EBENE, Mauritius, Aug. 13, 2020 /PRNewswire/ -- Azure Power Global
Limited (NYSE: AZRE), a leading independent solar power producer in
India, today announced its
consolidated results under United States Generally Accepted
Accounting Principles ("GAAP") for the fiscal first quarter 2021
ended June 30, 2020.
Fiscal First Quarter 2021 Quarter ended June 30, 2020 Operating Highlights:
- Operating Megawatts ("MW") were 1,809 MWs, as of June 30, 2020, an increase of 12% over
June 30, 2019. Operating and
Committed Megawatts were 7,115 MWs, as of quarter ended
June 30, 2020, an increase of 112%
over the quarter ended June 30, 2019.
Committed 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. PPAs for these 4,000 MWs will follow only
after the sale of power is contracted by SECI under a power sale
agreement ("PSA").
- Revenue for the quarter ended June 30,
2020 was INR 3,940 million (US$ 52.2
million), an increase of 16% over the quarter ended
June 30, 2019.
- Net profit for the quarter ended June
30, 2020 was INR 46 million (US$ 0.6
million). During the quarter, our results were negatively
impacted by a one-time charge of INR 264 million (US$ 3.5 million) related to debt refinancing,
refer the detailed explanation in the net profit section of the
commentary below.
- Non-GAAP Adjusted EBITDA for the quarter ended June 30, 2020 was INR 3,298 million (US$ 43.7 million), an increase of 29% over the
quarter ended June 30, 2019.
- Non-GAAP Cash flow to Equity ("CFe") for Operating Assets for
the quarter ended June 30, 2020 was
INR 1,641 million (US$ 21.7 million),
an increase of INR 511 million or 45% over the quarter ended
June 30, 2019.
Key Operating Metrics
Electricity generation during the quarter ended June 30, 2020 was 883.9 million kWh, an increase
of 183.8 million kWh or 26%, over the quarter ended June 30, 2019. The increase in electricity
generation was principally a result of additional operating
capacity during the period driven by the commissioning of new
projects. Our Plant Load Factor ("PLF") for the quarter ended
June 30, 2020, was 23.1%, compared to
19.4%, for the same comparable period in 2019, which increased
principally due to the addition of DC capacity and improved
performance by our plants.
We did not commission any significant capacity during the
quarter ended June 30, 2020, due to
COVID-19 disruptions and completed 1 MWs (AC) and 3 MWs (DC). We
continue to expect that the majority of our capacity under
construction will be completed before the expected revised
commissioning dates, as approved by the respective
counterparties.
As of June 30, 2020, our operating
and committed megawatts were 7,115 MWs, an increase of 3,764 MWs
compared to June 30, 2019. Committed
megawatts include 4,000 MWs for which we have received LOAs but the
PPAs have not yet been signed. The PPAs for the committed 4,000 MWs
with a LOA will follow only after the sale of power is contracted
by SECI under a PSA.
Nominal Contracted Payments
Our Power Purchase Agreements ("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 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.
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As of June
30,
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|
|
|
2019
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|
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2020
|
|
|
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INR
|
|
|
INR
|
|
|
US$
|
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Nominal contracted
payments (in millions)
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|
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580,782
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|
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1,206,950
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15,971.2
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Total estimated
energy output (kilowatt hours in millions)
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169,671
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385,174
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Nominal contracted payments as of June
30, 2020 increased compared to as of June 30, 2019 as we entered into additional PPAs
and LOAs. 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
Portfolio revenue run-rate equals annualized payments from
customers extrapolated based on the operating and committed
capacity as of the reporting dates. In estimating the portfolio
revenue run-rate, we multiply 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 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, 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.
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As of June
30,
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2019
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2020
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INR
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INR
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US$
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Portfolio revenue
run-rate (in millions)
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25,940
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53,591
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709.5
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Estimated annual
energy output (kilowatt hours in millions)
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7,468
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16,969
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As of June 30, 2020, our portfolio
revenue run-rate was INR 53,591 million (US$
709.5 million) which was an increase of INR 27,651 million
(US$ 366.1 million) compared to
June 30, 2019.
Fiscal First Quarter 2021 Quarter ended June 30, 2020 Consolidated Financial
Results:
Operating Revenues
Operating revenues for the quarter ended June 30, 2020 were INR 3,940 million
(US$ 52.2 million), an increase of
16% from INR 3,389 million in the quarter ended June 30, 2019. This increase was driven by the
revenue generated from projects which were commissioned during the
period after June 30, 2019 and
additional revenue of INR 73.1 million (US$
1.0 million) for the recovery of Safe Guard Duties and Goods
and Service Tax under the change in law provision of our PPAs for
three of our projects.
Cost of Operations (Exclusive of Depreciation and
Amortization)
Cost of operations for the quarter ended June 30, 2020 decreased by 11% to INR 263 million
(US$ 3.5 million) from INR 297
million in the quarter ended June 30,
2019. The lower cost of operations was primarily due to cost
efficiencies and lower cost incurred during the quarter ended
June 30, 2020, due to COVID-19 of
approximately INR 50.0 million (US$ 0.7
million), primarily due to less module cleaning and other
operation and maintenance activities.
The cost of operations per megawatt during the quarter ended
June 30, 2020 was approximately INR
0.15 million (~US$ 1,900), lower than
the approximately INR 0.19 million (~US$
2,576) for the quarter ended June 30,
2019, reflecting productivity improvement and the deferment
of expenses due to impact of COVID-19.
General and Administrative Expenses
General and administrative expenses for the quarter ended
June 30, 2020 were INR 379 million
(US$ 5.0 million), a decrease of INR
165 million (US$ 2.2 million)
compared to the quarter ended June 30,
2019. General and administrative expenses were lower
primarily due to the absence of management transition expenses of
INR 90 million (US$ 1.2 million)
related to the quarter ended June 30,
2019, and less activity due to COVID-19 in legal and
professional expenses of INR 28 million (US$
0.4 million) and travel of around INR 19 million
(US$ 0.3 million).
Depreciation and Amortization Expenses
Depreciation and amortization expenses during the quarter ended
June 30, 2020 increased by INR 132
million (US$ 1.7 million), or 21%, to
INR 755 million (US$ 10.0 million)
compared to the quarter ended June 30,
2019. The increase relates to the additional depreciation on
capital expenditures from the increase in operating MWs year over
year.
Interest Expense, Net
Net interest expense during the quarter ended June 30, 2020 increased by INR 603 million
(US$ 8.0 million), or 39%, to INR
2,163 million (US$ 28.7 million)
compared to the quarter ended June 30,
2019. The increase in net interest expense was primarily due
to additional interest expense of INR 303 million (US$ 4.0 million) related to projects commissioned
during the past 12 months, a one-time charge of INR 264 million
(US$ 3.5 million) related to a debt
refinancing and lower interest income of INR 36 million
(US$ 0.5 million) on account of lower
free cash available during the quarter ended June 30, 2020, compared to the quarter ended
June 30, 2019.
Loss on Foreign Currency Exchange
The Indian Rupee ("INR") depreciated against the U.S. dollar by
INR 0.14 for every US$ 1.00 (or 0.2%)
during the quarter from March 31,
2020 to June 30, 2020. During
the quarter ended June 30, 2020, the
Company incurred an expense on foreign exchange of INR 17 million
(US$ 0.2 million) compared to expense
of INR 50 million, during the quarter ended June 30, 2019, on account of lower volatility in
INR versus the U.S. dollar compared to the same quarter in the
prior year.
Other Income
There was no other income during the current or prior comparable
period.
Income Tax Expense
Income tax expense increased during the quarter ended
June 30, 2020 by INR 173 million
(US$ 2.3 million) to INR 317 million
(US$ 4.2 million), compared to an
income tax expense of INR 144 million in the quarter ended
June 30, 2019. The increase in income
tax expense is primarily due to higher taxable income and tax
withholding related to our solar green bonds.
Net profit
The net profit for the quarter ended June
30, 2020 was INR 46 million (US$ 0.6
million), a reduction of INR 125 million (US$ 1.7 million) compared to a net profit of INR
171 million for the quarter ended June 30,
2019. The profit was lower primarily due to a one-time
charge of INR 264 million (US$ 3.5
million) related to a debt refinancing and INR 173 million
(US$ 2.3 million) of higher income
tax expenses, partially offset by higher revenue from our
projects.
Cash Flow and Working Capital
Cash flow used in operating activities for the quarter ended
June 30, 2020 was INR 562 million
(US$ 7.5 million), compared to INR
459 million for the quarter ended June 30,
2019. The cash used in operating activities was higher
primarily on account of an additional semi-annual payment on bond
interest on the new US$ 350 million
solar green bond issued in September
2019, partially offset by additional revenue.
During the quarter ended June 30,
2020, the working capital outflow was INR 2,235 million
(US$ 29.6 million), compared to an
outflow of INR 1,509 million, for the quarter ended June 30, 2019, primarily on account of an
additional semi-annual payment of interest on bonds reflecting the
issuance of a new US$ 350 million
solar green bond in September
2019.
The Company's days receivable were 139 days, as of June 30, 2020, as compared to 126 days as of
March 31, 2020, primarily on account
of continued issues with collections for our 50 MW project in
Andhra Pradesh and 130 MW project in Karnataka. Excluding these two
projects, our days receivable would have been 90 days.
Cash used in investing activities for the quarter ended
June 30, 2020 was INR 1,859 million
(US$ 24.6 million), compared to INR
5,675 million for the quarter ended June 30,
2019. The company incurred lower capital expenditures due to
COVID-19 for the quarter ended June 30,
2020 amounting to INR 1,853 million (US$ 24.5 million) for new solar projects compared
to capital expenditures of INR 5,666 million for the quarter ended
June 30, 2019.
Cash from financing activities for the quarter ended
June 30, 2020 was INR 268 million
(US$ 3.6 million) compared to INR
10,742 million for the quarter ended June
30, 2019, primarily due to an increase in borrowings (net of
repayments) of INR 329 million (US$ 4.4
million) in the current quarter as compared to an increase
in borrowings (net of repayments) of INR 10,742 million during the
quarter ended June 30, 2019.
Liquidity Position
As of June 30, 2020, the Company
had INR 7,971 million (US$ 105.5
million) of cash, cash equivalents and current investments.
The Company had undrawn project debt commitments of INR 21,925
million (US$ 290.3 million) as of
June 30, 2020.
Adjusted EBITDA
Adjusted EBITDA is a Non-GAAP metric, please refer to the
reconciliation of this non-GAAP metric in this document.
Adjusted EBITDA was INR 3,298 million (US$ 43.7 million) for the quarter ended
June 30, 2020, compared to INR 2,548
million for the quarter ended June 30,
2019. The increase was primarily due to the increase in
revenue during the quarter ended June 30,
2020 and lower expenses related to operations and general
and administrative expenses.
Cash Flow to Equity (CFe) for Operating Assets
CFe is a Non-GAAP metric, please refer to the reconciliation
of this non-GAAP metric in this document.
Cash Flow to Equity for Operating Assets was INR 1,641 million
(US$ 21.7 million) for the quarter
ended June 30, 2020, an increase of
45% compared to INR 1,130 million for the quarter ended
June 30, 2019. The increase in Cash
Flow to Equity for Operating Assets was primarily driven by higher
revenues from the completion of new projects during the previous 12
months and higher EBITDA margins during the period due to lower
expenses.
COVID-19 Update
We are continuously monitoring the COVID-19 situation and taking
the requisite steps to address the situation. Our construction
activities are gradually increasing to normal levels; however, they
have still not reached the pre-COVID-19 or planned level. However,
we expect our projects to get commissioned within the expected
revised commissioning deadlines, as extended by respective counter
parties and within the original budgeted cost. Our operational and
maintenance activities continue to perform at near normal
levels.
Other matters
On April 1, 2020, the Company
adopted ASC Topic 326, Financial Instruments-Credit Losses using a
prospective approach. In compliance with the guidance, the
allowance for credit losses recognized based on historical loss
experience is adjusted to reflect current and estimated future
economic conditions. The Company applied the expected credit loss
model to assess any required allowance. The impact of adoption of
this guidance did not have a material effect on the Company's
financial statements.
During the period, the Company received a notice from one of the
DISCOM requesting a one-time discount due to COVID-19. We are
entitled to full recovery of our receivables, as per the terms of
the PPA and have responded accordingly to the DISCOM.
Our employees were granted options as of March 31, 2020 under our 2016 Equity Incentive
Plan (as amended in 2020), with the exercise price of US$ 14.19 per share, calculated at the fair
market value on March 31, 2020. The
Awards Agreements were issued in June
2020 and August 2020 and
provided for options exercisable into 181,493 and 86,000 equity
shares, respectively. All of the options granted in June 2020, and 2,000 Options granted in
August 2020 vest over 4 years (until
March 31, 2024). 84,000 Options
granted in August 2020 are
exercisable only after March 31, 2025
and vest over a period of 8 years (with first vesting of 12,000
Options on March 31, 2022, subsequent
vesting of 12,000 options every year thereafter until March 31, 2028 or expiry of the Plan whichever is
earlier.)
Guidance for Fiscal Year 2021
The following statements are based on our current expectations.
These statements are forward-looking and actual results may differ
materially. For fiscal year ending March 31,
2021, we continue to expect to have between 2,650 – 2,950
MWs operational and revenues of between INR 15,800 – 16,600 million
(or US$ 209– 220 million at the June 30,
2020 exchange rate of INR 75.53 to US$ 1.00) for fiscal year ending March 31, 2021.
With respect to our revenue guidance, approximately 90% of the
expected revenue for fiscal year 2021 is expected to come from
projects already commissioned and operating which have not been
materially impacted from the COVID-19 pandemic. Our remaining
revenue is subject to when plants under construction are completed
and completion timelines are currently more difficult to forecast
due to disruptions related to COVID-19. The timing of commissioning
of our under-construction projects does not impact our revenues we
expect during the 25-year PPA because revenues begin at the date of
commissioning.
For the second fiscal quarter of 2021, we expect revenues of
between INR 3,200 – INR 3,400 million (or US$ 42.4 – US$ 45.0
million at the June 30, 2020
exchange rate of INR 75.53 to US$
1.00) and a PLF of between 18.0% and 19.0%.
Webcast and Conference Call Information
The Company will hold its quarterly conference call to discuss
earnings results on Friday, August 14,
2020 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 first Quarter Earnings
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, a replay will be
available approximately two hours after the conclusion of the call.
The replay will remain available until Friday, August 21, 2020 and can be accessed by
dialing +1-833-289-8317 (in the U.S.) and +91-22-7194-5757 (outside
the U.S.) and entering the replay passcode 61700. An archived
podcast will be available at
http://investors.azurepower.com/events-and-presentations
approximately 12 hours following the conclusion of the call.
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 75.53 to
US$1.00, which is the noon buying
rate in New York City for cable
transfer in non-U.S. currencies as certified for customs purposes
by the Federal Reserve Bank of New
York on June 30, 2020. The
Company makes no representation that the Indian rupee or U.S.
dollar amounts referred to in this press release could have been
converted into U.S. dollars or Indian rupees, as the case may be,
at any particular rate or at all.
About Azure Power Global Limited
Azure Power is a leading independent solar 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,
micro-grid and rooftop solar 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 solar power solutions to
customers throughout India.
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 the Company's 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 the
Company's 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; the Company's ability to meet the
covenants in its debt facilities; meteorological conditions; issues
related to the corona virus; supply disruptions; solar power
curtailments by state electricity authorities and such other risks
identified in the registration statements and reports that the
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 the Company
assumes no obligation to update these forward-looking
statements.
Use of Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure. The Company
presents 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 the Company's future results
will be unaffected by unusual or non-recurring items.
The Company defines Adjusted EBITDA as net loss (income) plus
(a) income tax expense, (b) interest expense, net, (c) depreciation
and amortization and (d) loss (income) on foreign currency
exchange, net (e) Other income/ mutual fund income. The Company
believes Adjusted EBITDA is useful to investors in assessing the
Company's ongoing financial performance and provides improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
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.
The Company's 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 a company's 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 the Company's 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 and amortization 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 the Company considers it appropriate for supplemental
analysis. For more information, please see the Reconciliations of
Non-GAAP Measures to the Nearest Comparable GAAP Measures.
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 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 and maintenance capital
expenditure.
We believe that changes in operating assets and liabilities is
cyclical for cash flow generation of our assets, due to 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 Cash Flows to Equity
both to assess Azure Power'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 the Cash from Operations of the
Company 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 June 30,
2020. The operational assets represent the MW operating as
on the date.
We define Others as the project SPV's which are under
construction, or under development, Corporate which includes our
three Mauritius entities, the
other than projects covered under operational assets, as well as a
company incorporated in the U.S.A.
and other remaining entities under the group.
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
before maturity or refinanced. It does not include the amortisation
of debt financing costs or interest paid 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.
Investor Relation Contacts:
For investor enquiries, please contact Nathan Judge, CFA at ir@azurepower.com.
For media related information, please contact Samitla Subba
at pr@azurepower.com.
AZURE POWER GLOBAL
LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(INR and US$ amounts
in millions, except share and par value data)
|
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|
As of March
31,
|
|
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As of June
30,
|
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
|
(INR)
|
|
|
(INR)
|
|
|
(US$)
|
|
|
|
(Audited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
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Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
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Cash and cash
equivalents
|
|
|
9,792
|
|
|
|
7,971
|
|
|
|
105.5
|
|
Restricted
cash
|
|
|
4,877
|
|
|
|
4,911
|
|
|
|
65.0
|
|
Accounts receivable,
net
|
|
|
4,456
|
|
|
|
5,137
|
|
|
|
67.9
|
|
Prepaid expenses and
other current assets
|
|
|
1,619
|
|
|
|
1,708
|
|
|
|
22.7
|
|
Total current
assets
|
|
|
20,744
|
|
|
|
19,727
|
|
|
|
261.1
|
|
Restricted
cash
|
|
|
848
|
|
|
|
466
|
|
|
|
6.2
|
|
Property, plant and
equipment, net
|
|
|
95,993
|
|
|
|
98,759
|
|
|
|
1,307.8
|
|
Software,
net
|
|
|
55
|
|
|
|
54
|
|
|
|
0.7
|
|
Deferred income
taxes
|
|
|
2,205
|
|
|
|
2,064
|
|
|
|
27.3
|
|
Right-of-use
assets
|
|
|
4,434
|
|
|
|
4,241
|
|
|
|
56.1
|
|
Other
assets
|
|
|
8,115
|
|
|
|
9,214
|
|
|
|
121.9
|
|
Investments in held
to maturity securities
|
|
|
7
|
|
|
|
7
|
|
|
|
0.1
|
|
Total
assets
|
|
|
132,401
|
|
|
|
134,532
|
|
|
|
1,781.2
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
debt
|
|
|
975
|
|
|
|
-
|
|
|
|
-
|
|
Accounts
payable
|
|
|
1,795
|
|
|
|
2,472
|
|
|
|
32.7
|
|
Current portion of
long-term debt
|
|
|
2,303
|
|
|
|
2,164
|
|
|
|
28.7
|
|
Income taxes
payable
|
|
|
50
|
|
|
|
253
|
|
|
|
3.3
|
|
Interest
payable
|
|
|
1,716
|
|
|
|
475
|
|
|
|
6.3
|
|
Deferred
revenue
|
|
|
110
|
|
|
|
110
|
|
|
|
1.5
|
|
Lease
liabilities
|
|
|
256
|
|
|
|
322
|
|
|
|
4.3
|
|
Other
liabilities
|
|
|
2,020
|
|
|
|
2,500
|
|
|
|
33.2
|
|
Total current
liabilities
|
|
|
9,225
|
|
|
|
8,296
|
|
|
|
110.0
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
86,586
|
|
|
|
89,491
|
|
|
|
1,184.8
|
|
Deferred
revenue
|
|
|
2,129
|
|
|
|
2,134
|
|
|
|
28.3
|
|
Deferred income
taxes
|
|
|
2,622
|
|
|
|
2,496
|
|
|
|
33.0
|
|
Asset retirement
obligations
|
|
|
741
|
|
|
|
751
|
|
|
|
9.9
|
|
Leases
liabilities
|
|
|
3,592
|
|
|
|
3,285
|
|
|
|
43.5
|
|
Other
liabilities
|
|
|
289
|
|
|
|
413
|
|
|
|
5.5
|
|
Total
liabilities
|
|
|
105,184
|
|
|
|
106,866
|
|
|
|
1,415.0
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shares, US$
0.000625 par value; 47,650,750 and 47,844,607 shares
issued
and outstanding as of
March 31, 2020 and June 30, 2020, respectively
|
|
|
2
|
|
|
|
2
|
|
|
|
0.0
|
|
Additional paid-in
capital
|
|
|
37,533
|
|
|
|
37,684
|
|
|
|
498.9
|
|
Accumulated
deficit
|
|
|
(8,580)
|
|
|
|
(8,541)
|
|
|
|
(113.1)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,937)
|
|
|
|
(1,685)
|
|
|
|
(22.3)
|
|
Total APGL
shareholders' equity
|
|
|
27,018
|
|
|
|
27,460
|
|
|
|
363.5
|
|
Non-controlling
interest
|
|
|
199
|
|
|
|
206
|
|
|
|
2.7
|
|
Total
shareholders' equity
|
|
|
27,217
|
|
|
|
27,666
|
|
|
|
366.2
|
|
Total liabilities
and shareholders' equity
|
|
|
132,401
|
|
|
|
134,532
|
|
|
|
1,781.2
|
|
AZURE POWER GLOBAL
LIMITED
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
(INR and US$ amounts
in millions, except share and per share data)
|
|
|
|
Three months ended
June 30,
|
|
|
|
Unaudited
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of
power
|
|
|
3,389
|
|
|
|
3,940
|
|
|
|
52.2
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations
(exclusive of depreciation and amortization shown separately
below)
|
|
|
297
|
|
|
|
263
|
|
|
|
3.5
|
|
General and
administrative
|
|
|
544
|
|
|
|
379
|
|
|
|
5.0
|
|
Depreciation and
amortization
|
|
|
623
|
|
|
|
755
|
|
|
|
10.0
|
|
Total operating costs
and expenses:
|
|
|
1,464
|
|
|
|
1,397
|
|
|
|
18.5
|
|
Operating
income
|
|
|
1,925
|
|
|
|
2,543
|
|
|
|
33.7
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
1,560
|
|
|
|
2,163
|
|
|
|
28.7
|
|
Loss (gain) on
foreign currency exchange, net
|
|
|
50
|
|
|
|
17
|
|
|
|
0.2
|
|
Total other expenses,
net
|
|
|
1,610
|
|
|
|
2,180
|
|
|
|
28.9
|
|
Profit before
income tax
|
|
|
315
|
|
|
|
363
|
|
|
|
4.8
|
|
Income tax
expense
|
|
|
(144)
|
|
|
|
(317)
|
|
|
|
(4.2)
|
|
Net profit after
tax
|
|
|
171
|
|
|
|
46
|
|
|
|
0.6
|
|
Less: Net (loss) /
profit attributable to non-controlling interest
|
|
|
(7)
|
|
|
|
7
|
|
|
|
0.1
|
|
Net profit
attributable to APGL equity Shareholders
|
|
|
178
|
|
|
|
39
|
|
|
|
0.5
|
|
Net profit per
share attributable to APGL equity Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
4.32
|
|
|
|
0.82
|
|
|
|
0.01
|
|
Diluted
|
|
|
4.23
|
|
|
|
0.80
|
|
|
|
0.01
|
|
Shares used in
computing basic and diluted per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shares:
Basic
|
|
|
41,044,990
|
|
|
|
47,709,244
|
|
|
|
47,709,244
|
|
Equity shares:
Diluted
|
|
|
41,884,418
|
|
|
|
48,555,163
|
|
|
|
48,555,163
|
|
AZURE POWER GLOBAL
LIMITED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(INR and US$ amounts
in millions)
|
|
|
|
Three months ended
June 30,
|
|
|
|
Unaudited
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain
|
|
|
171
|
|
|
|
46
|
|
|
|
0.6
|
|
Adjustments to
reconcile gain/(loss) to net cash from/ (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
(27)
|
|
|
|
(34)
|
|
|
|
(0.5)
|
|
Depreciation and
amortization
|
|
|
623
|
|
|
|
755
|
|
|
|
10.0
|
|
Adjustments to
derivative instruments
|
|
|
258
|
|
|
|
489
|
|
|
|
6.5
|
|
Loss on disposal of
property plant and equipment
|
|
|
-
|
|
|
|
8
|
|
|
|
0.1
|
|
Share based
compensation
|
|
|
17
|
|
|
|
68
|
|
|
|
0.9
|
|
Amortization of debt
financing costs
|
|
|
76
|
|
|
|
116
|
|
|
|
1.5
|
|
Realized gain on
investments
|
|
|
(1)
|
|
|
|
-
|
|
|
|
-
|
|
Provision for
employee benefits
|
|
|
20
|
|
|
|
2
|
|
|
|
-
|
|
ARO
accretion
|
|
|
9
|
|
|
10
|
|
|
0.1
|
|
Non- cash rent
expense
|
|
|
(7)
|
|
|
|
(8)
|
|
|
|
(0.1)
|
|
Allowance for
doubtful accounts
|
|
|
35
|
|
|
|
12
|
|
|
|
0.2
|
|
Loan Prepayment
charges
|
|
|
-
|
|
|
|
234
|
|
|
|
3.1
|
|
Foreign exchange
loss, net
|
|
|
50
|
|
|
|
17
|
|
|
|
0.2
|
|
Change in operating
lease right-of-use assets
|
|
|
83
|
|
|
|
(154)
|
|
|
|
(2.0)
|
|
Change in operating
lease liabilities
|
|
|
(257)
|
|
|
|
112
|
|
|
|
1.5
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(868)
|
|
|
|
(693)
|
|
|
|
(9.2)
|
|
Prepaid expenses and
other current assets
|
|
|
(340)
|
|
|
|
(270)
|
|
|
|
(3.7)
|
|
Other
assets
|
|
|
(126)
|
|
|
|
125
|
|
|
|
1.7
|
|
Accounts
payable
|
|
|
70
|
|
|
|
(120)
|
|
|
|
(1.6)
|
|
Interest
payable
|
|
|
(358)
|
|
|
|
(1,241)
|
|
|
|
(16.4)
|
|
Deferred
revenue
|
|
|
5
|
|
|
|
5
|
|
|
|
0.1
|
|
Other
liabilities
|
|
|
108
|
|
|
|
(41)
|
|
|
|
(0.5)
|
|
Net cash flows
used in operating activities
|
|
|
(459)
|
|
|
|
(562)
|
|
|
|
(7.5)
|
|
Cash flow from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
plant and equipment
|
|
|
(5,666)
|
|
|
|
(1,853)
|
|
|
|
(24.5)
|
|
Purchase of
software
|
|
|
(9)
|
|
|
|
(6)
|
|
|
|
(0.1)
|
|
Purchase of available
for sale investments
|
|
|
(600)
|
|
|
|
-
|
|
|
|
-
|
|
Sale of available for
sale investments
|
|
|
600
|
|
|
|
-
|
|
|
|
-
|
|
Net cash flows
used in investing activities
|
|
|
(5,675)
|
|
|
|
(1,859)
|
|
|
|
(24.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from equity
shares
|
|
|
-
|
|
|
|
137
|
|
|
|
1.8
|
|
Repayments of term
and other debt
|
|
|
(247)
|
|
|
|
(5,577)
|
|
|
|
(73.8)
|
|
Loan prepayment
charges
|
|
|
-
|
|
|
|
(198)
|
|
|
|
(2.6)
|
|
Proceeds from term
and other debt
|
|
|
10,989
|
|
|
|
5,906
|
|
|
|
78.2
|
|
Net cash provided
by financing activities
|
|
|
10,742
|
|
|
|
268
|
|
|
|
3.6
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
|
|
(2)
|
|
|
|
(16)
|
|
|
|
(0.2)
|
|
Net increase/
(decrease) in cash and cash equivalents and restricted
cash
|
|
|
4,608
|
|
|
|
(2,153)
|
|
|
|
(28.5)
|
|
Cash and cash
equivalents and restricted cash at the beginning of the
period
|
|
|
13,986
|
|
|
|
15,517
|
|
|
|
205.4
|
|
Cash and cash
equivalents and restricted cash at the end of the
period
|
|
|
18,592
|
|
|
|
13,348
|
|
|
|
176.7
|
|
AZURE POWER GLOBAL
LIMITED
|
Unaudited NON-GAAP
metrices
|
(INR and US$ amounts
in millions)
|
CASH FLOWS TO
EQUITY (CFe)
|
|
|
|
For the three
months ended
June 30,
2019
|
|
|
For the three
months ended
June 30,
2020
|
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Operating
|
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Sale of
power
|
|
|
3,389
|
|
|
|
|
—
|
|
|
|
3,389
|
|
|
|
3,940
|
|
|
|
|
—
|
|
|
|
3,940
|
|
|
|
52.2
|
|
Cost of
operations
|
|
|
297
|
|
|
|
|
—
|
|
|
|
297
|
|
|
|
263
|
|
|
|
|
—
|
|
|
|
263
|
|
|
|
3.5
|
|
General and
administrative
|
|
|
544
|
|
|
|
|
201
|
|
|
|
343
|
|
|
|
379
|
|
|
|
|
255
|
|
|
|
124
|
|
|
|
1.6
|
|
Depreciation and
amortization
|
|
|
623
|
|
|
|
|
8
|
|
|
|
615
|
|
|
|
755
|
|
|
|
|
7
|
|
|
|
748
|
|
|
|
9.9
|
|
Operating
income
|
|
|
1,925
|
|
|
|
|
(209)
|
|
|
|
2,134
|
|
|
|
2,543
|
|
|
|
|
(262)
|
|
|
|
2,805
|
|
|
|
37.2
|
|
Interest expense,
net
|
|
|
1,560
|
|
|
|
|
91
|
|
|
|
1,469
|
|
|
|
2,163
|
|
|
|
|
241
|
|
|
|
1,922
|
|
|
|
25.4
|
|
Other
income
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Loss/(gain) on
foreign currency exchange, net
|
|
|
50
|
|
|
|
|
(6)
|
|
|
|
56
|
|
|
|
17
|
|
|
|
|
(2)
|
|
|
|
19
|
|
|
|
0.3
|
|
Profit before
Income Tax
|
|
|
315
|
|
|
|
|
(294)
|
|
|
|
609
|
|
|
|
363
|
|
|
|
|
(501)
|
|
|
|
864
|
|
|
|
11.5
|
|
Add: Depreciation and
amortization
|
|
|
623
|
|
|
|
|
8
|
|
|
|
615
|
|
|
|
755
|
|
|
|
|
7
|
|
|
|
748
|
|
|
|
9.9
|
|
Add: Loss/(gain) on
foreign currency exchange, net
|
|
|
50
|
|
|
|
|
(6)
|
|
|
|
56
|
|
|
|
17
|
|
|
|
|
(2)
|
|
|
|
19
|
|
|
|
0.3
|
|
Add: Amortization of
debt financing costs
|
|
|
76
|
|
|
|
|
72
|
|
|
|
4
|
|
|
|
116
|
|
|
|
|
110
|
|
|
|
6
|
|
|
|
0.0
|
|
Add: Other items from
Statement of Cash Flows(1)
|
|
|
73
|
|
|
|
|
13
|
|
|
|
60
|
|
|
|
326
|
|
|
|
|
74
|
|
|
|
252
|
|
|
|
3.3
|
|
Less: Cash paid for
income taxes
|
|
|
(155)
|
|
|
|
|
(62)
|
|
|
|
(93)
|
|
|
|
(88)
|
|
|
|
|
(31)
|
|
|
|
(57)
|
|
|
|
(0.8)
|
|
Less: Debt
amortization(2)
|
|
|
(121)
|
|
|
|
|
—
|
|
|
|
(121)
|
|
|
|
(191)
|
|
|
|
|
—
|
|
|
|
(191)
|
|
|
|
(2.5)
|
|
Less: Maintenance
capital expenditure(3)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
CFe
|
|
|
861
|
|
(4)
|
|
|
(269)
|
|
|
|
1,130
|
|
|
|
1,298
|
|
(4)
|
|
|
(343)
|
|
|
|
1,641
|
|
|
|
21.7
|
|
(1) Other items from the Statement of Cash
Flows. Other items include: loss on disposal of property
plant and equipment of INR Nil and INR 8 million, share based
compensation of INR 17 million and INR 68 million, realized gain on
investment of INR 1 million and INR Nil, non-cash rent expense of
INR 7 million and INR 8 million, allowance for doubtful debts of
INR 35 million and INR 12 million, employee benefit expense of INR
20 million and INR 2 million, loan repayment charges of INR Nil and
INR 234 million and ARO accretion of INR 9 million and INR 10
million for the quarter ended June 30,
2019 and June 30, 2020,
respectively.
(2) Debt Amortization: Repayments of term and other
loans during the quarter ended June 30,
2020, was INR 5,577 million (refer to the Statement of
Cash Flows) which includes INR 5,386 million related to
refinancing of loans or early repayment of debt before maturity and
have been excluded to determine debt amortization of INR 191
million (US$ 2.5 million). Repayments
of term and other loans during the quarter ended June 30, 2019, was INR 247 million (refer to the
Statement of Cash Flows) which includes INR 126 million related to
refinancing of loans or early repayment of debt before maturity and
has been excluded to determine debt amortization of INR 121
million.
(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
June 30,
2019
|
|
|
For the three
months
ended
June 30,
2020
|
|
CFe
(Non-GAAP)
|
|
|
861
|
|
|
|
1,298
|
|
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
|
|
|
(1,509)
|
|
|
|
(2,235)
|
|
Current income
taxes
|
|
|
(171)
|
|
|
|
(351)
|
|
Prepaid lease
payments and employee benefits
|
|
|
(174)
|
|
|
|
(42)
|
|
Amortization of
hedging costs
|
|
|
258
|
|
|
|
489
|
|
Items included in
CFe but not considered in GAAP Cash Flow from
Operating Activities:
|
|
|
|
|
|
|
|
|
Debt
amortization
|
|
|
121
|
|
|
|
191
|
|
Cash taxes
paid
|
|
|
155
|
|
|
|
88
|
|
Cash from
Operating Activities (GAAP)
|
|
|
(459)
|
|
|
|
(562)
|
|
Reconciliation of
Net Profit/(loss) to Adjusted EBITDA for the periods
indicated:
|
|
|
|
Unaudited
|
|
|
|
Three months ended
June 30,
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Net
Profit
|
|
|
171
|
|
|
|
46
|
|
|
|
0.6
|
|
Income tax
expense
|
|
|
144
|
|
|
|
317
|
|
|
|
4.2
|
|
Interest expense,
net
|
|
|
1,560
|
|
|
|
2,163
|
|
|
|
28.7
|
|
Depreciation and
amortization
|
|
|
623
|
|
|
|
755
|
|
|
|
10.0
|
|
Loss on foreign
currency exchange, net
|
|
|
50
|
|
|
|
17
|
|
|
|
0.2
|
|
Adjusted
EBITDA
|
|
|
2,548
|
|
|
|
3,298
|
|
|
|
43.7
|
|
View original
content:http://www.prnewswire.com/news-releases/azure-power-announces-results-for-fiscal-first-quarter-2021-301112173.html
SOURCE Azure Power