Azure Power Announces Results for Fiscal Second Quarter 2022
Azure Power Global Limited (NYSE: AZRE) reported its consolidated results for the fiscal second quarter 2022, ending September 30, 2021. Operating revenues rose by 25% to INR 4,386 million (US$ 59.1 million), driven by new projects and carbon credits. Adjusted EBITDA increased 59% to INR 3,685 million (US$ 49.8 million). Operating megawatts grew to 2,210 MWs, a 31% rise from the previous year. However, the company posted a net loss of INR 300 million (US$ 4.0 million), improving from a loss of INR 368 million in the same quarter last year, attributed to higher legal and tax expenses.
- Operating revenues increased by 25% to INR 4,386 million (US$ 59.1 million).
- Adjusted EBITDA rose by 59% to INR 3,685 million (US$ 49.8 million).
- Operating megawatts grew by 31% year-over-year to 2,210 MWs.
- Net loss of INR 300 million (US$ 4.0 million) despite improvements from last year.
- Increased legal and professional expenses totaling INR 177 million (US$ 2.4 million).
- Higher interest expense increased by 19% to INR 2,417 million (US$ 32.6 million).
EBENE, Mauritius, Dec. 10, 2021 /PRNewswire/ -- 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 second quarter 2022, period ended September 30, 2021.
Fiscal Second Quarter 2022 Period ended September 30, 2021 Operating Highlights:
- Megawatts ("MW") Operating* were 2,210 MWs, as of September 30, 2021, an increase of
31% over September 30, 2020. Operating, Contracted & Awarded MWs* were 6,955 MWs, as of September 30, 2021. Contracted & Awarded megawatts included 4,000 MWs for which we had received Letters of Award ("LOA") but the Power Purchase Agreements ("PPAs") had not been signed as of September 30, 2021. Subsequent to the quarter end, we have signed PPAs for 600 MWs with SECI in relation to the 4,000 MW project, refer the detailed explanation in the key operating Metrices section below. - Operating revenues for the quarter ended September 30, 2021 were INR 4,386 million (US
$ 59.1 million ), an increase of25% over the quarter ended September 30, 2020. - Net loss for the quarter ended September 30, 2021 was INR 300 million (US
$ 4.0 million ) against the net loss of INR 368 million for the quarter ended September 30, 2020. The decline in Net loss was primarily due to additional revenue from sale of carbon credits and reversal of stock appreciation rights (SARs) expense, offset by increase in legal and professional expense and tax expense, refer the detailed explanation in the Net loss/ (profit) section below. - Adjusted EBITDA for the quarter ended September 30, 2021 was INR 3,685 million (US
$ 49.8 million ), an increase of59% over the quarter ended September 30, 2020. The increase was primarily due to additional revenue from new projects, sale of carbon credits and reversal of stock appreciation rights (SARs) expense, partially offset by increase in legal and professional expense, during the quarter ended September 30, 2021. - Non-GAAP Cash Flow to Equity ("CFe") from operating assets for the quarter ended September 30, 2021 was INR 1,406 million (US
$ 18.9 million ), an increase of32% over the quarter ended September 30, 2020. The increase was primarily due to additional revenue from sale of carbon credits and lower interest cost relating to existing operational projects due to refinancing.
*Megawatts Operating and Megawatt Operating, Contracted & Awarded exclude the Rooftop portfolio, for which we entered into an agreement to sell in April 2021. We excluded 153 MWs from our Operating, Contracted & Awarded portfolio as of September 30, 2021, and the prior comparative period. We excluded 153 MWs from our Operating portfolio as of September 30, 2021, and 144 MWs from prior comparable period. The exclusion from prior period is for the purpose of comparison with current period, however we continue to consolidate these assets.
Key Operating Metrics
Electricity generation during the quarter and six-months ended September 30, 2021 was 1,001 million kWh and 2,113 million kWH, respectively, an increase of 231 million kWh or
Our Plant Load Factor ("PLF") for the quarter and six month ended September 30, 2021, was
We commissioned 158 MWs AC (188 MWs DC) during the three months ended September 30, 2021 and 220 MWs AC (252 MWs DC) during the six months ended September 30, 2021 against 25 MWs AC (25 MWs DC) during the comparative three months and 26 MWs AC (28 MWs DC) during the six months ended September 30, 2020.
Project cost per megawatt operating (megawatt capacity per the PPA or AC) consists of costs incurred for one megawatt of newly commissioned solar power plant capacity during the reporting period. The project cost per megawatt (DC) operating for the six months ended September 30, 2021 remains same as for comparative period i.e. INR 34.7 million (US
As of September 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 included 4,000 MWs for which we had received LOAs but the PPAs had not been signed as of September 30, 2021. Subsequent to the quarter, the Company has also received letter of awards (LOA), for its first 120 MWs wind project and first 150 MWs solar – wind hybrid project, from Solar Energy Corporation of India (SECI)
Subsequent to the quarter end, we have signed PPAs for 600 MWs with SECI at a fixed tariff of INR 2.54 per kWh for supply power for 25 years, as a part of 4,000 MW manufacturing linked projects.
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.
Nominal Contracted Payments for Projects with PPAs
Our 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, we include those PPAs for projects that are Operating, Contracted & Awarded, unless specified.
The following table sets forth, with respect to our PPAs as referred above, 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.
As of September 30, | ||||||||||||
2020 | 2021 | |||||||||||
INR | INR | US$ | ||||||||||
Nominal contracted payments for projects with PPAs (in millions) * | 515,751 | 575,993 | 7,766.9 | |||||||||
Total estimated energy output (kilowatt hours in millions) * | 151,127 | 179,749 | ||||||||||
* Nominal contracted payments include projects for 600 MWs which amounts to INR 98,937 million (US
The increase in Nominal Contracted Payments and total estimated energy output as of September 30, 2021, as compared to September 30, 2020, is due to inclusion of 600 MWs for which PPAs are signed subsequent to quarter end, partially offset by exclusion of our rooftop portfolio, which we have agreed to sell during the current period and the impact of current period revenue realised.
Our nominal contracted payments are not impacted for the delays in construction due to COVID-19, as revenues from our PPAs start on the date of commissioning of the project.
Portfolio Revenue Run-Rate for Projects with PPAs
Portfolio revenue run-rate for projects with PPAs equals annualized payments from customers extrapolated based on the Operating, Contracted & Awarded capacity as of the reporting dates. In estimating the portfolio revenue run-rate, we multiply the PPA contract per kilowatt hour by the estimated annual energy output for all Operating, Contracted & Awarded solar projects as of the reporting date. The estimated annual energy output of our 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 our PPAs as referred above, the aggregate portfolio revenue run-rate and estimated annual energy output as of the reporting dates. The portfolio revenue run-rate has not been discounted to arrive at the present value.
As of September 30, | ||||||||||||
2020 | 2021 | |||||||||||
INR | INR | US$ | ||||||||||
Portfolio revenue run-rate for projects with PPAs (in millions) * | 23,817 | 26,854 | 362.1 | |||||||||
Estimated annual energy output (kilowatt hours in millions) * | 6,772 | 8,181 | ||||||||||
* Portfolio revenue run-rate include projects for 600 MWs which amounts to INR 4,198 million (US
The increase in portfolio revenue run-rate as of September 30, 2021, as compared to September 30, 2020, is primarily due to inclusion of 600 MWs for which PPAs are signed subsequent to quarter end, partially offset by the exclusion of our rooftop portfolio, which we have agreed to sell during the current period.
Fiscal Second Quarter 2022 Period ended September 30, 2021 Consolidated Financial Results:
Operating Revenues
Operating revenues for the quarter ended September 30, 2021 were INR 4,386 million (US
Cost of Operations (Exclusive of Depreciation and Amortization)
Cost of operations for the quarter ended September 31, 2021 increased by
The cost of operations per megawatt during the quarter ended September 30, 2021 decreased marginally to INR 0.15 million (~US
General and Administrative Expenses
General and administrative expenses for the quarter ended September 30, 2021 were INR 346 million (US
Depreciation and Amortization
Depreciation and amortization during the quarter ended September 30, 2021 increased by INR 87 million (US
Impairment loss
The Company entered into an agreement with Radiance Renewables Pvt. Ltd. to sell certain subsidiaries with an operating capacity of 153 MWs. We are in the process of obtaining requisite approvals from off takers and lenders for disposal of investment in Rooftop portfolio pursuant to agreement entered into with the buyer. Pending transfer of shareholding, these Rooftop entities are currently being consolidated in the Company. The Company has further recognized an impairment loss of INR 14 million (US
Interest Expense, Net
Net interest expense during the quarter ended September 30, 2021 increased by INR 394 million (US
Gain on Foreign Currency Exchange
The Indian Rupee ("INR") appreciated against the U.S. dollar by INR 0.1 (or
Other Expenses/ (Income), Net
Other expenses (net), primarily consists of income from current investments and other incidental expense. During the quarter ended September 30, 2021, we have reported other expense (net) of INR Nil as compared to other income (net) of INR 6 million, during the quarter ended September 30, 2020.
Income Tax Expense/ (Benefit)
Income tax expense during the quarter ended September 30, 2021 was INR 821 million (US
Net profit/ (Loss)
Net loss for the quarter ended September 30, 2021 was INR 300 million (US
Cash Flow and Working Capital
Cash flow from operating activities for the quarter and six months ended September 30, 2021 was INR 925 million (US
During, the quarter ended September 30, 2021, working capital outflow was INR 351 million (US
Our days receivables (excluding Rooftop portfolio), including receivable from sale of carbon credit were 125 days as of September 30, 2021, as compared to 116 days as of March 31, 2021. Subsequent to quarter/ period end, the Company has received proceeds of INR 467 million (US
Cash used in investing activities for the quarter ended September 30, 2021 was INR 4,477 million (US
Cash flow from financing activities for the quarter ended September 30, 2021 was INR 4,423 million (US
Liquidity Position
As of September 30, 2021, we had INR 9,513 million (US
Adjusted EBITDA
Adjusted EBITDA is a Non-GAAP metric, please refer to the reconciliation of Net (loss)/ Profit to Adjusted EBITDA in this document.
Adjusted EBITDA was INR 3,685 million (US
Cash Flow to Equity (CFe) from Operating Assets
CFe is a Non-GAAP metric, please refer to the reconciliation of total CFe to GAAP Cash from Operating Activities in this document.
Cash Flow to Equity from Operating Assets was INR 1,406 million (US
COVID-19 Update
We are continuously monitoring the COVID-19 situation and taking the requisite steps to address the situation. Few of our project's construction activities were negatively impacted by the second wave of COVID-19. We have received extensions on our projects which were impacted due to COVID-19. We continue to engage with our offtakers for extensions relating to scheduled commissioning on certain renewable energy projects, in reference to relaxation granted by Ministry of New & Renewable Energy (MNRE) in current year, amid disruption due to second wave of COVID-19.
Other updates
During the current quarter, the Company has issued Solar Green bonds (the "Bond") of US
During the current year, the Company received complaints and anonymous whistle-blower reports which made various claims against certain of the Company's Key Managerial Personnel, related to their and the Company's actions in relation to the acquisition of and use of land in Rajasthan, Assam and Uttar Pradesh, as well as certain other corporate actions. The Company, through its Audit Committee, and with the assistance of external counsel and forensic auditors, has completed its investigation to determine whether the allegations made in the complaints or contained in the whistle-blower reports are substantive. The issues raised, including those raised against Key Management Personnel, have been resolved or found to be groundless; however, the Company determined that its ethics policies regarding external consultants should be enhanced. The Company, through its Audit Committee, and with the assistance of external counsel will be taking remedial steps (including training and policy review).
During the current period, Company had received a favorable order from the Appellate Tribunal for Electricity ("APTEL") relating to our ongoing litigation in relation to the 40 MW Karnataka project, where APTEL had set aside the order of Karnataka Regulatory Commission ("KERC"), wherein the KERC had reduced extension of time, reduced the PPA tariff and imposed liquidated damages. Subsequent to period end, the KERC has further filed an appeal with Supreme Court against the order.
Subsequent to the quarter end, The Company has received an unfavorable order from appellate authority from the Mumbai Centre for International Arbitration ("MCIA"), relating to arbitration proceedings initiated by EX- CEO in relation to his transition agreement. Company is in process of evaluating the order received and will take necessary action in due course.
During current period, Supreme Court of India while passing an order for a petition filed under public interest litigation (PIL) aimed at the conservation of two species of birds, the Great Indian Bustard and the Lesser Florican directed the states of Rajasthan and Gujrat to take necessary steps for conversion of overhead power lines to underground lines and in the interim install bird diverters on the overhead lines. In the order SC had also intimated for formation of a committee for evaluating feasibility of conversion of overhead lines to underground and issues thereof, wherever considered feasible by committee conversion of overhead and underground is to take place within a period of one year. The order mentioned the pass through of such expenses incurred by the Company to the ultimate consumer, subject to approval of the Competent Regulatory Authority. In line to the SPDA application, Union of India (Ministry of New and Renewable (MNRE), Ministry of Environment, Forest and Climate Change (MoEF & CC), Ministry of Power (MoP) has also submitted a modification application seeking allowance for laying of over-head cables outside priority areas as well as inside priority areas if the cables are of high/extra high voltage of 66KV or above. The application further recommends that even for 33 kV and below lines, if there is constraints on availability of land and safety concerns, this should be referred to the committee formed by recommendation of the court, which could assess the feasibility of the undergrounding. Management has preliminarily assessed that any costs incurred to comply with the said order are likely to be substantially or wholly recoverable by the Company under provisions of change in law and/or force majeure of their respective PPAs."
The Enforcement Directorate of India filed a Prosecution Complaint with a special court in New Delhi on October 1, 2021, in respect of an earlier Enforcement Case Information Report wherein Mr. Pawan Kumar Agrawal, the current Chief Financial Officer of the Company, is one of those named and charged with the commission of offences under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002 of India in relation to Mr. Agrawal's prior employment. The relevant transactions that are the subject of the complaint predated Mr. Agrawal's tenure as an employee and as Chief Financial Officer of the Company, and the criminal charges are not directed at, and do not concern, the Company or its subsidiaries. The Company will continue to monitor the proceedings as Mr. Agrawal defends the charges made against him.
Guidance for Fiscal Year 2022 and third fiscal quarter of 2022
For the fiscal year ending March 31, 2022, we continue to expect MWs operational to be between 2,750 – 2,955, excluding the rooftop portfolio, for which we have entered into an agreement to sell during the current period. We continue to expect revenues of between INR 17,900 – 18,900 million (or US
With respect to our revenue guidance, we would like to highlight that approximately
For the third fiscal quarter of 2022, we expect revenues of between INR 4,100 – INR 4,300 million (or US
Webcast and Conference Call Information
We will hold our quarterly conference call to discuss earnings results on December 13, 2021 at 8:30 a.m. U.S. Eastern Time. The conference call can be accessed live by dialing +1-866-746-2133 (in the U.S.) and +91-22-6280-1444 (outside the U.S.) and reference the Azure Power Fiscal Second Quarter 2022 Earnings Conference Call.
Investors may access a live webcast of this conference call by visiting http://investors.azurepower.com/events-and-presentations. For those unable to listen to the live broadcast, an archived podcast will be available approximately two hours after the conclusion of the call at http://investors.azurepower.com/events-and-presentations.
Exchange Rates
This press release contains translations of certain Indian rupee amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise stated, the translation of Indian rupees into U.S. dollars has been made at INR 74.16 to US
About Azure Power Global Limited
Azure Power is a leading independent renewable power producer in India. Azure Power developed India's first private utility scale solar project in 2009 and has been at the forefront in the sector as a developer, constructor and operator of utility scale renewable projects since its inception in 2008. With its in-house engineering, procurement and construction expertise and advanced in-house operations and maintenance capability, Azure Power manages the entire development and operation process, providing low-cost renewable power solutions to customers throughout India.
We," "us," the "Group," "Azure" or "our" refers to Azure Power Global Limited, a company organized under the laws of Mauritius, together with its subsidiaries (including Azure Power Rooftop Private Limited ("AZR"), and Azure Power India Private Limited, or AZI, its predecessor and current subsidiaries).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, operational and financial results such as estimates of nominal contracted payments remaining and portfolio run rate, and the assumptions related to the calculation of the foregoing metrics. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: the availability of additional financing on acceptable terms; changes in the commercial and retail prices of traditional utility generated electricity; changes in tariffs at which long term PPAs are entered into; changes in policies and regulations including net metering and interconnection limits or caps; the availability of rebates, tax credits and other incentives; the availability of solar panels and other raw materials; its limited operating history, particularly as a relatively new public company; its ability to attract and retain its relationships with third parties, including its solar partners; our ability to meet the covenants in its debt facilities; meteorological conditions; issues related to the COVID-19 pandemic; supply disruptions; solar power curtailments by state electricity authorities and such other risks identified in the registration statements and reports that our Company has filed with the U.S. Securities and Exchange Commission, or SEC, from time to time. Portfolio represents the aggregate megawatts capacity of solar power plants pursuant to PPAs, signed or allotted or has received the LOA. There is no assurance that we will be able to sign a PPA even though we have a letter of award. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
Use of Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure. We present Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
We define Adjusted EBITDA as loss (income) plus (a) income tax expense/(benefit), (b) interest expense, net, (c) depreciation and amortization (d) loss/ (gain) on foreign currency exchange, net, (e) Other expenses/ (income) and (f) Impairment loss. We believe Adjusted EBITDA is useful to investors in assessing our ongoing financial performance and provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of our operational profitability and that may obscure underlying business results and trends. However, this measure should not be considered in isolation or viewed as a substitute for net income or other measures of performance determined in accordance with U.S. GAAP. Moreover, Adjusted EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the methods of calculation.
Our management believes this measure is useful to compare general operating performance from period to period and to make certain related management decisions. Adjusted EBITDA is also used by securities analysts, lenders and others in their evaluation of different companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be highly dependent on our capital structure, debt levels and credit ratings. Therefore, the impact of interest expense on earnings can vary significantly among companies. In addition, the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the various jurisdictions in which they operate. As a result, effective tax rates and tax expense can vary considerably among companies.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations include:
- it does not reflect cash expenditures or future requirements for capital expenditures or contractual commitments or foreign exchange gain/loss;
- it does not reflect changes in, or cash requirements for, working capital;
- it does not reflect significant interest expense or the cash requirements necessary to service interest or principal payments on outstanding debt;
- it does not reflect payments made or future requirements for income taxes; and
- although depreciation, amortization and impairment are non-cash charges, the assets being depreciated and amortized will often have to be replaced or paid in the future and Adjusted EBITDA does not reflect cash requirements for such replacements or payments.
Investors are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. For more information, please see the Reconciliations of Net loss to Adjusted EBITDA in this document.
Cash Flow to Equity (CFe)
Cash Flows to Equity is a Non-GAAP financial measure. We present CFe as a supplemental measure of our performance. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The presentation of CFe should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
We believe GAAP metrics, such as net income (loss) and cash from operating activities, do not provide the same level of visibility into the performance and prospects of our operating business as a result of the long-term capital-intensive nature of our businesses, non-cash depreciation and amortization, cash used for debt servicing as well as investments and costs related to the growth of our business.
Our business owns high-value, long-lived assets capable of generating substantial Cash Flows to Equity over time. We define CFe as profit/ (loss) before tax (the most comparable GAAP metric), adjusted for net cash provided for/ used in operating activities, other than changes in operating assets and liabilities, income and deferred taxes and amortization of hedging costs; less: cash paid for income taxes, debt amortization, maintenance capital expenditure and prepaid lease payments and employee benefits.
We believe that changes in operating assets and liabilities is cyclical for cash flow generation of our assets, due to a high growth environment. Furthermore, to reflect the actual cash outflows for income tax, we deduct income and deferred taxes computed under US GAAP presented in our consolidated financial statements and instead include the actual cash tax outflow during the period, are considered as part of tax expense.
We believe that external consumers of our financial statements, including investors and research analysts, use CFe both to assess Company's performance and as an indicator of its success in generating an attractive risk-adjusted total return, assess the value of the business and the platform. This has been a widely used metric by analysts to value our business, and hence we believe this will better help potential investors in analysing the cash generation from our operating assets.
We have disclosed CFe for our operational assets on a consolidated basis, which is not our cash from operations on a consolidated basis. We believe CFe supplements GAAP results to provide a more complete understanding of the financial and operating performance of our businesses than would not otherwise be achieved using GAAP results alone. CFe should be used as a supplemental measure and not in lieu of our financial results reported under GAAP.
We have also bifurcated the CFe into "Operational Assets" and "Others", as defined below, so that users of our financial statements are able to understand the Cash generation from our operational assets.
We define our "Operational Assets", as the projects which had commenced operations on or before September 30, 2021. The operational assets represent the MWs operating as on the date.
We define "Others" as (i) the project SPV's which are under construction, or under development, (ii) "corporate" which includes our three Mauritius entities, (iii)other projects not covered under operational assets, (iv) a company incorporated in the United States and (v) other entities under the group which are newly incorporated.
We define "debt amortisation" as the current portion of long-term debt which has been repaid during the period as part of debt repayment obligations, excluding the debt which has been repaid, extinguished or refinanced. It does not include the amortisation of debt financing costs, and interest and hedge payments during the period.
Other items from the Statement of Cash Flows include most of the items that reconcile "Net (loss) gain" and "Changes in operating assets and liabilities" from the Statement of Cash Flows, other than deferred taxes, non-cash employee benefit and amortization of hedging costs.
AZURE POWER GLOBAL LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(INR and US$ amounts in millions, except share and par value data)
As of March 31, | As of September 30, | ||||||||||
2021 | 2021 | 2021 | |||||||||
(INR) | (INR) | (US$) | |||||||||
Audited | Unaudited | Unaudited | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | 11,107 | 9,513 | 128.3 | ||||||||
Restricted cash | 4,881 | 9,780 | 131.9 | ||||||||
Accounts receivable, net | 4,887 | 5,680 | 76.6 | ||||||||
Prepaid expenses and other current assets | 2,190 | 2,317 | 31.1 | ||||||||
Assets classified as held for sale | 3,301 | 3,683 | 49.7 | ||||||||
Total current assets | 26,366 | 30,973 | 417.6 | ||||||||
Restricted cash | 170 | 95 | 1.3 | ||||||||
Property, plant and equipment, net | 108,847 | 120,808 | 1,628.7 | ||||||||
Software, net | 29 | 21 | 0.3 | ||||||||
Deferred income taxes | 1,748 | 1,999 | 27.0 | ||||||||
Right-of-use assets | 4,214 | 4,023 | 54.2 | ||||||||
Other assets | 7,084 | 2,431 | 32.8 | ||||||||
Investments in held to maturity securities | 7 | 6 | 0.1 | ||||||||
Total assets | 148,465 | 160,356 | 2,162.0 | ||||||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | 8,943 | 21,273 | 286.9 | ||||||||
Accounts payable | 4,294 | 5,578 | 75.2 | ||||||||
Current portion of long-term debt | 4,658 | 7,107 | 95.8 | ||||||||
Income taxes payable | 46 | 47 | 0.6 | ||||||||
Interest payable | 1,530 | 854 | 11.5 | ||||||||
Deferred revenue | 110 | 110 | 1.5 | ||||||||
Lease liabilities | 283 | 274 | 3.7 | ||||||||
Other liabilities | 1,927 | 1,920 | 26.0 | ||||||||
Liabilities directly associated with assets classified as held for sale | 2,272 | 2,279 | 30.7 | ||||||||
Total current liabilities | 24,063 | 39,442 | 531.9 | ||||||||
Non-current liabilities: | |||||||||||
Long-term debt | 89,922 | 86,929 | 1,172.2 | ||||||||
Deferred revenue | 2,353 | 2,334 | 31.5 | ||||||||
Deferred income taxes | 2,046 | 1,644 | 22.2 | ||||||||
Asset retirement obligations | 811 | 927 | 12.5 | ||||||||
Leases liabilities | 3,359 | 3,212 | 43.3 | ||||||||
Other liabilities | 1,459 | 1,547 | 20.4 | ||||||||
Total liabilities | 124,013 | 136,035 | 1,834.0 | ||||||||
Shareholders' equity | |||||||||||
Equity shares, US | 2 | 2 | 0.0 | ||||||||
Additional paid-in capital | 38,004 | 38,063 | 513.3 | ||||||||
Accumulated deficit | (12,786) | (12,408) | (167.3) | ||||||||
Accumulated other comprehensive loss | (972) | (1,559) | (21.0) | ||||||||
Total APGL shareholders' equity | 24,248 | 24,098 | 325.0 | ||||||||
Non-controlling interest | 204 | 223 | 3.0 | ||||||||
Total shareholders' equity | 24,452 | 24,321 | 328.0 | ||||||||
Total liabilities and shareholders' equity | 148,465 | 160,356 | 2,162.0 | ||||||||
AZURE POWER GLOBAL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(INR and US$ amounts in millions, except share and per share data)
Three months ended September 30, | Six months ended September 30, | ||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||
2020 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||
INR | INR | US$ | INR | INR | US$ | ||||||||
Operating revenues: | |||||||||||||
Revenue from customers(1) | 3,504 | 4,386 | 59.1 | 7,444 | 8,826 | 119.0 | |||||||
Operating costs and expenses: | |||||||||||||
Cost of operations (exclusive of depreciation and amortization shown separately below) | 309 | 355 | 4.8 | 572 | 700 | 9.4 | |||||||
General and administrative | 883 | 346 | 4.7 | 1,256 | 773 | 10.4 | |||||||
Depreciation and amortization | 773 | 860 | 11.6 | 1,528 | 1,679 | 22.6 | |||||||
Impairment loss | - | 14 | 0.2 | - | 40 | 0.5 | |||||||
Total operating costs and expenses: | 1,965 | 1,575 | 21.2 | 3,356 | 3,192 | 42.9 | |||||||
Operating income | 1,539 | 2,811 | 37.9 | 4,088 | 5,634 | 76.1 | |||||||
Other expense, net: | |||||||||||||
Interest expense, net | 2,023 | 2,417 | 32.6 | 4,186 | 4,666 | 62.8 | |||||||
Other expenses/(income), net | (6) | - | - | - | 2 | 0.0 | |||||||
Loss (gain) on foreign currency exchange, net | (13) | (127) | (1.7) | 4 | (108) | (1.4) | |||||||
Total other expenses, net | 2,004 | 2,290 | 30.9 | 4,190 | 4,560 | 61.4 | |||||||
Profit/ (loss) before income tax | (465) | 521 | 7.0 | (102) | 1,074 | 14.7 | |||||||
Income tax (expense)/benefit | 97 | (821) | (11.1) | (220) | (677) | (9.1) | |||||||
Net profit (loss) | (368) | (300) | (4.0) | (322) | 397 | 5.6 | |||||||
Less: Net (loss) / profit attributable to non-controlling interest | 2 | (13) | (0.2) | (5) | (19) | (0.3) | |||||||
Net (loss) / profit attributable to APGL equity Shareholders | (366) | (313) | (4.2) | (327) | 378 | 5.3 | |||||||
Net (loss) / profit per share attributable to | |||||||||||||
Basic | (7.73) | (6.49) | (0.09) | (6.84) | 7.84 | 0.11 | |||||||
Diluted | (7.73) | (6.49) | (0.09) | (6.84) | 7.76 | 0.10 | |||||||
Shares used in computing basic and diluted per share amounts | |||||||||||||
Equity shares: Basic | 47,924,172 | 48,204,560 | 47,817,323 | 48,203,336 | |||||||||
Equity shares: Diluted | 47,924,172 | 48,204,560 | 47,817,323 | 48,708,973 | |||||||||
(1) Revenue from customers is in accordance with ASC 606, includes sale of power, other revenue items related to generation from solar power.
AZURE POWER GLOBAL LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(INR and US$ amounts in millions)
Three months ended September 30, | Six months ended September 30, | ||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||
INR | INR | US$ | INR | INR | US$ | ||||||||||||
Cash flow from operating activities: | |||||||||||||||||
Net gain/ (loss) | (368) | (300) | (4.0) | (322) | 397 | 5.6 | |||||||||||
Adjustments to reconcile gain/(loss) to net cash from/ | |||||||||||||||||
Deferred income taxes | 136 | 380 | 5.1 | 102 | 176 | 2.4 | |||||||||||
Depreciation and amortization | 773 | 860 | 11.6 | 1,528 | 1,679 | 22.6 | |||||||||||
Impairment loss | - | 14 | 0.2 | - | 40 | 0.5 | |||||||||||
Adjustments to derivative instruments | 484 | 293 | 4.0 | 973 | 768 | 10.4 | |||||||||||
Loss on disposal of property plant and equipment | - | 9 | 0.1 | 8 | 10 | 0.1 | |||||||||||
Share based compensation | 526 | (234) | (3.2) | 594 | (119) | (1.6) | |||||||||||
Amortization of debt financing costs | 70 | 332 | 4.5 | 186 | 428 | 5.8 | |||||||||||
Employee benefits | 31 | (26) | (0.3) | 33 | (12) | (0.2) | |||||||||||
ARO accretion | 10 | 14 | 0.2 | 20 | 26 | 0.4 | |||||||||||
Non- cash rent expense | 34 | 56 | 0.8 | 26 | 52 | 0.7 | |||||||||||
Allowance for doubtful accounts | 25 | 24 | 0.3 | 37 | 24 | 0.3 | |||||||||||
Loan Prepayment charges | - | - | - | 234 | - | - | |||||||||||
Foreign exchange loss /(gain), net | (13) | (127) | (1.7) | 4 | (108) | (1.5) | |||||||||||
Change in operating lease right-of-use assets | 226 | (108) | (1.5) | 72 | (44) | (0.6) | |||||||||||
Change in operating lease liabilities | (310) | 89 | 1.2 | (198) | 25 | 0.3 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable, net | 683 | (459) | (6.2) | (10) | (883) | (11.9) | |||||||||||
Prepaid expenses and other current assets | 56 | 610 | 8.2 | (214) | 265 | 3.6 | |||||||||||
Other assets | (263) | 183 | 2.5 | (138) | 140 | 1.9 | |||||||||||
Accounts payable | (1) | (1,280) | (17.3) | (121) | (828) | (11.2) | |||||||||||
Interest payable | 955 | 134 | 1.7 | (286) | (663) | (8.9) | |||||||||||
Deferred revenue | (18) | (17) | (0.2) | (13) | (19) | (0.3) | |||||||||||
Other liabilities | (43) | 478 | 6.4 | (84) | 499 | 6.7 | |||||||||||
Net cash flows from operating activities | 2,993 | 925 | 12.4 | 2,431 | 1,853 | 25.1 | |||||||||||
Cash flow from investing activities | |||||||||||||||||
Purchase of property plant and equipment | (5,314) | (4,480) | (60.5) | (7,167) | (12,094) | (163.4) | |||||||||||
Purchase of software | (1) | 3 | 0.0 | (7) | 8 | 0.1 | |||||||||||
Sale of available for sale investments | - | - | - | - | 1 | 0.0 | |||||||||||
Disposal of subsidiary | - | - | - | - | 124 | 1.7 | |||||||||||
Net cash flows used in investing activities | (5,315) | (4,477) | (60.5) | (7,174) | (11,961) | (161.6) | |||||||||||
Cash flows from financing activities | |||||||||||||||||
Proceeds from issuance of | - | 30,514 | 411.5 | - | 30,514 | 411.5 | |||||||||||
Proceeds from equity shares | 134 | 25 | 0.3 | 271 | 23 | 0.3 | |||||||||||
Repayments of term and other debt | (127) | (3,287) | (44.0) | (5,704) | (4,849) | (65.4) | |||||||||||
Repayment of Green bonds | - | (37,069) | (499.9) | - | (37,069) | (499.9) | |||||||||||
Loan prepayment charges | (36) | - | - | (234) | - | - | |||||||||||
Proceeds from term and other debt | 3,117 | 14,240 | 192.0 | 9,023 | 24,717 | 333.3 | |||||||||||
Net cash provided by financing activities | 3,088 | 4,423 | 59.9 | 3,356 | 13,336 | 179.8 | |||||||||||
Effect of exchange rate changes on cash and cash | (67) | 986 | 13.3 | (83) | 7 | 0.4 | |||||||||||
Net increase/ (decrease) in cash and cash equivalents | 766 | 872 | 11.8 | (1,387) | 3,229 | 43.3 | |||||||||||
Cash and cash equivalents and restricted cash at the | 13,384 | 17,536 | 236.5 | 15,517 | 16,149 | 217.8 | |||||||||||
Add: Cash and cash equivalents and restricted cash, | - | - | - | - | 9 | 0.1 | |||||||||||
Less: Cash and cash equivalents and restricted cash, | - | (6) | (0.1) | - | (6) | (0.1) | |||||||||||
Cash and cash equivalents and restricted cash at the end of the period | 14,047 | 19,388 | 261.5 | 14,047 | 19,388 | 261.5 | 236.2 | ||||||||||
AZURE POWER GLOBAL LIMITED
Unaudited NON-GAAP metrices
(INR and US$ amounts in millions)
CASH FLOWS TO EQUITY (CFe)
For the three months ended | For the three months ended | |||||||||||||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||||||||
Total | Other | Operating | Total | Other | Operating | Operating | ||||||||||||||||||||||||
INR | INR | INR | INR | INR | INR | US$ | ||||||||||||||||||||||||
Revenue from customers | 3,504 | — | 3,504 | 4,386 | - | 4,386 | 59.1 | |||||||||||||||||||||||
Cost of operations | 309 | — | 309 | 355 | - | 355 | 4.8 | |||||||||||||||||||||||
General and administrative | 883 | 682 | 201 | 346 | 146 | 200 | 2.7 | |||||||||||||||||||||||
Depreciation and amortization | 773 | 12 | 761 | 860 | 6 | 854 | 11.5 | |||||||||||||||||||||||
Impairment loss | - | - | - | 14 | - | 14 | 0.2 | |||||||||||||||||||||||
Operating income/(loss) | 1,539 | (694) | 2,233 | 2,811 | (152) | 2,963 | 39.9 | |||||||||||||||||||||||
Interest expense, net | 2,023 | 209 | 1,814 | 2,417 | 582 | 1,835 | 24.7 | |||||||||||||||||||||||
Other expense, net | (6) | (6) | — | - | - | — | — | |||||||||||||||||||||||
Loss/(gain) on foreign currency | (13) | (1) | (12) | (127) | 1 | (128) | (1.7) | |||||||||||||||||||||||
Profit/(Loss) before income tax | (465) | (896) | 431 | 521 | (735) | 1,256 | 16.9 | |||||||||||||||||||||||
Add: Depreciation and amortization | 773 | 12 | 761 | 860 | 6 | 854 | 11.5 | |||||||||||||||||||||||
Add: Impairment loss | - | - | - | 14 | - | 14 | 0.2 | |||||||||||||||||||||||
Add: Loss/(gain) on foreign currency | (13) | (1) | (12) | (127) | 1 | (128) | (1.7) | |||||||||||||||||||||||
Add: Amortization of debt financing costs | 70 | (25) | 95 | 332 | 79 | 253 | 3.4 | |||||||||||||||||||||||
Add: Other items from Statement of Cash Flows(1) | 626 | 531 | 95 | (157) | (259) | 102 | 1.4 | |||||||||||||||||||||||
Less: Cash paid for income taxes | (186) | (56) | (130) | (181) | (147) | (34) | (0.5) | |||||||||||||||||||||||
Less: Debt amortization(2) | (174) | — | (174) | (911) | — | (911) | (12.3) | |||||||||||||||||||||||
Less: Maintenance capital expenditure(3) | — | — | — | — | — | — | — | |||||||||||||||||||||||
CFe | 631 | (4) | (435) | 1,066 | 351 | (4) | (1,055) | 1,406 | 18.9 | |||||||||||||||||||||
For the six months ended | For the six months ended | |||||||||||||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||||||||
Total | Other | Operating | Total | Other | Operating | Operating | ||||||||||||||||||||||||
INR | INR | INR | INR | INR | INR | US$ | ||||||||||||||||||||||||
Revenue from customers | 7,444 | — | 7,444 | 8,826 | - | 8,826 | 119.0 | |||||||||||||||||||||||
Cost of operations | 572 | — | 572 | 700 | - | 700 | 9.4 | |||||||||||||||||||||||
General and administrative | 1,256 | 931 | 325 | 773 | 431 | 342 | 4.6 | |||||||||||||||||||||||
Depreciation and amortization | 1,528 | 19 | 1,509 | 1,679 | 14 | 1,665 | 22.5 | |||||||||||||||||||||||
Impairment loss | - | - | - | 40 | - | 40 | 0.5 | |||||||||||||||||||||||
Operating income/(loss) | 4,088 | (950) | 5,038 | 5,634 | (445) | 6,079 | 82.0 | |||||||||||||||||||||||
Interest expense, net | 4,186 | 386 | 3,800 | 4,666 | 845 | 3,821 | 51.5 | |||||||||||||||||||||||
Other expense, net | - | - | — | 2 | 2 | — | — | |||||||||||||||||||||||
Loss/(gain) on foreign currency | 4 | (3) | 7 | (108) | 3 | (111) | (1.5) | |||||||||||||||||||||||
Profit/(Loss) before income tax | (102) | (1,333) | 1,231 | 1,074 | (1,295) | 2,369 | 32.0 | |||||||||||||||||||||||
Add: Depreciation and amortization | 1,528 | 19 | 1,509 | 1,679 | 14 | 1,665 | 22.5 | |||||||||||||||||||||||
Add: Impairment loss | - | - | - | 40 | - | 40 | 0.5 | |||||||||||||||||||||||
Add: Loss/(gain) on foreign currency | 4 | (3) | 7 | (108) | 3 | (111) | (1.5) | |||||||||||||||||||||||
Add: Amortization of debt financing costs | 186 | 21 | 165 | 428 | 112 | 2 | 316 | 4.3 | ||||||||||||||||||||||
Add: Other items from Statement of Cash Flows(1) | 952 | 605 | 347 | (19) | (147) | 128 | 1.7 | |||||||||||||||||||||||
Less: Cash paid for income taxes | (274) | (87) | (187) | (371) | (304) | (67) | (0.9) | |||||||||||||||||||||||
Less: Debt amortization(2) | (365) | — | (365) | (1,090) | — | (1,090) | (14.7) | |||||||||||||||||||||||
Less: Maintenance capital expenditure(3) | — | — | — | — | — | — | — | |||||||||||||||||||||||
CFe | 1,929 | (4) | (778) | 2,707 | 1,633 | (4) | (1,617) | 3,250 | 43.9 | |||||||||||||||||||||
(1) Other items from the Statement of Cash Flows. For the quarter ended September 30, 2020 and September 30, 2021 respectively, Other items include: loss on disposal of property plant and equipment of INR Nil and INR 9 million (US
For the six months ended September 30, 2020 and September 30, 2021 respectively, Other items include: loss on disposal of property plant and equipment of INR 8 million and INR 10 million (US
(2) Debt Amortization: Repayments of term and other loans during the quarter ended September 30, 2021, was INR 40,356 million (US
Repayments of term and other loans during the six months ended September 30, 2021, was INR 41,918 million (US
(3) Classification of Maintenance capital expenditures and Growth capital expenditures
All our capital expenditures are considered Growth Capital Expenditures. In broad terms, we expense all expenditures in the current period that would primarily maintain our businesses at current levels of operations, capability, profitability or cash flow in operations and maintenance and therefore there are no Maintenance capital expenditures. Growth capital expenditures primarily provide new or enhanced levels of operations, capability, profitability or cash flows.
(4) Reconciliation of total CFe to GAAP Cash from Operating Activities:
For the three months ended September 30, 2020 | For the three months ended September 30, 2021 | For the six months ended September 30, 2020 | For the six months ended September 30, 2021 | ||
Unaudited | Unaudited | Unaudited | Unaudited | ||
CFe (Non-GAAP) |
631 |
351 |
1,929 |
1,633 | |
Items included in GAAP Cash from Operating Activities but not considered in CFe | |||||
Change in operating assets and liabilities as per statement of cash flows |
1,369 |
(351) |
(866) |
(1,489) | |
Current income taxes |
233 |
(441) |
(118) |
(501) | |
Prepaid lease payments and employee benefits |
(84) |
(19) |
(126) |
(19) | |
Amortization of hedging costs |
484 |
293 |
973 |
768 | |
Items included in CFe but not considered in GAAP Cash Flow from Operating Activities: | |||||
Debt amortization |
174 |
911 |
365 |
1,090 | |
Cash taxes paid |
186 |
181 |
274 |
371 | |
Cash from Operating Activities (GAAP) |
2,993 |
925 |
2,431 |
1,853 |
Reconciliation of Net (Loss)/Profit to Adjusted EBITDA for the periods indicated:
Unaudited | Unaudited | |||||||||||||||
Three months ended September 30, | Six months ended September 30, | |||||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | 2021 | |||||||||||
INR | INR | US$ | INR | INR | US$ | |||||||||||
Net (Loss) /Profit | (368) | (300) | (4.0) | (322) | 397 | 5.4 | ||||||||||
Income tax expense/(benefit) | (97) | 821 | 11.1 | 220 | 677 | 9.1 | ||||||||||
Interest expense, net | 2,023 | 2,417 | 32.6 | 4,186 | 4,666 | 62.9 | ||||||||||
Depreciation and amortization | 773 | 860 | 11.6 | 1,528 | 1,679 | 22.6 | ||||||||||
Loss/ (gain) on foreign currency exchange, net | (13) | (127) | (1.7) | 4 | (108) | (1.5) | ||||||||||
Other expenses/ (income) | (6) | - | - | - | 2 | 0.0 | ||||||||||
Impairment loss | - | 14 | 0.2 | - | 40 | 0.5 | ||||||||||
Adjusted EBITDA | 2,312 | 3,685 | 49.8 | 5,616 | 7,353 | 99.0 | ||||||||||
Statement of beneficial ownership:
Name | Number of shares beneficially owned | (%) | ||||||
Directors and Officers: | ||||||||
Alen Rosling | - | - | ||||||
Arno Harris (Director) | 14,895 | 0.03 | % | |||||
Cyril Sebastien Dominique Cabanes (Director) | - | - | ||||||
Yung Oy Pin (Jane) Lun Leung (Director) | - | - | ||||||
Deepak Malhotra (Director) | - | - | ||||||
Muhammad Khalid Peyrye (Director) | - | - | ||||||
Supriya Prakash Sen (Director) | - | - | ||||||
M S Unnikrishnan (Director) | - | - | ||||||
Ranjit Gupta (CEO & Director) | - | (1) | ||||||
Murali Subramanian (COO) | - | (1) | ||||||
Pawan Kumar Agrawal (CFO) | 22,317 | 0.05 | % | |||||
Kapil Kumar | 3,000 | 0.01 | % | |||||
Gaurang Sethi | 3,183 | 0.01 | % | |||||
Samitla Subba | 2,636 | 0.01 | % | |||||
Akriti Gandotra | 3,000 | 0.01 | % | |||||
Kuldeep Jain | 5,000 | 0.01 | % | |||||
Sarvesh K Singh | 3,000 | 0.01 | % | |||||
(1) As of September 30, 2021, the Company has issued 1,875,000 Stock Appreciation Rights "(SAR's") to Mr Ranjit Gupta (CEO) and Mr Murali Subramanian (COO).
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SOURCE Azure Power
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