Recent 4 GW Project Win Is Value Accretive
Key Highlights of Recent Developments
Azure Power
No material adverse impact from COVID-19, to date; Operational
assets on track; We expect MWs under construction will be completed
before expected revised COD.
Cash Flow to Equity (CFe) from Operating Assets (1) was $43 million for
FY'20, up 15% from FY’19; Reiterate long term guidance of CFe growth
to $170 - $210 million over next five years
―
Pursuing lowest cost of capital Identified $150mn of equity sources
towards $600 million equity need to build 4 GWs. Fully equity funded for
3,115 MWs; Continue to expect that no new shares will be issued
before at least FY'22(2)
Hired advisor to explore selling second group of assets, in addition to
first set of assets; initial good interest
Secured project financing from leading foreign lenders at a price below
9% recently
Owing to delays in receiving LOA on 2 GW green-shoe, we are
considering bidding for more solar as well as new technology-driven
tenders like hybrid, storage based to fill construction schedule gap. Will
only win project if above cost of capital.
Present Value of Equity (3)
(No value for growth beyond current portfolio or cost reductions)
PV of Equity Value (USD
Mn)
$2,500
$2,000
$1,500
$1,000
$500
$-
10.0%
12.5%
Cost of Equity
15.0%
■9% Interest Rate 10% Interest Rate 11% Interest Rate
Expect to
achieve 9.0
- 10.25%
lending cost
in future
1) CFe is a Non-GAAP metric, please refer to the reconciliation of this non-GAAP metric in the Appendix. 2) unless it is the lowest cost source of equity for our projects 3) As of March 31, 2020
6
Current
market cap
is ~$750
mnView entire presentation