Recent 4 GW Project Win Is Value Accretive
Recent 4 GW Project Win Is Value Accretive
Tariff -15%
higher than
similar SECI
central grid
connected
auctions we
have won
Opportunity
for 20%+
equity IRRS
Potential of
around 6.0x
EV/EBITDA
build cost
Azure Power
Present Value of Equity for 4 GW Win(2)
$1,000
$800
$600
$400
$200
PV of Equity Value
(USD
EA
Key Assumptions for 4 GWs
Project Cost
59 63/Watt
Net PLF
28.9% -29.3% Leverage
75%
Overloading
50%
Tariff
3.9 ¢/ kWh
Interest Rate 9.25 10.25%
Opex
8% of Revenue Initially
Degradation
0.60%
Loan Tenor
20-22 Years
10.0%
12.5%
Cost of Equity
15.0%
■9% Interest Rate 10% Interest Rate 11% Interest Rate
Potential Upside
Opportunities to reduce O&M given benefits of scale and technology
Potential use of bi-facial modules could increase PLF
Green bond financing could reduce lending costs and reduce equity
requirements improving returns
Further reduction in module prices and BOS reflecting buying power
and gains in productivity
US$/ Watt
Module prices have a long history of declines (1)
$0.40
$0.30
$0.20
$0.10
$0.00
2Q'17
Exchange rate- INR 75.39 to US$1 (New York closing rate of March 31, 2020), 1) PV Insights, Mercom, 2) As of March 31, 2020
3Q'17
4Q'17
1Q'18
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1Q'19
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1Q'20View entire presentation