AZRE - Earnings call transcript Q3 2021 | Azure Power Global Limited

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Operator

Good day, and welcome to Azure Power Q3 2021 Earnings Conference Call.

As a reminder, all participant lines will be in a listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Power. Azure from Judge Nathan Thank you. over sir. you, And to

Nathan Judge

Ranjit we guidance. guidance, guidance call or are our and and discussion quarter we up the results our the the of to our to differ quarter These will cause me today and on then Kumar are quarter Thank Ranjit contained with the for Investors’ Subramanian, through Murali of by company going fiscal joining Harbor Pawan up Pawan open questions. Ranjit good additional will copy release, up performance Murali this, morning, from with presentation remarks. forward-looking And for with With will of third Gupta; Agrawal, an press term issued implied XXXX. Please our year longer There release Azure COO; several CFO. XXXX wrap expressed innovation, the December technological thank will are of initial fiscal on update you materials industry azurepower.com. everyone, and discussing available construction, such fiscal the Power’s year our then and all start follow us. for Safe highlights. our the update. press the After by are important announcing website provide you, call then a note, discussion XXXX the call A uncertainties providing section on update at key release XXXX under and available could an that statements website. projects our statements. ended integral will XX, and a an results of on within and Last presentation press statements night, and the are those risks materially the on

our GAAP X-K press description. our So presentation furnished in we materials and comparable materials and annual in more also annual over Also and our release, on that for certain pleasure available we release, now a complete presentation press report. our non-GAAP to And Form reconciliations Ranjit. it’s review release website are to measures, hand it you these in and contained report to encourage are most to reconcile our website, the the we with presentation on that, my measures the press

Ranjit Gupta

good year Thank spreading last that you, much a rapidly has It this Nathan, so created the uncertainty. It time how and world. everyone. around very COVID was pain began this truly and across unfortunate pandemic been morning,

light being getting the we the globally vaccine speak. Fortunately, as at brighter is end the with tunnel distributed the of

we to next Here’s and start highlighting every our can success ESG over of safety start We is the to ESG hoping to that meeting virus discussion this this call all the are and Sustainability accomplishments of key At business. Azure, our our importance. which would claim paramount a of quarter. like victory health we with call. on by

demonstrates to very are We that which & proud Health obtained Safety. the focus certification Azure’s on ISO-XXXXX we Occupational announce

construction the work and our as for the we the Given place safe with additional and the safety the extreme our inherent of and as efforts large heat team for difficult make that well believe locations operations, project, this conditions remote projects, to risks our members we construction validates scale come contractors.

at XX% time this than that have past issues as the the us in they we operating more Today, global last have faced same the improved through some AA in as ESG this improve We addition, all year. believe going legacy during rating did challenges ESG, we persevered. will utilities Despite top Azure operations leading for In have MSCI, pandemic, the Power of work December, on rated we forward agency, company’s cover. quartile rating we a that the year. places which MWs

well extremely XXX with of not performed collecting our at quarter and days been DSO at the revenues, our the Our improved have pandemic. the beginning to operating collections to compared we only we have continue the days at of end even able assets XXX

year end ago. to slashed promise. operating compensation assets are We returns cash in We FYXXXX expenses, increase excluding are our costs flow G&A, XX% XX% equity XXX% by operating a our from fewer last actions and XX% quarter G&A than our to to the to members our promised with same FYXXXX, by QX we track At deliver improve that happy from report stock Growth had and have increase EBITDA of a the I resulted and XX% team cash expenses in fell to cash from year. and FYXXXX year-on-year versus assets. on in a reduce in have operating we am on

the sweating over been X% collection insolation of three been of if million we would started past CFe outstanding the we the year-to-date have steady our improvement and long year a our Over infusion to about last XX assets, million focus third not on our metric Also, since reporting $XX have had this our reducing than data. seen in in months operating in $XX assets, costs quarters and dues. due CFe, generation quarter lower around insolation XX NASA CapEx average

DISCOMs definite will demand in that movement power is India recovery line. underway its future gigawatts much positive the finish progress for have optimistic to indicates have buying that remain beat report. the significant no their but needs. not PPAs On a shortly we will letter to last The peak signing to towards invest strong towards flip twice fact news award which in month still a We on a X power deliver the for side, of record we which we there PPAs, despite enable as our have is

had having With in consumers choose to a place Hon’ble clean what has support the tremendous when we before their Solar costs to announced the In have positions. months in the there of Minister Christmas, SECI, has fiscal down electricity period. we position XX As to ago. In and auction could spoken have in for growth. an sector. choose energy. infusion gigawatts supplier operational India energy significantly are lowest equity and of cost companies a putting the renewable proposed expect infrastructure would Energy reiterated and framework which their improve the distribution about renewable to XXX pathbreaking been Many risen the recent government of won The continues has change, whereby set be opportunity to consumer means budget, a further a be changes by tariff this have renewable of the In four the of India, about themes policy regulatory strengthen and come for RE budget of In its the exactly year during efficient had intent the my US$XX aside themes. being make Corporation to to we enable that billion from government’s ago, approximately started we in broad energy and the this signaled technology on, do I structural we them upgrading on last and support a government Government business. reduction four work all was discovered productivity prudence. quarters, vision worked strategy, more of efficiency The XXXX. Frankly, its four Prime spoken for hard transparency, framework remarks

Efficiency of simplification margins reporting disclosures, in structures, through resource. internal transparency and workforce, our training the have our of our Our on elimination costs, processes, constant manifested reduction and demonstrated itself has streamlining prudence EPC in stakeholder of focus and pruning to investor outreach our human been of community. and

primarily We executed focused capital have in strategy which discipline allocation. our on

earn stayed module have are away from cost capital. As plummeted patiently environment holding shareholders firm, our aggressively, higher tariffs an of we that the return where have will in than prices to waiting a for below opportunities US$X.XX, bidding our right

demonstrated over exponentially, With leap renewable decline in storage commitment for capital next times. and costs continuing hydrogen efficiency solar set growing the the to These green We by stage have, time chasing energy and across in the are of acceptability again, returns quantum world. increasing of interest exciting our is modules, scale. discipline to

how our would for turn it like to can further our continue to and and over for to understand business. on suggestions With it investors disclosures from We we look improve I make that, stakeholders to you easier Murali. our

Murali Subramanian

on but backlog our challenge. of getting to to months navigate the update. end, with and of overcome would you, able last completed a megawatt ago delay we supply solar new and Having module are Ranjit. been Pages remains everybody. several arisen. at of we of fiscal and modules Good China, provided rising to our an yuan still local in May. to has X, anticipated we led level X coupled rising many continued level the we peers that, have the have despite said have better Whilst we morning, construction On size still construction a supply and of modules projects activity year increase, activity than when anticipated we price has large challenges secure construction. megawatt in have constraints by we demand contracts. resulted believe raw not final for an modules signed material top by be XXX this, update This our XXX costs, real leveraging We and past we provide delays. High honor to Thank six or that had many months the their the operational delivery On by commitments and has three inability potential so the under suppliers in to

is end XXX extremely finished not be and megawatt of target. and an delays. expect COVID but an will we We another As any picked has XXX poor Assam granted that difficult the have work up penalties for extension Project related weather by fiscal delays. in after today, do megawatt COD will to we owe

of extension sought by to sizes increased cable Whilst and from been year, ways table block sizes, also sight procurer reduced shortly. this delays, designed larger lost hear have have and not and reduced to business. of have the boxes, we amount with needed In We fiscal we the continually a expect from our them junction using there our spacing. COD improve regulator

trackers. compared mono yields a cleaning in as XX% planning first our in string improve to big way. mover much adopt have bifacial drive and as are found yield to the to inverters robots with dry increase has implement our a dust We practically and with build modules. as of pilot efficiency, up PERC modules combined PERC cables seen to industry prevent were in India mono Worldwide We we quest to fixed-tilt adoption modules aluminum to efficiency. improve we of increase a Continuing test our the

deploying about in is half in of modules Rajasthan and current started X bifacial. our already project to X the be our Rajasthan have project modules We bifacial expected

Over operating a transitioned projects new quarter, powerful analytics have platform. our to the we last and

powerful very station ability the the to new is improvement We but monitor continue driver the site a platform which analyze is project our into a this performance head at office monitoring and get efficiency at data all centralized to plant tool. behind

site provide teams X of to plant is the from help platform year. rectification. string X and inverters This the even we mismatch and allow lower the failures. visibility Now of of not to than also expected. performance failure and Installation not fiscal Rajasthan to losses, Rajasthan and plant faster will operating various hope benefit this string to failures but analytics failures improving alarms even data only generation next will preset them but X every in XXX% accrue new over will in minor the have greater see of level further XX% spot us in inverters prevent parts only where localized each spot & aid asset String will in help

to ground and storage DISCOM as mount In anticipation battery some reduce to test of plus our ESG its reliability such integration projects for and to planning of provide projects, and we on We to our intermittency, upcoming opportunities Page accomplishments to highlights on ready, in satisfy working on be like X. penalties. wind-solar-storage deviation solar also concerns would wind. are development hybrid tenders, are future We

for AA MSCI and As earlier, certification and ISO obtained the healthy ESG XXXXX we a workplace. did Power a which verifies Ranjit provides strong we mentioned get Azure rating safe that from

equivalent, of X.X net Our equivalent million the total carbon carbon since free COX X.X inception. to tons tons remain million avoided bringing generation We about has neutral.

by calendar about from consumption unit water XXXX of our versus reduced year have and about electricity XX% We XXXX levels. this generated fiscal per calendar two-thirds

have Another is this. year made progress we and fiscal this environmental safe on possible, where focus even very disposal, recycling of good this damaged modules

to XXX,XXX provided On powering assistance side, job people training. ISO XXXXX addition we the and certification, the facilities with have food, a masks, delivering over in social water, school, by purify to

in which We also remain actively communities engaged the with operate. we

side, adopted including safety our On enhanced the we an increased gender governance and health policy and have policies diversity have Board. many on

sustainability. our to We implement and are continue not stopping enhance here, to best will practices

with a hour. enter which In into is couple order quarters, developers, further, with a COVID of reticence toll not as Page XXXX, of Corporation logjam sorry, drop India $X.XXX auctions. Looking around capacity developments allocated last but XX needs and moment. no $X.XXX To at a cleared in PSAs purchase the ourselves. been exacerbated discovered of been X, auctions taken Solar signing has projects of by explain of such at – DISCOMs that’s of tariffs has solar in the power SECI, the on last industry Clearly, solar have solar many agreement on regulatory PPAs the during to the DISCOMs. per there kilowatt have uncertainty recent during of much to Their range in couple about gigawatts been Energy DISCOMs LOAs,

per of auctions a $X.XXXX kilowatt to However, in and December, drop. lows November around discovered the hour, couple this a XX% of fell record for past tariffs

however, demand subdued which indicates recovery after last side set strong has the power for in & commercial new month months of On positive records the a India activity. twice industrial

questions periods than several at the more have in years, what of eventually, view competition the know finance are that, capital History moment. we has investors We and where but there is about moderates. projects do gotten next crystal that are over is capacity tariff a we to development numerous shown increases India, not pricing. future competition there ball, have from do it there our Whilst

to access with in some projects and be We lowest lowest that will have the future. industry a the value to some has the many create in capital. opportunities the platform add significant best leading and There of cost of that costs

strong In gigawatts position place our tremendously LOAs addition, a is X with Azure for in in pipeline.

We have strong and do to have pipeline a not chase growth.

not we have that do will projects discuss capital. above I turn will results. quarterly that, We cost to our be will not the Pawan disciplined, and it and With patient do of returns

Pawan Kumar Agrawal

Murali. you Thank

what XXXX, were as Turning is operating XX, higher on XXXX. X.XXX XX, September of X% operating PPA to we Page XX, December as gigawatts a than or which we basis, of AC were

Our portfolio quarter. the previous of from X.XXX gigawatts stable remained

moments, last lower which After due rising been rose have EBITDA compensation to G&A our we $X.X or same would our in would significantly about compensation the – about stock per year the few excluding Our year. X.X% stock insolation lower were our same adjusting normal we XX% a million, price, stock increase long-term G&A versus average, in have net in a XX% I would or been at prior increase. million, after expectations Page a loss our been discuss a quarter, revenues year-on-year. would adjustments have of after adjustments. than quarter construction in will the costs loss about insolation by detail weather. continue XX% reduced have minutes for G&A $XX a the been more year-on-year to few On year around the but expense, $X.X XX% and in compared Had a of expenses, about about when quarter as looking $XX.X fall from to and million the faced million reported last XX,

Page Turning expectations, about XX, – on remain earlier on year. as stock below save had million our internal lower reducing to outlined we costs this costs which to back were or very our cash We appreciation $XX G&A. G&A, added for focused SARs, our

inflation when G&A, in to during target We original XXXX. an to year. are One into on expect XXXX is head compared relocation track about year of we will $X cash our and office, a of year megawatts levels in save fiscal savings we fiscal XX% reflecting When rise from pleased million which year excluding about out that report G&A operating. increase on to expenses, compensation fiscal that reduction to looking year the example deliver XX% is every our of cost are fiscal expected XXXX, stock XXXX,

our so embarked also interest We XXX on able and $XX far, have points have costs. on been of initiative saving million a about to basis to we refinance XXX debt refinancing about

rates the million Green callable. would is $XXX about refinancing once dollars in $XXX for million would our able with issued X.X% we realize on that XXXX on a market, refinanced. now working this we coupon indicative savings to to be highlight are in expect We Based that Bond is and first

stock our to with share G&A. will expenses is To our price price. stock linked directly rises, the Turning SAR rise compensation the modeling, compensation G&A our the share impact of as help expenses, inflating expenses on to

For fourth and positive price below stock quarter million change XXXX, price if G&A additional the close. Every in of close yesterday’s and above $X impact in remained nights last we about would of incur that at about SAR period, the $XXX,XXX both negative. will of $X.X have expenses $XX.XX share

around we proud ability collections to uncertainty began, challenges despite first particularly this the our the the improve when Given of our pandemic DSO are year.

days, about XXXX is was DSO first better the days, quarter third Our began than XXX pandemic year ago. when a which XXX the

continue review cash Which about of net of our Page their produce debt approximately sheet back improvement to operating and rose the there and to million make equity the operating to our EBITDA on $X.XX in a believe cash assets Net stood months cash was $X.XX corresponding debt about getting On from billion flow leads net XX, for XX% operating debt and had for increased is of year-on-year of from about future. our just well, for commissioned you will for or in in more to that debt-to-EBITDA as net that about Page XX which ratio construction times. EBITDA our balance than a operating for last and We was much see under progress XXX%. about company X million, assets assets This $XXX debt-to-EBITDA assets recently the can resulting payments and be ratio projects further have balance yet overall equivalents $XXX EBITDA. the about reflective which us We XX. ratio sheet includes billion.

reminder, for debt As is assets linked calculating the that to be those directly assets to against should total included as our debt, hedging in balance bonds. green hedges exchange we our our other a related in sheet this our place ratios, put foreign on are netted the

of over pass to a Industry. would India least stock to XXXX, I the stock to Before XX mention none a at as AZRE XX, year. middle Solar traction, to to like part liquidity in I December the leader visibility was trading at it Azure guidance, discuss and compared of continues the At that Ranjit indices gain

to provide and Ranjit to over year Now, commentary guidance. XXXX fiscal long-term some on

Ranjit Gupta

the lower of end significantly, of to to at by at X% year previously operational guidance. average be and tune in year-to-date, we for impact previously to fiscal February normal issued and I I XXXX, of supply hardly am did the the lower Thank but report XX, and on have we XXXX, commissioning, XXXX. expecting megawatts fact improved weather X,XXX curtailment. the XX be year provided our when our to impact end you, to constraints of about guidance lower revenue range to across to seen Pawan. mentioned any we of XX, entire continues had caveats to In insolation timely our On of and noted, projects X,XXX operating Murali now had performance projects. happy Page related delays Pandemic in that because our compared the despite timely this March COVID, the we curtailment has expect our our pandemic, commissioning now are weighed no and has the provided of as quarter construction. Performance

XXXX, to XX%. to INRX.XXX the quarter be billion and expect revenue we between billion between PLF XX% INRX.XXX fourth For be and and

generation the and Page guidance operating provide on on for also initial fiscal XX. capacity next We revenue expected our

we is X take X to which be questions. outlook, our will our XX, moment, will pipeline, we you. happy With tariff due realized our outlook included pulling Page the our the uncertainty are around this, to long-term gigawatts. gigawatts for long-term Turning which Thank be at that to

Operator

ahead. you the ROTH much. Partners. is Shen [Operator Thank very from from Please first Philip Instructions] The Capital of go question line

Philip Shen

there. to the on for initially everyone. tender status questions. my taking Thanks focus and Like the X Hi gigawatts

that with highlighting, a is specifically it were Ranjit, there just So outlook one-year you delay. that like long-term looks

sign timeline, schedule? what on in first the And that new PPAs at do this by sign you do stay PPA of you a you the visibility with what to – able to when tranche? tranche first so, need now – being the the Thanks. for is And have to terms

Ranjit Gupta

the of front perhaps question, is it is in most Phil; you, us. Thank important that

lot in placed X be like So trying first place I in think is by X the most we will later gigawatts is placed SECI right. tranches, in the progress made then placed year. a be likely X the of been And And has the first. good to going thing power, to gigawatt this gigawatts had would that mentioned, be

sort very last and day-to-day almost from are has again, year. agreements are we we SECI back there and a very, a muted the purchase seen enquiries the in end last now, the to I of by my gigawatt, like are For very letter once signing traction of with just quarters. come last us, mentioned in as month the a towards mentioned very they first for we had over there renewal distribution But have which year in X-K that getting over little or remarks the power companies on was filing SECI strongly, that which mentioned of basis, demand in that couple was reporting laws so, or touch ours is last as power they

And is of on So still the news. the signing our before manufacturing SECI the is post megawatts that that heartening bit, projects right. also insisting megawatts first, signing that fact auctioned were

not his purchase and are are sign remaining power us, purchase bypassing agreements, they only they they sort of therefore, power then which yes, good sign for that our will So saying us. first news they will agreements the

will So, because then night. in we first be

would agreements three fairly some know don't over I earnings in eight think February expect and six I left, has call the one-third tranche still have agreements power close we'll to we be purchase signed for are that first next, to weeks last but gone think the I in something February. signed purchase that positive, three weeks. have in So mentioned had power I'm to very whether the we the we we weeks, signing January, would

So next two quarter. it's kind going I next – feel that way quarter no within the should quarter things quarter longer some see or the we thing. a next at to this next progress the of moment, are

as month around Phil, signed in concerned, month been circumstances, – June, delay the agreements of far normal of XXXX. the is As the power have these of under purchase July would

Of anyway has between course, nine of all COVID commissioning caused projects six a to India. months on project delay, across almost

So caused then were compared if the on you March almost it if to commission of we'll be that for had time were you manufacturing gigawatts. we six a had to maybe this if commissioned were assume a perspective, our probably originally what that COVID projects look as there by far at sign from purchase to delay, agreements nine month to we power be we year, gap, then and earlier be supposed and scheduled then to as supposed our

the by whole this So assuming been nine to that there the original plan our going really versus to shifted won't in had gap plan be that plan, pandemic. six months bigger

Philip Shen

Ranjit. Thanks, Great.

You talk highlighted is award you they're SECI ahead PPA the Can you that in just now your think on prioritizing about you? why of prioritizing others. still insisting

Ranjit Gupta

reason this for tender the is The is a two-fold. they prioritizing that course are is very of prestigious One government. why us

up reduced, we successful. project a overall like the of agreed do realizing tariff to that to cost have they to the tender the set mentioned, module right. secondly, improved, have have efficiencies costs So has have And of this markdown, we and energy for used, want that make fact us right, because

are that agree also that for consumer. point does tariff in once a the at little of tariff to to sense out to insist guys not you government – signal right, bit sense not these markdown, that a make look, this the on time, a So here

will – So $X, at to power trying at that, because the of to market mean our the try in the looking place moment, and out taking at bit about I power which that suppose the a tariffs little of a power The market market, way available $X.XXX, place a $X.XXX. $X.XXX, it's not at the on we not are our price, to if obligation our are to is is most like as they in is power $X.XXX, model they place it’s are of power the not right? first most are obviously right? of and

differential So looking we of a open So are X.X kind to we because between are fact not or markdown. to because reasons, to right? that X.X of a the kind X.X these of at X.X tariff of differential, two

lower news, them place the has place of power trying difficulty our of that prestigious And is therefore, are to for these this power, So they this before a auctioned place tender first to is because the still power. secondly, they because fact tender which been the post auction.

Philip Shen

Thanks. Okay.

weather that I the fiscal it you think And deck one to recur? looks it the do might Can about issue that then in the driven the persists? by happened issue to quarter. on wondering detail PLFs of it other you PLF XXXX? is PLF. have you quarter quarter? was historical a likely was is and question you PLF, what PLS, and As Or FQX good trend share may guys lot if slide expect like bit by gave a an to relates to And more in your a about you be it seasonal able share lower-than-expected how

Ranjit Gupta

Two questions that you have Phil.

The first is one the about guidance. XXXX

work of provide like nothing you too, AC rising loading – doing that behind some of capacity you if will mentioned sector, have like. the improvement now sector capacity. the that the of earlier, in the is AC/DC sense part remarks quarter-by-quarter mean, what the in right? really It's my on across DC because PLF the would people We the is a And our I I with that right? are across has that's numbers, one the certainly and putting improved, literally, reasons in are PLF higher why

megawatts you modules. XXX doing So megawatt of if XXX were put we would earlier, a project,

XX% if course, XXX% So that's has of to ratio the at XXX% time start when legacy megawatts, modules DC XXX you get. modules still that XXX PLF, AC the people supportive – AC get the industry going or tend XXX time, the tariffs a Azure, capacity, going was behind would XX%, and assets, to XXX% of PLF to megawatts putting as you and were by But rise. megawatt right? So PLF were goes young. to

So we lower. the which in have several projects is installation where states are

AC/DC have not it we which where for that uplift have The forward. or XX% times PLF expected is India. move We today several areas the are of as our the have other constructing we they currently an because are – projects Therefore, of what projects, X.X to continue to one in high we be of installation PLF times are best will in loading, building that in X.X are projects in today. is we see ratio fact they and Rajasthan the

that will insulation our to because numbers our So rise over of the continue few years. PLF next –

As third through we the far monsoons extended had went India. and that is concerned, a storm right, quarter as Southern

rainfall months So was in had August stretching in this badly of lower October lower. those November. and Typically the numbers in October quite Because of and monsoon the ends and we and installation monsoons the we us months because into are the hurt November. in of in had our the which South, but India months in November, right, October September, time, that,

data been if So lower. the year, but the X% have better From over are event. of years an an states I over overall, country course, right? and at there states across about of there average why, that of X% and worse the XX different long-term much last – from years about have I been numbers, lower. that's that is, this, year, have have we much, So than looking a have XX this NASA different been course, it's the the year this, kind data, look was than been at this the different one-off years, average,

X% And or higher be will some years, it higher. X%

out XX the exists. averages it So period year over the that PPA

Philip Shen

last one, One Ranjit. Thanks, one. A quick hopefully.

do that so, like it trackers of trackers use and using Are are you relates possibly if share As you think you be Can brands? array? you'll U.S. plan engaging? talked names what other the to them. to those of example, And Nextracker trackers you for what about using? using, Or tractors bi-facial, you you're starting on kind

Murali Subramanian

it's in moment, have Murali. several are we are test Phil, we with the sense at and our suppliers. We bed, hi So that? take I piloting as – mentioned, Can we we that trackers experimenting the

an have a a the we're industry of we company, of small a there. names, So company, Indian have well. couple American An Chinese names big and all couple as company, we

for – deployed And are our with with we for work is can good see, they we so be projects. will which tracker comfortable once us, them closely we next to

Philip Shen

you think Thanks, of gains? got One kind be a potential it's guys, watt? for quick What pricing sub-$X.XX to the watt? follow-up think sense Or performance Murali. you it's you Do a $X.XX makes do given there. in

Murali Subramanian

So don't right? also prices this the module as As dependent pricing, on sense. module is make much drop, trackers

go to As trackers start module make sense. prices up, certainly

sense. At a start sense. moving to to price module if make $X.XX, is doesn't approximately, number. to actually level, which make then current But prices, early that the module prices start right? So drop assume, trackers would this $X.XX it $X.XX, So it are at XXs, I make $X.XX, $X.XX, sense,

Philip Shen

it. Got

Thank for Thanks on guys. the Okay. you. I’ll pass color. it

Operator

Thank the of is of Mandloi you. go Suisse. Maheep question from ahead. Credit The from Please line next line

Maheep Mandloi

questions. taking Hey, thanks for the

target here, to factors PLF the about PLF CFE do the on think long-term here. how the the following up the different the string whole inverters, bi-facial how potentially, any potential And the impact gigawatt we – driving X.X and over trackers portfolio here. Just for should

Ranjit Gupta

for thanks question. the Maheep, Thanks,

the gigawatt those been the how those of the concerned, have we of mentioned, far modules modules And decisions depending a as last is trackers, portfolio, XXX the we X.X for most of the over they are the be call made megawatts whether will on still to six gigawatts. we do we're tracker decision And decided. Murali cost as taking have upon going final will trackers On the upon to next ahead four Depending the closed. better, like take two weeks go to on the as X.X projects.

the the already XXX of the – Rajasthan the X.X on. of know end are modules for what that project, We once is right, say, to – for is the the the March way gigawatt so frozen, let's would nearly on so or So which what remaining operating, X.X, portfolio entire and is can the we be. we because expected PLF we for of megawatts of X PLF by expect middle know XXX the April, from kind

to are be. going So we the PLF what know

For things six last the be time, will Maheep. the XXX weeks' megawatts, clearer in

Maheep Mandloi

follow-up on that one. And then it. just maybe Got one

all XX% about and How How new was pay here? PLF for think the uplift for whole PLF X new XX.X%, technologies? new see an new roughly for average you projects year. the that much So gigawatts, in we from the of FY-XXXX around in for the should these for projects or contracts SECI some

Ranjit Gupta

XX% bi-facial, sites, So we and early trackers If do be mid-XX% we with trackers and – in to the But sites to to people you industry because PLF we XXs, you we due of we up could bi-facial right? yet to to world, and have that the looking that yet XX% of projects secured, mentioned, X.X they trackers we bi-facial. the bed which the And test the we the are are get close add get close of test have as put with says, kind add could PERC our that uplift best and at in That's bi-facial. kind have XX% saying it India. some we built to the and XX%, uplift numbers. very trackers, between will as so as of some be like you to can of this what – loading across the mono in

right? a XX.X%, of shipping you suppose XX% increase, and try right, happens get if right? we of bi-facial the XX.X%, of tracker as increases, top you happens, will what So reduce on PERC because not – with right, probably XX% that course, your your you fact overall and that, loading Of a AC/DC once your AC/DC that happen. to you PLF if clipping probably loading, just and to what your will as because add going because start go and PLF starts have into that do the drop mono start You'll is you Maheep, lot

be clipping then reduce the to it reduced. that way to maybe loading your AC/DC losses to do So would or the are and down XX% bring so XX% PLF your

design getting but to the that. can will think I and possible, something figure perhaps is but to have out. add Murali, of it – upwards with do clipping XX% you manageable you So

Murali Subramanian

you No, think very explain well. I it

So that's fine.

Maheep Mandloi

Got sense. it. makes That

but probably on somewhat some Got and not and here, offset right there's trackers savings modules broader inverters. the budget, the bi-facial string what was is So probably for – cost on you. from and in by CapEx only higher And saw AC/DC tariffs market we yet. reduced now provision loading, on just the the on

expecting that full or in? the which year, BCD yet haven't was duty, when XX% basic last gigawatt? project the you're could else anything to expectations That So come could XX% that how from customs on but we impact the expected previously seen. Any And yet.

Ranjit Gupta

that was This come the it, announcement BCD couple yes, were budget, right? a they mentioned that from April back applicable will was a will what rumor said so that we this However, X, the had all that strong right? very the months But about ministry was be – in of surprised BCD nothing expect XXXX.

in think the before be which gigawatts, a would not at But government under would megawatts that the X government XXX-odd will come of are the our megawatts is – barrier. nontariff that the unless be the by coming the construction I the is So if would modules out, that the X comes BCD. moment of is BCD ship list gigawatts for the a like X,XXX course, success, affected ALMM out the with I

a February list on of the and ALMM in this that. before it March, think So then barrier and government wait that coming month. before Maheep, out impact talking end by end might of to of approved comes list top of list is about nontariff the If out of soon the this the if – put the manufacturers, the the is BCD possible, or as then government I see deciding as of that to modules

Maheep Mandloi

jump Thanks in Thanks. the for here. I’ll the back clarification, queue and

Operator

Thank Please The line is ahead. next Securities. go Gupta you. Puneet of the question HSBC from from

Puneet Gupta

Yes, X Would possible thank color. a on as you so operational on Pawan times much to about would debt-to-EBITDA be well? be debt-to-equity get what basis at that FX. talked number for the it

Pawan Kumar Agrawal

our problem different debt. reflect equity. projects so So project some do of again, if you So pure pure a you the the the So we look capital very level, have typically do We what And do typically, would of We very, sheet at project of look XX-XX structure, we level. part leverage equity. the level, at look have the have some our a right? the overall at when equity, from overall balance part debt project right? at – have proportion comes project, sheet, balance the funded Puneet,

and while optimize to so. We terms, also on the parameter, equity debt carry prudence on the corporate return a ensuring [indiscernible]

Puneet Gupta

to XX-XX? assume is it we a – can similar be Is said will to operational you So there that which the debt-to-equity operational be X. that debt-to-EBITDA, number at fair will

Pawan Kumar Agrawal

have but No, you and we our are part around our those provided can get That's we you back a yes, be – guidance, will XX-XX. projects because fair of of any part calculate numbers. take and debt-to-equity the redemption, the numbers anyway numbers but to not can –

in problem getting any have calculated not will we So those with and share you.

Puneet Gupta

to more that ballpark Okay. you're for new including debt the What bit would that able number, And the what cost talk of about you is cost? a target can secondly, now? hedging

Pawan Kumar Agrawal

is have – domestic we possibly Puneet, what plus market, tax the seen than hedge market holding is coupon of available the if green bond available rate domestic market market for course, cheaper that recently, look giving was you borrowers. at The So us is domestic in all not cost.

whom for the a then and and closed transactions getting that's players [indiscernible] So already finer we next problem. is rates, much accessible, But the X.XX%. we've so X.X%, that closed market much, is recent around separate we've for around for domestic are is example,

is getting something you X% have X.X% refinanced. that So between to these are levels for that that are see projects the recent we the

Puneet Gupta

Okay. And this of what tenure or debt? Is it is the cost floating? fixed

Pawan Kumar Agrawal

XX% debt the remaining so around So, of is of these the tenure the of PPA. life –

are years these MCLR, that these projects. the X.XX%, to we fixed at refinancing Debt from XX, years, depends their rates of debt are talked loan is PPA I Infra XX typically XX MCLR. the so XX, that around floating. which bank, linked one when we for from also – it five X.X%, So about And we on raises X%, which Puneet, what But take to It year Fund, linked years. taken And does IDFs. to is are have stage

Puneet Gupta

very is useful. This Okay.

sale, we about you of update you'd there? quarters to which about talk didn't Secondly, a Any talked share Ranjit, plan like asset of everything, talked but about you couple the back. that

Ranjit Gupta

And –the assets assets looking we two hot in the set which place. taking to were very good that move looking we'll you sets in we forward interest, one were assets, of there some extremely, transactions of the significant that on India, is that mentioned were set hopefully, that. And assets we have past right. know, market on progress. extremely And of M&A were Puneet, we that of made we the have lots second as have divest, to divest, received

cost we out there of assets So that we in to will be and interest much point but are figuring at we figure is do and future best go those time, this assets, a those how try whether as growth, can we get. equity need out fund keen in selling capital out the our

So the being. the for assets on right, time has second decision the sale been deferred the set of of

before is expected four four we pandemic – months. that we capital delayed had infusion gigawatts projects started by on gigawatt spending money the comes time, for the see came, when it the because already. the the pandemic, Because are XX you have of the We would considering of original

our delayed months. capital by XX raise has been So

the operating good on is we at And assets. like mentioned, need assets in a for – And to have we is money when I time raise or to demand comes we we that's there will take to the call the divest around. huge the capital whether therefore, want way. So raise want a different that a that, thing when we those

the we required, fairly do shown And the been lot can the a for has people that interest, we evaluate quickly. be so done assets being who can have close discussion believe that the with done. to And those work if therefore, has we

Puneet Gupta

to first And when assets? I rooftop block presume you you're referring said of the assets, the

Ranjit Gupta

That's right.

Puneet Gupta

Okay.

Okay, great. my you so That's side. all Thank much. for

Ranjit Gupta

you. Thank

Operator

Thank Please Osha Securities. go Joseph The the of from JMP next is line question ahead. from you.

Joseph Osha

to about pricing Rs. you especially gigawatt, that Is a it? about it a just think And but this good afternoon, first be be that wanted evolving, the we how good of sort of XX% little bit as XX% return should X.XX? to I that some from and would are haircut made Obviously, in to you. comments thinking morning dislocation. Thank fair take on we things early

Ranjit Gupta

more – like Joe. at for Good and of – not XX% we mean, the us, not right. up setting I the could morning, tariff, dislocation, projects, that I at The when do looked have numbers month is And not last add up. feel and since been the more and that said, pricing including right. tariffs to, over discovered, SECI, could half, tariff, we cost that people looked we right, not that or the month a that a reflective perhaps we talk

like So those as had Lignite you part know, sector and public that NLC, and taken Corporation. Neyveli undertakings there SJVNL were NTPC of in auctions couple a

for these the debt cost of cost capital, is the much, companies much of So lower.

– firm the that and really of At we a XX% in And is makes few over are on accept. the we us therefore, will the prices I returns market, difficult the huge to think pricing hoping expecting next XX% not is holding three, kind decrease in this think that, of the we and question from module yes, until see of next with can a reduction module pricing. over in in four us, the earlier don't still large of market. point be comfortable it there that that this modules don't again, we're numbers. a manufacturers guidance two, the of reflective kind the quarters. which that weeks, a given So the I getting we how tariff any feel is dislocation is Unless time, the make

Joseph Osha

continue if these Is getting we're correct? it is you. Okay. the for the couple sounds alluded environment to you tight that second everything another you're from And is this of short ask, to panels semiconductors going to I as Thank quarters. was going signals to question to days, if materials that building solar since of

Ranjit Gupta

XX the things supply very right. up. reduce prices the the and of the and rapidly, today seems like that's a reduce will China announce X addition, market, mean, I doesn't like, term price demand gigawatt out Because firm you'll well not – they'll see balance, That’s mean, Joe, a you I but will barrel, change these shock. oil will Saudi is right. fairly barrels see day, suddenly, million it’s million a XX capacity

moderate – prices little quickly. the if a larger it's year. they bit by expect China end will the at to until are that point its very, this we them very are as of firm it's But gigawatts, XX and they time, of this pricing possible talk in all gigawatt that reduces remain suppose So saying that XX the or to like requirement the suppliers

Joseph Osha

in And XXs you're at moment? of low the kind the

Ranjit Gupta

In early getting delivered India, you're in XXs, India.

Joseph Osha

Okay.

me talked we've off, asked this recently Can then jump able reeducate if before, effective as what, markets before, perhaps would X.X%. alluded I'll and and you debt pricing just like? would take debt you kind related pricing India? And at this it could, about access what to question, you to look I final and for company Third X.XX%, your – in I be to to know the

Ranjit Gupta

you can take that? Pawan,

Operator

to is question? question we Can Sir, next the answered? move the

Ranjit Gupta

if No, asking I no, can… Pawan was

Operator

sorry. Okay,

Joseph Osha

or was, take in else The able would what enterprise to ease India? be you for your Yes. markets rated what of access terms question to in of it debt

Pawan Kumar Agrawal

But if floating. this the kind these you but at five-year is domestic look single typically domestic getting fixed rates bond banks, asking are are this market, explained, closer of the I you're the and if as to idea because, domestic closer – know market we don't of I are, again, level, a rates – to X.X% a the and about banks get rate. See, domestic in

are ancillary. – these So are year these typically to one linked

our as bullet is other we debts receiving keep not in and to something comfortable bonds, is which at company, difficult for But those – get our domestic on long maturity termer which above right. Now typically look in corporate an bonds, to are cash rated a rated the because typically market do are for who look because India, bonds, we, funds investors, prefer with mutual is flows. have bonds amortizing for amortized when bonds, it be a the market and also very Indian AA bonds, as and category rated we bonds we

Joseph Osha

Okay, that’s factor with going to issue. amortizing. really be so an fine. not you It’s That’s want not a than to stay

Okay, it thanks. appreciate from it. me. That’s I

Operator

go Barclays. Moses Sutton Thank next the question you. The from of ahead. is line from Please

Moses Sutton

Hi, everyone.

some the on comments Following of bi-facial cases. on and up tracker

So still you clipping so of clipping? clipping, due affected DC-coupled loading loading get a you the adding have down So storage thoughts to that mentioned negatively higher bringing inverter not capture overall DC by there? projects. the to and about while could how Any optimizing generation

Murali Subramanian

we and No, what we grid. makes When are that's going testing of from test might a ready, the much this it ourselves, for clipping companies We all no, are a the of if into on. and testing get the very capture future. is excess of to distribution said perspective future the absolutely. in the want want both part we doing this, pricing to the sense And rack back bed

Moses Sutton

Is went the say, let's going you're back mid-teens or equilibrium? X.X to to, Great. feasible, safe comfortable And even. inverter if Great. you'd And scenario prices beyond is that? a panel there increase really most loading that drop not beyond

Murali Subramanian

starts right. to the At where then pick it's flattens basically moment, – No. and the up the again, curve

in As draw you a U-shaped right. the line you more, curve, clip

to So clipping. loading, a comes incremental as modules you start results in increase the you of loading disproportionate where more clip and point

on depending location. X.X on It's and So module price. the also level X.X, function, depending – of between at of obviously the insulation and the where moment, the it specific varies a

module load the can you price as and So more. more drops,

storage it's clip. and not matter these can inverters just of much much may – lack storage all It's of technology determining really factors becomes more low, we pointed really basic the if add low, take So rightly then sorry, of you how you backup. more a as power. out, it a becomes and capacity of of stored are the there bottleneck really to And cost The then want in anymore. just

So evaluate. that is we something continuously will

Moses Sutton

maybe the term here, high even execution process business? plants Great. thinking starting longer understand. through on but thoughts a and totally shift time, Any even technology over or That thought. solar, any expanding, solar perhaps and of partnership. of beyond longer maybe level a basis hybrid very lot explore sense. and towards wind, complete a focus to I the It's of that, makes term options really storage, about on different thoughts all wind A a

Murali Subramanian

Yes.

the driven customer a is will so customer beyond give they hybrid If all company. wants, ask the then of projects because larger a which before, will XX%, country. good of it's lot wind is of XX% it's do industry customer again, the storage, – Ranjit wants we in if for me, lot is business PLF. and in Azure If and them. our customer the the sort you can done XX%, intermittent, range higher the wants, supply when And have by more less that distribution may there So power, is what mature. PLF of to the get – wants actually solar, it is source There that. a what in you India experience and is not fairly the while wind The players. and is that's a very customer we'll We wind the combine

moving So if wind required. very into we comfortable are

Moses Sutton

sorry the time, but the I helpful. already, – to on may timing starting said on update somewhere, final on for any on of to equity here? on this, but this And any that’s if Great, timing I you just missed last execute raise aligned portfolio. thoughts gigawatts but with next have the very it's four timing expect one me, you'd need

Ranjit Gupta

Murali Is that. missed I for or that Sorry, me? for

Murali Subramanian

the for on Ranjit, the What's your that's question thought equity timing on That's for you. that? raise.

Ranjit Gupta

there of equity as our we we capacity, as At the have fully funded. we secure are gigawatt, mentioned auction the on far more we is other Moses, One, so project four that past, gigawatts we the win that concerned, need When any either that as one other like – mind. when And right, actually to are this going moment, raise – is do that is are two or right. things secure. we money? any playing in course, need, the the decided is the are get for we Yes, or

So need that. to therefore out we for go don't raise equity and

The it strong equity end this is coming will four at month is the three the of second in month in whether or day, two comes And need and that the comes At point we month comes factor, market it for the in because it. of four gigawatt in time course, time. time, fairly is time.

eventually we So should capacities build. four and right and gigawatts we that for preparation in go out money their raise will other away

And are raise past having within money said have we discussion a currently which will we is this that that in the until post-April. the So we company. FYXXXX, not means

So sure, next for are to I sometime will going the this in money fiscal, fiscal, raise but raise guess, equity. we not during we

Moses Sutton

Great. Thank you.

Operator

from is question the from Securities. next The of go you. Thank line Please ahead. Gupta HSBC Puneet

Puneet Gupta

ESG Yes. the Thank color you for the part. thanks so much. And on

got ESG that [indiscernible], think surprised the front for room you guys? you where a the I'm is do you improve Although, to on

Ranjit Gupta

unless training, culture have governance – laurels. everything So site. cannot far until, ESG of can you It’s It's because and you at field, ESG your as with Puneet, as is also that an process. my evolving is done on build you fully a right, concerned, And always awareness I never continuous be bid. compliant not rest

Now anything. the don't I right. I stuff my need done to anymore, do so or anything I've do social done don't that do has be don't need this to I've stuff. to anymore, safety need to I done

it process. this done right. it's we got like are, There ISO-XXXXX that, work year. doesn't mean, example, the So for I a continuous

consultants working improve advisors safety to with continually performance. our We are and with

example, Just driver this we year, training, right. for started

risk looked stuff of major we coming contract appointed or our their a our we figured they all one driving that training drivers, for deliver third-party to that are our whether to the was when to because drivers, roles projects which company at the vehicle out drivers reports. we So risks. their large found do or be We identification on

say continually So best we a ESG is are evolving the more we process. need I ESG. will never ESG that or at work to on don't

that We we’ll game. we training make have have eyes, our of are top keep to the to the to continually ball. drop raising near otherwise awareness, sure And our keep we keep

Puneet Gupta

one with improve and of score? associated being what these kind thing should to ESG And be able would kind of costs

Ranjit Gupta

saying ESG about the you're the cost front, ESG? On of

Puneet Gupta

as ESG mean, will could we improvement I think material some others in will well cost, have things but things Yes. all will not really? about driver training small come – the be we should these a on there with that sustainability be – worry any or costs should

Ranjit Gupta

because all at less will can we is if anyway, right. mean, money, the our CapEx right, a the to really for will money, stuff methods, question very, a It's that are than business I amount have new not an incorporate place, optional it that the very do are I mean, it's that an that is small, which No, we we – basics if of do environment, it take workplace in in are do stuff it. I something or is we there costs call And amount look But in do you the place. overall, mean, even if more of is you safety, option very, to right. can our we governance business, not hygiene standards, they're it impact. this that. these methodologies do of our to safer, our this It's if make we any than it ESG on do of not that insignificant. we'll

whatever look at seen always look spend as never the make you an way the make ESG you, you employees of look your investment. you a in ESG, at you, the And considered being up way way at terms for up cost. I've So contractors is It your on investors you. the

If you other which which people have is a right. and on will is you more ship, not ship, on run ship clean, that safe,

on. very So important. I can It's not that something compromise think very, it's we

Puneet Gupta

That’s very useful.

balance risk all And availability to see on part there we second The we I is the wanted is track? that could was, a on the that labor check of execution got?

Ranjit Gupta

is labor as Puneet, far any the concerned, see issue as labor. So I don't with

issues. four or not the three we labor last Over have months, seen any

on constraints seeing We are right. supply material,

the increase of almost we seen any Some starting are get supply steel, have supply of supplies that issues. to kind modules, the to now. anything, thing. But supply non-module to have of back site, on not wanted also, labor And whenever side we at normal the

other smoothly. there, if two So COVID its remain they three module things challenges were to normal COVID the the The quarter, over situation. us. situation or to as will, other last that, most things whatever behind will than whatever I'm of ran fairly which are the they side, now are but be continue them or Most quarters continues by the And coming delays apart way of happened on module the XXX% remain we course. are end sure online from this tight,

Puneet Gupta

issue? or you a risk mostly cost a it run is of Do delays

Ranjit Gupta

Sorry.

Puneet Gupta

because a cost Or module run it is risk of do more of the side, On of non-availability? you delay a issue?

Ranjit Gupta

X XXX operating modules manufacturing and where have have right, Rajasthan or construction. XXX our there because megawatts project, XXX way. either megawatt XXX that modules is the already don't on the megawatts remaining already the I for A On of any ordered. project, megawatts so delays lot is been we installed of XXX under see megawatts under

So I any see don't delays there.

X the April is the Rajasthan suppliers. the and modules in those second of the they and this almost for closed X and – they are to the month they're are manufacturing start good At saying For right, Rajasthan projects, Rajasthan going X in that May. modules, time, point

last come ask two for to supply over schedule. changes have So we see last folks Chinese will and the the on have the back quarters year,

are work New Chinese will on, post things seeing more the XXX up are and back. first a February. we out to couple have At over see ramp the as come far, it So next is for smoothly. XXth months. of how when people around going We'll there We’ll the megawatts, the factories the updates Year going pans get back of moment, – to

Puneet Gupta

for you Thank Good. that.

Operator

Thank you. Apoorva Jefferies. go of line ahead. from from is next Bahadur the Please question The

Apoorva Bahadur

the opportunity. for much so you Thank Hi.

in question, quick past one period sir, Just of your certain is there to expenses. notes SAR mention accounts, a

you throw on amount? the some light could So please

Ranjit Gupta

Yes.

So XX of SAR? million talking breakup about the the you're

Apoorva Bahadur

Right.

Ranjit Gupta

Yes.

this for X quarter. million the previous and X to So close to is to close quarter million pertains

Apoorva Bahadur

in is the if Okay. on that Got question, manufacturing for tariff. it. And just one and – I the last likely squeeze reduction linked reduction may

sign as to So some at we X.XX. were tariff? that has Should Kerala probably heard agreed at we megawatts XXX there look new that items representative

Ranjit Gupta

you three of bit days a X.XX But the Kerala was is trying auctions, difficult that weight X.XX, Rs. yes, option, large quantity intent the XXX has comes Kerala Rs. little it an between expressed weighted when and X.XX megawatts place. tariff to and and X.XX It's to because, a which Rs. these the the SECI just three sign to is auctions, out X.XX. Rs. early

will not the final drive tariff. they So

more a wait exactly We tariff to have for land out weeks what figure the will at. to few

Apoorva Bahadur

lot. a thanks Okay,

Operator

joining be today. you. and will your On Ladies you last now behalf Thank us, disconnect Power, conference. gentlemen, and Thank all you may of concludes Azure that lines. for the for this that question

Azure Power Global Limited (AZREF) 12 Feb 212021 Q3 Earnings call transcript