Azure Power Q1/2020 Net Income Grew By Over 200%

New Project Commissioning Help NYSE Listed Azure Power Of India Improve Q1/2020 Revenues By 40% & Net Income By More Than 200%
06:43 AM (Beijing Time) - 14. August 2019
azure q1 2020

Azure Power ticked all the right boxes on the checklist in its Q1/2020 while also improving its adjusted EBITDA by 25%. (Source: Azure Power)

Key Takeaways

  • Azure Power’s managed to increase its revenues for the period Q1/2020 by 40% YoY to $49.2 million
  • Company’s net income during the reporting quarter went up by more than 200% to $1.3 million
  • Operating MW till the end of June 30, 2019 climbed up 59% to 1,609 MW pushing up its operating and committed MW to 3,351 MW
  • Full fiscal year 2020 guidance has been unchanged at operational capacity aimed between 1.8 GW to 1.9 GW and revenues of $185 million to $194 million

Indian solar IPP Azure Power Global Limited exited its Q1/2020 (period ending June 30, 2019) with over 200% increase in net income of $1.3 million, growing from $42,000 a year back. This was due to an increase in revenues that itself added up to $49.2 million growing 40% YoY thanks to new projects commissioning. The same reason also helped the Indian company improve its electricity generation by 75% to 700.1 million kWh.

Its adjusted EBITDA for the quarter went up 25% during the same period to $35.5 million, while project cost per MW operating decreased by $0.06 million to $0.58 million majorly owing to lower costs of solar module prices for the projects commissioning. This was nearly offset by close to $0.05 million per MW payment of safeguard duties which the company expects to recover.

At the end of June 2019, Azure Power took its operating MW by 59% to 1,609 MW; its operating and committed MW increased 57% YoY to 3,351 MW.

Azure Power’s undrawn project debt commitments till the reporting period was $157.8 millio. Cash, equivalents and current investments were $166.4 million.

The company management reiterated its guidance for fiscal year 2020 (period ending March 31, 2020) of 1.8 GW to 1.9 GW of operational solar power capacity with revenues in the range of $185 million to $194 million (see Azure Power Grows Strong In FY 2019).

The focus of the new CEO Ranjit Gupta, who took over from Founder Inderpreet Wadhwa in July 2019, will be on project returns to exceed the cost of capital. The new management is also mulling about taking a backseat in terms of participating in the auction activity to be able to focus on realizing the 1.5 GW pipeline.

Philip Shen of Roth Capital Partners said, “The new CEO is going through his review process and will assess the committed projects that have not been built yet in an effort to ensure that returns exceed cost of capital and to ensure that CFs are accretive. Moreover, there could be opportunities to return capital to shareholders. Details are still not available since the managers are still so new, but we look forward to the specifics around how the team plans to drive shareholder returns ahead.”

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani