EBENE, Mauritius, Feb. 11, 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 third quarter 2020, period ended December 31, 2019.
Fiscal Third Quarter 2020 Period Ended December 31, 2019 Operating Highlights:
- Operating Megawatts ("MW") were 1,804 MW, as of December 31, 2019, an increase of 54% over December 31, 2018.
- Operating and Committed Megawatts were 5,300 MW as of quarter ended December 31, 2019, an increase of 73% over the quarter ended December 31, 2018. Subsequent to the end of the quarter, the Company secured orders to exit Letter of Awards ("LOAs") for 150 MW of projects, for which Power Purchase Agreement ("PPA") were not signed.
- Revenue for the quarter ended December 31, 2019 was INR 3,047.3 million (US$ 42.6 million), an increase of 25% over the quarter ended December 31, 2018. The revenues for the quarter ended December 31, 2019 were negatively impacted by INR 213.0 million (US$ 3.0 million) due to power curtailment in Andhra Pradesh and low revenue from the Rooftop business.
- Net loss for the quarter was INR 1,357.1 million (US$ 19.0 million). The Company had higher losses in the quarter ended December 31, 2019, by INR 994.3 million (US$ 13.9 million), on account of a negative impact of INR 213.0 million (US$ 3.0 million) due to power curtailment in Andhra Pradesh and low revenue from the Rooftop business, higher interest expense* by INR 508.5 million ($7.1 million) and higher general and administrative expense* by INR 272.8 million (US$ 3.8 million) on account of certain charges*.
- Adjusted EBITDA for the quarter ended December 31, 2019 was INR 2,104.4 million (US$ 29.5 million), an increase of 15% over the quarter ended December 31, 2018. The Adjusted EBITDA for the quarter ended December 31, 2019, was negatively impacted by INR 485.8 million (US$ 6.8 million) due to power curtailment in Andhra Pradesh and low revenue from the Rooftop business amounting to INR 213.0 million (US$ 3.0 million) as well as INR 272.8 million (US$3.8 million) of certain charges* included in general and administrative expenses.
*As explained below
Key Operating Metrics
Electricity generation during the quarter and nine-months ended December 31, 2019 was 685.1 million kWh and 1,995.0 million kWh, respectively, an increase of 249.7 million kWh or 57%, over the quarter ended December 31, 2018, and an increase of 786.4 million kWh, or 65%, over the nine-months ended December 31, 2018. The increase in electricity generation was principally a result of additional operating capacity during the period driven by the commissioning of new projects. The Company's Plant Load Factor "PLF" for the quarter and the nine months ended December 31, 2019, was 17.7% and 18.6%, respectively, compared to 17.9 % and 17.7%, respectively, for the same comparable periods in 2018. The lower PLF in the quarter and nine months was on account of adverse weather conditions due to an extended monsoon season. The Company during the quarter experienced lower revenue due to lower PLF in the rooftop business and some power curtailment in our Andhra Pradesh related projects. The solar power curtailment in the state of Andhra Pradesh has been occurring since July 2019 and relates to the grid operator (Andhra Pradesh State Load Dispatch Centre) ordering reduced output. The management believes that AP power curtailment is in contempt of a recent court ruling and the company has filed for recovery.
Project cost per megawatt operating (megawatt capacity per the PPA) consists of costs incurred for one megawatt of new solar power plant capacity during the reporting period. The project cost per megawatt (DC) operating for the nine months ended December 31, 2019 decreased by INR 9.8 million (US$ 0.14 million) to INR 34.4 million (US$ 0.48 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 nine months ended December 31, 2019 was INR 47.9 million (US$ 0.67 million), compared to INR 48.5 million, for the nine months ended December 31, 2018, on account of reduction in solar module prices which was partially offset by additional safeguard duties paid by the Company. Excluding the impact of safeguard duties, the DC and the AC costs per megawatt would have been lower by approximately INR 2.5 million (US$ 0.04 million) and INR 4.1 million (US$ 0.06 million), respectively.
As of December 31, 2019, the Company's operating and committed megawatts increased by 2,241 MWs to 5,300 MWs compared to December 31, 2018. During the period, the Company exited from a 70 MW project, and received a LOA for 2,000 MWs of new projects. Subsequent to the end of the quarter, the Company secured orders to exit LOA for 150 MWs of projects, for which PPAs were not signed, reducing the operating and committed megawatts to 5,150 MW.
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