Azure Power Announces Results for Fiscal Second Quarter 2018


Azure Power Global Limited, one of the largest independent solar power producers in India, has announced its consolidated results under United States Generally Accepted Accounting Principles (“GAAP”) for the second quarter ended September 30, 2017.

The company’s operating and committed megawatts has increased from 360 MW to 1,381 MW year on year, and with the new 250 MW project, announced on October 16, has brought the capacity to 1,631 MW. Therefore, because of that the company’s electricity generation during the six months until end of September has increased by 306 million kWh, or 111%, to 581 million kWh and total revenue during the same six months was INR 3,701.7 million ($ 56.7 million), up 93% from INR 1,916.6 million during the same period in 2016.

Effect of decreasing module prices

The decreasing solar module prices and the reduction in the balance of system costs has significant impact on cost/MW, nominal contracted payments and portfolio run-rate. Project cost per megawatt operating, consists of costs incurred for one megawatt of new solar power plant capacity during the reporting period, has decreased by INR 7.0 million ($0.11 million) to INR 51.1 million ($0.78 million), as compared to the same period in 2016.

Portfolio run-rate increased by INR 2,267.5 million ($34.7 million) to INR 12,827 million ($ 196.4 million) as of September 30, 2017, as compared to September 30, 2016, due to an increase in operational and committed capacity.

Fiscal 2017 and 2018 second quarter comparison

Operating revenue was INR 1,823.8 million ($27.9 million), an increase of 104% from INR 894.9 million. Cost of operations has increased by 92% to INR 144.7 million ($ 2.2 million) from INR 75.4 million. 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 17.6 million ($ 0.3 million) of non-cash expense, which pertains to the amortization of lease expense.

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Net loss was recorded INR 1,240.5 million ($ 19.0 million), as compared to a net loss of INR 138.9 million for the quarter ended September 30, 2016, an increased loss of INR 1,101.7 million ($ 16.9 million). This was primarily due to one-time expenses related to the issuance of solar green bond, and was partially offset due to an increase in revenue during the second quarter ended September 30, 2017.

Cash Generations and Earnings

Due to increase in revenue, the cash generated from operating activities and financing activities INR 227.8 million ($3.5 million) and INR 15,351 ($235.1 million) respectively, which is INR 37.7 million ($0.6 million) and INR 7021.1 million ($107.5 million) higher than in first six months of fiscal 2018 respectively. However, the company invested less cash due to higher realization of permitted investments and release of restricted cash from bond offering.

During the six months ended September 30, 2017, the Company raised INR 40,164 million ($615.1 million) of project debt, including green bonds and non-convertible debentures.

Adjusted Earnings before interest, tax, depreciation and amortization (EBITDA) was INR 1,499.5 million ($23 million) for the second quarter 2018, which is an increase of 167% compared to 2017 second quarter.

Azure power continues to expect revenues for fiscal year 2018 ending March 31, 2018 of $118 – 125 million and that 1,000 – 1,200 MW will be operational by March 31, 2018 based on current expectations.

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