Ebene, August 30, 2021: Azure Power Global Limited (NYSE: AZRE), a leading independent renewable power producer in India, today announced its consolidated results under United States Generally Accepted Accounting Principles (“GAAP”) for the fiscal first quarter 2022 ended June 30, 2021.
Fiscal First Quarter 2022 ended June 30, 2021 Operating Highlights:
- Megawatts (“MW”) Operating* were 2,052 MWs, as of June 30, 2021, an increase of 23% over June 30, 2020. Operating, Contracted & Awarded MWs* were 6,955 MWs, as of June 30, 2021. Contracted & Awarded megawatts include 4,000 MWs for which we have received Letters of Award (“LOA”) but the Power Purchase Agreements (“PPAs”) have not yet been signed.
- Operating revenues for the quarter ended June 30, 2021 were INR 4,440 million (US$ 59.7 million), an increase of 13% over the quarter ended June 30, 2020.
- Net profit for the quarter ended June 30, 2021 was INR 697 million (US$ 9.6 million). The increase in net profit was mainly due to an increase in operating revenue by INR 500 million (US$ 6.7 million), refer to the detailed explanation in the net profit section of the commentary below.
- Adjusted EBITDA for the quarter ended June 30, 2021 was INR 3,668 million (US$ 49.3 million), an increase of 11% over the quarter ended June 30, 2020.
- Non-GAAP Cash Flow to Equity (“CFe”) from Operating Assets for the quarter ended June 30, 2021 was INR 1,844 million (US$ 24.8 million), an increase of 12% over the quarter ended June 30, 2020.
*Megawatts Operating and Megawatt Operating, Contracted & Awarded exclude the Rooftop Portfolio (See also other updates section below), for which we entered into an agreement to sell subsequent to fiscal year ended March 31, 2021. We excluded 160 MWs from our Operating, Contracted & Awarded portfolio as of June 30, 2021, and the prior comparative period. We excluded 153 MWs from our Operating portfolio as of June 30, 2021, and 144 MWs from prior comparable period. The exclusion from prior period is for the purpose of comparison with current year.
Key Operating Metrics
Electricity generation during the quarter ended June 30, 2021 was 1,112 million kWh, an increase of 228 million kWh or 25.8%, over the quarter ended June 30, 2020. The increase in electricity generation was principally a result of an additional 396 MWs of AC (569 MWs DC) operating capacity, including our Rooftop Portfolio commissioned since June 30, 2020. Our Plant Load Factor (“PLF”) for the quarter ended June 30, 2021, was 23.7%, compared to 23.1%, for the same comparable periods in 2020, which increased principally due to the addition of AC and DC capacity in high insolation locations and improved performance by our plants.
We commissioned 62 MWs AC (64 MWs DC) during the three months ended June 30, 2021 against 1 MWs AC (3 MWs DC) during the comparative quarter ended June 30, 2020. We did not commission any significant capacities during both periods primarily due to COVID-19 disruptions.
Project cost per megawatt operating (megawatt capacity per the PPA or AC) consists of costs incurred for one megawatt of new solar power plant capacity during the reporting period. The project cost per megawatt (AC) operating for the quarter ended June 30, 2021 was INR 39.3 million (US$ 0.53 million) and for project cost per megawatt (DC) was INR 38.5 million (US$ 0.52 million). Excluding the impact of safeguard duties, the AC and DC costs per megawatt for the quarter ended June 30, 2021 would have been lower by approximately INR 2.1 million (US$ 0.03 million). For the year ended March 31, 2021, the project cost per megawatt (AC) was INR 42.9 million and project cost per megawatt (DC) was INR 28.8 million.
As of June 30, 2021, our Operating, Contracted & Awarded megawatts were 6,955 MWs. There was no change compared to prior comparable period, other than to reflect the disposal of the Rooftop Portfolio. Contracted & Awarded megawatts include 4,000 MWs for which we have received LOAs but the PPAs have not yet been signed. On the 4,000 MW PPA’s, Solar Energy Corporation of India (“SECI”) had informed us that they have signed Power Sale Agreements (“PSAs”) with a couple of state electricity distribution companies (“DISCOMs”) for around 800MW, this is part of the first tranche of 3,000 MW of PSAs that SECI is looking to close with DISCOMs. We expect to have PPAs signed for about a third of the 800 MW soon. Since the capital costs, interest rates and foreign exchange rates have improved since Azure Power won the 4,000 MWs auction in December 2019 which have resulted in lower tariffs in other recent SECI auctions, we do expect a tariff markdown from the price achieved in the auction. We will continue our discussions with SECI towards signing PPAs in respect of the 4,000 MWs tender and believe the PPAs to be signed in tranches over a period of time.
Megawatts Operating and Megawatts Contracted & Awarded
We measure the rated capacity of our plants in megawatts. Rated capacity is the expected maximum output that a solar power plant can produce without exceeding its design limits. We believe that tracking the growth in aggregate megawatt rated capacity is a measure of the growth rate of our business.
“Megawatts Operating” represents the aggregate cumulative megawatt rated capacity of solar power plants that are commissioned and operational as of the reporting date.
“Megawatts Contracted & Awarded” represents the aggregate megawatt rated capacity of solar power plants pursuant to customer PPAs signed, allotted or won in an auction but not commissioned and operational as of the reporting date.