EBENE, Mauritius, Nov. 10, 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 second quarter 2021,
period ended September 30, 2020.
Fiscal Second Quarter 2021 Period Ended September 30, 2020 Operating Highlights:
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Operating Megawatts
("MW") were 1,834 MWs, as of September 30, 2020, an increase of 2%
over September 30, 2019. Operating and Committed Megawatts were
7,115 MWs, as of September 30, 2020, an increase of 111% over
September 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 Solar
Energy Corporation of India Limited ("SECI") under a power sale
agreement ("PSA").
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Operating revenues for
the quarter ended September 30, 2020 were INR 3,504 million (US$
47.6 million), an increase of 23% over the quarter ended September
30, 2019.
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Net loss for the
quarter ended September 30, 2020 was INR 368 million (US$ 5.0
million). During the quarter, our results were negatively impacted
by an increase in stock appreciation rights (SARs) expense by INR
492 million (US$ 6.7 million) related to the 87% increase in
the share price during the quarter. Refer the detailed explanation
in the net loss section of the commentary below.
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Adjusted EBITDA for the
quarter ended September 30, 2020 was INR 2,318 million (US$ 31.5
million), an increase of 11% over the quarter ended September 30,
2019. During the quarter, our results were negatively impacted by
an increase in stock appreciation rights (SARs) expense by INR 492
million (US$ 6.7 million). Refer the detailed explanation in the
net loss section of the commentary below.
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Non-GAAP Cash Flow to
Equity ("CFe") for Operating Assets for the quarter ended September
30, 2020 was INR 1,066 million (US$ 14.5 million), an increase of
INR 353 million or 50% over the quarter ended September 30,
2019.
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Key Operating Metrics
Electricity generation during the quarter and six-months ended
September 30, 2020 was 769.2 million
kWh and 1,653.1 million kWh, respectively, an increase of 159.2
million kWh or 26%, over the quarter ended September 30, 2019, and an increase of 343.1
million kWh, or 26%, over the six months ended September 30, 2019. The increase in electricity
generation was principally a result of an additional 116 MWs of DC
operating capacity being commissioned since September 30, 2019. Our Plant Load Factor ("PLF")
for the quarter and the six months ended September 30, 2020, was 18.8% and 20.8%
respectively, compared to 16.8% and 19.0%, respectively, for the
same comparable periods in 2019, which increased principally due to
the addition of DC capacity and improved performance by our
plants.
We commissioned 25 MWs during the three months ended
September 30, 2020 and 26 MWs (AC)
and 28 MWs (DC) during the six months ended September 30, 2020. 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.
Project cost per megawatt operating (megawatt capacity per the
PPA or AC) consists of costs incurred for one megawatt of new solar
power plant capacity during the reporting period. The project cost
per megawatt (DC) operating for the six months ended September 30, 2020 decreased by INR 0.6 million
(US$ 0.01 million), or 2%, to INR
34.7 million (US$ 0.47 million)
primarily due to lower costs on account of the reduction in solar
module prices for the projects commissioned during the period. The
project cost per megawatt (AC) operating for the six months ended
September 30, 2020 was INR 40.4
million (US$ 0.55 million), compared
to INR 51.9 million, for the six months ended September 30, 2019, on account of reduction in
solar module prices. Excluding the impact of safeguard duties, the
DC and the AC costs per megawatt for the six months ended
September 30, 2020 would have been
lower by approximately INR 1.3 million (US$
0.02 million) and INR 1.3 million (US$ 0.02 million), respectively, and for the six
months ended September 30, 2019, the
DC and the AC costs per megawatt would have been lower by
approximately INR 2.4 million and INR 3.6 million,
respectively.
As of September 30, 2020, our
operating and committed megawatts were 7,115 MWs, an increase of
3,745 MWs compared to September 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. Also, we
have included LOAs for 4,000 MW wherein the PPA will follow only
after the sale of power is contracted by SECI under a PSA.
The following table sets forth, with respect to our PPAs and
LOAs 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.
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As of September
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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Nominal contracted
payments (in millions)
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566,258
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1,202,972
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16,358.1
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Total estimated
energy output (kilowatt hours in millions)
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165,561
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384,263
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Nominal contracted payments as of September 30, 2020 increased as compared to
September 30, 2019 as we entered into
additional PPAs and LOAs received. 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 or LOA 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 and
LOAs 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.
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As of September
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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25,299
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53,591
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728.7
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Estimated annual
energy output (kilowatt hours in millions)
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7,255
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16,969
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As of September 30, 2020, our
portfolio revenue run-rate was INR 53,591 million (US$ 728.7 million), an increase of INR 28,292
million (US$ 384.7 million) compared
to September 30, 2019 as we entered
into additional PPAs and LOAs received.
Fiscal Second Quarter 2021 Period ended September 30, 2020 Consolidated Financial
Results:
Operating Revenues
Operating revenues for the quarter ended September 30, 2020 was INR 3,504 million
(US$ 47.6 million), an increase of
23% from INR 2,847 million in the quarter ended September 30, 2019. This increase was driven by
the revenue generated from projects which were commissioned during
the quarter ended September 30, 2019
until September 30, 2020 and
additional revenue of INR 162 million (US$
2.2 million) for the recovery of Safe Guard Duties and Goods
and Service Tax under the change in law provision of our PPAs for
four of our projects.
Cost of Operations (Exclusive of Depreciation and
Amortization)
Cost of operations for the quarter ended September 30, 2020 increased by 22% to INR 309
million (US$ 4.2 million) from INR
253 million in the quarter ended September
30, 2019. This increase in the cost of operations was
primarily due to an increase in operational expenses from projects
commissioned during the quarter ended September 30, 2019 until September 30, 2020.
The cost of operations per megawatt during the quarter ended
September 30, 2020 increased
marginally to INR 0.17 million (~US$
2,300), from INR 0.15 million in the same comparable period
in 2019 primarily due to an increase in solar park charges on new
projects capitalised during previous year.
General and Administrative Expenses
General and administrative expenses for the quarter ended
September 30, 2020 was INR 877
million (US$ 11.9 million), an
increase of INR 363 million (US$ 4.9
million) compared to the quarter ended September 30, 2019. The higher general and
administrative expenses primarily reflected an increase in stock
appreciation rights (SARs) expense by INR 492 million (US$ 6.7 million) which accrued in the period and
related to the 87% increase in the share price during the quarter.
Of the total 1,970,000 SARs allotted, 1,642,500 SAR's cannot be
exercised until 2024 and the Company will not incur cash payments
for those SAR's until that time. Excluding this, general and
administrative expenses would have declined by 25% from the same
period a year ago.
Depreciation and Amortization Expenses
Depreciation and amortization expenses during the quarter ended
September 30, 2020 increased by INR
102 million (US$ 1.4 million), or
15%, to INR 773 million (US$ 10.5
million) compared to the quarter ended September 30, 2019. The increase primarily
relates to the additional depreciation on capital expenditures from
projects commissioned during the quarter ended September 30, 2019 until September 30, 2020.
Interest Expense, Net
Net interest expense during the quarter ended September 30, 2020 was increased by INR 96
million (US$ 1.3 million), or 5%, to
INR 2,023 million (US$ 27.5 million)
compared to the quarter ended September 30,
2019. The increase was primarily due to additional interest
expense (net) of INR 141 million (US$ 1.9
million) related to projects commissioned during the past 12
months, partially offset by lower refinancing charges and an
increase in interest income of INR 45 million (US$ 0.6 million) during the quarter ended
September 30, 2020, compared to the
quarter ended September 30, 2019.
Gain/ Loss on Foreign Currency Exchange
The Indian Rupee ("INR") appreciated against the U.S. dollar by
INR 1.73 for every US$ 1.00 (or 2%)
during the period from June 30, 2020
to September 30, 2020. During the
quarter ended September 30, 2020, the
Company earned an income on foreign exchange of INR 13 million
(US$ 0.2 million) compared to an
expense on foreign exchange of INR 215 million, during the quarter
ended September 30, 2019. During the
current year, the Company refinanced a foreign currency loan of INR
3,099 million (US$ 42.1 million) into
an INR denominated loan, which should reduce the volatility of Gain
/Loss on Foreign Currency Exchange going forward.
Other Income
Other Income, primarily income from current investments,
decreased by INR 4 million (US$ 0.1
million) during the quarter ended September 30, 2020 to INR Nil (US$ Nil) as
compared to the same period in 2019.
Income Tax Income/ Expense
Income tax income during the quarter ended September 30, 2020 was INR 97 million
(US$ 1.3 million), compared to an
income tax expense of INR 27 million in the quarter ended
September 30, 2019. The company
recognised an INR 178 million (US$ 2.4
million) deferred tax benefit during the quarter ended
September 30, 2020 related to higher
SARs expenses which was the primary reason for the year on year
improvement in the company's tax liability.
Net Loss after Tax
Net loss after tax for the quarter ended September 30, 2020 was INR 368 million
(US$ 5.0 million), a reduction of INR
388 million (US$ 5.3 million)
compared to a net loss of INR 756 million for the quarter ended
September 30, 2019. The net loss was
lower due to the absence of a foreign exchange loss of INR 228
million (US$ 3.1 million) in the same
quarter a year ago and higher revenues from projects commissioned
after September 30, 2019 until
September 30, 2020, partially offset
by higher general and administrative expenses. The higher general
and administrative expenses primarily reflected an increase in
stock appreciation rights (SARs) expense by INR 492 million
(US$ 6.7 million) which accrued
in the period and related to the 87% increase in the share price
during the quarter. Of the total 1,970,000 SARs allotted, 1,642,500
SAR's cannot be exercised until 2024 and the Company will not incur
cash payments for those SAR's until that time.
Cash Flow and Working Capital
Cash flow from operating activities for the quarter and six
months ended September 30, 2020 was
INR 2,993 million (US$ 40.7 million)
and INR 2,431 million (US$ 33.1
million), respectively, compared to INR 1,522 million and
INR 1,063 million, respectively, for the prior comparable period.
The cash flow from operating activities was higher primarily on
account of additional revenue and better collections of accounts
receivables offset by an additional semi-annual payment on bond
interest on the new US$ 350 million
solar green bond issued in September
2019.
During the quarter ended September 30,
2020, the working capital inflow was INR 1,369 million
(US$ 18.7 million), compared to an
inflow of INR 950 million, for the quarter ended September 30, 2019, primarily on account of
additional revenue and collections from accounts receivables.
During the six months ended September 30,
2020, the working capital outflow was INR 866 million
(US$ 11.7 million), compared to an
outflow of INR 559 million, for the six months ended September 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 improved during the current
quarter and were 114 days, as of September
30, 2020, as compared to 139 days as of June 30, 2020 on account of higher
collections.
Cash used in investing activities for the quarter ended
September 30, 2020 was INR 5,315
million (US$ 72.3 million), compared
to INR 9,691 million for the comparable period in 2019, primarily
due to lower capital expenditures for new solar projects amounting
to INR 3,369 million (US$ 45.8
million) and lower investment in mutual funds amounting to
INR 993 million (US$ 13.5 million).
Cash used in investing activities for the six months ended
September 30, 2020 was INR 7,174
million (US$ 97.6 million), compared
to INR 15,366 million for the comparable period in 2019, primarily
due to lower capital expenditures for new solar projects amounting
to INR 7,182 million (US$ 97.7
million) and lower investment in mutual funds amounting to
INR 993 million (US$ 13.5
million).
Cash generated from financing activities for the six months
ended September 30, 2020 was INR
3,356 million (US$ 45.6 million)
compared to INR 29,766 million for the comparable period in 2019,
primarily due to net proceeds from the issuance of solar green
bonds amounting to US$ 350 million in
the month of September 2019 and a
lower increase in other borrowings (net of repayments) of INR 3,085
million (US$ 41.9 million) in the
current period as compared to an increase in other borrowings (net
of repayments) of INR 5,342 million during the six months ended
September 30, 2019. Cash generated
from financing activities for the quarter ended September 30, 2020 was INR 3,088 million
(US$ 42.0 million) compared to INR
19,024 million in the prior comparable period in 2019.
Liquidity Position
As of September 30, 2020, the
Company had INR 7,828 million (US$ 106.4
million) of cash, cash equivalents and current investments.
The Company had undrawn project debt commitments of INR 22,267
million (US$ 302.8 million) as of
September 30, 2020.
Adjusted EBITDA
Adjusted EBITDA is a Non-GAAP metric, please refer to the
reconciliation of Net Profit/(loss) to Adjusted EBITDA in this
document.
Adjusted EBITDA was INR 2,318 million (US$ 31.5 million) for the quarter ended
September 30, 2020, compared to INR
2,080 million for the quarter ended September 30, 2019. The increase was primarily
due to the increase in revenue during the quarter ended
September 30, 2020, partially offset
by higher expenses related to general and administrative expenses,
including expense of INR 492 million (US$
6.7 million) related to stock appreciation rights.
Cash Flow to Equity (CFe) for 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 for Operating Assets was INR 1,066 million
(US$ 14.5 million) for the quarter
ended September 30, 2020, an increase
of 50% compared to INR 713 million for the quarter ended
September 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. The Company has
further applied to the Indian regulatory authorities seeking
extension of commissioning deadlines for certain of our projects.
Our operational and maintenance activities continue to perform at
near normal levels. The extension of schedule COD's for
projects under construction has had some impact on our fiscal year
ended March 31, 2021 revenue
guidance.
Other matters
During the quarter, the Company has received a demand cum show
cause notice from the service tax department for demand of INR 110
million (US$ 1.5 million) in
September 2020 in respect of levy of
GST liability on certain activities, including certain input
disallowances. The Company is in the process of contesting the
demand and has appointed external counsel to file replies against
the order on said matter.
During the current quarter, the Company received favourable
orders from Appellate Authority in respect of ongoing legal
proceedings in Karnataka 4 (40 MW). The DISCOM has been directed to
pay overdue invoices within defined timeliness amid COVID 19. The
Company has received INR 139 million (US$
1.9 million) from the DISCOM following the favourable
orders.
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 now expect MWs operational between 2,300 – 2,500.
The extension of schedule COD's for projects under
construction has had some impact on our fiscal year ended
March 31, 2021 revenue guidance, and
we now expect revenues of between INR 15,300 – 15,800 million (or
US$ 208– 215 million at the September 30,
2020 converted at exchange rate of INR 73.54 to US$ 1.00).
For the third fiscal quarter of 2021, we expect revenues of
between INR 3,600 – INR 3,800 million (or US$ 48.9 – US$ 51.7
million at the September 30,
2020 exchange rate of INR 73.54 to US$ 1.00) and a PLF of between 19.5% and
20.5%.
Webcast and Conference Call Information
The Company will hold its quarterly conference call to discuss
earnings results on Wednesday, November 11,
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 Fiscal Second Quarter 2021
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 73.54 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 September 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:
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it does not reflect
cash expenditures or future requirements for capital expenditures
or contractual commitments or foreign exchange
gain/loss;
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it does not reflect
changes in, or cash requirements for, working capital;
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it does not reflect
significant interest expense or the cash requirements necessary to
service interest or principal payments on outstanding
debt;
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it does not reflect
payments made or future requirements for income taxes;
and
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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.
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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
Net Profit/(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 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 September
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)
|
|
As of March
31,
|
|
|
As of September
30,
|
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
|
(INR)
|
|
|
(INR)
|
|
|
(US$)
|
|
|
|
(Audited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
9,792
|
|
|
|
7,828
|
|
|
|
106.4
|
|
Restricted
cash
|
|
|
4,877
|
|
|
|
5,843
|
|
|
|
79.5
|
|
Accounts receivable,
net
|
|
|
4,456
|
|
|
|
4,429
|
|
|
|
60.3
|
|
Prepaid expenses and
other current assets
|
|
|
1,619
|
|
|
|
1,720
|
|
|
|
23.4
|
|
Total current
assets
|
|
|
20,744
|
|
|
|
19,820
|
|
|
|
269.6
|
|
Restricted
cash
|
|
|
848
|
|
|
|
376
|
|
|
|
5.1
|
|
Property, plant and
equipment, net
|
|
|
95,993
|
|
|
|
103,712
|
|
|
|
1,410.4
|
|
Software,
net
|
|
|
55
|
|
|
|
43
|
|
|
|
0.6
|
|
Deferred income
taxes
|
|
|
2,205
|
|
|
|
2,069
|
|
|
|
28.1
|
|
Right-of-use
assets
|
|
|
4,434
|
|
|
|
4,119
|
|
|
|
56.0
|
|
Other
assets
|
|
|
8,115
|
|
|
|
7,520
|
|
|
|
102.3
|
|
Investments in held
to maturity securities
|
|
|
7
|
|
|
|
7
|
|
|
|
0.1
|
|
Total
assets
|
|
|
132,401
|
|
|
|
137,666
|
|
|
|
1,872.2
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
debt
|
|
|
975
|
|
|
|
2,659
|
|
|
|
36.2
|
|
Accounts
payable
|
|
|
1,795
|
|
|
|
1,768
|
|
|
|
24.0
|
|
Current portion of
long-term debt
|
|
|
2,303
|
|
|
|
3,212
|
|
|
|
43.7
|
|
Income taxes
payable
|
|
|
50
|
|
|
|
50
|
|
|
|
0.7
|
|
Interest
payable
|
|
|
1,716
|
|
|
|
1,409
|
|
|
|
19.2
|
|
Deferred
revenue
|
|
|
110
|
|
|
|
110
|
|
|
|
1.5
|
|
Lease
liabilities
|
|
|
256
|
|
|
|
274
|
|
|
|
3.7
|
|
Other
liabilities
|
|
|
2,020
|
|
|
|
3,690
|
|
|
|
50.2
|
|
Total current
liabilities
|
|
|
9,225
|
|
|
|
13,172
|
|
|
|
179.2
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
86,586
|
|
|
|
86,968
|
|
|
|
1,182.6
|
|
Deferred
revenue
|
|
|
2,129
|
|
|
|
2,116
|
|
|
|
28.8
|
|
Deferred income
taxes
|
|
|
2,622
|
|
|
|
2,432
|
|
|
|
33.1
|
|
Asset retirement
obligations
|
|
|
741
|
|
|
|
772
|
|
|
|
10.5
|
|
Leases
liabilities
|
|
|
3,592
|
|
|
|
3,161
|
|
|
|
43.0
|
|
Other
liabilities
|
|
|
289
|
|
|
|
1,255
|
|
|
|
17.1
|
|
Total
liabilities
|
|
|
105,184
|
|
|
|
109,876
|
|
|
|
1,494.3
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shares, US$
0.000625 par value; 47,650,750 and 48,034,392 shares issued and
outstanding as of March 31, 2020 and September 30, 2020,
respectively
|
|
|
2
|
|
|
|
2
|
|
|
|
0.0
|
|
Additional paid-in
capital
|
|
|
37,533
|
|
|
|
37,832
|
|
|
|
514.4
|
|
Accumulated
deficit
|
|
|
(8,580)
|
|
|
|
(8,907)
|
|
|
|
(121.1)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,937)
|
|
|
|
(1,341)
|
|
|
|
(18.2)
|
|
Total APGL
shareholders' equity
|
|
|
27,018
|
|
|
|
27,586
|
|
|
|
375.1
|
|
Non-controlling
interest
|
|
|
199
|
|
|
|
204
|
|
|
|
2.8
|
|
Total
shareholders' equity
|
|
|
27,217
|
|
|
|
27,790
|
|
|
|
377.9
|
|
Total liabilities
and shareholders' equity
|
|
|
132,401
|
|
|
|
137,666
|
|
|
|
1,872.2
|
|
AZURE POWER GLOBAL LIMITED
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(INR and US$ amounts in
millions, except share and per share data)
|
|
Three months ended
September 30,
|
|
|
Six months ended
September 30,
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of
power
|
|
|
2,847
|
|
|
|
3,504
|
|
|
|
47.6
|
|
|
|
6,236
|
|
|
|
7,444
|
|
|
|
101.2
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations
(exclusive of depreciation and amortization shown separately
below)
|
|
|
253
|
|
|
|
309
|
|
|
|
4.2
|
|
|
|
550
|
|
|
|
572
|
|
|
|
7.8
|
|
General and
administrative
|
|
|
514
|
|
|
|
877
|
|
|
|
11.9
|
|
|
|
1,058
|
|
|
|
1,256
|
|
|
|
17.1
|
|
Depreciation and
amortization
|
|
|
671
|
|
|
|
773
|
|
|
|
10.5
|
|
|
|
1,294
|
|
|
|
1,528
|
|
|
|
20.8
|
|
Total operating costs
and expenses:
|
|
|
1,438
|
|
|
|
1,959
|
|
|
|
26.6
|
|
|
|
2,902
|
|
|
|
3,356
|
|
|
|
45.7
|
|
Operating
income
|
|
|
1,409
|
|
|
|
1,545
|
|
|
|
21.0
|
|
|
|
3,334
|
|
|
|
4,088
|
|
|
|
55.5
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
1,927
|
|
|
|
2,023
|
|
|
|
27.5
|
|
|
|
3,487
|
|
|
|
4,186
|
|
|
|
56.9
|
|
Other
income
|
|
|
(4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4)
|
|
|
|
—
|
|
|
|
—
|
|
Loss (gain) on
foreign currency exchange, net
|
|
|
215
|
|
|
|
(13)
|
|
|
|
(0.2)
|
|
|
|
265
|
|
|
|
4
|
|
|
|
0.1
|
|
Total other expenses,
net
|
|
|
2,138
|
|
|
|
2,010
|
|
|
|
27.3
|
|
|
|
3,748
|
|
|
|
4,190
|
|
|
|
57.0
|
|
Loss before income
tax
|
|
|
(729)
|
|
|
|
(465)
|
|
|
|
(6.3)
|
|
|
|
(414)
|
|
|
|
(102)
|
|
|
|
(1.5)
|
|
Income tax
income/(expense)
|
|
|
(27)
|
|
|
|
97
|
|
|
|
1.3
|
|
|
|
(171)
|
|
|
|
(220)
|
|
|
|
(3.0)
|
|
Loss after
tax
|
|
|
(756)
|
|
|
|
(368)
|
|
|
|
(5.0)
|
|
|
|
(585)
|
|
|
|
(322)
|
|
|
|
(4.5)
|
|
Less: Net (loss) /
profit attributable to non-controlling interest
|
|
|
(19)
|
|
|
|
(2)
|
|
|
(0.0)
|
|
|
|
(26)
|
|
|
|
5
|
|
|
|
0.1
|
|
Net loss
attributable to APGL equity Shareholders
|
|
|
(737)
|
|
|
|
(366)
|
|
|
|
(5.0)
|
|
|
|
(559)
|
|
|
|
(327)
|
|
|
|
(4.6)
|
|
Net loss per share
attributable to APGL equity Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(18.01)
|
|
|
|
(7.64)
|
|
|
|
(0.10)
|
|
|
|
(13.62)
|
|
|
|
(6.84)
|
|
|
|
(0.09)
|
|
Diluted
|
|
|
(18.01)
|
|
|
|
(7.64)
|
|
|
|
(0.10)
|
|
|
|
(13.62)
|
|
|
|
(6.84)
|
|
|
|
(0.09)
|
|
Shares used in
computing basic and diluted per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shares:
Basic
|
|
|
41,099,834
|
|
|
|
47,924,172
|
|
|
|
47,924,172
|
|
|
|
41,072,713
|
|
|
|
47,817,323
|
|
|
|
47,817,323
|
|
Equity shares:
Diluted
|
|
|
41,099,834
|
|
|
|
47,924,172
|
|
|
|
47,924,172
|
|
|
|
41,072,713
|
|
|
|
47,817,323
|
|
|
|
47,817,323
|
|
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
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(756)
|
|
|
|
(368)
|
|
|
|
(5.0)
|
|
|
|
(585)
|
|
|
|
(322)
|
|
|
|
(4.5)
|
|
Adjustments to
reconcile gain/(loss) to net cash from/ (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
(2)
|
|
|
|
136
|
|
|
|
1.7
|
|
|
|
(29)
|
|
|
|
102
|
|
|
|
1.4
|
|
Depreciation and
amortization
|
|
|
671
|
|
|
|
773
|
|
|
|
10.5
|
|
|
|
1,294
|
|
|
|
1,528
|
|
|
|
20.8
|
|
Adjustments to
derivative instruments
|
|
|
262
|
|
|
|
484
|
|
|
|
6.6
|
|
|
|
520
|
|
|
|
973
|
|
|
|
13.2
|
|
Loss on disposal of
property plant and equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8
|
|
|
|
0.1
|
|
Share based
compensation
|
|
|
20
|
|
|
|
526
|
|
|
|
7.2
|
|
|
|
37
|
|
|
|
594
|
|
|
|
8.1
|
|
Amortization of debt
financing costs
|
|
|
203
|
|
|
|
70
|
|
|
|
1.0
|
|
|
|
279
|
|
|
|
186
|
|
|
|
2.5
|
|
Realized gain on
investments
|
|
|
(3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4)
|
|
|
|
-
|
|
|
|
-
|
|
Provision for
employee benefits
|
|
|
23
|
|
|
|
31
|
|
|
|
0.4
|
|
|
|
43
|
|
|
|
33
|
|
|
|
0.4
|
|
ARO
accretion
|
|
|
12
|
|
|
10
|
|
|
0.1
|
|
|
|
21
|
|
|
20
|
|
|
0.3
|
|
Non- cash rent
expense
|
|
|
43
|
|
|
|
34
|
|
|
|
0.5
|
|
|
|
36
|
|
|
|
26
|
|
|
|
0.4
|
|
Allowance for
doubtful accounts
|
|
|
(1)
|
|
|
|
25
|
|
|
|
0.3
|
|
|
|
34
|
|
|
|
37
|
|
|
|
0.5
|
|
Loan Prepayment
charges
|
|
|
35
|
|
|
|
-
|
|
|
|
-
|
|
|
|
35
|
|
|
|
234
|
|
|
|
3.2
|
|
Foreign exchange
loss/(gain) , net
|
|
|
215
|
|
|
|
(13)
|
|
|
|
(0.2)
|
|
|
|
265
|
|
|
|
4
|
|
|
|
0.1
|
|
Change in operating
lease right-of-use assets
|
|
|
(931)
|
|
|
|
226
|
|
|
|
3.1
|
|
|
|
(848)
|
|
|
|
72
|
|
|
|
1.0
|
|
Change in operating
lease liabilities
|
|
|
781
|
|
|
|
(310)
|
|
|
|
(4.2)
|
|
|
|
524
|
|
|
|
(198)
|
|
|
|
(2.7)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
73
|
|
|
|
683
|
|
|
|
9.3
|
|
|
|
(795)
|
|
|
|
(10)
|
|
|
|
(0.1)
|
|
Prepaid expenses and
other current assets
|
|
|
241
|
|
|
|
56
|
|
|
|
0.8
|
|
|
|
(99)
|
|
|
|
(214)
|
|
|
|
(2.9)
|
|
Other
assets
|
|
|
284
|
|
|
|
(263)
|
|
|
|
(3.6)
|
|
|
|
158
|
|
|
|
(138)
|
|
|
|
(1.9)
|
|
Accounts
payable
|
|
|
238
|
|
|
|
(1)
|
|
|
(0.0)
|
|
|
|
308
|
|
|
|
(121)
|
|
|
|
(1.6)
|
|
Interest
payable
|
|
|
384
|
|
|
|
955
|
|
|
|
13.0
|
|
|
|
26
|
|
|
|
(286)
|
|
|
|
(3.9)
|
|
Deferred
revenue
|
|
|
152
|
|
|
|
(18)
|
|
|
|
(0.2)
|
|
|
|
157
|
|
|
|
(13)
|
|
|
|
(0.2)
|
|
Other
liabilities
|
|
|
(422)
|
|
|
|
(43)
|
|
|
|
(0.6)
|
|
|
|
(314)
|
|
|
|
(84)
|
|
|
|
(1.1)
|
|
Net cash flows
provided by operating activities
|
|
|
1,522
|
|
|
|
2,993
|
|
|
|
40.7
|
|
|
|
1,063
|
|
|
|
2,431
|
|
|
|
33.1
|
|
Cash flow from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
plant and equipment
|
|
|
(8,683)
|
|
|
|
(5,314)
|
|
|
|
(72.3)
|
|
|
|
(14,349)
|
|
|
|
(7,167)
|
|
|
|
(97.5)
|
|
Purchase of
software
|
|
|
(15)
|
|
|
|
(1)
|
|
|
(0.0)
|
|
|
|
(24)
|
|
|
|
(7)
|
|
|
|
(0.1)
|
|
Purchase of available
for sale investments
|
|
|
(2,791)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,391)
|
|
|
|
-
|
|
|
|
-
|
|
Sale of available for
sale investments
|
|
|
1,798
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,398
|
|
|
|
-
|
|
|
|
-
|
|
Net cash flows
used in investing activities
|
|
|
(9,691)
|
|
|
|
(5,315)
|
|
|
|
(72.3)
|
|
|
|
(15,366)
|
|
|
|
(7,174)
|
|
|
|
(97.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of green bonds
|
|
|
24,400
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,400
|
|
|
|
-
|
|
|
|
-
|
|
Proceeds from equity
shares
|
|
|
24
|
|
|
|
134
|
|
|
|
1.8
|
|
|
|
24
|
|
|
|
271
|
|
|
|
3.7
|
|
Repayments of term
and other debt
|
|
|
(10,941)
|
|
|
|
(127)
|
|
|
|
(1.7)
|
|
|
|
(11,188)
|
|
|
|
(5,704)
|
|
|
|
(77.6)
|
|
Loan prepayment
charges
|
|
|
(35)
|
|
|
|
(36)
|
|
|
|
(0.5)
|
|
|
|
(35)
|
|
|
|
(234)
|
|
|
|
(3.2)
|
|
Proceeds from term
and other debt
|
|
|
5,576
|
|
|
|
3,117
|
|
|
|
42.4
|
|
|
|
16,565
|
|
|
|
9,023
|
|
|
|
122.7
|
|
Net cash provided
by financing activities
|
|
|
19,024
|
|
|
|
3,088
|
|
|
|
42.0
|
|
|
|
29,766
|
|
|
|
3,356
|
|
|
|
45.6
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
|
|
(35)
|
|
|
|
(67)
|
|
|
|
(0.9)
|
|
|
|
(37)
|
|
|
|
(83)
|
|
|
|
(1.1)
|
|
Net increase/
(decrease) in cash and cash equivalents and restricted
cash
|
|
|
10,855
|
|
|
|
766
|
|
|
|
10.4
|
|
|
|
15,463
|
|
|
|
(1,387)
|
|
|
|
(18.9)
|
|
Cash and cash
equivalents and restricted cash at the beginning of the
period
|
|
|
18,592
|
|
|
|
13,348
|
|
|
|
181.5
|
|
|
|
13,986
|
|
|
|
15,517
|
|
|
|
211.0
|
|
Cash and cash
equivalents and restricted cash at the end of the
period
|
|
|
29,412
|
|
|
|
14,047
|
|
|
|
191.0
|
|
|
|
29,412
|
|
|
|
14,047
|
|
|
|
191.0
|
|
AZURE POWER GLOBAL LIMITED
Unaudited
NON-GAAP metrices
(INR and US$ amounts in millions)
CASH FLOWS TO EQUITY (CFe)
|
|
For the three
months ended
September 30,
2019
|
|
|
For the three
months ended
September 30,
2020
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Operating
|
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Sale of
power
|
|
|
2,847
|
|
|
|
|
—
|
|
|
|
2,847
|
|
|
|
3,504
|
|
|
|
|
—
|
|
|
|
3,504
|
|
|
|
47.6
|
|
Cost of
operations
|
|
|
253
|
|
|
|
|
—
|
|
|
|
253
|
|
|
|
309
|
|
|
|
|
—
|
|
|
|
309
|
|
|
|
4.2
|
|
General and
administrative
|
|
|
514
|
|
|
|
|
422
|
|
|
|
92
|
|
|
|
877
|
|
|
|
|
676
|
|
|
|
201
|
|
|
|
2.7
|
|
Depreciation and
amortization
|
|
|
671
|
|
|
|
|
11
|
|
|
|
660
|
|
|
|
773
|
|
|
|
|
12
|
|
|
|
761
|
|
|
|
10.3
|
|
Operating income/
(loss)
|
|
|
1,409
|
|
|
|
|
(433)
|
|
|
|
1,842
|
|
|
|
1,545
|
|
|
|
|
(688)
|
|
|
|
2,233
|
|
|
|
30.4
|
|
Interest expense,
net
|
|
|
1,927
|
|
|
|
|
288
|
|
|
|
1,639
|
|
|
|
2,023
|
|
|
|
|
145
|
|
|
|
1,878
|
|
|
|
25.5
|
|
Other
income
|
|
|
(4)
|
|
|
|
|
(4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Loss/(gain) on
foreign currency exchange, net
|
|
|
215
|
|
|
|
|
78
|
|
|
|
137
|
|
|
|
(13)
|
|
|
|
|
(1)
|
|
|
|
(12)
|
|
|
|
(0.2)
|
|
Profit/ (Loss)
before income tax
|
|
|
(729)
|
|
|
|
|
(795)
|
|
|
|
66
|
|
|
|
(465)
|
|
|
|
|
(832)
|
|
|
|
367
|
|
|
|
5.1
|
|
Add: Depreciation and
amortization
|
|
|
671
|
|
|
|
|
11
|
|
|
|
660
|
|
|
|
773
|
|
|
|
|
12
|
|
|
|
761
|
|
|
|
10.3
|
|
Add: Loss/(gain) on
foreign currency exchange, net
|
|
|
215
|
|
|
|
|
78
|
|
|
|
137
|
|
|
|
(13)
|
|
|
|
|
(1)
|
|
|
|
(12)
|
|
|
|
(0.2)
|
|
Add: Amortization of
debt financing costs
|
|
|
203
|
|
|
|
|
24
|
|
|
|
179
|
|
|
|
70
|
|
|
|
|
(89)
|
|
|
|
159
|
|
|
|
2.2
|
|
Add: Other items from
Statement of Cash Flows(1)
|
|
|
129
|
|
|
|
|
50
|
|
|
|
79
|
|
|
|
626
|
|
|
|
|
531
|
|
|
|
95
|
|
|
|
1.3
|
|
Less: Cash paid for
income taxes
|
|
|
(52)
|
|
|
|
|
21
|
|
|
|
(73)
|
|
|
|
(186)
|
|
|
|
|
(56)
|
|
|
|
(130)
|
|
|
|
(1.8)
|
|
Less: Debt
amortization(2)
|
|
|
(335)
|
|
|
|
|
—
|
|
|
|
(335)
|
|
|
|
(174)
|
|
|
|
|
—
|
|
|
|
(174)
|
|
|
|
(2.4)
|
|
Less: Maintenance
capital expenditure(3)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
CFe
|
|
|
102
|
|
(4)
|
|
|
(611)
|
|
|
|
713
|
|
|
|
631
|
|
(4)
|
|
|
(435)
|
|
|
|
1,066
|
|
|
|
14.5
|
|
|
|
For the Six months
ended
September 30,
2019
|
|
|
For the Six months
ended
September 30,
2020
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Operating
|
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Sale of
power
|
|
|
6,236
|
|
|
|
|
—
|
|
|
|
6,236
|
|
|
|
7,444
|
|
|
|
|
—
|
|
|
|
7,444
|
|
|
|
101.2
|
|
Cost of
operations
|
|
|
550
|
|
|
|
|
—
|
|
|
|
550
|
|
|
|
572
|
|
|
|
|
—
|
|
|
|
572
|
|
|
|
7.8
|
|
General and
administrative
|
|
|
1,058
|
|
|
|
|
623
|
|
|
|
435
|
|
|
|
1,256
|
|
|
|
|
931
|
|
|
|
325
|
|
|
|
4.4
|
|
Depreciation and
amortization
|
|
|
1,294
|
|
|
|
|
19
|
|
|
|
1,275
|
|
|
|
1,528
|
|
|
|
|
19
|
|
|
|
1,509
|
|
|
|
20.5
|
|
Operating income/
(loss)
|
|
|
3,334
|
|
|
|
|
(642)
|
|
|
|
3,976
|
|
|
|
4,088
|
|
|
|
|
(950)
|
|
|
|
5,038
|
|
|
|
68.5
|
|
Interest expense,
net
|
|
|
3,487
|
|
|
|
|
379
|
|
|
|
3,108
|
|
|
|
4,186
|
|
|
|
|
386
|
|
|
|
3,800
|
|
|
|
51.7
|
|
Other
income
|
|
|
(4)
|
|
|
|
|
(4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Loss/(gain) on
foreign currency exchange, net
|
|
|
265
|
|
|
|
|
72
|
|
|
|
193
|
|
|
|
4
|
|
|
|
|
(3)
|
|
|
|
7
|
|
|
|
0.1
|
|
Profit/ (Loss)
before income tax
|
|
|
(414)
|
|
|
|
|
(1,089)
|
|
|
|
675
|
|
|
|
(102)
|
|
|
|
|
(1,333)
|
|
|
|
1,231
|
|
|
|
16.7
|
|
Add: Depreciation and
amortization
|
|
|
1,294
|
|
|
|
|
19
|
|
|
|
1,275
|
|
|
|
1,528
|
|
|
|
|
19
|
|
|
|
1,509
|
|
|
|
20.5
|
|
Add: Loss/(gain) on
foreign currency exchange, net
|
|
|
265
|
|
|
|
|
72
|
|
|
|
193
|
|
|
|
4
|
|
|
|
|
(3)
|
|
|
|
7
|
|
|
|
0.1
|
|
Add: Amortization of
debt financing costs
|
|
|
279
|
|
|
|
|
96
|
|
|
|
183
|
|
|
|
186
|
|
|
|
|
21
|
|
|
|
165
|
|
|
|
2.2
|
|
Add: Other items from
Statement of Cash Flows(1)
|
|
|
202
|
|
|
|
|
63
|
|
|
|
139
|
|
|
|
952
|
|
|
|
|
605
|
|
|
|
347
|
|
|
|
4.7
|
|
Less: Cash paid for
income taxes
|
|
|
(207)
|
|
|
|
|
(41)
|
|
|
|
(166)
|
|
|
|
(274)
|
|
|
|
|
(87)
|
|
|
|
(187)
|
|
|
|
(2.5)
|
|
Less: Debt
amortization(2)
|
|
|
(456)
|
|
|
|
|
—
|
|
|
|
(456)
|
|
|
|
(365)
|
|
|
|
|
—
|
|
|
|
(365)
|
|
|
|
(5.0)
|
|
Less: Maintenance
capital expenditure(3)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
CFe
|
|
|
963
|
|
(4)
|
|
|
(880)
|
|
|
|
1,843
|
|
|
|
1,929
|
|
(4)
|
|
|
(778)
|
|
|
|
2,707
|
|
|
|
36.7
|
|
(1) Other items from the Statement of Cash
Flows. For the quarter ended September 30, 2019 and September 30, 2020, respectively, other items
include: share based compensation of INR 20 million and INR 526
million, realized gain on investment of INR 3 million and INR Nil,
non-cash rent expense of INR 43 million and INR 34 million,
allowance for doubtful debts of INR (1) million and INR 25 million,
employee benefit expense of INR 23 million and INR 31 million, loan
repayment charges of INR 35 and INR Nil and ARO accretion of INR 12
million and INR 10 million.
For the six months ended September 30,
2019 and September 30, 2020,
respectively. other items include: loss on disposal of property
plant and equipment of INR Nil and INR 8 million, share based
compensation of INR 37 million and INR 594 million, realized gain
on investment of INR 4 million and INR Nil, non-cash rent expense
of INR 36 million and INR 26 million, allowance for doubtful debts
of INR 34 million and INR 37 million, employee benefit expense of
INR 43 million and INR 33 million, loan repayment charges of INR 35
and INR 234 million and ARO accretion of INR 21 million and INR 20
million.
(2) Debt Amortization: Repayments of term and other
loans during the quarter ended September 30,
2020, was INR 127 million (refer to the Statement of Cash
Flows) which includes INR 47 million related to refinancing of
loans or early repayment of debt before maturity and have been
excluded to determine debt amortization of INR 174 million
(US$ 2.4 million). Repayments of term
and other loans during the quarter ended September 30, 2019, was INR 10,941 million (refer
to the Statement of Cash Flows) which includes INR 10,606 million
related to refinancing of loans or early repayment of debt before
maturity and has been excluded to determine debt amortization of
INR 335 million.Repayments of term and other loans during the six
months ended September 30, 2020, was
INR 5,704 million (refer to the Statement of Cash Flows)
which includes INR 5,339 million related to refinancing of loans or
early repayment of debt before maturity and have been excluded to
determine debt amortization of INR 365 million (US$ 5.0 million). Repayments of term and other
loans during the six months ended September
30, 2019, was INR 11,188 million (refer to the Statement of
Cash Flows) which includes INR 10,732 million related to
refinancing of loans or early repayment of debt before maturity and
has been excluded to determine debt amortization of INR 456
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
September 30,
2019
|
|
|
For the three
months
ended
September 30,
2020
|
|
|
For the six
months
ended
September 30,
2019
|
|
|
For the six
months
ended
September 30,
2020
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
CFe
(Non-GAAP)
|
|
|
102
|
|
|
|
631
|
|
|
|
963
|
|
|
|
1,929
|
|
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
|
|
|
950
|
|
|
|
1,369
|
|
|
|
(559)
|
|
|
|
(866)
|
|
Current income
taxes
|
|
|
(29)
|
|
|
|
233
|
|
|
|
(200)
|
|
|
|
(118)
|
|
Prepaid lease
payments and employee benefits
|
|
|
(150)
|
|
|
|
(84)
|
|
|
|
(324)
|
|
|
|
(126)
|
|
Amortization of
hedging costs
|
|
|
262
|
|
|
|
484
|
|
|
|
520
|
|
|
|
973
|
|
Items included in
CFe but not considered in GAAP Cash Flow from Operating
Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
amortization
|
|
|
335
|
|
|
|
174
|
|
|
|
456
|
|
|
|
365
|
|
Cash taxes
paid
|
|
|
52
|
|
|
|
186
|
|
|
|
207
|
|
|
|
274
|
|
Cash from
Operating Activities (GAAP)
|
|
|
1,522
|
|
|
|
2,993
|
|
|
|
1,063
|
|
|
|
2,431
|
|
Reconciliation of Net Profit/(loss) to Adjusted EBITDA for
the periods indicated:
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
Three months ended
September 30,
|
|
|
Six months ended
September 30,
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Net
Loss
|
|
|
(756)
|
|
|
|
(368)
|
|
|
|
(5.0)
|
|
|
|
(585)
|
|
|
|
(322)
|
|
|
|
(4.5)
|
|
Income tax
(income)/expense
|
|
|
27
|
|
|
|
(97)
|
|
|
|
(1.3)
|
|
|
|
171
|
|
|
|
220
|
|
|
|
3.0
|
|
Interest expense,
net
|
|
|
1,927
|
|
|
|
2,023
|
|
|
|
27.5
|
|
|
|
3,487
|
|
|
|
4,186
|
|
|
|
56.9
|
|
Other
income
|
|
|
(4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4)
|
|
|
|
-
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
671
|
|
|
|
773
|
|
|
|
10.5
|
|
|
|
1,294
|
|
|
|
1,528
|
|
|
|
20.8
|
|
Loss/ (gain) on
foreign currency exchange, net
|
|
|
215
|
|
|
|
(13)
|
|
|
|
(0.2)
|
|
|
|
265
|
|
|
|
4
|
|
|
|
0.1
|
|
Adjusted
EBITDA
|
|
|
2,080
|
|
|
|
2,318
|
|
|
|
31.5
|
|
|
|
4,628
|
|
|
|
5,616
|
|
|
|
76.3
|
|
Investor Contact
Nathan Judge, CFA
ir@azurepower.com
Investor Relations, Azure Power
Media Contact
Samitla Subba
pr@azurepower.com
+91-11- 4940 9854
Policy & Communications, Azure Power