New Solar Projects Drive Azure Power’s Revenue Up by 22% to $30.7 Million in Q2 2019

Azure Power (NYSE: AZRE) has announced its consolidated results for the third quarter ending December 31, 2018.

The total revenue in the third quarter of FY19 stood at ₹2.430.8 million ($34.9 million) which was up 40 percent, an increase of ₹690.9 million ($9.9 million) from the same period in 2017. The increase in the generated revenue was primarily driven by the projects commissioned since last year, according to the company. New solar projects drove Azure Power’s Revenue Up by 22% to $30.7 Million in Q2 2019.

Its adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) was ₹1,837.5 million ($26.4 million), an increase of 50 percent over the quarter ending December 31, 2017. The increase was primarily due to the increase in revenue and economies of scale on operating costs achieved during the period.

The company’s operating solar capacity totaled 1,169 MW as of December 31, 2018.  This is an increase of 45 percent over December 31, 2017. Its operating and committed capacity increased from 1,479 MW to 3,059 MW as of December 31, 2018, an increase of 94 percent over the same period in 2017.

The project cost per megawatt operating for the nine months decreased by ₹3.2 million ($ 0.05 million) to ₹44.2 million ($0.64 million). This was primarily due to decline in solar module prices and efficiency gains in balance of system costs.

Foreign exchange loss during the three months increased by ₹108.7 million ($1.6 million) compared to the same period in 2017 to a loss of ₹17.9 million ($0.3 million).

Previously, Mercom reported how the volatility of the rupee is beginning to affect the domestic solar developers and solar project component suppliers alike.

The net profit for the third quarter ending December 31, 2018 was ₹65.3 million ($2.4 million) as compared to a net loss of ₹136.2 million (~$1.93 million) for the quarter ending December 31, 2017. It is an improvement of ₹301.5 million ($ 4.3 million) as compared to the same period in 2017. This was primarily due to an increase in revenue and economies of scale on operating costs achieved during the period.

Electricity generation during the nine months of financial year increased by 353 million kWh, to 1,208 million kWh, an increase of 41 percent compared to the same period in 2017. The increase in electricity generation was principally a result of additional capacity operating during the period.

The total revenue during the nine months ending December 31, 2018 was ₹ 7,079 million ($ 101.7 million), up by 30 percent from ₹ 5,441.6 million (~$77.08 million) during the same period in 2017. The increase in revenue was primarily driven by the commissioning of new projects.

Recently, Mercom reported that the Gujarat High Court has provided temporary relief to project developer Azure Power in the matter of levy of safeguard duty on solar cells and modules imported by the company.

In October 2018, Azure achieved the financial closure of a deal worth ₹4 billion (~$58 million) for its 100 MW solar power project in Karnataka. According to the solar power producer, the financial deal was closed earlier than planned.

Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer