FINANCE UPDATES
Tata Power Reports Q1 FY2021 Results, to Merge Solar EPC Business
Tata Power, one of India’s largest privatelyowned power producers has announced its first quarter (Q1) FY 2020-21 results. The firm has reported that for the quarter, consolidated PAT (profit after tax) after exceptional items was up 10 percent at Rs 268 crore as compared to Rs 243 crore in Q1 FY20. And that it will be merging three of its wholly-owned subsidiaries in Tata Power Solar Systems Ltd (TPSSL), Coastal Gujarat Power Ltd. (CGPL), and Af-Taab Investment Company Ltd (AfTaab) with Tata Power. The Company stated that it maintained stable performance despite lower profits from Solar EPC businesses mainly on account of lower financing cost and stable performance across all clusters. And that the consolidated EBITDA stood at Rs 2,037 crore for the first quarter, which also included Renewable EBITDA of Rs 588 crore. The renewable business saw a drop in the quarter, represented by the lower EBITDA as compared to Rs 663 crore in Q1 FY20 mainly due to delay in the solar EPC projects due to COVID 19. The firm has also reported that unlike its consolidated PAT, the standalone PAT after exceptional items stood at Rs 45 crore as compared to Rs 297 crore in Q1 FY20 due to higher dividends from subsidiaries. And that consolidated revenue stood at Rs 6,671 crore as compared to Rs 7,567 crore in Q1 FY20. The firm also announced that it won renewables bids totaling 220 MW during the quarter and that its solar EPC order book stands at Rs 8,700 crore including GST. On the merger, the firm stated that the three wholly-owned subsidiaries in Tata Power Solar Systems, CGPL and AfTaab are proposed to be merged with the parent company for greater synergies in the financing, compliance, and oversight. 28 n August 2020 n Saur Energy International
Azure Power Reports Q1 Financial Results, Revenue of Rs 394 Crore Azure Power Global Limited, a leading independent solar power producer in India, has announced its consolidated results under the United States Generally Accepted Accounting Principles (GAAP) for the fiscal first quarter (Q1) 2021 ended June 30, 2020. The firm has reported a revenue of Rs 394 crore for the quarter, an increase of 16 percent over the quarter ended June 30, 2019. The firm also highlighted that its Operating Megawatts (MW) at the end of the quarter were 1,809 MW, an increase of 12 percent over the same quarter last year. Further, the Operating and Committed Megawatts were 7,115 MW an increase of 112 percent over the quarter ended June 30, 2019. The firms committed megawatts include the 4,000 MW capacity it had won in the Solar Energy Corporation of India’s (SECI)
landmark tender for setting up solar projects along with module manufacturing facilities in the country. Azure had decided to exercise its greenshoe option under the tender which increased its project capacity from 2 GW to 4 GW. The firm has received Letters of Award (LOA) for the project, but the Power Purchase Agreements (PPAs) have not yet been signed. PPAs for these 4,000 MWs will follow only after the sale of power is contracted by SECI under a power sale agreement (PSA). The firm also reported that the net profit for the quarter was Rs 4.6 crore. During the quarter, its results were negatively impacted by a one-time charge of Rs 26.4 crore related to debt refinancing. The non-GAAP adjusted EBITDA for the quarter was Rs 329.8 crore, an increase of 29 percent over the quarter ended June 30, 2019.
3 Firms Pitch for Equalisation Levy on Solar Equipment Supplies From SEZs A group of three domestic solar energy firms has pitched for an equalisation levy on solar equipment supplies from special economic zones (SEZs) for domestic use, so as to bring them at par with manufacturers in non-SEZ areas. The government is contemplating imposing basic customs duty (BCD) on solar equipment to discourage imports, mainly from China. Once the BCD is imposed, it would also apply to domestic solar equipment manufacturing units located in SEZs. The industry is pushing for an equalisation levy of 1-2 percent on solar equipment supplied to the domestic market from SEZ units, whereas the BCD could be in the range of 15-20 percent. The equalisation levy would bring the solar equipment manufacturers in SEZs at par with those in the domestic tariff area (DTA) which have not got the tax and other incentives received by the former, the companies said in a statement. The
three companies include RenewSys, Webel Solar and Vikram Solar, all three firms have units located in SEZs. “There was an apprehension that manufacturing units located in SEZ have availed certain benefits in past hence if the BCD is not levied while clearing the products from SEZ to DTA, it will put manufacturing units located in DTA at a cost disadvantage,” Vikram Solar‘s Chief Executive Office Saibaba Vutukuri said in the statement. “The equalisation levy will set off the benefits availed by manufacturing units located in SEZ while setting up the facilities,” he added. “We second this proposal for imposition of an Equalisation Levy, as it will ensure that the manufacturing units located in DTA and SEZ are placed on a similar footing in terms of customs duties.”
