Azure Power (NYSE: AZRE), an independent solar power producer, has announced its consolidated financial results for the third quarter of 2017-18, ending December 31, 2017. The company declared a revenue of ₹5,441.6 million ($ 85.3 million), a solid increase of over 90 percent from the ₹2,865.4 million generated during the same period in 2016. The increase in revenue was primarily driven by the commissioning of new projects.
Azure’s generated revenue for Q3 stood at ₹1,739.9 million ($27.3 million), an increase of approximately 83 percent over the quarter that ended on December 31, 2016. The company also announced its adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) of ₹1,226.9 million ($19.2 million), an increase of 76 percent over the same period.
Electricity generation during the nine months increased by 438 million kWh, or 105%, to 855 million kWh, compared to the same period in 2016. The increase in electricity generation was principally a result of additional capacity operating during the period.
Azure’s portfolio run-rate increased by ₹2,958.7 million ($ 46.4 million) to ₹14,007.9 million ($ 219.5 million) between the years 2016 and 17, due to an increase in its operational and committed capacity.
The cost of operations in the quarter increased by 90 percent to ₹158.4 million ($ 2.5 million) from ₹83.2 million in the same period in 2016. The increase was primarily due to plant maintenance costs for the newly commissioned projects. However, these costs were partially offset by the implementation of improved operation and maintenance methods which improved the plant productivity. This includes ₹8.7 million ($ 0.1 million) of non-cash expense, pertaining to the amortization of lease expense.
The company had declared a revenue generation of ₹3,701.7 million (~$56.7 million) for the six months ending September 30, 2017.
Recently, the company won a contract to develop a total of 11.35 MW of grid-connected rooftop solar photovoltaic (PV) projects for various schools across the country. The company has also won the contract to develop 2 MW of grid-connected rooftop solar photovoltaic (PV) project for the Udaipur Smart City Limited (USCL). The company recently commissioned a 100 MW grid-connected solar photovoltaic (PV) project in Telangana.
Azure Power has also emerged as the winner at major auctions held in the country in the recent months. In the 250 MW Bhadla Solar Park auction, Azure Power won the bid to develop 200 MWs by quoting the lowest tariff of ₹2.48 (~$0.0388)/kWh.
The company has also been awarded a contract by Jharkhand Renewable Energy Development Agency (JREDA) to electrify 320 households across 11 villages through the development of mini and micro grids in Jharkhand.
According to Mercom’s India Solar Project Tracker, Azure has an installed capacity of ~880 MW of utility-scale solar projects and a development pipeline of 550 MW.
Image credit: Azure Power
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.