March 31, 2020<\/span>.<\/p>\nFiscal Year and Fourth Quarter 2020 Period Ended March 31, 2020<\/span> Operating Highlights:<\/strong><\/p>\n\n- Operating Megawatts (“MW”) were 1,808 MWs, as of March 31, 2020<\/span>, an increase of 25% over March 31, 2019<\/span>. Operating and Committed Megawatts were 7,115 MWs, as of year ended March 31, 2020<\/span>, an increase of 112% over the year ended March 31, 2019<\/span>. 2,000 MWs of Committed Capacity is a greenshoe option that has been exercised by the Company as part of an auction that was won but this capacity has yet to receive a Letter of Award.<\/li>\n
- Revenue for the quarter ended March 31, 2020<\/span> was INR 3,675 million (US$ 48.7 million<\/span>), an increase of 29% over the quarter ended March 31, 2019<\/span>.<\/li>\n
- Net loss for the quarter ended March 31, 2020<\/span> was INR 394 million (US$ 5.2 million<\/span>). During the quarter, our results were negatively impacted by higher charges amounting to INR 551 million (US$ 7.3 million<\/span>), partially offset by higher revenue, refer the detailed explanation in the net loss section of the commentary below. <\/li>\n
- Non-GAAP Adjusted EBITDA for the quarter ended March 31, 2020<\/span> was INR 2,647 million (US$ 35.1 million<\/span>), an increase of 24% over the quarter ended March 31, 2019<\/span>, despite being negatively impacted by additional expenses of INR 169 million (US$ 2.2 million<\/span>) related to management transition and accruals related to stock appreciation rights included in general and administrative expenses.<\/li>\n
- Non-GAAP Free Cash to Equity for Operating Assets for fiscal year 2020 was INR 3,237 million (US$ 43.0 million<\/span>), an increase of INR 424 million or 15% over fiscal year 2019.<\/li>\n<\/ul>\n
Key Operating Metrics<\/em><\/strong><\/p>\nElectricity generation during the quarter and year ended March 31, 2020<\/span> was 868 million kWh and 2,870 million kWh, respectively, an increase of 343 million kWh or 65%, over the quarter ended March 31, 2019<\/span>, and an increase of 1,136 million kWh, or 66%, over the year ended March 31<\/span>, 2019. The increase in electricity generation was principally a result of additional operating capacity during the period driven by the commissioning of new projects. Our Plant Load Factor (“PLF”) for the quarter and the year ended March 31, 2020<\/span>, was 22.3% and 19.5%, respectively, compared to 20.5 % and 18.6%, respectively, for the same comparable period in 2019.<\/p>\nDuring the fiscal year, we completed 367 MWs (AC) and 610 MWs (DC). During the fourth quarter, 4 MWs (AC) and 11 MWs (DC) were put into operation. Project cost per megawatt operating consists of costs incurred for one megawatt of new solar power plant capacity during the reporting period. The project cost per megawatt (DC) operating for the year ended March 31, 2020<\/span> decreased by INR 5.2 million (US$ 0.07 million<\/span>), or 13%, to INR 35.5 million (US$ 0.47 million<\/span>) primarily due to lower costs on account of the reduction in solar module prices for the projects commissioned during the period. The project cost per megawatt (AC or megawatt capacity per the PPA) operating for the year ended March 31, 2020<\/span> was INR 48.9 million (US$ 0.65 million<\/span>), compared to INR 50.4 million, for the year ended March 31, 2019<\/span>, on account of the reduction in solar module prices which was partially offset by additional safeguard duties paid by the Company. Excluding the impact of safeguard duties, the DC and the AC costs per megawatt for fiscal year 2020, would have been lower by approximately INR 2.9 million (US$ 0.04 million<\/span>) and INR 4.9 million (US$ 0.07 million<\/span>), respectively.<\/p>\nAs of March 31, 2020<\/span>, our operating and committed megawatts increased by 3,759 MWs to 7,115 MWs compared to March 31, 2019<\/span>. 2,000 MWs of Committed Capacity is a greenshoe option that has been exercised by the Company as part of an auction that was won but this capacity has yet to receive a Letter of Award.<\/p>\nNominal Contracted Payments<\/em><\/strong><\/p>\nOur Power Purchase Agreements (“PPAs”) create long-term recurring customer payments. Nominal contracted payments equal the sum of the estimated payments that the customer is likely to make, subject to discounts or rebates, over the remaining term of the PPAs. When calculating nominal contracted payments, we include those PPAs for projects that are operating or committed.<\/p>\n
The following table sets forth, with respect to our PPAs, the aggregate nominal contracted payments and total estimated energy output as of the reporting dates. These nominal contracted payments have not been discounted to arrive at the present value. <\/p>\n
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\n\n\n| <\/td>\n | <\/td>\n | \n As of March 31,<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | \n 2019<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | <\/td>\n | \n 2020<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | \n INR<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | <\/td>\n | \n INR<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | <\/td>\n | \n US$<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n<\/tr>\n | \n| \n Nominal contracted payments (in millions)<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 584,196<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 1,207,290<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 16,014.9<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Total estimated energy output (kilowatt hours in millions)<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 170,718<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 386,918<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n Nominal contracted payments as of March 31, 2020<\/span> increased compared to as of March 31, 2019<\/span> as we entered into additional PPAs received a LOA and elected to exercise a greenshoe option for additional capacity.<\/p>\nOur nominal contracted payments are not impacted for the delays in construction due to COVID-19, as revenues from our PPA’s start after the date of commissioning of the project.<\/p>\n Portfolio Revenue Run-Rate<\/em><\/strong><\/p>\nPortfolio revenue run-rate equals annualized payments from customers extrapolated based on the operating and committed capacity as of the reporting dates. In estimating the portfolio revenue run-rate, we multiply the PPA contract price per kilowatt hour by the estimated annual energy output for all operating and committed solar projects as of the reporting date. The estimated annual energy output of our solar projects is calculated using power generation simulation software and validated by independent engineering firms. The main assumption used in the calculation is the project location, which enables the software to derive the estimated annual energy output from certain meteorological data, including the temperature and solar insolation based on the project location.<\/p>\n The following table sets forth, with respect to the our PPAs, the aggregate portfolio revenue run-rate and estimated annual energy output as of the reporting dates. The portfolio revenue run-rate has not been discounted to arrive at the present value.<\/p>\n \n \n \n \n\n\n| <\/td>\n | <\/td>\n | \n As of March 31,<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | \n 2019<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | <\/td>\n | \n 2020<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | \n INR<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | <\/td>\n | \n INR<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | <\/td>\n | \n US$<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n<\/tr>\n | \n| \n Portfolio revenue run-rate (in millions)<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 25,940<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 53,591<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 710.9<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Estimated annual energy output (kilowatt hours in millions)<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 7,468<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 16,969<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n The portfolio revenue run-rate increased by INR 27,651 million (US$ 366.8 million<\/span>) to INR 53,591 million (US$ 710.9 million<\/span>) as of March 31, 2020<\/span>, as compared to March 31, 2019<\/span>, due to an increase in operational, committed, and greenshoe capacity.<\/p>\nFiscal Fourth Quarter 2020 year ended March 31, 2020<\/span> Consolidated Financial Results<\/strong>:<\/p>\nOperating Revenues<\/em><\/strong><\/p>\nOperating revenues for the quarter ended March 31, 2020<\/span> were INR 3,675 million (US$ 48.7 million<\/span>), an increase of 29% from INR 2,847 million in the same period in 2019. This increase was driven by the revenue generated from projects which were commissioned during the period after March 31, 2019<\/span> until March 31, 2020<\/span>. Our revenues for the quarter ended March 31, 2020<\/span> were negatively impacted by INR 43 million (US$ 0.6 million<\/span>) due to power curtailment in Andhra Pradesh (“AP”). Our management believes that AP power curtailment is in contempt of a court ruling and we have filed an action for recovery.<\/p>\nCost of Operations (Exclusive of Depreciation and Amortization)<\/em><\/strong><\/p>\nCost of operations for the quarter ended March 31, 2020<\/span> increased by 29% to INR 329 million (US$ 4.3 million<\/span>) from INR 256 million in the same period in 2019. This increase in the cost of operations was primarily due to an increase in operational expenses from projects commissioned during the period from April 1, 2019<\/span> through March 31, 2020<\/span>. The cost of operations during the three month period ended March 31, 2020<\/span> per megawatt was approximately INR 0.18 million (~US$ 2,000)<\/span> during the quarter, in line with the same period in 2019, reflecting productivity improvement offset by higher lease costs from plants that were commissioned in solar parks during the year.<\/p>\nGeneral and Administrative Expenses<\/em><\/strong><\/p>\nGeneral and administrative expenses for the quarter ended March 31, 2020<\/span> increased by INR 250 million (US$ 3.3 million<\/span>) to INR 699 million (US$ 9.3 million<\/span>) compared to the same period in 2019. The higher general and administrative expenses primarily comprised of accrual of leases (ASC Topic 842) of INR 114 million (US$ 1.5 million<\/span>) as well as additional expenses of INR 169 million (US$ 2.2 million<\/span>) comprised of INR 65 million (US$ 0.9 million<\/span>) of higher payroll charges related to management transition and accruals of INR 103 million (US$ 1.4 million<\/span>) related to stock appreciation rights due to the increase in the share price during the quarter. This was partially offset by savings in legal and professional charges.<\/p>\nDepreciation and Amortization Expenses<\/em><\/strong><\/p>\nDepreciation and amortization expenses during the quarter ended March 31, 2020<\/span> increased by INR 340 million (US$ 4.5 million<\/span>), or 67%, to INR 850 million (US$ 11.3 million<\/span>) compared to the same period in 2019. The increase relates to the additional depreciation on capital expenditures for the 25% increase in operating MWs.<\/p>\nInterest Expense, Net<\/em><\/strong><\/p>\nNet interest expense during the quarter ended March 31, 2020<\/span> increased by INR 546 million (US$ 7.2 million<\/span>), or 38%, to INR 1,994 million (US$ 26.4 million<\/span>) compared to the same period in 2019. The increase in net interest expense was primarily due to an increase in interest expense of INR 401 million (US$ 5.3 million<\/span>) on borrowings related to projects commissioned in the current financial period, and lower interest income of INR 50 million (US$ 0.7 million<\/span>) on account of lower free cash available during the quarter ended March 31, 2020<\/span>, as well as an INR 95 million (US$ 1.3 million<\/span>) charge related to refinancing of a loan.<\/p>\nOther Income<\/em><\/strong><\/p>\nOther Income, primarily income from current investments, increased by INR 52 million (US$ 0.7 million<\/span>) during the quarter ended March 31, 2020<\/span> to INR 73 million (US$ 1.0 million<\/span>) as compared to the same period in 2019.<\/p>\nLoss on Foreign Currency Exchange<\/em><\/strong><\/p>\nThe Indian Rupee (“INR”) depreciated against the U.S. dollar by INR 4.01 for every US$ 1.00<\/span> (or 5.6%) during the quarter from December 31, 2019<\/span> to March 31, 2020<\/span>. During the quarter ended March 31, 2020<\/span>, the Company incurred an expense on foreign exchange of INR 188 million (US$ 2.5 million<\/span>) compared to gain of INR 17 million, during the quarter ended March 31, 2019<\/span>. The Company had higher foreign exchange expenses primarily due to a loss of INR 158 million (US$ 2.1 million<\/span>) on reinstatement of outstanding foreign currency loans due to the depreciation of the INR against the Dollar, as compared to quarter ended March 31, 2019<\/span>.<\/p>\nIncome Tax Expense (Benefit)<\/em><\/strong><\/p>\nIncome tax benefit decreased during the quarter ended March 31, 2020<\/span> by INR 100 million (US$ 1.3 million<\/span>) to income tax expenses of INR 82 million (US$ 1.1 million<\/span>), compared to an income tax benefit of INR 18 million in the same period in 2019. The decrease in the income tax benefit was primarily on account of the reversal of deferred tax assets as the company now expects to pay lower taxes after eliminating intercompany margins earned by our Engineering, Procurement and Construction (“EPC”) business. <\/p>\nNet Loss<\/em><\/strong><\/p>\nThe net loss for the quarter ended March 31, 2020<\/span> increased by INR 635 million (US$ 8.4 million<\/span>) to INR 394 million (US$ 5.2 million<\/span>) compared to a net profit of INR 241 million for the same period in 2019.<\/p>\nThe loss for the quarter included charges amounting to INR 551 million (US$ 7.3 million<\/span>) comprising of the following items: INR 43 million (US$ 0.6 million<\/span>) due to power curtailment in Andhra Pradesh, INR 65 million (US$ 0.9 million<\/span>) of higher payroll charges related to management transition, accruals of INR 103 million (US$ 1.4 million<\/span>) related to stock appreciation rights due to the increase in the share price during the quarter, an INR 95 million (US$ 1.3 million<\/span>) charge related to refinancing of a loan, loss of INR 158 million (US$ 2.1 million<\/span>) on a reinstatement of outstanding foreign currency loans due to the depreciation of the INR against the Dollar, and a INR 96 million (US$ 1.3 million<\/span>) reversal of deferred tax assets due to lower taxes on intercompany margins earned by our EPC business, offset by higher revenue from operations.<\/p>\nCash Flow and Working Capital<\/em><\/strong><\/p>\nCash from operating activities for the quarter ended March 31, 2020<\/span> was INR 1,838 million (US$ 24.4 million<\/span>) compared to INR 1,332 million for the comparable quarter. Cash generation from operating activities for the year ended March 31, 2020<\/span> was INR 3,678 million (US$ 49.2 million<\/span>) compared to an inflow of INR 2,138 million for the comparable period. The improvement from the comparable period in 2019 was due to an increase in operating revenue during the year ended March 31, 2020<\/span>, partially offset by higher general and administrative and interest expenses.<\/p>\nDuring the quarter ended March 31, 2020<\/span>, the working capital inflow was INR 487 million (US$ 6.5 million<\/span>), compared to an inflow of INR 549 million, for the prior comparable period in 2019. During the year ended March 31, 2020<\/span>, the working capital outflow was INR 39 million (US$ 0.3 million<\/span>), compared to an outflow of INR 1,520 million for the year ended March 31, 2019<\/span>.<\/p>\nThe Company’s days receivable increased to 126 days as of March 31, 2020<\/span>, as compared to 122 days as of March 31, 2019<\/span>.<\/p>\nCash used in investing activities for the year ended March 31, 2020<\/span> was INR 18,256 million (US$ 242.7 million<\/span>), compared to INR 26,053 million for the comparable period in 2019, primarily on account of lower value of purchases of property plant and equipment for new solar projects amounting to INR 18,321 million (US$ 243.6 million<\/span>), for the year ended March 31, 2020<\/span>, compared to INR 26,029 million for the year ended March 31<\/span>, 2019. <\/p>\nDuring the quarter ended March 31, 2020<\/span>, cash generated from investing activities was INR 3,684 million (US$ 48.9 million<\/span>) as compared to outflow of INR 12,922 million in the comparable period in 2019, primarily on account of sales of mutual funds and lower capital expenditures. During the quarter ended March 31, 2020<\/span>, the Company incurred INR 1,524 million (US$ 20.2 million<\/span>) on account of capital expenditures compared to INR 11,469 million, in the comparable period in 2019.<\/p>\nCash generated from financing activities for the year ended March 31, 2020<\/span> was INR 16,146 million ( | | | | | | | | | | | | | |
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