EBENE, Mauritius,
June 15, 2021 /PRNewswire/
-- Azure Power Global Limited (NYSE: AZRE), a leading
independent renewable power producer in India, today announced its consolidated
results under United States Generally Accepted Accounting
Principles ("GAAP") for the fiscal fourth quarter 2021, period
ended March 31, 2021.
Fiscal Fourth Quarter 2021 Period Ended March 31, 2021 Operating Highlights:
- Megawatts ("MW") Operating* were 1,990 MWs, as of March 31, 2021, an increase of 20% over
March 31, 2020. Operating, Contracted
& Awarded MW* were 6,955 MWs, as of March 31, 2021. Contracted & Awarded
megawatts include 4,000 MWs for which we have received Letters of
Award ("LOA") but the Power Purchase Agreements ("PPAs") have not
yet been signed.
- Operating revenues for the quarter ended March 31, 2021 were INR 4,271 million
(US$ 58.4 million), an increase of
16% over the quarter ended March 31,
2020. We estimate that our revenues were negatively impacted
by approximately INR 50 million (US$ 0.7
million) on account of lower insolation, as compared to our
forecast for the quarter.
- Net loss for the quarter ended March 31,
2021 was INR 2,791 million (US$ 38.1
million). During the quarter, our results were negatively
impacted by impairment loss on assets of INR 3,255 million
(US$ 44.5 million), partially offset
by reversal in stock appreciation rights (SARs) expense of INR 560
million (US$ 7.7 million). Refer to
the detailed explanation in the 'Impairment loss' and 'Stock
Appreciation Rights expense' section of the commentary below.
- Adjusted EBITDA for the quarter ended March 31, 2021 was INR 3,799 million
(US$ 52.0 million), an increase of
44% over the quarter ended March 31,
2020.
- Non-GAAP Cash Flow to Equity ("CFe") from Operating Assets for
the quarter ended March 31, 2021 was
INR 1,743 million (US$ 23.9 million),
an increase of 55% over the quarter ended March 31, 2020.
*Megawatts Operating and Megawatt Operating, Contracted &
Awarded exclude the Rooftop portfolio, for which we entered into an
agreement to sell subsequent to fiscal year ended March 31, 2021. We excluded 160 MWs from our
Operating, Contracted & Awarded portfolio as of March 31, 2021, and the prior comparative period.
We excluded 153 MWs from our Operating portfolio as of March 31, 2021, and 144 MWs from prior comparable
period. The exclusion from prior period is for the purpose of
comparison with current year.
Key Operating Metrics
Electricity generation during the quarter and fiscal year ended
March 31, 2021 was 1,058 million kWh
and 3,495 million kWh, respectively, an increase of 190 million kWh
or 21.9 %, over the quarter ended March 31,
2020, and an increase of 626 million kWh, or 21.8%, over the
year ended March 31, 2020. The
increase in electricity generation was principally a result of an
additional 335 MWs of AC (506 MWs DC) operating capacity, including
our Rooftop portfolio commissioned since March 31, 2020. Our Plant Load Factor ("PLF") for
the quarter and the fiscal year ended March
31, 2021, was 23.4 % and 20.9% respectively, compared to
22.3% and 19.5%, respectively, for the same comparable periods in
2020, which increased principally due to the addition of AC and DC
capacity and improved performance by our plants.
We commissioned 156 MWs AC (240 MWs DC) during the three months
ended March 31, 2021, and 335 MWs AC
(506 MWs DC) during the fiscal year ended March 31, 2021, including the 6 MWs and 10 MWs
(both AC & DC) that we commissioned for our rooftop portfolio
for the quarter and fiscal year ended March
31, 2021, respectively.
Project cost per megawatt operating (megawatt capacity per the
PPA or AC) consists of costs incurred for one megawatt of new solar
power plant capacity during the reporting period. The project cost
per megawatt (DC) operating for the fiscal year ended March 31, 2021 decreased by INR 6.7 million
(US$ 0.09 million), or 19%, to INR
28.8 million (US$ 0.39 million)
primarily due to lower costs on account of the reduction in solar
module prices for the projects commissioned during the period. The
project cost per megawatt (AC) operating for the fiscal year ended
March 31, 2021 was INR 42.9 million
(US$ 0.59 million), compared to INR
48.9 million, for the year ended March 31,
2020, on account of a reduction in solar module prices.
Excluding the impact of safeguard duties, the DC and the AC costs
per megawatt for the fiscal year ended March
31, 2021 would have been lower by approximately INR 2.7
million (US$ 0.04 million) and INR
2.8 million (US$ 0.04 million),
respectively, and for the prior fiscal year ended March 31, 2020, the DC and the AC costs per
megawatt would have been lower by approximately INR 2.9 million and
INR 4.9 million, respectively.
As of March 31, 2021, our
Operating, Contracted & Awarded megawatts were 6,955 MWs. There
was no change compared to prior comparable period, other than to
reflect the disposal of the rooftop portfolio. Contracted &
Awarded megawatts include 4,000 MWs for which we have received LOAs
but the PPAs have not yet been signed. The Solar Energy Corporation
of India ("SECI") has informed us
that so far there has not been adequate response from the state
electricity distribution companies ("DISCOMs") for SECI to be able
to sign the Power Sale Agreement ("PSA") at this stage even though
we have a LOA.
SECI has mentioned that they will be unable to sign PPAs until
PSAs have been signed, and they have committed to inform Azure
Power of developments in their efforts with the DISCOMS. Capital
costs, interest rates and foreign exchange rates have improved
since Azure Power won the 4 GW auction in December 2019 which have resulted in lower
tariffs in other recent SECI auctions. We expect these savings
likely will be passed on to state electricity distribution
companies (DISCOMS). We expect a tariff markdown from the price
achieved in the auction, which will facilitate signing of PSAs. We
will continue our discussions with SECI towards signing PPAs in
respect of the 4GW tender and believe the PPAs to be signed in
tranches over a period of time.
Megawatts Operating and Megawatts Contracted &
Awarded
We measure the rated capacity of our plants in megawatts. Rated
capacity is the expected maximum output that a solar power plant
can produce without exceeding its design limits. We believe that
tracking the growth in aggregate megawatt rated capacity is a
measure of the growth rate of our business.
"Megawatts Operating" represents the aggregate cumulative
megawatt rated capacity of solar power plants that are commissioned
and operational as of the reporting date.
"Megawatts Contracted & Awarded" represents
the aggregate megawatt rated capacity of solar power plants
pursuant to customer PPAs signed, allotted or won in an auction but
not commissioned and operational as of the reporting date.
Nominal Contracted Payments for Projects with
PPAs
Our PPAs create long-term recurring customer payments. Nominal
contracted payments equal the sum of the estimated payments that
the customer is likely to make, subject to discounts or rebates,
over the remaining term of the PPAs. When calculating nominal
contracted payments, we include those PPAs for projects that are
Operating, Contracted & Awarded, unless specified.
The following table sets forth, with respect to our PPAs as
referred above, the aggregate nominal contracted payments and total
estimated energy output as of the reporting dates. These nominal
contracted payments have not been discounted to arrive at the
present value.
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As of March
31,
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2020
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|
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2021
|
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|
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INR
|
|
|
INR
|
|
|
US$
|
|
Nominal
contracted payments for projects with PPAs (in
millions)*
|
|
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513,690
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|
|
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486,729
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|
|
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6,654.8
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Total estimated
energy output (kilowatt hours in millions)*
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149,384
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144,195
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* Nominal contracted payments for projects with PPAs does
not include 4 GWs project, since the PPAs have not yet been
signed.
The decrease in Nominal Contracted Payments and total estimated
energy output as of March 31, 2021,
as compared to March 31, 2020, is due
to exclusion of our rooftop portfolio, which we have agreed to sell
subsequent to the year ended March 31,
2021, and the impact of current year revenue realised.
Our nominal contracted payments are not impacted for the delays
in construction due to COVID-19, as revenues from our PPAs start on
the date of commissioning of the project.
Portfolio Revenue Run-Rate for Projects with
PPAs
Portfolio revenue run-rate for projects with PPAs equals
annualized payments from customers extrapolated based on the
Operating, Contracted & Awarded capacity as of the reporting
dates. In estimating the portfolio revenue run-rate, we multiply
the PPA contract per kilowatt hour by the estimated annual energy
output for all Operating, Contracted & Awarded solar projects
as of the reporting date. The estimated annual energy output of our
solar projects is calculated using power generation simulation
software and validated by independent engineering firms. The main
assumption used in the calculation is the project location, which
enables the software to derive the estimated annual energy output
from certain meteorological data, including the temperature and
solar insolation based on the project location.
The following table sets forth, with respect to our PPAs as
referred above, the aggregate portfolio revenue run-rate and
estimated annual energy output as of the reporting dates. The
portfolio revenue run-rate has not been discounted to arrive at the
present value.
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As of March
31,
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2020
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2021
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INR
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INR
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US$
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Portfolio revenue
run-rate for projects with PPAs (in millions)*
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23,817
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22,656
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309.8
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Estimated annual
energy output (kilowatt hours in millions)*
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6,772
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|
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6,528
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* Portfolio revenue run-rate for projects with PPAs does
not include the revenue for 4 GWs project as the PPAs have not been
yet signed.
The decrease in portfolio revenue run-rate as of March 31, 2021, as compared to March 31, 2020, is primarily due to the exclusion
of our rooftop portfolio, which we have agreed to sell subsequent
to the year ended March 31, 2021.
Fiscal Fourth Quarter 2021 Consolidated Financial
Results:
Operating Revenues
Operating revenues for the quarter ended March 31, 2021 was INR 4,271 million
(US$ 58.4 million), an increase of 16
% from INR 3,675 million in the quarter ended March 31, 2020. This increase was driven by
revenue generated from projects which were commissioned during the
year ended March 31, 2021 and
additional revenue of INR 83 million (US$
1.1 million) from the recovery of Safe Guard Duties and
Goods and Service Tax under the change in law provision of our PPAs
for four of our projects. We estimate that our revenues were
negatively impacted by approximately INR 50 million (US$ 0.7 million) on account of adverse weather
conditions resulting in low insolation, as compared to our forecast
for the quarter.
Cost of Operations (Exclusive of Depreciation and
Amortization)
Cost of operations for the quarter ended March 31, 2021 increased by 16% to INR 383
million (US$ 5.2 million) from INR
329 million in the quarter ended March 31,
2020. This increase in the cost of operations was primarily
due to increase in operational expenses from projects commissioned
during the year ended March 31,
2021.
The cost of operations per megawatt during the quarter ended
March 31, 2021 was INR 0.2 million
(~US$ 2,500), in line with the same
comparable period ended March 31,
2020.
General and Administrative Expenses
General and administrative expenses for the quarter ended
March 31, 2021 were INR 89 million
(US$ 1.2 million), a decrease of INR
611 million (US$ 8.4 million)
compared to the quarter ended March 31,
2020. The decrease in General and administrative expense in
the current quarter was primarily due to reversal in stock
appreciation rights (SARs) expense by INR 660 million (US$ 9.0 million) partially offset by increase in
allowance for doubtful receivables amounting to INR 47 million
(US$ 0.6 million) compared to
the quarter ended March 31, 2020.
Stock Appreciation Rights Expenses
Stock appreciation rights expense for the quarter ended
March 31, 2021 was an expense
reversal of INR 560 million (US$ 7.7
million), as compared to an expense of INR 100 million
during quarter ended March 31, 2020.
The decrease in SAR expense was primarily due to 33% decrease in
the share price during the quarter ended March 31, 2021, compared to the quarter ended
December 31, 2020, which has resulted
in reversal (net) of SAR expense in the current quarter. As of
March 31, 2021, 1,875,000 SARs were
outstanding of which 1,682,500 SARs are not exercisable until 2024
on which we will not incur any cash payments until that time. Also,
we have provided an updated statement of beneficial ownership of
our key managerial personnel below.
Depreciation and Amortization
Depreciation and amortization during the quarter ended
March 31, 2021 increased by INR 28
million (US$ 0.4 million), or 3%, to
INR 878 million (US$ 12.0 million)
compared to the quarter ended March 31,
2020. The increase primarily relates to the projects
commissioned during the year ended March
31,2021.
Impairment loss
The Company has recognized an impairment loss in relation to the
Rooftop Subsidiaries aggregating to INR 3,255 million (US$ 44.5 million) during fiscal year March 31, 2021, as described below:
To optimize cost and to enhance returns on invested capital,
during fiscal year ended March 31,
2021, we identified certain subsidiaries to sell off on a
going concern basis, which currently form part of our Rooftop
business. Out of this identified portfolio, subsequent to
March 2021, we entered into a
contract with Radiance Renewables Pvt. Ltd. ("Radiance") to sell
certain subsidiaries (the "Rooftop Subsidiaries") with an operating
capacity of 153 MWs for INR 5,350 million (US$ 73.1 million), subject to certain purchase
price adjustments. (the "Rooftop Sale Agreement"). Pursuant to the
Rooftop Sale Agreement, Radiance will acquire 100% of the equity
ownership of the Rooftop Subsidiaries owned by the Company's
subsidiaries, Azure Power India Pvt. Ltd. and Azure Power Rooftop
Pvt. Ltd, as more fully described below.
The sale of Rooftop Subsidiaries having 94.4 MWs operating
capacity is expected to be consummated within the next 12 months
and accordingly the assets and related liabilities of these
subsidiaries are shown as "Assets classified as held for sale" in
the consolidated balance sheet as of March
31, 2021. The Company has recognized an impairment loss of
INR 2,598 million (US$ 35.5 million)
in the Consolidated Statement of Operations in this respect.
Further, as per the terms of the Rooftop Sale Agreement in
respect of the 43.2 MWs operating capacity that are part of
Restricted Groups (as defined in the respective Green Bond
Indentures), 48.6% of the equity ownership will be transferred to
the Radiance on the closing date, and pursuant to the terms of the
Green Bond Indentures, the remaining 51.4% may only be transferred
post refinancing of our Green Bonds. As the refinancing of our
Green Bonds is not anticipated to occur within 12 months, the
assets and liabilities of these subsidiaries are not presented as
"Assets classified as held for sale" and instead continue to be
classified within the respective balance sheet captions at
March 31, 2021. There is also a
restriction on transfer of equity ownership relating to the 16 MWs
project with Delhi Jal Board (DJB), wherein 49% of the equity
ownership will be transferred to Radiance on closing date, and the
remaining 51% will be transferred on or after March 31, 2024. Accordingly, the related assets
and liabilities of the DJB 16 MWs project are not presented as
"Assets classified as held for sale" and instead continue to be
classified within the respective balance sheet captions as of
March 31, 2021.
The Company has determined that the decision to sell the Rooftop
Subsidiaries and the subsequent execution of the Rooftop Sale
Agreement are indicators of impairment and therefore the Company
has undertaken an impairment assessment for the Rooftop
Subsidiaries. Management used the Sale price in the Rooftop Sale
Agreement as its best estimate of the recoverable vale of the
Rooftop Subsidiaries.
In the event the sale of the Rooftop Subsidiaries does not
occur, the Company must reimburse Radiance the equity value of the
assets not transferred along with an 10.5% per annum equity
return.
Interest Expense, Net
Net interest expense during the quarter ended March 31, 2021 increased by INR 234 million
(US$ 3.2 million), or 12% compared to
the quarter ended March 31, 2020, to
INR 2,228 million (US$ 30.5 million).
The increase in net interest expense was primarily due to an
increase in interest expense of INR 269 million (US$ 2.7 million) on borrowings related to
projects commissioned in the current fiscal year and lower interest
income of INR 60 million (US$ 0.9
million) on account of lower free cash available during the
quarter ended March 31, 2021,
partially offset by
INR 95 million charge related to refinancing of a loan
incurred during previous quarter.
Loss on Foreign Currency Exchange
The Indian Rupee ("INR") depreciated against the U.S. dollar by
INR 0.1 (or 0.2%) for every US$ 1.00
during the quarter from December 31,
2020 to March 31, 2021. During
the quarter ended March 31, 2021, we
incurred an expense of INR 3 million on foreign exchange loss as
compared to an expense on foreign exchange loss of INR 187 million,
during the quarter ended March 31,
2020. During the fiscal year ended March 31, 2021, we refinanced a foreign currency
loan of INR 3,099 million (US$ 42.4
million) into an INR denominated loan, which had reduced the
impact of Gain /Loss on Foreign Currency Exchange.
Other Expenses/ (Income)
Other expenses/ (income), primarily consists of income from
current investments and other incidental expense. During the
quarter ended March 31, 2021, we have
not reported other income (net) as compared to other income (net)
of INR 73 million, during the quarter ended March 31, 2020, primarily due to no income earned
in current quarter from current investments.
Income Tax Expense
Income tax expense during the quarter ended March 31, 2021 was INR 226 million (US$ 3.1 million), compared to an income tax
expense of INR 82 million in the quarter ended March 31, 2020. The increase in tax expense is
primarily due to a valuation allowance of INR 269 million
(US$ 3.7 million) relating to other
rooftop assets that are part of the sale agreement which are
expected to be settled beyond 12 months, partially offset by assets
created on tax losses in current quarter.
Net Loss
Net loss for the quarter ended March 31,
2021 was INR 2,791 million (US$ 38.1
million), an increase of INR 2,397 million (US$ 32.8 million) compared to a net loss of INR
394 million for the quarter ended March 31,
2020. During the quarter, our results were negatively
impacted by impairment loss on assets of INR 3,255 million
(US$ 44.5 million) partially offset
by reversal in stock appreciation rights (SARs) expense of INR 560
million (US$ 7.7 million).
Cash Flow and Working Capital
Cash flow from operating activities for the quarter and year
ended March 31, 2021 was INR 2,111
million (US$ 28.9 million) and INR
4,977 million (US$ 68.3 million),
respectively, compared to INR 1,838 million and INR 3,678 million,
respectively, for the prior comparable periods. The cash flow from
operating activities during the quarter was higher on account of
higher revenue and interest on new loans payable on semi-annual
basis. The cash flow from operating activities during the year
ended was higher on account of higher revenue and improved
collections, partly offset by higher interest payments.
During, the quarter ended March 31,
2021, working capital inflow was INR 794 million
(US$ 10.9 million), compared to an
inflow of INR 397 million, for the quarter ended March 31, 2020, primarily on account of higher
revenue collections (net) and interest on new loans payable on
semi-annual basis. During the year ended March 31, 2021, the working capital outflow was
INR 838 million (US$ 11.3 million),
compared to an outflow of INR 39 million, for the fiscal year ended
March 31, 2020 primarily on account
of the higher pay-outs of liabilities net of revenue
collections.
Our days receivables (excluding Rooftop portfolio) were 116 days
as of March 31, 2021, as compared to
122 days as of March 31, 2020,
reflecting improved collections.
Cash used in investing activities for the quarter ended
March 31, 2021 was INR 6,056 million
(US$ 82.9 million), compared to
inflow of INR 3,684 million for the same quarter in 2020, primarily
due to higher capital expenditures for new solar projects of INR
4,539 million (US$ 62.1 million) and
absence of net proceeds from investments in mutual funds of INR
5,208 million (US$ 71.2 million) as
compared to the same period in 2020. Cash used in investing
activities for the fiscal year ended March
31, 2021 was INR 18,919 million (US$
258.9 million), compared to INR 18,256 million for the
fiscal year ended March 31, 2020,
primarily due to higher capital expenditures for new solar projects
amounting to INR 588 million (US$ 8.0
million) as compared to the fiscal year ended March 31, 2020.
Cash flow from financing activities for the quarter ended
March 31, 2021 was INR 6,762 million
(US$ 92.5 million), compared to INR
235 million in same period in 2020, primarily due to higher
proceeds of debt including working capital facilities taken during
current period. Cash flow from financing activities for the fiscal
year ended March 31, 2021 was INR
15,092 million (US$ 206.2 million)
compared to INR 16,146 million, as compared to the fiscal year
ended March 31, 2020, primarily
reflecting an equity raise of INR 5,317 million (US$ 72.7 million) and lower net proceeds from the
issuance of solar green bonds and other term loans amounting to INR
3,861 million (US$ 52.8 million)
during the fiscal year ended March 31,
2020.
Liquidity Position
As of March 31, 2021, we had INR
11,107 million (US$ 151.8 million) of
cash, cash equivalents and current investments. In addition, we had
INR 4,881 million (US$ 66.7 million)
of short-term restricted cash at March 31,
2021 that we expect to be utilised primarily for capital
expenditures over the next twelve months. We had undrawn project
debt commitments excluding Rooftop portfolio of INR 19,055 million
(US$ 260.5 million) as of
March 31, 2021.
Adjusted EBITDA
Adjusted EBITDA is a Non-GAAP metric, please refer to the
reconciliation of Net loss to Adjusted EBITDA in this
document.
Adjusted EBITDA was INR 3,799 million (US$ 52.0 million) for the quarter ended
March 31, 2021, compared to INR 2,646
million for the quarter ended March 31,
2020. The increase was primarily due to lower stock
appreciation rights expenses by INR 660 million (US$ 9.0 million) during the quarter ended
March 31, 2021, and higher revenue by
INR 596 million (US$ 8.1 million)
during the quarter ended March 31,
2021.
Cash Flow to Equity (CFe) from Operating
Assets
CFe is a Non-GAAP metric, please refer to the reconciliation
of total CFe to GAAP Cash from Operating Activities in this
document.
Cash Flow to Equity from Operating Assets was INR 1,743 million
(US$ 23.9 million) for the quarter
ended March 31, 2021, an increase of
55% compared to INR 1,124 million for the quarter ended
March 31, 2020. The increase in Cash
Flow to Equity from Operating Assets was primarily driven by higher
revenues from the completion of new projects during the previous 12
months and cost reductions in corporate expenses.
COVID-19 Update
We are continuously monitoring the COVID-19 situation and taking
the requisite steps to address the situation. Our project
construction activities were negatively impacted by the second wave
of COVID-19. Our operational and maintenance activities continue to
perform at normal levels.
Guidance for Fiscal Year 2022 and first fiscal quarter of
2022
For the fiscal year ending March 31,
2022, we expect MWs operational to be between 2,750 – 2,955,
excluding the rooftop portfolio, for which we have entered into an
agreement to sell subsequent to the year end. We expect revenues of
between INR 17,900 – 18,900 million (or US$
245 – 258 million converted at the March 31, 2021 exchange rate of INR 73.14 to
US$ 1.00).
With respect to our revenue guidance, we would like to highlight
that approximately 90% of the expected revenue is from projects
already commissioned and operating and have not been materially
impacted due to COVID-19. Our remaining revenue is subject to when
plants under construction are completed and completion timelines
are currently more difficult to forecast due to disruptions related
to COVID-19. The timing of commissioning of our
under-construction projects does not impact our revenues we expect
during the 25-year PPA because revenues begin at the date of
commissioning.
For the first fiscal quarter of 2022, we expect revenues of
between INR 4,100 – INR 4,300 million (or US$ 56.1 – US$ 58.8
million at the March 31, 2021
exchange rate of INR 73.14 to US$
1.00) and a PLF of between 23.0% and 24.0%.
Webcast and Conference Call Information
We will hold our quarterly conference call to discuss earnings
results on Wednesday, June 16, 2021
at 8:30 a.m. U.S. Eastern Time. The
conference call can be accessed live by dialing +1-866-746-2133 (in
the U.S.) and +91-22-6280-1444 (outside the U.S.) and reference the
Azure Power Fiscal Fourth Quarter 2021 Earnings Conference
Call.
Investors may access a live webcast of this conference call by
visiting http://investors.azurepower.com/events-and-presentations.
For those unable to listen to the live broadcast, an archived
podcast will be available approximately two hours after the
conclusion of the call at
http://investors.azurepower.com/events-and-presentations.
Exchange Rates
This press release contains translations of certain Indian rupee
amounts into U.S. dollars at specified rates solely for the
convenience of the reader. Unless otherwise stated, the translation
of Indian rupees into U.S. dollars has been made at INR 73.14 to
US$1.00, which is the noon buying
rate in New York City for cable
transfer in non-U.S. currencies as certified for customs purposes
by the Federal Reserve Bank of New
York on March 31, 2021. We
makes no representation that the Indian rupee or U.S. dollar
amounts referred to in this press release could have been converted
into U.S. dollars or Indian rupees, as the case may be, at any
particular rate or at all.
About Azure Power Global Limited
Azure Power is a leading independent renewable power producer in
India. Azure Power developed
India's first private utility
scale solar project in 2009 and has been at the forefront in the
sector as a developer, constructor and operator of utility scale
renewable projects since its inception in 2008. With its in-house
engineering, procurement and construction expertise and advanced
in-house operations and maintenance capability, Azure Power manages
the entire development and operation process, providing low-cost
renewable power solutions to customers throughout India.
We," "us," the "Group," "Azure" or "our" refers to Azure Power
Global Limited, a company organized under the laws of Mauritius, together with its subsidiaries
(including Azure Power Rooftop Private Limited ("AZR"), and Azure
Power India Private Limited, or AZI, its predecessor and current
subsidiaries).
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended and the Private Securities Litigation Reform Act of
1995, including statements regarding our future financial and
operating guidance, operational and financial results such as
estimates of nominal contracted payments remaining and portfolio
run rate, and the assumptions related to the calculation of the
foregoing metrics. The risks and uncertainties that could cause our
results to differ materially from those expressed or implied by
such forward-looking statements include: the availability of
additional financing on acceptable terms; changes in the commercial
and retail prices of traditional utility generated electricity;
changes in tariffs at which long term PPAs are entered into;
changes in policies and regulations including net metering and
interconnection limits or caps; the availability of rebates, tax
credits and other incentives; the availability of solar panels and
other raw materials; its limited operating history, particularly as
a relatively new public company; its ability to attract and retain
its relationships with third parties, including its solar partners;
our ability to meet the covenants in its debt facilities;
meteorological conditions; issues related to the COVID-19 pandemic;
supply disruptions; solar power curtailments by state electricity
authorities and such other risks identified in the registration
statements and reports that our Company has filed with the U.S.
Securities and Exchange Commission, or SEC, from time to time.
Portfolio represents the aggregate megawatts capacity of solar
power plants pursuant to PPAs, signed or allotted or has received
the LOA. There is no assurance that we will be able to sign a PPA
even though we have a letter of award. All forward-looking
statements in this press release are based on information available
to us as of the date hereof, and we assume no obligation to update
these forward-looking statements.
Use of Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure. We present
Adjusted EBITDA as a supplemental measure of its performance. This
measurement is not recognized in accordance with U.S. GAAP and
should not be viewed as an alternative to U.S. GAAP measures of
performance. The presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items.
We define Adjusted EBITDA as loss (income) plus (a) income tax
expense, (b) interest expense, net, (c) depreciation and
amortization (d) loss on foreign currency exchange, net, (e) Other
expenses/ (income) and (f) Impairment loss. We believe Adjusted
EBITDA is useful to investors in assessing our ongoing financial
performance and provides improved comparability between periods
through the exclusion of certain items that management believes are
not indicative of our operational profitability and that may
obscure underlying business results and trends. However, this
measure should not be considered in isolation or viewed as a
substitute for net income or other measures of performance
determined in accordance with U.S. GAAP. Moreover, Adjusted EBITDA
as used herein is not necessarily comparable to other similarly
titled measures of other companies due to potential inconsistencies
in the methods of calculation.
Our management believes this measure is useful to compare
general operating performance from period to period and to make
certain related management decisions. Adjusted EBITDA is also used
by securities analysts, lenders and others in their evaluation of
different companies because it excludes certain items that can vary
widely across different industries or among companies within the
same industry. For example, interest expense can be highly
dependent on our capital structure, debt levels and credit ratings.
Therefore, the impact of interest expense on earnings can vary
significantly among companies. In addition, the tax positions of
companies can vary because of their differing abilities to take
advantage of tax benefits and because of the tax policies of the
various jurisdictions in which they operate. As a result, effective
tax rates and tax expense can vary considerably among
companies.
Adjusted EBITDA has limitations as an analytical tool, and you
should not consider it in isolation or as a substitute for analysis
of our results as reported under U.S. GAAP. Some of these
limitations include:
- it does not reflect cash expenditures or future requirements
for capital expenditures or contractual commitments or foreign
exchange gain/loss;
- it does not reflect changes in, or cash requirements for,
working capital;
- it does not reflect significant interest expense or the cash
requirements necessary to service interest or principal payments on
outstanding debt;
- it does not reflect payments made or future requirements for
income taxes; and
- although depreciation, amortization and impairment are non-cash
charges, the assets being depreciated and amortized will often have
to be replaced or paid in the future and Adjusted EBITDA does not
reflect cash requirements for such replacements or payments.
Investors are encouraged to evaluate each adjustment and the
reasons we consider it appropriate for supplemental analysis. For
more information, please see the Reconciliations of Net loss to
Adjusted EBITDA in this document.
Cash Flow to Equity (CFe)
Cash Flows to Equity is a Non-GAAP financial measure. We present
CFe as a supplemental measure of our performance. This measurement
is not recognized in accordance with U.S. GAAP and should not be
viewed as an alternative to U.S. GAAP measures of performance. The
presentation of CFe should not be construed as an inference that
our future results will be unaffected by unusual or non-recurring
items.
We believe GAAP metrics, such as net income (loss) and cash from
operating activities, do not provide the same level of visibility
into the performance and prospects of our operating business as a
result of the long term capital-intensive nature of our businesses,
non-cash depreciation and amortization, cash used for debt
servicing as well as investments and costs related to the growth of
our business.
Our business owns high-value, long-lived assets capable of
generating substantial Cash Flows to Equity over time. We define
CFe as profit before tax (the most comparable GAAP metric),
adjusted for net cash provided for/ used in operating activities,
other than changes in operating assets and liabilities, income and
deferred taxes and amortization of hedging costs; less: cash paid
for income taxes, debt amortization, maintenance capital
expenditure and prepaid lease payments and employee benefits.
We believe that changes in operating assets and liabilities is
cyclical for cash flow generation of our assets, due to a high
growth environment. Furthermore, to reflect the actual cash
outflows for income tax, we deduct income and deferred taxes
computed under US GAAP presented in our consolidated financial
statements and instead include the actual cash tax outflow during
the period, are considered as part of tax expense.
We believe that external consumers of our financial statements,
including investors and research analysts, use CFe both to assess
Azure Power's performance and as an indicator of its success in
generating an attractive risk-adjusted total return, assess the
value of the business and the platform. This has been a widely used
metric by analysts to value our business, and hence we believe this
will better help potential investors in analysing the cash
generation from our operating assets.
We have disclosed CFe for our operational assets on a
consolidated basis, which is not our cash from operations on a
consolidated basis. We believe CFe supplements GAAP results to
provide a more complete understanding of the financial and
operating performance of our businesses than would not otherwise be
achieved using GAAP results alone. CFe should be used as a
supplemental measure and not in lieu of our financial results
reported under GAAP.
We have also bifurcated the CFe into "Operational Assets" and
"Others", as defined below, so that users of our financial
statements are able to understand the Cash generation from our
operational assets.
We define our "Operational Assets", as the projects which had
commenced operations on or before March 31,
2021. The operational assets represent the MWs operating as
on the date.
We define "Others" as (i) the project SPV's which are under
construction, or under development, (ii) "corporate" which includes
our three Mauritius entities,
(iii)other projects not covered under operational assets, (iv) a
company incorporated in the United
States and (v) other entities under the group which are
newly incorporated.
We define "debt amortisation" as the current portion of
long-term debt which has been repaid during the period as part of
debt repayment obligations, excluding the debt which has been
repaid before maturity or refinanced. It does not include the
amortisation of debt financing costs or interest paid during the
period.
Other items from the Statement of Cash Flows include most
of the items that reconcile "Net (loss) gain" and "Changes in
operating assets and liabilities" from the Statement of Cash Flows,
other than deferred taxes, non-cash employee benefit and
amortization of hedging costs.
Investor Relation Contacts:
For investor enquiries, please contact Vikas Bansal at ir@azurepower.com. For media
related information, please contact Samitla Subba at
pr@azurepower.com, +91-11- 4940 9854.
AZURE POWER GLOBAL
LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(INR and US$ amounts
in millions, except share and par value data)
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
As of March
31,
|
|
|
|
2020
|
|
|
2021
|
|
|
2021
|
|
|
|
(INR)
|
|
|
(INR)
|
|
|
(US$)
|
|
|
|
Audited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
9,792
|
|
|
|
11,107
|
|
|
|
151.8
|
|
Restricted
cash
|
|
|
4,877
|
|
|
|
4,881
|
|
|
|
66.7
|
|
Accounts receivable,
net
|
|
|
4,456
|
|
|
|
4,887
|
|
|
|
66.8
|
|
Prepaid expenses and
other current assets
|
|
|
1,619
|
|
|
|
2,190
|
|
|
|
29.9
|
|
Assets classified as
held for sale
|
|
|
-
|
|
|
|
3,301
|
|
|
|
45.1
|
|
Total current
assets
|
|
|
20,744
|
|
|
|
26,366
|
|
|
|
360.3
|
|
Restricted
cash
|
|
|
848
|
|
|
|
170
|
|
|
|
2.3
|
|
Property, plant and
equipment, net
|
|
|
95,993
|
|
|
|
108,847
|
|
|
|
1,488.2
|
|
Software,
net
|
|
|
55
|
|
|
|
29
|
|
|
|
0.4
|
|
Deferred income
taxes
|
|
|
2,205
|
|
|
|
1,748
|
|
|
|
23.9
|
|
Right-of-use
assets
|
|
|
4,434
|
|
|
|
4,214
|
|
|
|
57.6
|
|
Other
assets
|
|
|
8,115
|
|
|
|
7,084
|
|
|
|
96.8
|
|
Investments in held
to maturity securities
|
|
|
7
|
|
|
|
7
|
|
|
|
0.1
|
|
Total
assets
|
|
|
132,401
|
|
|
|
148,465
|
|
|
|
2,029.6
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
debt
|
|
|
975
|
|
|
|
8,943
|
|
|
|
122.3
|
|
Accounts
payable
|
|
|
1,795
|
|
|
|
4,294
|
|
|
|
58.7
|
|
Current portion of
long-term debt
|
|
|
2,303
|
|
|
|
4,658
|
|
|
|
63.7
|
|
Income taxes
payable
|
|
|
50
|
|
|
|
46
|
|
|
|
0.6
|
|
Interest
payable
|
|
|
1,716
|
|
|
|
1,530
|
|
|
|
20.9
|
|
Deferred
revenue
|
|
|
110
|
|
|
|
110
|
|
|
|
1.5
|
|
Lease
liabilities
|
|
|
256
|
|
|
|
283
|
|
|
|
3.9
|
|
Other
liabilities
|
|
|
2,020
|
|
|
|
1,927
|
|
|
|
26.5
|
|
Liabilities directly
associated with assets classified as held for sale
|
|
|
-
|
|
|
|
2,272
|
|
|
|
31.1
|
|
Total current
liabilities
|
|
|
9,225
|
|
|
|
24,063
|
|
|
|
329.2
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
86,586
|
|
|
|
89,922
|
|
|
|
1,229.4
|
|
Deferred
revenue
|
|
|
2,129
|
|
|
|
2,353
|
|
|
|
32.2
|
|
Deferred income
taxes
|
|
|
2,622
|
|
|
|
2,046
|
|
|
|
28.0
|
|
Asset retirement
obligations
|
|
|
741
|
|
|
|
811
|
|
|
|
11.1
|
|
Leases
liabilities
|
|
|
3,592
|
|
|
|
3,359
|
|
|
|
45.9
|
|
Other
liabilities
|
|
|
289
|
|
|
|
1,459
|
|
|
|
19.5
|
|
Total
liabilities
|
|
|
105,184
|
|
|
|
124,013
|
|
|
|
1,695.3
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shares, US$
0.000625 par value; 47,650,750 and 48,195,962 shares
issued and outstanding as of March 31, 2020, and March 31,
2021,
respectively
|
|
|
2
|
|
|
|
2
|
|
|
|
0.0
|
|
Additional paid-in
capital
|
|
|
37,533
|
|
|
|
38,004
|
|
|
|
519.6
|
|
Accumulated
deficit
|
|
|
(8,580)
|
|
|
|
(12,786)
|
|
|
|
(174.8)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,937)
|
|
|
|
(972)
|
|
|
|
(13.3)
|
|
Total APGL
shareholders' equity
|
|
|
27,018
|
|
|
|
24,248
|
|
|
|
331.5
|
|
Non-controlling
interest
|
|
|
199
|
|
|
|
204
|
|
|
|
2.8
|
|
Total
shareholders' equity
|
|
|
27,217
|
|
|
|
24,452
|
|
|
|
334.3
|
|
Total liabilities
and shareholders' equity
|
|
|
132,401
|
|
|
|
148,465
|
|
|
|
2,029.6
|
|
AZURE POWER GLOBAL
LIMITED
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
(INR and US$ amounts
in millions, except share and per share data)
|
|
|
|
Three months ended
March 31,
|
|
|
Year ended March
31,
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Audited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
2020
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2021
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from
customers(1)
|
|
|
3,675
|
|
|
|
4,271
|
|
|
|
58.4
|
|
|
|
12,958
|
|
|
|
15,236
|
|
|
|
208.3
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations
(exclusive of depreciation and
amortization shown separately below)
|
|
|
329
|
|
|
|
383
|
|
|
|
5.2
|
|
|
|
1,146
|
|
|
|
1,261
|
|
|
|
17.2
|
|
General and
administrative(2)
|
|
|
700
|
|
|
|
89
|
|
|
|
1.2
|
|
|
|
2,422
|
|
|
|
2,988
|
|
|
|
40.9
|
|
Depreciation and
amortization
|
|
|
850
|
|
|
|
878
|
|
|
|
12.0
|
|
|
|
2,860
|
|
|
|
3,202
|
|
|
|
43.8
|
|
Impairment
loss
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
Total operating costs
and expenses:
|
|
|
1,879
|
|
|
|
4,605
|
|
|
|
62.9
|
|
|
|
6,428
|
|
|
|
10,706
|
|
|
|
146.4
|
|
Operating
income
|
|
|
1,796
|
|
|
|
(334)
|
|
|
|
(4.5)
|
|
|
|
6,530
|
|
|
|
4,530
|
|
|
|
61.9
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(2)
|
|
|
1,994
|
|
|
|
2,228
|
|
|
|
30.5
|
|
|
|
7,962
|
|
|
|
8,410
|
|
|
|
114.8
|
|
Other expenses/
(income)(2)
|
|
|
(73)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(96)
|
|
|
|
18
|
|
|
|
0.2
|
|
Loss on foreign
currency exchange, net
|
|
|
187
|
|
|
|
3
|
|
|
|
0.0
|
|
|
|
512
|
|
|
|
7
|
|
|
|
0.1
|
|
Total other expenses,
net
|
|
|
2,108
|
|
|
|
2,231
|
|
|
|
30.5
|
|
|
|
8,378
|
|
|
|
8,435
|
|
|
|
115.1
|
|
Loss before income
tax
|
|
|
(312)
|
|
|
|
(2,565)
|
|
|
|
(35.0)
|
|
|
|
(1,848)
|
|
|
|
(3,905)
|
|
|
|
(53.2)
|
|
Income tax
expense
|
|
|
(82)
|
|
|
|
(226)
|
|
|
|
(3.1)
|
|
|
|
(489)
|
|
|
|
(296)
|
|
|
|
(4.0)
|
|
Net
Loss
|
|
|
(394)
|
|
|
|
(2,791)
|
|
|
|
(38.1)
|
|
|
|
(2,337)
|
|
|
|
(4,201)
|
|
|
|
(57.2)
|
|
Less: Net (loss) /
profit attributable to non-controlling
interest
|
|
|
(26)
|
|
|
|
4
|
|
|
|
0.1
|
|
|
|
(68)
|
|
|
|
5
|
|
|
|
0.1
|
|
Net loss
attributable to APGL equity Shareholders
|
|
|
(368)
|
|
|
|
(2,795)
|
|
|
|
(38.2)
|
|
|
|
(2,269)
|
|
|
|
(4,206)
|
|
|
|
(57.3)
|
|
Net loss per share
attributable to APGL equity Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(7.73)
|
|
|
|
(58.00)
|
|
|
|
(0.79)
|
|
|
|
(52.71)
|
|
|
|
(87.66)
|
|
|
|
(1.20)
|
|
Diluted
|
|
|
(7.73)
|
|
|
|
(58.00)
|
|
|
|
(0.79)
|
|
|
|
(52.71)
|
|
|
|
(87.66)
|
|
|
|
(1.20)
|
|
Shares used in
computing basic and diluted per share
amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shares:
Basic
|
|
|
47,640,664
|
|
|
|
48,188,043
|
|
|
|
48,188,043
|
|
|
|
43,048,026
|
|
|
|
47,979,581
|
|
|
|
47,979,581
|
|
Equity shares:
Diluted
|
|
|
47,640,664
|
|
|
|
48,188,043
|
|
|
|
48,188,043
|
|
|
|
43,048,026
|
|
|
|
47,979,581
|
|
|
|
47,979,581
|
|
(1) Revenue from customers is in accordance
with ASC 606, includes sale of power, other revenue items related
to generation from solar power.
(2)During the current year, we classified mutual
fund income and certain immaterial financing related charges from
interest expense and general and administrative expenses,
respectively to other expenses/(income). Accordingly, the prior
period items have been reclassed to conform with the current year
presentation
AZURE POWER GLOBAL
LIMITED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(INR and US$ amounts
in millions)
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
Year ended March
31,
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Audited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
2020
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2021
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(394)
|
|
|
|
(2,791)
|
|
|
|
(38.1)
|
|
|
|
(2,337)
|
|
|
|
(4,201)
|
|
|
|
(57.2)
|
|
Adjustments to
reconcile gain/(loss) to net cash from/
(used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
(12)
|
|
|
|
54
|
|
|
|
0.7
|
|
|
|
149
|
|
|
|
(329)
|
|
|
|
(4.5)
|
|
Depreciation and
amortization
|
|
|
850
|
|
|
|
878
|
|
|
|
12.0
|
|
|
|
2,860
|
|
|
|
3,202
|
|
|
|
43.8
|
|
Impairment
loss
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
Adjustments to
derivative instruments
|
|
|
496
|
|
|
|
464
|
|
|
|
6.3
|
|
|
|
1,428
|
|
|
|
1,918
|
|
|
|
26.2
|
|
Loss on disposal of
property plant and equipment
|
|
|
38
|
|
|
|
20
|
|
|
|
0.3
|
|
|
|
52
|
|
|
|
32
|
|
|
|
0.4
|
|
Share based
compensation
|
|
|
46
|
|
|
|
(923)
|
|
|
|
(12.6)
|
|
|
|
186
|
|
|
|
1,001
|
|
|
|
13.7
|
|
Amortization of debt
financing costs
|
|
|
134
|
|
|
|
101
|
|
|
|
1.4
|
|
|
|
709
|
|
|
|
369
|
|
|
|
5.0
|
|
Realized gain on
investments
|
|
|
(73)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(108)
|
|
|
|
-
|
|
|
|
-
|
|
Employee
benefits
|
|
|
(42)
|
|
|
|
2
|
|
|
|
0.0
|
|
|
|
(11)
|
|
|
|
45
|
|
|
|
0.6
|
|
ARO
accretion
|
|
|
3
|
|
|
|
11
|
|
|
|
0.2
|
|
|
|
36
|
|
|
|
42
|
|
|
|
0.6
|
|
Non- cash rent
expense
|
|
|
109
|
|
|
|
40
|
|
|
|
0.5
|
|
|
|
193
|
|
|
|
169
|
|
|
|
2.3
|
|
Allowance for
doubtful accounts
|
|
|
230
|
|
|
|
243
|
|
|
|
3.3
|
|
|
|
303
|
|
|
|
294
|
|
|
|
4.0
|
|
Loan Prepayment
charges
|
|
|
31
|
|
|
|
-
|
|
|
|
-
|
|
|
|
282
|
|
|
|
257
|
|
|
|
3.5
|
|
Foreign exchange
loss, net
|
|
|
187
|
|
|
|
3
|
|
|
|
0.0
|
|
|
|
512
|
|
|
|
7
|
|
|
|
0.1
|
|
Change in operating
lease right-of-use assets
|
|
|
1,913
|
|
|
|
(168)
|
|
|
|
(2.3)
|
|
|
|
718
|
|
|
|
(371)
|
|
|
|
(5.1)
|
|
Change in operating
lease liabilities
|
|
|
(2,075)
|
|
|
|
128
|
|
|
|
1.8
|
|
|
|
(1,255)
|
|
|
|
125
|
|
|
|
1.7
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(666)
|
|
|
|
(745)
|
|
|
|
(10.2)
|
|
|
|
(1,390)
|
|
|
|
(874)
|
|
|
|
(11.9)
|
|
Prepaid expenses and
other current assets
|
|
|
103
|
|
|
|
220
|
|
|
|
3.0
|
|
|
|
247
|
|
|
|
20
|
|
|
|
0.3
|
|
Other
assets
|
|
|
(111)
|
|
|
|
150
|
|
|
|
2.1
|
|
|
|
(335)
|
|
|
|
112
|
|
|
|
1.5
|
|
Accounts
payable
|
|
|
106
|
|
|
|
(29)
|
|
|
|
(0.4)
|
|
|
|
236
|
|
|
|
(176)
|
|
|
|
(2.4)
|
|
Interest
payable
|
|
|
783
|
|
|
|
1,029
|
|
|
|
14.1
|
|
|
|
699
|
|
|
|
(83)
|
|
|
|
(1.1)
|
|
Deferred
revenue
|
|
|
192
|
|
|
|
227
|
|
|
|
3.1
|
|
|
|
340
|
|
|
|
224
|
|
|
|
3.1
|
|
Other
liabilities
|
|
|
(10)
|
|
|
|
(58)
|
|
|
|
(0.8)
|
|
|
|
164
|
|
|
|
(61)
|
|
|
|
(0.8)
|
|
Net cash flows
provided by operating activities
|
|
|
1,838
|
|
|
|
2,111
|
|
|
|
28.9
|
|
|
|
3,678
|
|
|
|
4,977
|
|
|
|
68.3
|
|
Cash flow from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
plant and equipment
|
|
|
(1,514)
|
|
|
|
(6,053)
|
|
|
|
(82.9)
|
|
|
|
(18,321)
|
|
|
|
(18,909)
|
|
|
|
(258.8)
|
|
Purchase of
software
|
|
|
(10)
|
|
|
|
(3)
|
|
|
|
0.0
|
|
|
|
(43)
|
|
|
|
(10)
|
|
|
|
(0.1)
|
|
Purchase of available
for sale investments
|
|
|
(11,426)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(32,224)
|
|
|
|
-
|
|
|
|
-
|
|
Sale of available for
sale investments
|
|
|
16,634
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32,332
|
|
|
|
-
|
|
|
|
-
|
|
Net cash flows
provided by/(used in) investing activities
|
|
|
3,684
|
|
|
|
(6,056)
|
|
|
|
(82.9)
|
|
|
|
(18,256)
|
|
|
|
(18,919)
|
|
|
|
(258.9)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of green bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,400
|
|
|
|
-
|
|
|
|
-
|
|
Proceeds from
issuance of equity shares
|
|
|
3
|
|
|
|
13
|
|
|
|
0.2
|
|
|
|
5,330
|
|
|
|
402
|
|
|
|
5.5
|
|
Cost of issuance of
equity shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13)
|
|
|
|
-
|
|
|
|
-
|
|
Repayments of term
and other debt
|
|
|
(3,721)
|
|
|
|
(3,320)
|
|
|
|
(45.4)
|
|
|
|
(32,827)
|
|
|
|
(10,563)
|
|
|
|
(144.5)
|
|
Loan prepayment
charges
|
|
|
(31)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(282)
|
|
|
|
(257)
|
|
|
|
(3.5)
|
|
Proceeds from term
and other debt
|
|
|
3,984
|
|
|
|
10,069
|
|
|
|
137.7
|
|
|
|
19,538
|
|
|
|
25,510
|
|
|
|
348.7
|
|
Net cash provided
by financing activities
|
|
|
235
|
|
|
|
6,762
|
|
|
|
92.5
|
|
|
|
16,146
|
|
|
|
15,092
|
|
|
|
206.2
|
|
Effect of exchange
rate changes on cash and cash
equivalents and
restricted cash
|
|
|
86
|
|
|
|
26
|
|
|
|
0.4
|
|
|
|
(37)
|
|
|
|
8
|
|
|
|
0.1
|
|
Net increase in cash
and cash equivalents and restricted
cash
|
|
|
5,757
|
|
|
|
2,817
|
|
|
|
38.5
|
|
|
|
1,568
|
|
|
|
1,150
|
|
|
|
15.6
|
|
Cash and cash
equivalents and restricted cash at the
beginning of the period
|
|
|
9,674
|
|
|
|
13,832
|
|
|
|
189.1
|
|
|
|
13,986
|
|
|
|
15,517
|
|
|
|
212.2
|
|
Less: Cash and cash
equivalents and restricted cash, held
for sale
|
|
|
-
|
|
|
|
(517)
|
|
|
|
(7.1)
|
|
|
|
-
|
|
|
|
(517)
|
|
|
|
(7.1)
|
|
Cash and cash
equivalents and restricted cash at the
end of the period
|
|
|
15,517
|
|
|
|
16,158
|
|
|
|
220.9
|
|
|
|
15,517
|
|
|
|
16,158
|
|
|
|
220.8
|
|
AZURE POWER GLOBAL
LIMITED
|
Unaudited NON-GAAP
metrices
|
(INR and US$ amounts
in millions)
|
|
CASH FLOWS TO
EQUITY (CFe)
|
|
|
|
For the three
months ended
March 31,
2020
|
|
|
For the three
months ended
March 31,
2021
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Operating
|
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Revenue from
customers
|
|
|
3,675
|
|
|
|
|
-
|
|
|
|
3,675
|
|
|
|
4,271
|
|
|
|
|
-
|
|
|
|
4,271
|
|
|
|
58.4
|
|
Cost of
operations
|
|
|
329
|
|
|
|
|
-
|
|
|
|
329
|
|
|
|
383
|
|
|
|
|
-
|
|
|
|
383
|
|
|
|
5.2
|
|
General and
administrative
|
|
|
700
|
|
|
|
|
310
|
|
|
|
390
|
|
|
|
89
|
|
|
|
|
(299)
|
|
|
|
388
|
|
|
|
5.3
|
|
Depreciation and
amortization
|
|
|
850
|
|
|
|
|
22
|
|
|
|
828
|
|
|
|
878
|
|
|
|
|
7
|
|
|
|
871
|
|
|
|
11.9
|
|
Impairment
loss
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
3,255
|
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
Operating
income/(loss)
|
|
|
1,796
|
|
|
|
|
(332)
|
|
|
|
2,128
|
|
|
|
(334)
|
|
|
|
|
292
|
|
|
|
(626)
|
|
|
|
(8.5)
|
|
Interest expense,
net
|
|
|
1,994
|
|
|
|
|
88
|
|
|
|
1,906
|
|
|
|
2,228
|
|
|
|
|
421
|
|
|
|
1,807
|
|
|
|
24.7
|
|
Other
income
|
|
|
(73)
|
|
|
|
|
(33)
|
|
|
|
(40)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Loss on foreign
currency exchange, net
|
|
|
187
|
|
|
|
|
4
|
|
|
|
183
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
(Loss)/Profit
before income tax
|
|
|
(312)
|
|
|
|
|
(391)
|
|
|
|
79
|
|
|
|
(2,565)
|
|
|
|
|
(132)
|
|
|
|
(2,433)
|
|
|
|
(33.2)
|
|
Add: Depreciation and
amortization
|
|
|
850
|
|
|
|
|
22
|
|
|
|
828
|
|
|
|
878
|
|
|
|
|
7
|
|
|
|
871
|
|
|
|
11.9
|
|
Add: Impairment
loss
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
Add: Loss on foreign
currency exchange, net
|
|
|
187
|
|
|
|
|
4
|
|
|
|
183
|
|
|
|
3
|
|
|
|
|
3
|
|
|
-
|
|
|
-
|
|
Add: Amortization of
debt financing costs
|
|
|
134
|
|
|
|
|
97
|
|
|
|
37
|
|
|
|
101
|
|
|
|
|
31
|
|
|
|
70
|
|
|
|
1.0
|
|
Add: Other items from
Statement of Cash Flows(1)
|
|
|
353
|
|
|
|
|
61
|
|
|
|
292
|
|
|
|
(607)
|
|
|
|
|
(900)
|
|
|
|
293
|
|
|
|
4.0
|
|
Less: Cash paid for
income taxes
|
|
|
(305)
|
|
|
|
|
(100)
|
|
|
|
(205)
|
|
|
|
(41)
|
|
|
|
|
88
|
|
|
|
(129)
|
|
|
|
(1.8)
|
|
Less: Debt
amortization(2)
|
|
|
(90)
|
|
|
|
|
-
|
|
|
|
(90)
|
|
|
|
(184)
|
|
|
|
|
-
|
|
|
|
(184)
|
|
|
|
(2.5)
|
|
Less: Maintenance
capital expenditure(3)
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
CFe
|
|
|
817
|
|
(4)
|
|
|
(307)
|
|
|
|
1,124
|
|
|
|
840
|
|
(4)
|
|
|
(903)
|
|
|
|
1,743
|
|
|
|
23.9
|
|
|
|
For the Year
ended
March 31,
2020
|
|
|
For the Year
ended
March 31,
2021
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Total
|
|
|
|
Other
|
|
|
Operating
|
|
|
Operating
|
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
INR
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
Revenue from
customers
|
|
|
12,958
|
|
|
|
|
-
|
|
|
|
12,958
|
|
|
|
15,236
|
|
|
|
|
-
|
|
|
|
15,236
|
|
|
|
208.3
|
|
Cost of
operations
|
|
|
1,146
|
|
|
|
|
-
|
|
|
|
1,146
|
|
|
|
1,261
|
|
|
|
|
-
|
|
|
|
1,261
|
|
|
|
17.2
|
|
General and
administrative
|
|
|
2,422
|
|
|
|
|
1,280
|
|
|
|
1,142
|
|
|
|
2,988
|
|
|
|
|
2,159
|
|
|
|
829
|
|
|
|
11.3
|
|
Depreciation and
amortization
|
|
|
2,860
|
|
|
|
|
52
|
|
|
|
2,808
|
|
|
|
3,202
|
|
|
|
|
36
|
|
|
|
3,166
|
|
|
|
43.3
|
|
Impairment
loss
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
Operating
income/(loss)
|
|
|
6,530
|
|
|
|
|
(1,332)
|
|
|
|
7,862
|
|
|
|
4,530
|
|
|
|
|
(2,195)
|
|
|
|
6,725
|
|
|
|
92.0
|
|
Interest expense,
net
|
|
|
7,962
|
|
|
|
|
453
|
|
|
|
7,509
|
|
|
|
8,410
|
|
|
|
|
1,024
|
|
|
|
7,386
|
|
|
|
101.0
|
|
Other
expenses/(income)
|
|
|
(96)
|
|
|
|
|
(57)
|
|
|
|
(39)
|
|
|
|
18
|
|
|
|
|
-
|
|
|
|
18
|
|
|
|
0.2
|
|
Loss on foreign
currency exchange, net
|
|
|
512
|
|
|
|
|
96
|
|
|
|
416
|
|
|
|
7
|
|
|
|
|
3
|
|
|
|
4
|
|
|
|
0.1
|
|
Loss before income
tax
|
|
|
(1,848)
|
|
|
|
|
(1,824)
|
|
|
|
(24)
|
|
|
|
(3,905)
|
|
|
|
|
(3,222)
|
|
|
|
(683)
|
|
|
|
(9.3)
|
|
Add: Depreciation and
amortization
|
|
|
2,860
|
|
|
|
|
52
|
|
|
|
2,808
|
|
|
|
3,202
|
|
|
|
|
36
|
|
|
|
3,166
|
|
|
|
43.3
|
|
Add: Impairment
loss
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
Add: Loss on foreign
currency exchange, net
|
|
|
512
|
|
|
|
|
96
|
|
|
|
416
|
|
|
|
7
|
|
|
|
|
3
|
|
|
|
4
|
|
|
|
0.1
|
|
Add: Amortization of
debt financing costs
|
|
|
709
|
|
|
|
|
319
|
|
|
|
390
|
|
|
|
369
|
|
|
|
|
74
|
|
|
|
295
|
|
|
|
4.0
|
|
Add: Other items from
Statement of Cash Flows(1)
|
|
|
944
|
|
|
|
|
188
|
|
|
|
756
|
|
|
|
1,840
|
|
|
|
|
1,062
|
|
|
|
778
|
|
|
|
10.6
|
|
Less: Cash paid for
income taxes
|
|
|
(697)
|
|
|
|
|
(208)
|
|
|
|
(489)
|
|
|
|
(488)
|
|
|
|
|
(43)
|
|
|
|
(445)
|
|
|
|
(6.1)
|
|
Less: Debt
amortization(2)
|
|
|
(620)
|
|
|
|
|
-
|
|
|
|
(620)
|
|
|
|
(698)
|
|
|
|
|
-
|
|
|
|
(698)
|
|
|
|
(9.5)
|
|
Less: Maintenance
capital expenditure(3)
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
CFe
|
|
|
1,860
|
|
(4)
|
|
|
(1,377)
|
|
|
|
3,237
|
|
|
|
3,582
|
|
(4)
|
|
|
(2,090)
|
|
|
|
5,672
|
|
|
|
77.6
|
|
- Other items from the Statement of Cash Flows. For
the quarter ended March 31, 2020 and
March 31, 2021, respectively, other
items include: loss on disposal of property plant and equipment of
INR 38 million and INR 20 million, share based compensation of INR
46 million and INR (923) million, realized gain on investment of
INR 73 million and INR Nil, non-cash rent expense of INR 109
million and INR 40 million, allowance for doubtful debts of INR 230
million and INR 243 million, employee benefit expense of INR (31)
million and INR 2 million, loan prepayment charges of INR 31
million and INR Nil and ARO accretion of INR 3 million and INR 11
million.
For the year ended March 31, 2020 and
March 31, 2021, respectively, other
items include: loss on disposal of property plant and equipment of
INR 52 million and INR 32 million, share based compensation of INR
186 million and INR 1,001 million, realized gain on investment of
INR 108 million and INR Nil, non-cash rent expense of INR 193
million and INR 169 million, allowance for doubtful debts of INR
303 million and INR 294 million, employee benefit expense of INR
Nil and INR 45 million, loan prepayment charges of INR 282 million
and INR 257 million and ARO accretion of INR 36 million and INR 42
million.
- Debt Amortization: Repayments of term and other loans during
the quarter ended March 31, 2021, was
INR 3,320 million (refer to the Statement of Cash Flows)
which includes INR 3,136 million related to refinancing of loans or
early repayment of debt before maturity and have been excluded to
determine debt amortization of INR 184 million (US$ 2.5 million). Repayments of term and other
loans during the quarter ended March 31,
2020, was INR 3,721 million (refer to the Statement of
Cash Flows) which includes INR 3,631 million related to
refinancing of loans or early repayment of debt before maturity and
has been excluded to determine debt amortization of INR 90
million.
Repayments of term and other loans during the year ended
March 31, 2021, was INR 10,563
million (refer to the Statement of Cash Flows) which
includes INR 9,865 million related to refinancing of loans or early
repayment of debt before maturity and have been excluded to
determine debt amortization of INR 698 million (US$ 9.5 million). Repayments of term and other
loans during the year ended March 31,
2020, was INR 32,827 million (refer to the Statement of
Cash Flows) which includes INR 32,207 million related to
refinancing of loans or early repayment of debt before maturity and
has been excluded to determine debt amortization of INR 620
million.
- Classification of Maintenance capital expenditures and
Growth capital expenditures
All our capital expenditures are considered growth capital
expenditures. In broad terms, we expense all expenditures in the
current period that would primarily maintain our businesses at
current levels of operations, capability, profitability or cash
flow in operations and maintenance and therefore there are no
Maintenance capital expenditures. Growth capital expenditures
primarily provide new or enhanced levels of operations, capability,
profitability or cash flows.
- Reconciliation of total CFe to GAAP Cash from Operating
Activities:
|
|
For the three
months
ended
March 31,
2020
|
|
|
For the three
months
ended
March 31,
2021
|
|
|
For the
year
ended
March 31,
2020
|
|
|
For the
year
ended
March 31,
2021
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
CFe
(Non-GAAP)
|
|
|
817
|
|
|
|
840
|
|
|
|
1,860
|
|
|
|
3,582
|
|
Items included in
GAAP Cash from Operating Activities but not considered in
CFe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in operating
assets and liabilities as per statement of cash flows
|
|
|
397
|
|
|
|
794
|
|
|
|
(39)
|
|
|
|
(838)
|
|
Current income
taxes
|
|
|
(94)
|
|
|
|
(172)
|
|
|
|
(340)
|
|
|
|
(625)
|
|
Prepaid lease
payments and employee benefits
|
|
|
(173)
|
|
|
|
(40)
|
|
|
|
(548)
|
|
|
|
(246)
|
|
Amortization of
hedging costs
|
|
|
496
|
|
|
|
464
|
|
|
|
1,428
|
|
|
|
1,918
|
|
Items included in
CFe but not considered in GAAP Cash Flow from Operating
Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
amortization
|
|
|
90
|
|
|
|
184
|
|
|
|
620
|
|
|
|
698
|
|
Cash taxes
paid
|
|
|
305
|
|
|
|
41
|
|
|
|
697
|
|
|
|
488
|
|
Cash from
Operating Activities (GAAP)
|
|
|
1,838
|
|
|
|
2,111
|
|
|
|
3,678
|
|
|
|
4,977
|
|
Reconciliation of Net Loss to Adjusted EBITDA for the periods
indicated:
|
|
Three months ended
March 31,
|
|
|
Year ended March
31,
|
|
|
|
2020
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2021
|
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
|
INR
|
|
|
INR
|
|
|
US$
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Audited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Net
Loss
|
|
|
(394)
|
|
|
|
(2,791)
|
|
|
|
(38.1)
|
|
|
|
(2,337)
|
|
|
|
(4,201)
|
|
|
|
(57.2)
|
|
Income tax
expense
|
|
|
82
|
|
|
|
226
|
|
|
|
3.1
|
|
|
|
489
|
|
|
|
296
|
|
|
|
4.0
|
|
Interest expense,
net
|
|
|
1,994
|
|
|
|
2,228
|
|
|
|
30.5
|
|
|
|
7,962
|
|
|
|
8,410
|
|
|
|
114.8
|
|
Other expenses/
(income)
|
|
|
(73)
|
|
|
-
|
|
|
-
|
|
|
|
(96)
|
|
|
|
18
|
|
|
|
0.2
|
|
Depreciation and
amortization
|
|
|
850
|
|
|
|
878
|
|
|
|
12.0
|
|
|
|
2,860
|
|
|
|
3,202
|
|
|
|
43.8
|
|
Impairment
loss
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
|
-
|
|
|
|
3,255
|
|
|
|
44.5
|
|
Loss on foreign
currency exchange, net
|
|
|
187
|
|
|
|
3
|
|
|
|
0.0
|
|
|
|
512
|
|
|
|
7
|
|
|
|
0.1
|
|
Adjusted
EBITDA
|
|
|
2,646
|
|
|
|
3,799
|
|
|
|
52.0
|
|
|
|
9,390
|
|
|
|
10,987
|
|
|
|
150.2
|
|
Statement of beneficial ownership:
Name
|
|
Number of
shares
beneficially
owned
|
|
|
(%)
|
|
Directors and
Officers:
|
|
|
|
|
|
|
|
|
Barney S. Rush
(Director)
|
|
|
4,603
|
|
|
|
0.01
|
%
|
Arno Harris
(Director)
|
|
|
14,895
|
|
|
|
0.03
|
%
|
Cyril Sebastien
Dominique Cabanes (Director)
|
|
|
-
|
|
|
|
-
|
|
Yung Oy Pin (Jane)
Lun Leung (Director)
|
|
|
-
|
|
|
|
-
|
|
Deepak Malhotra
(Director)
|
|
|
-
|
|
|
|
-
|
|
Muhammad Khalid
Peyrye (Director)
|
|
|
-
|
|
|
|
-
|
|
Supriya Prakash Sen
(Director)
|
|
|
-
|
|
|
|
-
|
|
M S Unnikrishnan
(Director)
|
|
|
-
|
|
|
|
-
|
|
Ranjit Gupta (CEO
& Director)
|
|
|
-
|
|
|
|
(1)
|
|
Murali Subramanian
(COO)
|
|
|
-
|
|
|
|
(1)
|
|
Pawan Kumar Agrawal
(CFO)
|
|
|
9,939
|
|
|
|
0.02
|
%
|
Kapil
Kumar
|
|
|
3,000
|
|
|
|
0.01
|
%
|
Gaurang
Sethi
|
|
|
2,943
|
|
|
|
0.01
|
%
|
Samitla
Subba
|
|
|
2,421
|
|
|
|
0.01
|
%
|
Akriti
Gandotra
|
|
|
3,000
|
|
|
|
0.01
|
%
|
Kuldeep
Jain
|
|
|
5,000
|
|
|
|
0.01
|
%
|
Sarvesh K
Singh
|
|
|
3,000
|
|
|
|
0.01
|
%
|
(1) As of March 31,
2021, Mr Ranjit Gupta (CEO)
and Mr Murali Subramanian (COO), had
a total of 1,875,000 SARs of which 1,682,500 SARs are not
exercisable until 2024.
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