Trikona Trinity Capital's Preliminary Results

Trikona Trinity Capital (Trikona TC) announced preliminary results for the year ended March, 2008. Details are available here.

Key Points:

1. Company has invested in 12 projects so far
2. NAV as of March 31, 2008 was 151 pence per share - up 22% from a year ago. Significantly, the Weighted Average Cost of Capital (WACC) used for computing NAV was increased from 12.88% to 15.54%. In other words, if the WACC was not increased, the NAV would have been much higher than 151 pence. For reference, the units are trading at 77p, almost a 50% discount to NAV.
   
3. Trikona TC divested some portfolio holdings to SachsenFonds in two tranches in November 2007 & June 2008. Importantly, there was very little change in the valuation between the two divestments - a red flag for future prospects.
4. In Trikona TC's latest investment, SachsenFonds and Trikona have a 55:45 share. Together they own 49% of the project and Rustomjee Constructions owns 51%.
   
5. Trikona TC has shifted focus to the infrastructure market to mitigate current market conditions.

Overall, the report has a degree of detail on the various investments and their current valuation. However, when compared to the Ascendas annual report, the Trikona TC report has miles to go by way of disclosure. We have reservations about the WACC figure used and hope to see more details in their final report.