ending 31 March 2025.

The Board also notes the increasing and broader geo-political issues which may have implications for the Company's portfolio.

Going Concern

In accordance with the Financial Reporting Council's guidance on Going Concern and Liquidity Risk, the Directors have reviewed the Company's ability to continue as a going concern. The Company's assets consist of a diverse portfolio of listed equity shares which in most circumstances are realisable within a short timescale.

The Directors are conscious of the principal risks and uncertainties disclosed on pages 14 to 16 and in Note 17 of the Annual Report.

In August 2022, the Company announced that it had entered into a three year, £30 million revolving credit facility with The Royal Bank of Scotland International Limited (the "Facility"), of which £19.5m was fully drawn down at 30 September 2024 (30 September 2023 - £26.0m). The Board has set limits for borrowing and regularly reviews the level of any gearing and compliance with banking covenants.

In advance of expiry of the Facility in August 2025, the Company will enter into negotiations with its bankers. If acceptable terms are available from the existing bankers, or any alternative, the Company would expect to continue to access a facility. However, should these terms not be forthcoming, any outstanding borrowing would be repaid through the proceeds of equity sales.

After making enquiries, including a review of revenue forecasts, the Directors have a reasonable expectation that the Company possesses adequate resources to continue in operational existence for the foreseeable future and for at least 12 months from the date of this Report. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Half Yearly Financial Report, in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:

·  the condensed set of Financial Statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);

·  the Half Yearly Board Report includes a fair review of the information required by rule 4.2.7R of the Disclosure Guidance and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

·  the Half Yearly Board Report includes a fair review of the information required by 4.2.8R of the Disclosure Guidance and Transparency Rules (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so).

The Half Yearly Financial Report for the six months ended 30 September 2024 comprises the Interim Board Report, including the Statement of Directors' Responsibilities and a condensed set of Financial Statements.

For and on behalf of the Board
Michael Hughes
Chairman
27 November 2024

 

Condensed Statement of Comprehensive Income

​	​	Six months ended  ​ ​			Six months ended  ​ ​			Year ended  ​ ​
​	​	30 September 2024  ​ ​			30 September 2023  ​ ​			31 March 2024  ​ ​
​	​	(unaudited)  ​ ​			(unaudited)  ​ ​			(audited)  ​ ​
​	​	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
​	Notes	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Income	​	​	​	​	​	​	​	​	​	​
Income from investments	3	2,813	-	2,813	3,013	-	3,013	4,722	-	4,722
Interest	3	82	-	82	82	-	82	181	-	181
Gains on investments held at fair value through profit or loss	​	-	96,560	96,560	-	49,629	49,629	-	106,805	106,805
Currency losses	​	-	(248)	(248)	-	(103)	(103)	-	(403)	(403)
​	​	2,895	96,312	99,207	3,095	49,526	52,621	4,903	106,402	111,305
Expenses	​	​	​	​	​	​	​	​	​	​
Investment management fees	​	(1,760)	-	(1,760)	(1,430)	-	(1,430)	(2,964)	-	(2,964)
Administrative expenses	​	(497)	-	(497)	(490)	-	(490)	(957)	-	(957)
Profit/(loss) before finance costs and taxation	​	638	96,312	96,950	(1,175)	49,526	50,701	982	106,402	107,384
​	​	​	​	​	​	​	​	​	​	​
Finance costs	​	(1,070)	-	(1,070)	(1,330)	-	(1,330)	(2,544)	-	(2,544)
(Loss)/profit before taxation	​	(432)	96,312	95,880	(155)	49,526	49,371	(1,562)	106,402	104,840
​	​	​	​	​	​	​	​	​	​	​
Taxation	4	(284)	(19,431)	(19,715)	(301)	(5,237)	(5,538)	(472)	(13,346)	(13,818)
(Loss)/profit for the period	​	(716)	76,881	76,165	(456)	44,289	43,833	(2,034)	93,056	91,022
​	​	​	​	​	​	​	​	​	​	​
(Loss)/return per Ordinary share (pence)	5	(1.40)	149.90	148.50	(0.83)	80.72	79.89	(3.77)	172.62	168.85
​	​	​	​	​	​	​	​	​	​	​
The Company does not have any income or expense that is not included in (loss)/profit for the period, and therefore the "(Loss)/profit for the period" is also the "Total comprehensive income for the period". ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
The total columns of this statement represent the Condensed Statement of Comprehensive Income, prepared in accordance with IFRS. The revenue and capital columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
All of the (loss)/profit and total comprehensive income is attributable to the equity holders of abrdn New India Investment Trust plc. There are no non-controlling interests.  ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
The accompanying notes are an integral part of these financial statements. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

Condensed Statement of Financial Position

​	​	As at	As at	As at
​	​	30 September	30 September	31 March
​	​	2024	2023	2024
​	​	(unaudited)	(unaudited)	(audited)
​	Notes	£'000	£'000	£'000
Non-current assets	​	​	​	​
Investments held at fair value through profit or loss	​	532,548	423,771	465,789
​	​	​	​	​
Current assets	​	​	​	​
Cash at bank	​	9,626	10,163	6,452
Receivables	​	402	1,319	2,403
Total current assets	​	10,028	11,482	8,855
​	​	​	​	​
Current liabilities	​	​	​	​
Bank loan	7	(19,471)	(25,936)	(25,953)
Other payables	​	(1,748)	(3,640)	(2,231)
Total current liabilities	​	(21,219)	(29,576)	(28,184)
Net current liabilities	​	(11,191)	(18,094)	(19,329)
​	​	​	​	​
Non-current liabilities	​	​	​	​
Deferred tax liability on Indian capital gains	4	(32,276)	(14,366)	(19,406)
Net assets	​	489,081	391,311	427,054
​	​	​	​	​
Share capital and reserves	​	​	​	​
Ordinary share capital	8	14,768	14,768	14,768
Share premium account	​	25,406	25,406	25,406
Capital redemption reserve	​	4,484	4,484	4,484
Capital reserve	​	447,567	347,503	384,824
Revenue reserve	​	(3,144)	(850)	(2,428)
Equity shareholders' funds	​	489,081	391,311	427,054
​	​	​	​	​
Net asset value per Ordinary share (pence)	10	972.34	725.75	819.56
​	​	​	​	​
The accompanying notes are an integral part of these financial statements. ​ ​ ​ ​

 

Condensed Statement of Changes in Equity

Six months ended 30 September 2024 (unaudited)     ​ ​ ​ ​ ​ ​
​	​	Share	Capital	​	​	​
​	Share	premium	redemption	Capital	Revenue	​
​	capital	account	reserve	reserve	reserve	Total
​	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2024	14,768	25,406	4,484	384,824	(2,428)	427,054
Profit/(loss) for the period	-	-	-	76,881	(716)	76,165
Buyback of share capital to treasury	-	-	-	(14,138)	-	(14,138)
Balance at 30 September 2024	14,768	25,406	4,484	447,567	(3,144)	489,081
​	​	​	​	​	​	​
​	​	​	​	​	​	​
Six months ended 30 September 2023 (unaudited)    ​ ​ ​ ​ ​ ​
​	​	Share	Capital	​	​	​
​	Share	premium	redemption	Capital	Revenue	​
​	capital	account	reserve	reserve	reserve	Total
​	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2023	14,768	25,406	4,484	313,655	(394)	357,919
Profit/(loss) for the period	-	-	-	44,289	(456)	43,833
Buyback of share capital to treasury	-	-	-	(10,441)	-	(10,441)
Balance at 30 September 2023	14,768	25,406	4,484	347,503	(850)	391,311
​	​	​	​	​	​	​
​	​	​	​	​	​	​
Year ended 31 March 2024 (audited)    ​ ​ ​ ​ ​ ​
​	​	Share	Capital	​	​	​
​	Share	premium	redemption	Capital	Revenue	​
​	capital	account	reserve	reserve	reserve	Total
​	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2023	14,768	25,406	4,484	313,655	(394)	357,919
Profit/(loss) for the period	-	-	-	93,056	(2,034)	91,022
Buyback of share capital to treasury	-	-	-	(21,887)	-	(21,887)
Balance at 31 March 2024	14,768	25,406	4,484	384,824	(2,428)	427,054
​	​	​	​	​	​	​
The Revenue reserve represents the amount of the Company's distributable reserves.    ​ ​ ​ ​ ​ ​

 

Condensed Cash Flows Statement

​	Six months ended	Six months ended	Year ended
​	30 September 2024	30 September 2023	31 March 2024
​	(unaudited)	(unaudited)	(audited)
​	£'000	£'000	£'000
Cash flows from operating activities	​	​	​
Dividend income received	2,804	2,928	4,722
Interest income received	85	(3)	(4)
Investment management fee paid	(1,688)	(501)	(3,203)
Overseas withholding tax	(584)	(655)	-
Other cash expenses	(656)	(429)	(970)
Cash (outflow)/inflow from operations	(39)	1,340	545
Interest paid	(1,254)	(1,113)	(2,248)
Net cash inflow from operating activities	(1,293)	227	(1,703)
​	​	​	​
Cash flows from investing activities	​	​	​
Purchases of investments	(78,588)	(39,222)	(96,207)
Sales of investments	110,796	58,874	128,508
Indian capital gains tax paid on sales	(6,561)	(2,019)	(5,088)
Net cash inflow from investing activities	25,647	17,633	27,213
​	​	​	​
Cash flows from financing activities	​	​	​
Buyback of shares	(14,397)	(10,757)	(21,792)
Repayment of loan	(6,500)	(4,000)	(4,000)
Costs associated with loan	(35)	(12)	(41)
Net cash outflow from financing activities	(20,932)	(14,769)	(25,833)
Net increase/(decrease) in cash and cash equivalents	3,422	3,091	(323)
Cash and cash equivalents at the start of the period	6,452	7,178	7,178
Effect of foreign exchange rate changes	(248)	(106)	(403)
Cash and cash equivalents at the end of the period	9,626	10,163	6,452
​	​	​	​
There were no non-cash transactions during the period (six months ended 30 September 2023 - £22,000; year ended 31 March 2024 - 22,000). ​ ​ ​

 

Notes to the Financial Statements

For the six months ended 30 September 2024

1.	Principal activity
​	The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.

 

2.	Accounting policies
​	The Company's financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - 'Interim Financial Reporting', as adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Reporting Interpretations Committee of the IASB (IFRIC). The Company's financial statements have been prepared using the same accounting policies applied for the year ended 31 March 2024 financial statements, which received an unqualified audit report.
​	The financial statements have been prepared on a going concern basis. In accordance with the Financial Reporting Council's guidance on 'Going Concern and Liquidity Risk' the Directors have undertaken a review of the Company's assets which primarily consist of a diverse portfolio of listed equity shares which, in most circumstances, are realisable within a short timescale.

 

3.	Income	​	​	​
​	​	Six months ended	Six months ended	Year ended
​	​	30 September 2024	30 September 2023	31 March 2024
​	​	£'000	£'000	£'000
​	Income from investments	​	​	​
​	Overseas dividends	2,813	3,013	4,722
​	​	​	​	​
​	Other income	​	​	​
​	Deposit interest	82	82	172
​	Other interest	-	-	9
​	​	82	82	181
​	Total income	2,895	3,095	4,903

 

4.	Taxation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​	​	​	Six months ended ​ ​			Six months ended ​ ​			Year ended ​ ​
​	​	​	30 September 2024 ​ ​			30 September 2023 ​ ​			31 March 2024 ​ ​
​	​	​	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
​	​	​	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
​	(a)	Analysis of charge for the period	​	​	​	​	​	​	​	​	​
​	​	Indian capital gains tax charge on sales	-	6,561	6,561	-	2,019	2,019	-	5,088	5,088
​	​	Overseas taxation	284	-	284	301	-	301	472	-	472
​	​	Total current tax charge for the period	284	6,561	6,845	301	2,019	2,320	472	5,088	5,560
​	​	Movement in deferred tax liability on Indian capital gains	-	12,870	12,870	-	3,218	3,218	-	8,258	8,258
​	​	Total tax charge for the period	284	19,431	19,715	301	5,237	5,538	472	13,346	13,818
​	​	​	​	​	​	​	​	​	​	​	​
​	​	The Company is liable to Indian capital gains tax under Section 115 AD of the Indian Income Taxes Act 1961. ​ ​ ​ ​ ​ ​ ​ ​ ​
​	​	During the year, Indian CGT rates changed; for long-term investments held the rate changed from 10% to 12.5% and for short-term investments held the rate changed from 15% to 20%. The Company has recognised a deferred tax liability of £32,276,000 (30 September 2023 - £14,366,000; 31 March 2024 - £19,406,000 deferred tax liability) on capital gains which may arise if Indian investments are sold. ​ ​ ​ ​ ​ ​ ​ ​ ​
​	​	On 1 April 2020, the Indian Government withdrew an exemption from withholding tax on dividend income. Dividends are received net of 20% withholding tax and an additional charge of 4%. A further surcharge of either 2% or 5% is applied if the receipt exceeds a certain threshold. Of this total charge, 10% of the withholding tax is irrecoverable with the remainder being shown in the Condensed Statement of Financial Position as an asset due for offset against Indian capital gains or reclaim. ​ ​ ​ ​ ​ ​ ​ ​ ​
​	(b)	Factors affecting the tax charge for the year or period. The tax charged for the period can be reconciled to the (loss)/profit per the Condensed Statement of Comprehensive Income as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​
​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	Six months ended ​ ​			Six months ended ​ ​			Year ended ​ ​
​	​	​	30 September 2024 ​ ​			30 September 2023 ​ ​			31 March 2024 ​ ​
​	​	​	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
​	​	​	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
​	​	(Loss)/profit before tax	(432)	96,312	95,880	(155)	49,526	49,371	(1,562)	106,402	104,840
​	​	​	​	​	​	​	​	​	​	​	​
​	​	UK corporation tax on profit at the standard rate of 25%	(108)	24,077	23,969	(39)	12,381	12,342	(391)	26,601	26,210
​	​	Effects of:	​	​	​	​	​	​	​	​	​
​	​	Gains on investments held at fair value through profit or loss not subject to UK Corporation tax	-	(24,140)	(24,140)	-	(12,407)	(12,407)	-	(26,702)	(26,702)
​	​	Currency losses not taxable	​	62	62	-	26	26	-	101	101
​	​	Deferred tax not recognised in respect of tax losses	808	-	808	790	-	790	1,474	-	1,474
​	​	Corporate interest restriction	-	-	-	-	-	-	93	-	93
​	​	Expenses not deductible for tax purposes	-	-	-	2	-	2	4	-	4
​	​	Indian capital gains tax charged on sales	-	6,562	6,562	-	2,019	2,019	-	5,088	5,088
​	​	Realised gains on non-reporting offshore funds	3	-	3	-	-	-	-	-	-
​	​	Movement in deferred tax liability on Indian capital gains	-	12,870	12,870	-	3,218	3,218	-	8,258	8,258
​	​	Irrecoverable overseas withholding tax	284	-	284	301	-	301	472	-	472
​	​	Non-taxable dividend income	(703)	-	(703)	(753)	-	(753)	(1,180)	-	(1,180)
​	​	Total tax charge	284	19,431	19,715	301	5,237	5,538	472	13,346	13,818
​	​	​	​	​	​	​	​	​	​	​	​
​	​	At 30 September 2024, the Company has surplus management expenses and loan relationship debits with a tax value of £42,435,000 (30 September 2023 - £9,116,000; 31 March 2024 - £39,202,000) based on enacted tax rates, in respect of which a deferred tax asset has not been recognised. No deferred tax asset has been recognised because the Company is not expected to generate taxable income in the future in excess of the deductible expenses of those future periods. Therefore, it is unlikely that the Company will generate future taxable revenue that would enable the existing tax losses to be utilised. ​ ​ ​ ​ ​ ​ ​ ​ ​

 

5.	Return per Ordinary share	​	​	​
​	​	Six months ended	Six months ended	Year ended
​	​	30 September 2024	30 September 2023	31 March 2024
​	​	£'000	£'000	£'000
​	Based on the following figures:	​	​	​
​	Revenue return	(716)	(456)	(2,034)
​	Capital return	76,881	44,289	93,056
​	Total return	76,165	43,833	91,022
​	​	​	​	​
​	Weighted average number of Ordinary shares in issue	51,289,435	54,868,970	53,907,480

 

6.	Transaction costs	​	​	​
​	During the period, expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through the capital column of the Condensed Statement of Comprehensive Income, and are included within gains on investments at fair value through profit or loss in the Condensed Statement of Comprehensive Income. The total costs were as follows: ​ ​ ​
​	​	​	​	​
​	​	Six months ended	Six months ended	Year ended
​	​	30 September 2024	30 September 2023	31 March 2024
​	​	£'000	£'000	£'000
​	Purchases	132	78	165
​	Sales	171	78	178
​	​	303	156	343
​	​		​	​
​	The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document, provided by the Manager, are calculated on a different basis and in line with the PRIIPs regulations. ​ ​ ​

 

7.	Bank loan
​	In August 2022, the Company entered into a three year £30 million multi-currency revolving credit facility with The Royal Bank of Scotland International Limited (London Branch). At 30 September 2024, £19.5 million (30 September 2023 - £26 million; 31 March 2024 - £26 million) had been drawn down at an all-in interest rate of 8.55% with a maturity date of 7 October 2024 (30 September 2023 - 8.531% until 2 October 2023; 31 March 2024 - 8.7873% until 2 April 2024. Subsequent to this the loan has been rolled over and at the date of this report the Company had drawn down £19.5 million at an all-in interest rate of 8.55%.
​	The bank loan recognised in the Condensed Statement of Financial Position is net of amortised costs.

 

8.	Ordinary share capital
​	During the period 1,808,272 Ordinary shares were bought back by the Company for holding in treasury (period to 30 September 2023 - 1,891,673; year to 31 March 2024 - 3,702,011), at a cost of £14,127,000 (30 September 2023 - £10,433,000; 31 March 2024 - £21,778,000). As at 30 September 2024 there were 50,299,638 (30 September 2023 - 53,918,248; 31 March 2024 - 52,107,910) Ordinary shares in issue, excluding 8,770,502 (30 September 2023 - 5,151,892; 31 March 2024 - 6,962,230) Ordinary shares held in treasury.
​	Following the period end a further 790,000 Ordinary shares were bought back for treasury by the Company at a cost of £6.1m resulting in there being 49,509,638 Ordinary shares with voting shares in issue, excluding 9,560,502 Ordinary shares held in treasury as at 26 November 2024, the latest practicable date before this Report was approved.

 

9.	Analysis of changes in net debt ​ ​ ​ ​ ​
​	​	At	​	​	​	At
​	​	31 March	Currency	Cash	Non-cash	30 September
​	​	2024	differences	flows	movements	2024
​	​	£'000	£'000	£'000	£'000	£'000
​	Cash and short term deposits	6,452	(248)	3,422	-	9,626
​	Debt due within one year	(25,953)	-	6,500	(18)	(19,471)
​	​	(19,501)	(248)	9,922	(18)	(9,845)
​	​	​	​	​	​	​
​	​	​	​	​	​	​
​	​	At	​	​	​	At
​	​	31 March	Currency	Cash	Non-cash	31 March
​	​	2023	differences	flows	movements	2024
​	​	£'000	£'000	£'000	£'000	£'000
​	Cash and short term deposits	7,178	(403)	(323)	-	6,452
​	Debt due within one year	(29,918)	-	4,000	(35)	(25,953)
​	​	(22,740)	(403)	3,677	(35)	(19,501)
​	​	​	​	​	​	​
​	A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis. ​ ​ ​ ​ ​

 

10.	Net asset value per Ordinary share
​	The net asset value per Ordinary share is based on a net asset value of £489,081,000 (30 September 2023 - £391,311,000; 31 March 2024 - £427,054,000) and on 50,299,638 (30 September 2023 - 53,918,248; 31 March 2024 - 52,107,910) Ordinary shares, being the number of Ordinary shares in issue at the period end.

 

11.	Fair value hierarchy ​ ​ ​ ​ ​ ​
​	IFRS 13 'Fair Value Measurement' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making measurements. The fair value hierarchy has the following levels:   ​ ​ ​ ​ ​ ​
​	Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities; ​ ​ ​ ​ ​ ​
​	Level 2: valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and ​ ​ ​ ​ ​ ​
​	Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. ​ ​ ​ ​ ​ ​
​	The financial assets and liabilities measured at fair value in the Condensed Statement of Financial Position and are grouped into the fair value hierarchy at the Condensed Statement of Financial Position date are as follows: ​ ​ ​ ​ ​ ​
​	​		​	​	​	​	​	​
​	​		​	​	Level 1	Level 2	Level 3	Total
​	As at 30 September 2024 ​			Note	£'000	£'000	£'000	£'000
​	Financial assets at fair value through profit or loss ​			​	​	​	​	​
​	Quoted equities		​	a)	532,548	-	-	532,548
​	Net fair value		​	​	532,548	-	-	532,548
​	​		​	​	​	​	​	​
​	​		​	​	​	​	​	​
​	​		​	​	Level 1	Level 2	Level 3	Total
​	As at 30 September 2023		​	Note	£'000	£'000	£'000	£'000
​	Financial assets at fair value through profit or loss		​	​	​	​	​	​
​	Quoted equities		​	a)	423,771	-	-	423,771
​	Net fair value		​	​	423,771	-	-	423,771
​	​		​	​	​	​	​	​
​	​		​	​	​	​	​	​
​	​		​	​	Level 1	Level 2	Level 3	Total
​	As at 31 March 2024		​	Note	£'000	£'000	£'000	Total
​	Financial assets at fair value through profit or loss		​	​	​	​	​	​
​	Quoted equities		​	a)	465,789	-	-	465,789
​	Net fair value		​	​	465,789	-	-	465,789
​	​		​	​	​	​	​	​
​	a)	Quoted equities. The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges. ​ ​ ​ ​ ​

 

12.	Related party transactions
​	The Company has an agreement with abrdn Fund Managers Limited (the "Manager") for the provision of management, secretarial, accounting and administration services and for carrying out promotional activity services in relation to the Company.
​	During the period, the management fee was payable monthly in arrears and was based on 0.8% per annum up to £300 million and 0.6% thereafter of the net assets of the Company. The management agreement is terminable by either the Company or the Manager on six months' notice. The amount payable in respect of the Company for the period was £1,760,000 (six months ended 30 September 2023 - £1,430,000; year ended 31 March 2024 - £2,964,000) and the balance due to the Manager at the period end was £591,000 (period end 30 September 2023 - £1,687,000; year end 31 March 2024 - £520,000). All investment management fees are charged 100% to the revenue column of the Statement of Comprehensive Income.
​	The Company has an agreement with the Manager for the provision of promotional activities in relation to the Company's participation in the abrdn Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement during the period were £98,000 (six months ended 30 September 2023 - £93,000; year ended 31 March 2024 - £190,000) and the balance due to the Manager at the period end was £49,000 (period ended 30 September 2023 - £93,000; year ended 31 March 2024 - £98,000).

 

13.

Segmental information

​

For management purposes, the Company is organised into one main operating segment, which invests in equity securities. All of the Company's activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment. The financial results from this segment are equivalent to the financial statements of the Company as a whole.

 

14.	Half-Yearly Report
​	The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 30 September 2024 and 30 September 2023 has not been audited.
​	The information for the year ended 31 March 2024 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the Independent Auditor on those accounts contained no qualification or statement under Section 237 (2), (3) or (4) of the Companies Act 2006.
​	The Half-Yearly Report has not been reviewed or audited by the Company's Independent Auditor.

 

15.	Approval
​	This Half-Yearly Report was approved by the Board on 27 November 2024.

 

Alternative Performance Measures

Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes International Financial Reporting Standards and the Statement of Recommended Practice issued by Association of Investment Companies. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies. ​ ​ ​ ​
Adjusted net asset value per Ordinary shareA ​ ​ ​ ​
This performance measure is used to provide a like for like comparison with the Company's Benchmark for the purposes of the potential five-yearly performance-related conditional tender offer announced on 24 March 2022. Further details may be found in the Chairman's Statement. ​ ​ ​ ​
​	​	​	​	​
​	​	​	30 September 2024	31 March 2024
Net assets attributable (£'000)	​	​	489,081	427,054
Accumulated Indian CGT charge for the period since 31 March 2022 (£'000) ​ ​			30,907	11,476
Net assets attributable excluding Indian CGT charge (£'000) ​ ​			519,988	438,530
Number of Ordinary shares in issue	​	​	50,299,638	52,107,910
Adjusted net asset value per Ordinary shareA ​ ​			1,033.78p	841.58p
A Adjusted NAV is the Company's NAV after adding back all Indian capital gains tax paid or accrued in respect of realised and unrealised gains made on investments. ​ ​ ​ ​
​	​	​	​	​
Discount to net asset value per Ordinary share ​ ​ ​ ​
The discount is the amount by which the share price is lower than the net asset value per share with debt at fair value, expressed as a percentage of the net asset value. ​ ​ ​ ​
​	​	​	​	​
​	​	​	30 September 2024	31 March 2024
NAV per Ordinary share	​	a	972.34p	819.56p
Share price	​	b	806.00p	652.00p
Discount	​	(a-b)/a	17.1%	20.4%
​	​	​	​	​
Net gearing ​ ​ ​ ​
Net gearing measures the total borrowings less cash and cash equivalents divided by shareholders' funds, expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes amounts due to and from brokers at the period end. ​ ​ ​ ​
​	​	​	​	​
​	​	​	30 September 2024	31 March 2024
Borrowings (£'000)	​	a	19,471	25,953
Cash (£'000)	​	b	9,626	6,452
Amounts due to brokers (£'000)	​	c	303	482
Amounts due from brokers (£'000)	​	d	-	2,328
Shareholders' funds (£'000)	​	e	489,081	427,054
Net gearing	​	(a-b+c-d)/e	2.1%	4.1%
​	​	​	​	​
Ongoing charges ​ ​ ​ ​
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of annualised investment management fees and administrative expenses and expressed as a percentage of the average daily net asset values with debt at fair value published throughout the year. The ratio for 30 September 2024 is based on forecast ongoing charges for the year ending 31 March 2025. ​ ​ ​ ​
​	​	​	​	​
​	​	​	30 September 2024	31 March 2024
Investment management fees (£'000)	​	​	3,522	2,964
Administrative expenses (£'000)	​	​	1,048	957
Less: non-recurring charges (£'000)A	​	​	(22)	-
Ongoing charges (£'000)	​	​	4,548	3,921
Average net assets (£'000)	​	​	484,176	391,393
Ongoing charges ratio	​	​	0.94%	1.00%
A Professional fees unlikely to recur.	​	​	​	​
​	​	​	​	​
The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations which amongst other things, includes the cost of borrowings and transaction costs. ​ ​ ​ ​
Total return ​ ​ ​ ​
NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-ended and closed-ended competitors, and the Benchmark, respectively.  ​ ​ ​ ​
​	​	​	​	​
​	​	​	​	Share
Six months ended 30 September 2024	​	NAV	Adjusted NAV	Price
Opening at 1 April 2024	a	819.56p	841.58p	652.00p
Closing at 30 September 2024	b	972.34p	1,033.78p	806.00p
Price movements	c=(b/a)-1	+18.6%	+22.8%	+23.6%
Dividend reinvestmentA	d	N/A	N/A	N/A
Total return	c+d	+18.6%	+22.8%	+23.6%
​	​	​	​	​
​	​	​	​	​
​	​	​	​	Share
Year ended 31 March 2024	​	NAV	Adjusted NAV	Price
Opening at 1 April 2023	a	641.32p	637.97p	512.00p
Closing at 31 March 2024	b	819.56p	841.58p	652.00p
Price movements	c=(b/a)-1	27.8%	31.9%	27.3%
Dividend reinvestmentA	d	N/A	N/A	N/A
Total return	c+d	+27.8%	+31.9%	+27.3%
​	​	​	​	​
​	​	​	​	​
​	​	​	​	Share
Period from 1 April 2022 to 30 September 2024	​	NAV	Adjusted NAV	Price
Opening at 1 April 2022	a	697.30p	697.30p	562.00p
Closing at 30 September 2024	b	972.34p	1,033.78p	806.00p
Price movements	c=(b/a)-1	+39.4%	+48.3%	43.4%
Dividend reinvestmentA	d	N/A	N/A	N/A
Total return	c+d	+39.4%	+48.3%	+43.4%
A NAV total return involves investing the net dividend in the NAV of the Company with debt at par value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.  ​ ​ ​ ​

 

Stuart Reid

abrdn Holdings Limited

Secretaries

Email:     cef.cosec@abrdn.com

27 November 2024

 

END