Azure Power Announces Results for Fiscal Third Quarter 2018

Publié le 12 févr. 2018
Azure Power 
Azure Power Global Limited announced its consolidated results under United States Generally Accepted Accounting Principles (“GAAP”) for the third quarter ended December 31, 2017.

Third Quarter 2018 Period Ended December 31, 2017 Operating Highlights:

- Operating Megawatts were 805MW, as of December 31, 2017, an increase of 57% over December 31, 2016.

- Operating & Committed Megawatts were 1,580MW, as of December 31, 2017, an increase of 48% over December 31, 2016.

- Revenue for the quarter was INR 1,739.9 million (US$27.3 million), an increase of 83% over the quarter ended December 31, 2016.

- Adjusted EBITDA for the quarter was INR 1,226.9 million (US$19.2 million), an increase of 76% over the quarter ended December 31, 2016.

Key Operating Metrics 

Electricity generation during the nine months ended December 31, 2017 increased by 438 million kWh, or 105%, to 855 million kWh, compared to the same period in 2016. The increase in electricity generation was principally a result of additional capacity operating during the period.

Total revenue during the nine months ended December 31, 2017 was INR 5,441.6 million (US$ 85.3 million), up 90% from INR 2,865.4 million during the same period in 2016. The increase in revenue was primarily driven by the commissioning of new projects.

Project cost per megawatt operating consists of costs incurred for one megawatt of new solar power plant capacity during the reporting period. The project cost per megawatt operating for the nine months ended December 31, 2017 increased by INR 8.7 million (US$ 0.14 million) to INR 52.9 million (US$ 0.83 million), as compared to the same period in 2016. The project cost per megawatt was higher due to the use of higher-cost domestic modules as required by the Power Purchase Agreement “PPA” and purchased land compared to lower-cost open source modules and leased land in the corresponding previous period.

As of December 31, 2017, our operating and committed megawatts increased by 509MW to 1,580MW compared to December 31, 2016 as a result of winning new projects. In addition, we won a 250MW contract with NTPC Vidyut Vyapar Nigam (NVVN) in October 2017 for which we are seeking clarity with regards to signing off on the PPA given the recent MNRE advisory that no tenders will progress under the DCR category for private developers.

Nominal Contracted Payments 

The Company’s PPAs create long-term recurring customer payments. Nominal contracted payments equal the sum of the estimated payments that the customer is likely to make, subject to discounts or rebates, over the remaining term of the PPAs. When calculating nominal contracted payments, the Company includes those PPAs for projects that are operating or committed.

The following table sets forth, with respect to our PPAs, the aggregate nominal contracted payments and total estimated energy output as of the reporting dates. These nominal contracted payments have not been discounted to arrive at the present value.


Nominal contracted payments increased from December 31, 2016 to December 31, 2017 as a result of the Company entering into additional PPAs. Over time, the Company has seen falling benchmark tariffs as reported by Central Electricity Regulatory Commission, in line with the reduction in solar module prices.

Portfolio Run-Rate

Portfolio run-rate equals annualized payments from customers extrapolated based on the operating and committed capacity as of the reporting dates. In estimating the portfolio run-rate, the Company multiplies the PPA contract price per kilowatt hour by the estimated annual energy output for all operating and committed solar projects as of the reporting date. The estimated annual energy output of the Company’s solar projects is calculated using power generation simulation software and validated by independent engineering firms. The main assumption used in the calculation is the project location, which enables the software to derive the estimated annual energy output from certain meteorological data, including the temperature and solar insolation based on the project location.

The following table sets forth, with respect to the Company’s PPAs, the aggregate portfolio run-rate and estimated annual energy output as of the reporting dates. The portfolio run-rate has not been discounted to arrive at the present value.


Portfolio run-rate increased by INR 2,958.7 million (US$ 46.4 million) to INR 14,007.9 million (US$ 219.5 million) as of December 31, 2017, as compared to December 31, 2016, due to an increase in operational and committed capacity.

Third Quarter Period ended December 31, 2017 Consolidated Financial Results: 

Operating Revenue 

Operating revenue in the quarter ended December 31, 2017 was INR 1,739.9 million (US$ 27.3 million), an increase of 83% from INR 948.8 million over the same period in 2016. The increase in revenue was driven by the commissioning of new projects.

Cost of Operations 

Cost of operations in the quarter ended December 31, 2017 increased by 90% to INR 158.4 million (US$ 2.5 million) from INR 83.2 million in the same period in 2016. The increase was primarily due to plant maintenance cost for newly commissioned projects which was partially offset by the implementation of improved O&M methods which improved plant productivity. This includes INR 8.7 million (US$ 0.1 million) of non-cash expense, which pertains to the amortisation of lease expense.

General and Administrative Expenses 

General and administrative expenses for the quarter ended December 31, 2017 increased by INR 185.3 million (US$ 2.9 million), to INR 354.5 million (US$ 5.6 million) compared to the same period in 2016. However, due to a delay by the government in bundling of thermal power with solar power production at one of our recently commissioned project, we recorded a one-time charge of INR 83.6 million (US$ 1.3 million). Our project contract period was extended by the duration of the delay by the government.

Depreciation and Amortization Expenses 

Depreciation and amortization expenses during the quarter ended December 31, 2017 increased by INR 224.7 million (US$ 3.5 million), or 90%, to INR 474.9 million (US$ 7.4 million) compared to the same period in 2016. The principal reason for the increase was capitalization of new projects during the period from December 31, 2016 to December 31, 2017.

Interest Expense, Net 

Net interest expense during the quarter ended December 31, 2017 increased by INR 639.6 million (US$ 10.0 million), or 130%, to INR 1,130.0 million (US$ 17.7 million) compared to the same period in 2016. Interest expense increased on account of borrowings for new projects and was partially offset by the increased interest income on investments during the quarter ended December 31, 2017.

Gain / Loss on Foreign Currency Exchange 

The Indian rupee depreciated against the U.S. dollar by INR 1.3 to US$ 1.00 (2.0%) during the period from September 30, 2016 to December 31, 2016, while the Indian rupee appreciated against the U.S. dollar by INR 1.5 to US$ 1.00 (2.2%) during the period from September 30, 2017 to December 31, 2017. This appreciation during the period from September 30, 2017 to December 31, 2017 resulted in a foreign exchange gain of INR 90.8 million (US$ 1.4 million), compared to a loss of INR 135.6 million during the same period in 2016.

Income Tax Expense / Benefit 

The income tax benefit increased during the quarter ended December 31, 2017 by INR 485.6 million (US$ 7.6 million) to INR 150.9 million (US$ 2.4 million), compared to the same period in 2016. The increase in the income tax benefit was primarily on account of the commissioning of new projects. During the current quarter, we recorded non-cash income tax benefit amounting to INR 150.9 million (US$ 2.4 million) and there was no cash outflow relating to income taxes during the period.

Net Loss 

The net loss for the quarter ended December 31, 2017 was INR 136.1 million (US$ 2.1 million), as compared to a net loss of INR 514.3 million for the quarter ended December 31, 2016, a decrease in loss of INR 378.1 million (US$ 5.9 million) as compared to the same period in 2016. This was primarily due to an increase in revenue during the quarter ended December 31, 2017, compared to December 31, 2016.

Cash Flow and Working Capital 

Cash generated from operating activities for the nine months ended December 31, 2017 of INR 405.5 million (US$ 6.4 million), INR 181.8 million (US$ 2.8 million) higher than the prior comparable period, primarily due to an increase in revenue during the current period.

Cash used in investing activities, for the nine months ended December 31, 2017 was INR 15,406.9 million (US$ 241.3 million), compared to INR 14,601.8 million for the prior comparable period. The cash used in investing activities was higher due to purchases of property plant and equipment for new projects as compared to the prior comparable period.

Cash generated from financing activities was INR 16,757.0 (US$ 262.5 million) for the nine months ended December 31, 2017, compared to INR 17,182.9 million for the prior comparable period. During the nine months ended December 31, 2017, the Company raised INR 42,712.0 million (US$ 669.2 million) of non-convertible debentures and project debt, including green bonds.

Liquidity Position 

As of December 31, 2017, the Company had INR 11,740.7 million (US$ 183.9 million) of cash, cash equivalents and current investments. The Company had undrawn project debt commitments of INR 3,631.6 million (US$ 56.9 million) as of December 31, 2017.

Adjusted EBITDA 

Adjusted EBITDA was INR 1,226.9 million (US$ 19.2 million) for the third quarter ended December 31, 2017, compared to INR 696.4 million in the third quarter ended December 31, 2016. The increase was primarily due to the increase in revenue during the period.

Guidance for Fiscal Year 2018 and 2019 

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. The Uttar Pradesh 40MW and Andhra Pradesh 50MW projects are expected to be materially complete by fiscal year end 2018. However, the government provided transmission interconnections are likely to roll over into the next fiscal year. As a result, we now expect 905 - 1,000MWs will be operational by March 31, 2018. The delays in commissioning of the two mentioned projects is expected to have a limited impact on revenues for the fiscal year ending March 31, 2018 and, as a result, we reiterate our revenue guidance for fiscal year 2018 of US$ 118 - 125 million.

With a robust pipeline and strong execution capabilities, we expect to continue to deliver high growth in the next fiscal year ended March 31, 2019. For the fiscal year March 31, 2019, the Company is guiding to have 1,300 - 1,400MWs operational, or a 30-55% year on year increase. In addition, the company is guiding to revenues of between US$ 143 - 151 million for fiscal year ending March 31, 2019.


Profil ENF des Entreprises Mentionnées dans l’Article

Azure Power (Installateurs): https://fr.enfsolar.com/directory/installer/5841
Les nouvelles de l'industrie photovoltaïque sont republiées gratuitement, veuillez envoyer vos news à