Azure Revenues Increased 90% During 9M/2018

Delay In Commissioning Of 110 MW To Impact Azure Power’s Revenues In FY 2018; The Indian IPP Expects To End 2018 With 905 MW To 1,000 MW Operational Capacity
11:05 AM (Beijing Time) - 13. February 2018
n_bus_fin results_Azure Revenues Increased 90 During 9M2018_ab 2018-02-12

Azure expects its operational capacity will increase from up to 1 GW end of FY2018 to up to 1.4 GW a year later, while revenues are expected to increase somewhat less (Source: Azure Power).

Key Takeaways

  • Azure Power’s Q3/2018 revenue was an 83% increase over Q3/2017 and its 9 month revenue was an improvement of 90%
  • As of December 31, 2017, it had 805 MW of operating capacity, increasing 57% from the previous year
  • Electricity generation from its commissioned plants at the end of 9 months on December 31, 2017 was 855 million kWh, an increase of 105%
  • Revenue guidance for the year ending March 31, 2018 is between $118 million to $125 million

Indian independent power producer (IPP) Azure Power Global Limited has reported strong financials during Q3/2018 (ended December 31, 2017). Its operating revenue jumped up 83% over the previous year with INR 1,739.9 million ($27.3 million). New projects commissioned during the nine month period last year, its revenues went up 90% to INR 5,441.6 million ($85.3 million) over the same period in 2016.

However, the NYSE listed IPP has offered light revenue guidance for the fiscal year 2018, due to delay in the commissioning of two projects – 40 MW in Uttar Pradesh and 50 MW in Andhra Pradesh. This delay, owing to government provided transmission interconnections, is likely to roll over to next fiscal year but will have ‘limited impact’ on revenues for the fiscal year ending March 31, 2018. The revenue guidance is between $118 million to $125 million. This will also influence its year end tally for operational capacity in the year, which has been guided to reach between 905 MW to 1,000 MW.

Earlier this year, Azure Power switched on a 100 MW solar power plant in Telangana (see Azure Commissions 100 MW In Telangana).

For the following fiscal year ending March 31, 2019, Azure expects revenues between $143 million to $151 million with operational capacity of 1.3 GW to 1.4 GW.

Azure won 795 MW year solar capacity in tenders to date in the fiscal year 2018, an increase of 72% over previous year.

Still, a big player in the Indian market, the chances for Azure to continue growing are strong, as a commentary by a research paper of Roth Capital points out, Notably, we believe AZRE’s auction win rate is improving and could continue to improve as it appears some smaller players that have limited access to lower cost capital are looking to exit the market. If some competitors do exit, bidding may also become less aggressive, in our view.

As of December 31, 2017, Azure had 805 MW of operating capacity, increasing 57% from the previous year. Its total operating and committed capacity was 1,580 MW.

Electricity generation from its commissioned plants at the end of the 9 months on December 31, 2017 was 855 million kWh, an increase of 105% over the same period in 2016. Cost of operations in the quarter ended December 31, 2017 increased by 90% to INR 158.4 million ($2.5 million). The increase was attributed to plant maintenance cost for newly commissioned projects, partially offset by the implementation of improved O&M methods that improved plant productivity.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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