Indian independent solar power producer Azure Power's operating revenues during Q3/2021 (period ended December 2020) increased by 15.6% annually to a total of $48.2 million, thanks to new projects commissioned over past year, as well as recovery of Safeguard Duties and Goods and Service tax (GST) under change in law provision for 4 of its power purchase agreements (PPA).
However, the management had been targeting $50 million for the reporting quarter, but low insolation negatively impacted its revenues. Its adjusted EBITDA reduced 26% YoY to $21.3 million. But it managed to narrow down its net loss to $14.9 million in the quarter, lowering it by $3.7 million compared to the previous year.
Electricity generation during the quarter was 783.7 million kWh, improving 14.4% annually. During 9M/2021 its electricity generation was 2,436.8 million kWh.
In the reporting quarter it commissioned 153 MW AC as new capacity while in 9M/2021, the new capacity commissioned was 179 MW AC.
At the end of the reporting period, its operating MWs grew 10% to 1,987 MW taking its total operating and committed MWs to 7,115 MW, growing 34.2% on annual basis. The committed MWs include 4 GW for which it has received letters of award (LOA) but yet to secure power purchase agreements as it revealed recently (see India PV News Snippets: AGEL, Azure, SECI, Manipur).
The management remains optimistic towards resolution of the PPA arrangement by SECI as CEO Ranjit Gupta said, "We still remain optimistic that we will have positive news to deliver shortly as there is a definite movement towards the finish line. The fact that India beat its peak power demand record twice in the last month indicates a strong recovery is underway which will enable discoms to invest in buying power for their future needs. As we announced before Christmas, we do expect a reduction in the tariff from what was discovered when we won the auction about 14 months ago. Frankly, costs have come down and productivity has risen significantly during this period."
Providing an update to the company's project construction activity while dealing with COVID-19 related hurdles, Azure Power said things are gradually coming back to normal levels and that its operational and maintenance activities continue to perform at normal levels.
For fiscal year ending March 31, 2021, Azure Power expects to achieve the lower end of its operational MW and revenue guidance offered previously, between 2.3 GW to 2.5 GW and $208 million to $215 million (see Azure Power: $5M Net Loss But EBITDA Up In Q2/2021).
During Q4/2021, it expects to report revenues between $59 million to $61 million. For fiscal year ending March 31, 2022, the operational MW are guided to be between 2.9 GW to 3.115 GW. Revenues for next year are anticipated to be within $245 million to $259 million.