AZRE - Earnings call transcript Q4 2021 | Azure Power Global Limited

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Operator

Ladies and gentlemen, good day, and welcome to the Azure Power Fiscal Fourth Quarter 2021 Earnings Conference Call.

As a reminder, all participant lines will be in the 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 Bansal Vikas Thank you. over sir. you, And to

Vikas Bansal

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

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

Ranjit Gupta

seeing COVID. morning, Thank some and call like impacted and I a would we no Vikas, the in picked the you, family our protocols COVID COVID. left doses very our pandemic's part date. stood infections that with offering fight by pandemic April good we other ugliest till all India start At in We have everyone. to over the way today's phase against drive and been have now daily following vaccination to recede May and has employees untouched vigor. and by faced Good million are or is by up Azure, everyone with pace during in when XXXX, administered XXX was almost condolences the stakeholders

the in initiatives We facilities around During wave, of medical oxygen number we the operate. a and the we in infrastructure Rajasthan, XX-plus to states concentrators of to the donated second supplement undertook areas requirement. Karnataka UP, a to Bikaner, medical care of to BIPAP supplied oximeters, as and supplied number health machines facilities kits, essential items and states, XX per a other other masks facility PPE their at healthcare

of a our Within cohort-based implementing to employees respond members, across cylinders group, the by procurement various our emergencies locations. purchasing XX our own oxygen for a their preparedness team concentrators medical strategic company, and number to to members use help distributed our sites strengthened support family we placed oxygen our of or by at faced

members. and medical advice medical qualified our to retain to family their continue practitioner, We a any employees support of for

their especially safety, agency, proud at success of of additional places we in every thereby work last We efforts Azure’s the to reaching economic created family case key of on cohort-based I needs to are which track family’s contacts ESG health help wherein the demonstrates demonstrated support a and to of quartile quarter any Azure of exemplary in scheme December, term his the several ISO and ESG in country. ESG highlighted We or to highest the was utilities their make ratings needed. probably XXXXX strength peers insurance in all the team team where among put occupational of for AA to which day MSCI, Azure. team the as on our leading the places and every to am health, our member rated our group out member safe her us among they Azure. certification team The have global of members a implemented our providing in occasions In business hour and help also and Power Sustainability focus a and our top unfortunate came company and we our need subsidized rating pyramid way contractors. together validates event. truly the cover of for the

committed into is am commitment discipline renewable on I entered asset in by to Azure wind towards our sell energy, Power’s Rooftop portfolio our philosophy, is this to foraying other an am higher report into whilst to of increase report Radiance especially addressable into approximately US$XX history million. with sale market to to to capital This happy the enterprise rating. first that our for solar/wind seeking of hybrid of agreement improving further I continue value return and happy projects. Renewables We Continuing strive size this that capital towards areas projects. ever an and we have recycling signifies Azure

more auctions look than and We concrete sooner participated already will of later. to couple a have in have something

the increases, in of move energy. will the realize that As more renewable grid share business energy the we dispatchable towards

how costs potential power technology disrupt hydrogen our will As remarks storage the to important we green previous our mentioned the providing plummeting two towards had industry. in my to storage the portfolio. have wind plan firm to grid, industry be moves additions and and for I have

evolving of growth process on endeavor the business our our and landscape. in the of right renewable be industry are as examining critically go strategy side we along We the to

deploying evaluating are we We investors excluding in keep be at to assure posted as Today, this the continue technology all take we portfolio. our improve to our territory. projects same disciplined more will and returns. Rooftop we We you our in that at will steps than year, did of have new and we operating valued time continuously XX% last megawatts approach the techniques

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

long expenses in ‘XX controlled excluding the period, year from G&A, in fiscal in our year-on-year we operating from improve actions assets Growth in and costs XX% our report we our year our operating cash have equity assets, costs increased stock one-time improvement Since increase same dues. returns flow of assets, seen and reduce due XX% cash We versus fiscal the the impact assets. have expenses our by reduction quarter compensation CapEx X% a sweating to a I our year. CFe, stock we of resulted that started G&A previous XX% and and reducing last reporting in operating We promised happy excluding marginally previous had on in from to steady metric infusion collection XX% and ‘XX outstanding am cash from increase to and in to have to period, focus of EBITDA in this have our appreciation G&A by reported a a expenses, rights.

made encourage significant PPAs, finish much the Power We for have report but line. second of there gigawatts Letter despite to which definite Purchase that ISTS backlog is on side, to till XX up towards power has the may awarded gigawatt by to we COVID SECI out On movement needs. of for not the peak there be still power a recovery which coming their buying with wave XX not prior that is our is deliver to no awaiting flip progress towards a noted shortly to have Agreements is have bid X been Award yet. supportive a In cleared. with which we in this spite to pandemic, solar invest new should DISCOMs capacity of of backlog future demand PSA we It optimistic is tied positive be news underway as remain DISCOMs. any will the signing

has wave eased, from have second the buying As DISCOMs. in renewed interest power we seen

and in We global it has and prices timelines. polysilicon have supplies, past our impacted our recent the commissioning seen escalate

at recently behind push that We the talk measures has up setting support situation, the gigawatts industry. panel renewable Two has announced only manufacturing of reiterated energy generation continue in talking of to the The been to continues been operational been by measures enable local the XXXX. Honorable domestically. and to recent climate from commitment weeks the last The vision driving actions Prime important the XXX GX on energy sector. solar force government were There encourage renewable assets, in promoting in and the of and solar India. India’s monitor India’s are Minister about the Make cell to manufacturing has government is Summit to hopeful temporary. Government he prices increase Apart few

XXXX, duty on the XX% was modules cells. basic custom and First of from with April on Xst imposition XX%

auctioned Approved after list. List which of notification XX, April XXXX that the have ALMM was buy will list project Models other & to The of solar the Any on appear the panels necessarily Manufacturers. ALMM is

be been pipeline be to since of we believe recent the underground. Court the benefit certain asked a a auctioned costs. the these wires all imposition transmission regions in have pass will Our lines, before India, we cost were allowed Gujarat, projects through both as by continue We the enjoy overheard to converted our as neutral Rajasthan should current of be Honorable of pass-through to same, this to from Supreme Further, per notifications. if of judgement would of incur and the us,

the of has last Given all fiscal been ‘XX, prudence. and year, efficiency the turmoil year about FY ‘XX

and our our in have facilities improve We members to living operating projects team invested site. at of generation

team to the we of achievements modules almost on trackers the were and moving years two rapidly sale shown behind were huge were our to I assets on that returns staying keep construction. projects bidding insolation the for opportunity the our scale. and our and various and from our shareholders able the are successes are our back construction deploy waiting We delays, to fiscal pandemic forward have with this the capital aggressively satisfying. look of I year, to temptation surges, to If able cost simply to business our we we through that to sustainable me, are through of year, into of in do right by hope to which Rooftop support bifacial With protect communities, of optimism. able been some capture have projects the patience the largely efficiency great our very the through difficult increase going the away under higher at latest we and COVID-induced the coming and operating a work than philosophy We believe and rather a chase return earn building of than look lockdowns

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

Murali Subramanian

provide On under X, we an you, our Ranjit. construction. Page update on projects Thank

contracted that year and our fiscal module XXX and ago. at but trying material activities, XXX new for also prices of anticipated their chain delivery our we megawatt end, earlier coupled The XXX months so wave final May. the are had modules levels suppliers price our raw despite several that last to the The impacted impacting contracts. We yuan Rajasthan severely seen high in supply by with sites. renegotiate construction orders disrupting the and local peak COVID megawatt demand were project, module finished signed operationalize commitments for would years in by megawatt solar a its has past or rising costs, not in rising China, in Second supply of resulted at several only

and Ministry finished been XXX and megawatt and to COVID of another by pushed Energy However, wave after New today, don’t to delays. after granting second XXXX, construction COVID Thanks challenges. we extension Project on delays. as in April any with weather related due has for COVID -- incur or to Renewable of Assam too has picked date the in commissioning related all the XXX megawatts notification, work we to have FYXXXX projects expect penalties related up poor quarter, due Xst

commissioned be of After it now. megawatt the The fully the May of However, commissioned, a in second another XX.X expected year, commissioned project we midst project XX again in end and in hit. as of we taken megawatts is came to strongly already another XX.X calendar the expect megawatt wave done are by the the season the COVID entire and initial has shortly. be monsoon of to

a We have commissioning till for financial the extension this procurer -- from fiscal I this extension year, year date year, getting end the sought sorry. regulator of and sorry am this calendar

the practices better and in returns. construction we past, incremental squeeze improvements operations mentioned in As out made have to several

Our recently been downtime level. at has faults leading identifying operationalized analytics string quicker, in lower platform instrumental the to

electrical Our also ability been and to have losses during enhanced rectify operations target, determine considerably.

increased under prices. of construction panel in the systems we side, impact are of to our projects one On the installing tracker-based construction, combat

provided some our have highlights Page ESG We accomplishments on X. of

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

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

We water across have been installed ground this XX fiscal. structures recharge XX focusing sites on water neutrality, having our

focus possible, damaged wherever have recycling of of environmental this with year progress XXX disposal, made disposed. this fiscal tons is we good and very module even Another safe year modules

remain response operate support also on with We communities we medical active towards actively and front. in health and pandemic engaged the facilities which the with

Board principles World SGX. governance NYSE, gender we on increased the On of already side, governance are Bank and independent diversity. of complying standards our are Directors with with equator the Majority SEC and

policies introduced Equal Inclusion, Diversity towards & efforts upholding we highlights and the Opportunity Rights During standards. highest Employment Human our the governance with for along fiscal, which

continuously practices striving We are to sustainability. to enhance implement best our

a second of falling companies COVID solar PSAs, last distributions In the projects signing and Purchase and been Looking at been but have accentuated of the at has is there of Page industry wave regulatory couple Letters allocated Award and without moment. the updates with build-up on Agreements X, this quarters, Power not the by tariffs.

protected discipline bid from has our However, the recently at tariffs. low entering us out

it in recently delays. the grow We may news overall India low the at input is second bid projects find costs expect rise COVID wave. with power developers coupled build to emerges the as is related now, given from The demand that out difficult in good the to country tariffs expected

increase the in expect in compared that the there we be With ones pricing, challenge to in should supplies the and do tariffs discovered an recent past.

and surprised shall been that have out. see all we how However, we spans

that have competition periods seen intense moderation. been there followed by have We of

that We commercially and at as are pursuing only we newer projects opportunities such shall wind for tariffs. hybrid and we viable assure bid

would discuss We With that above to pipeline which to that, results. provide continue the to turn able tariffs, add at would of will value PPAs our capital. obtain believe over accretive returns gigawatt and Pawan contracted to we be it the the to quarterly I X cost

Pawan Kumar Agrawal

Thank you Murali.

operating megawatts higher we on year were a of Turning is on what to operating X,XXX which or AC basis, as XX% X, XXXX, Page were a March than we XX, PPA before.

Since definitive and megawatts from last quarter, these entered portfolio. from excluded our stable have sell agreements have the of portfolio. update, X,XXX into excluding Our Rooftop we Rooftop therefore our previous our portfolio portfolio to remained assets

costs have in continued than Our XX% to were ‘XX construction the and year. fall about FY previous lower

same the Turning on -- Page of which to been second more increase construct as $XX.X at COVID from noted and affected the as projects, by X of our prior Murali. looking EBITDA revenues have Page continue quarter quarter, or by expenses, the we year. supply revenues, some against higher, to XX, sorry wave stock related our increase challenges in on XX% front modules XX% in for has adjusting million, After compensation been the

which We cash below about Page year, megawatts outlined we G&A ‘XX from year $XX G&A an very as levels, G&A lower in expect primarily inflation added to are that on ‘XX, the pleased and in our about G&A increase costs into XX% XX, reducing on operation. that looking to appreciation rights, cash expectations. reflecting our G&A, our rise for internal FY had When stock or the XX% were FY million was our for out to this and year. will earlier SARs, save report than Turning prior focused we remained

well We well about RGX as expect million substantial bond are long-term refinancing on of outside as interest and in these are we our pool refinancing US$XXX Bond US$XXX million completed. progressing facilities costs Green debt savings once

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

For fourth we as XX, $X.Xmillion, a XXXX XXXX. around [$XX.XX] XXst March of quarter in reduction share price ‘XX, as reflecting reversal primarily to [$XX.XX] in had from of of March expense

Going forward, quarter’s and change impact, below have will $X stock price and above positive both negative. our $XXX,XXX in close an every for previous about

the We are this to of particularly year. ability DSO despite our improve our proud challenges

XXX quarter ‘XX days, was year is DSO which Our ago. fourth days XXX than better a about

flow billion the was X.Xx, debt rose $XXX believe make of was to to payments counter commissioning credit year-on-year about to ratio assets worthy XX%. XX, net X.Xx. EBITDA about in for continue that operating last equity from debt XX% the for We party can projects our high operating better progress Page than operating million assets a resulting there On from this last collecting Net XX with about be in EBITDA assets year’s with further that about of future increased in EBITDA for see and improvement will and $X.XX cash of months ratio year. and assets you operating

of $XXX at balance and billion. sheet stood our $X.XX and cash Finally, looking information, Page XX net at equivalents approximately debt about providing cash had we million

of Assets against our our assets as hedging linked million debt Green hedge sheet the should calculating foreign exchange debt $XX for Other a we directly place reminder, is total balance our put to the in in netted As this to related on those Bonds. are that be our ratios, included

commentary pass I to Ranjit provide guidance. Now, on our to on some

Ranjit Gupta

we revised fiscal curtailment. for Thank you, XXXX, Pawan. timely year reiterated when normal weather, commissioning, ‘XX, guidance caveats In of I no February and our had mentioned the had

revenue ‘XX insolation though compared are revenue X.X% on primarily to lower Even on year QX lower the to markets updates. recovery current of for the keep our we conditions. as projected and started We lower now, the second our from our we have the fiscal weather due X.X% our just number, numbers path coming reiterate our will fiscal, in but on posted reflecting wave,

For expect X,XXX we X,XXX be the to million to INR this, take to to the happy and XX%. first revenue between and With fiscal PLF between quarter INR million we ‘XX, be will XX% questions. be

Operator

[Operator Instructions].

question from the is from First Philip line Partners. ROTH of Shen Capital

Philip Shen

agreement one wondering is on gave might SECI timing if tranche in first a was first release. placed. you for have when be sense I prepared some the know But the when shown your X better the in I remarks color might could What's and gigawatts. The there? your of the get you

Ranjit Gupta

Thanks, Phil, for question. the

So progress last weeks. like is some X over you mentioned, right, the X, there

that In weeks, of well. over fact, actually a happened that last couple couple regulatory actually the of went and hearings the scheduled were in commissions those hear we hearings

we we in the hopeful of that are are middle So -- June.

the So should what tranche. we whole If off are thing, least the will the the within we by hopeful told signed signings something we first -- that X at SECI. it are is will weeks weeks, X next begin within next not get

Philip Shen

lower -- it's tariffs with they down by much you you'll by be you but could be? could you below preliminarily to or how thought? XX% where you Ranjit. much you been the to think do think have able think how come tariffs Great, I bit lower, Do mean think you a I could the do lower share Thanks. come chance expect be? And they

Ranjit Gupta

past the can we sign. we spoken make been that past last X or no we the X have we that And in because the hold and have have which have There Phil, liked months the really in that months and for more we would to we tariff we mentioned, discovered have time. us, Otherwise, available out said don't right super been tariffs been is as those the us. X believe competitive. to that So is have go difference at have like to tariffs sense or not to This on And those are for tariffs. participate actually markets hurry to option has concerned. has market for direction wrong is and in as our us sign because option far will the an like the the moved shown in in

signed tariffs. appropriate we correct that we not those close tariffs. in had power for the -- to we look our those the would saying were tariffs at had some And option and agreements and tariffs So that view. declined at point point that are at the And wait prices discovered rather to

maybe tariffs tariffs. company. has sense, the reduction rest power distribution when XX% final that, be for at continue But our make But and tariffs been to the only assured that the is discussed us. get we So a sale the approvals agreements the is past to moment, did what still a kind -- with not their we the sign being in known sense the what XX%, when regulatory numbers and fixed sign will we of have declined makes do from will

Philip Shen

I might could share the be might of a the like? what little Thank announced And that color, you wind if look be Great. of able the structure for something and and mentioned storage. timing on call that get to wondering when more opportunity potential to earlier, was the you then you into on Ranjit.

Ranjit Gupta

and wind Phil, currently, what hybrid, that’s thanks a asking very important commercial -- wind storage for in which that in is more there nature exploratory small nature. are standalones, because And very than that’s is are tenders, happening question.

at some have them. we So of looked

I like those they're We small and any said. have part because taken not yet in of very auctions exploratory

wind established. wind they as are India around are projects concerned, Wind and than XX well in been has far more years. as hybrid However, solar for

of I market. a it's than X experience well-established life. the in our building of more therefore, gigawatt And and have Murali So wind previous

construction comfortable with auctions and very wind projects wind the we So and very, wind therefore, wind are operations. and

last auction for coming an auction next in the part auctions wind a there And couple the for X of in solar next taken in months. X up wind the weeks. and we have are to -- over hybrid we understand an So X

take those one those both projects of first will solar or if wind if auctions wind right tariff, the for hybrid out Azure. like we auctions. So the part auctions we certainly and And to we will or win in those win again, find build

Philip Shen

Great. may. question, One last if I

As -- it you to, mentioned to the used relates recently I panel you your think, increases. trackers, trackers used that price offset

Looking you expect ahead, do increase something you trackers first meaningfully? could which of share think And of did so, And the all, use? -- do percentage? it meaningful like be tracker you to at expect of to your a then stays you it projects also, Or do in be your if trackers small installations? XX%

Murali Subramanian

Ranjit, want to that? take me do you

Ranjit Gupta

please. Yes

Murali Subramanian

Right.

So the So right? is panel has be given in at considering merit, currently, tracker. there every to evaluated its prices, merit project

project makes So several determine for to of each location, make projects, be the as the doing And the will basis, does depending our we are we inputs, whether system that other evaluated one on sense. based that on sense a on decide. depending mentioned. on fix will or Depending tracker tariffs, traditional

for it would be the percentage hard peg of So a to us future. sort for

we as well, past of conversation terms which are looking in of a think at range had this we companies. tracker, the In where I

of getting Indian. of each is them contract are is of them these names, some different So is companies, and we of is portion Chinese, And them going there, one which are American at ahead. the X one one the them are of and looking big

Operator

the is question The of Mandloi next [Operator Suisse. line from from Maheep Instructions]. Credit

Maheep Mandloi

clarification or FY XXX the April revenues. guidance X on it INR reduced around I XX.X Could XX.X release, INR that think billion press INR maybe not? XXXX had in Because Ranjit, million. by of you of whether you billion includes the clarify Rooftop to

Just clarification want some that. on

Ranjit Gupta

So in -- talking current about and we the have the right? we XX,XXX mentioned, have that numbers, included XX,XXX the so you're

Maheep Mandloi

of XXX yes. April announced portfolio. sale you the Rooftop XX,XXX press when release right, the and that's Yes, XX, the in

Ranjit Gupta

would Pawan, be take to this? you able

Pawan Kumar Agrawal

your Sure, -- excludes is the understood next revenues. what you excludes In Rooftop I this revenues, that Maheep, year Yes, if question correctly. if sir. Rooftop guidance,

Maheep Mandloi

than clarify that? just million revenues XXX on press more So the online want result else I guidance that. from a earlier increased versus to April coming just of something or That's projects release. expected

Pawan Kumar Agrawal

Yes.

see, if of because qualified slightly projects that also So is MNRE wave COVID you considering extension. and second are we getting our also of on Maheep, these delayed, of that course, X-K have

ascertain today, position So the project. we in a exactly reasonable not position are would kind with stand as we be of certainty of what a to the

is be we the tell X-K quarter, the what commissioning we'll our very assessing And be to will reason the in guidance. if how have that a So this we have able be next annual -- maybe process you to this that possibly -- in qualified happens. would need modify

Maheep Mandloi

project any And low impacting And to quarter, prices we projects last quarter is on risk what up in detail question expect CapEx XX% construction side later anything the another it had on to solar compared last that. seems -- by in suppliers, with I'll the term? pretty follow just this you from rest my just at of you just new the the year, in least model the that just on from lower do maybe How trend looking under at and CapEx a cancellations you the that like it, late? model to for have expect off the Do the any near increased my math. in given for

Ranjit Gupta

question. good very So

with manufacturers So signed negotiated several supply have and module and suppliers. agreements we contracts supply

we are sort them margin. And In being more cases, In because and agreed a of we in work a rise negotiated some in progress. some to been have understand cases, that. this Some a little of is than discussed has increase. the there input marginal costs, and increase is

said talking today under are Having a were new build new still we discussion. if project under those to today's about already So have if of go construction, any which takes project I'm the all cost this, bid are by I projects that which spoken we not up panel go I the in this would then for new XX%. about but a prices, of release, bid for, --

and not construction signed projects of is there panel the have we would contracts bit those However, impact prices, because us directly at numbers. very specific that for around under little discussion something that's a lower

Maheep Mandloi

high-level just makes That you. this Ranjit, And like here, then and Right. question one for sense. maybe maybe is

I of seeing today, couple market. we're And taken exchange Indian within So in even Indian the think a hands private. assets operation recently international was developer

the to or guess -- entities, say, you the seeing any are the interest in next projects, I markets you, of mind, especially in, the to doesn't of that in which other gigawatts include that my seem reflect or privatization in given said the ahead So doesn't -- the PPAs just even equity opinion, just from keeping month so? in as X like, negotiated could valuation opportunity any be

Ranjit Gupta

is the the question this taking have At there private. moment, between company few in difficult wider price Maheep, is to true was that have the there shareholders the clean perhaps the heard the closer company. the what value And we pullback about share to of energy at reflect months market moment, talk sustainable no and seen has we And very a stocks. answer. in a the last been

I X.X shares. shares over trading day. liquidity, are we a -- true joined our Yesterday, we of was trading Today, believe, traded temporary phenomenon. about we shares Today, over a think I if this we more see than company, see sooner And XX,XXX temporary that today later. I am the share you million than we I price is a trading value will year the a the we right, were back. confident So when -- perhaps a day. reflect I are mean XXX,XXX

a is of of with a come the the opinion. trend, that public in going liquidity, And my little But to we in volatility. public. to stay there does bit And kind brilliant markets positive. be place are hope U.S. I believe, So

Operator

line from Puneet of is from question next HSBC. The the Instructions]. [Operator

Puneet Gulati

My presentation, basis, DC talk a 'XX from to cost. for overall first FY go will your plus you falling in about is with 'XX. $X.XX think these on the cost In question costs FY you respect your in cost do 'XX? to $X.XX Where FY

Murali Subramanian

costs, talking Azure Again, when projects, right? you're you about these specific say

Puneet Gulati

Yes.

Murali Subramanian

a percent, are a up because few It perhaps negotiation construction. are this days with would these is much. under not projects trend our early suppliers. by And these constant and discussion again, But

now. from given we've that contracts, would few percent I probably speculative. we our happen already will down. But That XX weeks don't signed what what -- there renegotiation know a we X could predict But of X or again, down can't So months happen a some On where estimate months be I are weeks happening. because increase. lot are, basis, or we X might

Puneet Gulati

Okay. were module should If to it strengthened? current resume where the I prices then be

Murali Subramanian

and you go If with prices increased. of for have costs a other new input also look project the module you lot were current at to a

at mentioned. look about would So a that, XX% I if increase, you of one reckon as all

Puneet Gulati

[$X.XX comes from $X.XX].

Murali Subramanian

again, the But improve per energy is using the I cost just as would yield, if more here, number said right? newer metric opposed as important is metric. introducing Perhaps are you of if of then megawatt be Yes, technology relevant million probably cost the more X trackers, relevant investment Because installed. per XX%. to units, of amount to amount you're other per generated dollar megawatts

So that may come better technologies. newer consideration and into deploy you once

Puneet Gulati

Understood.

and well as cost including you're the trackers in So of as XX% well? better modules the

Murali Subramanian

No.

it's -- so So There moving project in very many our parts cost. that are is difficult.

depending So of the of the on the choice of module technology choice depending choice tracker, modules, itself. of the on

all them impact So of will cost. the

So in What account cost on lowest purely equal, the have change get of I CapEx per is lowest anything, the like-for-like to indicated change being like-for-like, to no endeavor in of else terms XX% all on is increase cost no megawatt. opposed items. energy in as the of technology,

evaluation but better we constant right? do. if However, for go you you a better may So you technology, get might yields, more, pay that's

Puneet Gulati

much second of in the question how Understood. the year? is capitalized was current My CapEx

Pawan Kumar Agrawal

Yes.

our INR INR the XX,XXX XXX,XXX So from million. million if you has sheet slide, to up gone look PP&E balance at

March So been compare March you versus 'XX. is that 'XX has that something if capitalized delta

Puneet Gulati

Yes.

being look and INR at it I what but billion, your CapEx, -- XX that if is roughly is is half commissioned So probably number.

Pawan Kumar Agrawal

Right, which remains in we commissioning, to right. then Because costs incur typically, a commission. CWIP, and we lot have of

is So reported. it the in is that So if even it right? is capitalized, way we CWIP,

Puneet Gulati

deficits? So would INR for year, all have ballpark billion capitalized XX.X what number is you adjusting this

Pawan Kumar Agrawal

XX.X? Sorry,

Puneet Gulati

the would is comparison? cost [XXX] billion the megawatts, capitalized XX.X right for INR be that

Pawan Kumar Agrawal

still total this is of commissioning. So is they're which CWIP. of have construction. comparable number with exactly under But therefore, me. project is total CapEx which check vis-a-vis not is ready and much capitalized gross, in we'll how is but increase much definitely, part and to commission the a maybe, the part how in of is breakup That And not

Puneet Gulati

Okay.

last for with later take So Ranjit, is question, you. I My can that you.

still under tariffs. of X you So in have terms gigawatts negotiation

you is something number module to current take lower the which need on So you think higher you X.XX tariff? could prices, Or do or a you do comfortable take with? will be think a still you

Ranjit Gupta

talk is sales to current we -- the we polysilicon indications are buildup. that starting the talk are easing talk inventory if suppliers, ease already seeing to are the to indications and wafer that prices you we all supplier, this Puneet, talk very indications suppliers, module temporary. exist, Certainly, the to the this is out module that or manufacturers suppliers, the And that out to

therefore, is higher, so, higher. Murali this today is that tomorrow, we not continuing around for the example, x, XX% or let's say, like be believe XX% is a it And don't price will mentioned, trend, expectation. XX% That if that the

next normal that the will and of go resume end the price the next we to the towards of see weeks, moderation we modules year a expect beginning is service in few We year. as going steady of or in

only those This Purchase are contract our we contracts we those I'm be we delivered are or time, X signed, if Power that some weeks’ like for quarters buying hence. to get we a will enough be to -- Agreements by saying sign see Purchase to weeks modules if X need that means of from lucky Power years Agreements X in So going now. X

is do happened X from we rise there pre-COVID is quick But numbers. prices levels. time. they this will to believe We is prices from in to So expect that module when the We in see least of market surprised numbers seems be believe that what see time just that X later come to current levels levels to be prices the X not than we expectation. We pricing, which the I in quarters, the the will a seems possible higher not to not what course, to suggesting. pre-COVID don't next it's is if next us. able X, to should to able be some crystal to sooner be is of is the are this telling but believe perhaps our suddenly this quarters, it pre-COVID period post-COVID, plenty moderate. would market right, at we as dropped But that extent, do the This back that in over ball

Puneet Gulati

My you're I there some because any see major you resultant? does that hurdle need on. Rooftop be the reimburse potentially which that at, last sale sale that asset is question, looking to of do sort Any if says Radiance Radiance that a subsidiary, seems comment to you bottlenecks may, on of transfer your go to just -- if not

Ranjit Gupta

excited where got are So, great about portfolio. deal. a seller Puneet, We've buyer the happy. Radiance team deal. super great got a This both They've this and is a is transaction

already us. committed. very portfolio, So seem and to they we operating have of success they than be with even a that motivated team. are are very very will they we what better And And have engaged They good a confident make done. this perhaps

therefore, But bit portfolio, some spans get issues. Purchase this take does approvals some we In and PPAs are it a the in are a don't Agreement. you time case and be was a Rooftop, will it how there the some approved, all of a know ground-mount Power If to bit longer, portfolio. issues Power So all XXX-odd megawatt any the is Agreement, unlike, it sign-offs. faster. Purchase believe one getting of it would right? There And -- that be always take

why contract sides things that's goes motivated specifically clear be about contract conditions to contract in September. protection transparent terms in been a that is to, a contract this obviously, what seller they’ve take because, the said will and transaction obviously -- success. we have will mentioned some it the those have we because the make therefore, in are And their are So both When have both there referred terms that you situation out. been till we no there have and buyer But are. when to for

Puneet Gulati

still you're for paid right? to But yet it, get Yes.

Ranjit Gupta

then paid. Yes, get mean of course. we the transaction I closes when

Operator

Elvira is RBC next The Capital from question Scotto of the line from Markets.

Elvira Scotto

guidance. XXXX fiscal everyone. the on Hi, just some clarification year I wanted

what construction? So So is in that the that's what full terms in guidance, your guidance completion relative is for in project year each fiscal of your guidance? for projects embedded timeline embedded under the to

Ranjit Gupta

Hi, Elvira.

second X is Rajasthan of project, yes, presentation, Slide think X go to a I likely you the X which Rajasthan Assam to our if which and is project, projects Rajasthan are we megawatts a commissioned, XXX-odd be the construction how projects. presentation, on you Slide mentioned at the have the X, So the half the under earnings X, if look was, which update,

time. megawatts capacity our So this XXX-odd that added this to in will get

end seeing only do -- if plain do this don't do guided don't any this, fiscal. us numbers of anything So at vanilla, our should else, by we we then other we we the be

what So case, worst-case in is say us. this in -- our scenario this for is our belief, the

Elvira Scotto

XXX believe on Rajasthan is, by pushed X asking I'm you've one reason The megawatts I quarter. out Okay.

when trying you've year actually to the just can guidance megawatts? maintain understand I'm fiscal timeline XXX same So you pushed how still out on the

Ranjit Gupta

to XXX means second that now. XXXX. by Elvira, completed May the should it is reason, of the That by we megawatts be supposed was So done have

that Obviously, not So is to it has happened. happen. not going

already. We are in June

next in fiscal get the it quarter. done So of is quarter year. we that the expect this But part still will next

So that did compared little in the has have happened projects and we the whatever a of is over June. slight the these April of projects, of that last there account push practically and time on push been fact to there work each month on May very on partly

X, could the pandemic months to So therefore, that wave. do second work going in as not these the X.X India was fact we much

just expect But a year. that's still this that projects little been will So the because our guidance we've everything these projects. of has in been guidance the all projects. bit. that, the reason the done get between the the is we from back sale is And fiscal for of we has had to Earlier, target now pushed Rooftop that why same. the The corrected change included Rooftop a there reason February of

Now no far out. concerned. as is we have those far the is taken change Otherwise, portfolio ground-mount as there as as fiscal the projects Rooftop is concerned,

Elvira Scotto

But this. to asking keep just -- then And on sorry clarify. just to to Okay.

is fiscal fiscal in expect amount the exiting this rate a So 'XX? is you year the it that or guidance, run year year that amount

Ranjit Gupta

This XXXX. the of XXst March installed as on capacity is

Elvira Scotto

the projects, are Okay. about projects to projects? returns on wind on -- That's of you those how solar-only just hybrid returns and projects in helpful. And terms then thinking the on relative

Ranjit Gupta

on hybrid is and side. market -- fairly wind mature the both wind the hybrid So solar wind solar

The So we hybrid. or well risks are known, expect players are similar known. solar wind returns known. The technology we or do well on very wind well fairly very is whether the

to us a increases of really the there -- part helps addressable expect don't were X-ways. auctions in wind in because our hybrid, solar only hybrid we wind auctions how What wind take be market differential It because and part taking that earlier now fact also. in solar it helps we therefore, So is us it the return. we'll in and

thing it win projects. increases is us it second to does technology So in this is our where And the headed. because is ability help the

the it's that with facility in when typically as morning typically when managers at we storage in happen might of storage slowly, some have We dispatchable some and evening penetration storage, whatever energy, or facility in the grid whether you energy. work, And of do renewable battery mechanical hours. storage across need the be. that the can storage dispatchable towards moving to have peak you manage for or storage, peak And higher a seen storage sort And the looking grid. difficulty. the energy the are And only hours renewable to renewable world, it's happens,

So storage evening gets day, largely is because filled, filled and filled the night. whereas the by the solar typically in by energy gets wind, peak wind during the the in typically India the is dispatched gets solar hours morning

same storage and that in of evening use morning. once once in and sort can use it So the actually the system the we

important very in is wind in be successful a therefore, need ingredient to to for we that dispatchable and space. the power So India, be

Operator

to questions, for I further like no hand conference over the will are now there the to management closing comments. As

Ranjit Gupta

Thank our seeing And to for everyone. participating you in you, again. call. conference forward Thanks look we

and to always and that more one-to-one on. for us comments clarity clarity you for might for want that you are available time is more available, Bansal want any Vikas discussions anything have any questions, We with might

Thank ahead. interacting So forward a you with to more and I look you. great have week

Operator

gentlemen, Azure concludes us your lines. of disconnect And this may Thank now on that Ladies you and for conference. joining us. you Power, behalf

Azure Power Global Limited (AZREF) 16 Jun 212021 Q4 Earnings call transcript