• Sun. Nov 29th, 2020

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Leading to expert’s analysis: Azure Power Global Limited (NYSE: AZRE)

On 05 March 2020, Azure Power Global Limited (NYSE: AZRE) changed -0.30% to recent value of $16.57. The stock transacted 12150 shares during most recent day however it has an average volume of 31.68K shares. It spotted trading -0.78% off 52-week high price. On the other end, the stock has been noted 64.06% away from the low price over the last 52-weeks.

Azure Power Global Limited (AZRE) recently reported its consolidated results under United States Generally Accepted Accounting Principles (“GAAP”) for the fiscal third quarter 2020, period ended December 31, 2019.

Fiscal Third Quarter 2020 Period Ended December 31, 2019 Operating Highlights:

Operating Megawatts (“MW”) were 1,804 MW, as of December 31, 2019, a raise of 54% over December 31, 2018.

Operating and Committed Megawatts were 5,300 MW as of quarter ended December 31, 2019, a raise of 73% over the quarter ended December 31, 2018. Subsequent to the end of the quarter, the Company secured orders to exit Letter of Awards (“LOAs”) for 150 MW of projects, for which Power Purchase Contract (“PPA”) were not signed.

Revenue for the quarter ended December 31, 2019 was INR 3,047.3M (US$ 42.6M), a raise of 25% over the quarter ended December 31, 2018. The revenues for the quarter ended December 31, 2019 were negatively influenced by INR 213.0M (US$ 3.0M) Because of power curtailment in Andhra Pradesh and low revenue from the Rooftop business.

Net loss for the quarter was INR 1,357.1M (US$ 19.0M). The Company had higher losses in the quarter ended December 31, 2019, by INR 994.3M (US$ 13.9M), on account of a negative impact of INR 213.0M (US$ 3.0M)Because of power curtailment in Andhra Pradesh and low revenue from the Rooftop business, higher interest expense* by INR 508.5M ($7.1M) and higher general and administrative expense* by INR 272.8M (US$ 3.8M) on account of certain charges*.

Adjusted EBITDA for the quarter ended December 31, 2019 was INR 2,104.4M (US$ 29.5M), a raise of 15% over the quarter ended December 31, 2018. The Adjusted EBITDA for the quarter ended December 31, 2019, was negatively influenced by INR 485.8M (US$ 6.8M)Because of power curtailment in Andhra Pradesh and low revenue from the Rooftop business amounting to INR 213.0M (US$ 3.0M) as well as INR 272.8M (US$3.8M) of certain charges* included in general and administrative expenses.

Fiscal Third Quarter 2020 Period ended December 31, 2019 Consolidated Financial Results:

Operating Revenues

Operating revenues for the quarter ended December 31, 2019 were INR 3,047.3M (US$ 42.6M), a raise of 25% from INR 2,430.8M in the same period in 2018. This increase was driven by the revenue generated from projects which were commissioned during the period after December 31, 2018 until December 31, 2019. The revenues for the quarter ended December 31, 2019 were negatively influenced by INR 213.0M (US$ 3.0M) Because of power curtailment in Andhra Pradesh and low revenue from the Rooftop business.

The management believes that AP power curtailment is in contempt of a recent court ruling and the company has filed for recovery.

Cost of Operations (Exclusive of Depreciation and Amortization)

Cost of operations for the quarter ended December 31, 2019 increased by 22% to INR 266.5M (US$ 3.7M) from INR 219.0M in the same period in 2018. This increase in the cost of operations was primarily Because of a raise in operational expenses from projects commissioned during the period from January 1, 2019 through December 31, 2019. The cost of operations per megawatt was INR 164.0 thousand (US$ 2.3 thousand) during the quarter, which was 28% lower than the same period in the previous year.

General and Administrative Expenses

General and administrative expenses for the quarter ended December 31, 2019 increased by INR 302.1M (US$ 4.2M) to INR 676.4M (US$ 9.5M) contrast to the same period in 2018. The higher general and administrative expenses included INR 272.8M (US$ 3.8M) Because of charges related to management transition, interest charges on safeguard duty on import of modules, and provisions on accounts receivable.

In the quarter ended December 31, 2019, the Company recorded expenses of INR 59.0M (US$ 0.8M), related to the grant of stock appreciation rights to its CEO and President and INR 3.2M (US$ 0.04M) related to the grant of restricted stock units to certain Independent Directors.

Depreciation and Amortization Expenses

Depreciation and amortization expenses during the quarter ended December 31, 2019 increased by INR 240.6M (US$ 3.4M), or 51%, to INR 716.6M (US$ 10.0M) contrast to the same period in 2018. The increase relates to the depreciation on capital expenditure on the 54% increase in MWs operating.

Interest Expense, Net

Net interest expense during the quarter ended December 31, 2019 increased by INR 1,334.0M (US$ 18.7M), or 120%, to INR 2,449.8M (US$ 34.3M) contrast to the same period in 2018. The increase in net interest expense was primarily Because of interest expense of INR 568.2M (US$ 7.9M) on borrowing related to new projects, charges of INR 385.0M (US$ 5.4M) related to settlement of existing loans from the proceeds of our issuance of solar green bonds issued in the quarter ended September 30, 2019, INR 124.0M (US$ 1.8M) related to the extinguishment of a debt facility and lower interest income of INR 256.4M (US$ 3.6M) on account of lower free cash accessible during the quarter ended December 31, 2019.

 AZRE has a gross margin of 91.20% and an operating margin of 52.40% while its profit margin remained -13.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained 106.40% for this year.  The company has 47.69M of outstanding shares and 42.65M shares were floated in the market. According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 13.65% from the mean of 20 days, 25.05% from mean of 50 days SMA and performed 37.71% from mean of 200 days price. Company’s performance for the week was 3.43%, 40.30% for month and YTD performance remained 31.72%.

 

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