Independent solar power producer Azure Power posted a 13% year-over-year (YoY) rise in its revenue in the first quarter (Q1) of the financial year (FY) 2022, driven by projects commissioned after Q2 2020.

The revenue increased to ₹4.44 billion (~$59.7 million) during the quarter from ₹3.94 billion (~$53.77 million) in the same period last year.

In Q1 FY 2022, the company’s net profit stood at ₹697 million (~$9.6 million), compared to ₹46 million (~$627,885) in the same quarter last year. The profit was driven by the commissioning of new projects, resulting in higher operating revenue by ₹500 million (~$6.7 million).

The solar power producer’s adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA) stood at ₹3.66 billion (~$49.3 million) in Q1, a 10.9% increase compared to ₹3.30 billion (~$45.10 million) in the same period last year. In Q1 FY 2022, the company incurred ₹19 million (~$259,830) on foreign exchange loss as the Indian rupee depreciated against the U.S. dollar by 1.1%.

The company expects revenues of between ₹3.6 billion (~$48.4 million) and ₹3.8 billion (~$51.1 million) in the upcoming quarter. For FY 2022, the revenue is expected between ₹17.9 billion (~$241 million) and ₹18.9 billion (~$254 million) and operational solar capacity around 2.75 GW – 2.95 GW.

As of Q1 FY 2022, Azure has 2.05 GW of operational solar projects, increasing 23% over Q1 FY 2021. The company has an operating, contracted, and awarded solar capacity of 6.95 GW as of June 30, 2021. Of this, it has received letters of award for over 4 GW of solar capacity; however, power purchase agreements have not been signed yet. It has commissioned 62 MW AC (64 MW DC) of solar capacity during the quarter as construction activities were affected due to Covid-19.

According to Azure Power, the project cost per MW (AC) was ₹39.3 million (~$530,000) for Q1 FY 2022, and the project cost per MW (DC) stood at ₹38.5 million (~$520,000). Excluding the impact of Safeguard Duty, the AC and DC costs per MW could be down by around ₹2.1 million (~$28,716) for Q1 FY 2022.  For FY 2021, the project cost per MW (AC) was ₹42.9 million (~$586,583), and the project cost per MW (DC) was ₹28.8 million (~$393,790).

Azure commissioned 62 MWac solar capacity during the quarter against 1 MWac installed during the same quarter in 2020. No significant capacities were added during both periods primarily due to COVID-19 disruptions.

Electricity generation during the quarter was 1,112 million kWh, an increase of 228 million kWh or 25.8%, over the quarter ended June 30, 2020. The increase in electricity generation was principally due to an additional 396 MWac operating capacity, including the rooftop portfolio commissioned since June 30, 2020. The Plant Load Factor for the quarter was 23.7%, compared to 23.1% in 2020. The increase was mainly because of the addition of AC and DC capacity in high insolation locations and improved plant performance.

In April this year, the company signed a binding agreement to sell its non-core rooftop solar portfolio with an operating capacity of 153 MW to Radiance Renewables for ₹5.36 billion (~$73.5 million).

Earlier this month, Azure Power was awarded 150 MW capacity with a tariff of ₹2.35 (~$0.032)/kWh in the Solar Energy Corporation of India’s (SECI) auction for a 1.2 GW interstate transmission system (ISTS)-connected wind-solar hybrid power projects.

According to Mercom’s India Solar Project Tracker, Azure Power has 2 GW of operational solar capacity, and 5.2 GW capacity in the pipeline as of June 30, 2021.

Image credit: Azure Power