FINANCE

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.

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) 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 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

3 Firms Pitch for Equalisation Levy on Solar Equipment Supplies From SEZs

ended June 30, 2019. 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.”

KfW Grants Rs 600 Cr Loan for 125 MW Solar Project in West Bengal

German state-owned development bank KfW has granted a Rs 600 crore loan to the West Bengal State Electricity Distribution Company Limited (WBSEDCL) for the work on the first phase of a 125 MW solar PV power project in the Purba Medinipur district of the state. The news was confirmed by state Power Minister Sobhandeb Chattopadhyay. The project to be executed by the WBSEDCL, on completion, will double the state’s installed solar capacity in the state, he said. The 15-year loan will carry an interest rate of 0.15 percent and cover 80 percent of the total project cost of Rs 750 crore. “For the first phase of the 125 MW solar park at Dadanpatra in Purba Medinipur, the major cost is being funded by the KfW totalling Rs 600 crore at a marginal interest rate of 0.15 percent. We will fund the rest. The total project is of 200 MW,” Chattopadhay told local reporters. The Department of Economic Affairs (DEA) has given its clearance for the loan from the German state-owned development bank. The project will require 1,000-acre plot of which 600-acre has been arranged and the rest is in the process of acquisition, he said. WBSEDCL will pump in the remaining Rs 150 crore as equity. Asked whether the project is facing delay due to COVID-19 pandemic, the minister said, cyclone Amphan and coronavirusrelated disruptions had pushed the project but the state was trying for laying the foundation stone for the plant before Durga Puja.

Sterlite Power Sells 14.7% Stake in IndiGrid for Rs 840 Crore

Sterlite Power, a leading global power transmission player, has announced that it has sold 14.7 percent stake it held in India Grid Trust (IndiGrid) for Rs 840 crore (unit price of Rs 98) to institutional and high net worth individual (HNI) investors. Sterlite Power is the sponsor of IndiGrid, India’s first infrastructure investment trust in the power sector which saw its initial offer in 2017. Pratik Agarwal, Managing Director, Sterlite Power, said, “Sterlite Power is proud to have played a role in creating India’s first power sector InvIT which has grown over the years with participation from marquee investors. We will now focus on our core business as the developer of power transmission assets. Were main committed to executing asset transfers of about Rs 6500 crores as per the framework agreement with IndiGrid.” “We firmly believe that InvITs will remain a powerful platform to meet the large-scale financing requirements of the Infrastructure sector. The global financial markets will remain in yield-seeking mode for a considerable period, and this will provide enough capital supply to wellmanaged REITs and InvITs”, he further added. Sterlite Power will continue to be the sponsor of IndiGrid and remains a shareholder of Sterlite Investment Managers (SIML), the investment manager of the InvIT. Having built a successful platform and completing the required lock-in period, the company will now focus on its core business as a developer of transmission assets in India and Brazil – two of the world’s largest markets for greenfield projects. It enjoys a leading position in both these geographies. The company is increasingly focusing on transmission assets designed to evacuate renewable energy, and many of its assets under development connect the national grid to clean and green sources of power.

Vestas Reports 67% Increase in Revenue for Q2 2020

Global wind energy major Vestas has issued its interim financial report for the second quarter (Q2) of the financial year 2020. The firm has shown a strong performance in spite of a challenging environment, reporting that it generated revenue of EUR 3,541 million – an increase of 67 percent compared to the year-earlier period. The firm has reintroduced its full-year guidance with an unchanged outlook for revenue of EUR 14-15 billion, and an updated EBIT margin before special items of 5-7 percent. It has reported that EBIT before special items decreased by EUR 94 million to EUR 34 million. This resulted in an EBIT margin before special items of 1 percent, compared to 6 percent in the second quarter of 2019. The decrease was primarily a result of extraordinary warranty provisions made in the quarter of EUR 175 million, covering a specific repair and upgrade of a confined number of blades already installed; excluding these provisions, the underlying margin was 5.9 percent. Free cash flow amounted to EUR (78) million compared to EUR (75) million in the second quarter of 2019. The quarterly intake of firm and unconditional wind turbine orders amounted to 4,148 MW. The value of the wind turbine order backlog was EUR 16.2 billion as of June 30, 2020. In addition to the wind turbine order backlog, at the end of June 2020, the firm had service agreements with expected contractual future revenue of EUR 18.9 billion. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 35.1 billion – an increase of EUR 3.6 billion compared to the year-earlier period.

Ørsted Reports Strong First Half for 2020, Operating Profit of $1.5 Bn

The Board of Directors at Ørsted has approved the interim report for the first half (H1) of 2020. The firm reported an operating profit (EBITDA) of DKK 9.8 billion (USD 1.5 billion), an 11 percent increase compared to the same period last year. The firm also revealed that its earnings from offshore and onshore wind farms in operation increased by 17 percent to DKK 8.2 billion driven by the ramp-up of power generation from Hornsea 1, Lockett, and Sage Draw together with high wind speeds. Net profit amounted to DKK 2.5 billion (USD 393 million) and return on capital employed (ROCE) came in at 11 percent. The firms’ green share for its heat and power generation increased from 82 percent to 88 percent.

Key Project Milestones during the period:

The firm signed the largest ever renewable corporate power purchase agreement (CPPA) with Taiwan-based TSMC, the world’s largest semiconductor foundry. TSMC will offtake the full generation from

Visa Sells its Green Bonds at Record Low Yield, Will Fund Green Projects

Leading consumer finance company Visa Inc has announced that it has successfully completed the sale of its green bonds at a record low yield, as it becomes the first company in its field to issue debt to fund environmentally friendly green projects. According to Bloomberg, the world’s largest payments network, sold USD 3.25 billion of debt in three parts. The shortest portion of the deal is a sevenyear green note with at 0.75 percent coupon, sliding past Google parent Alphabet Inc.’s record-low 0.8 percent from last week on an ESG debt sale with a similar maturity. Visa’s USD 500 million security due 2027 marks the first dollar-denominated green bond from the consumer finance space, according to data compiled by Bloomberg. Google parent Alphabet Inc sold USD 5.75 billion of our 920 MW Greater Changhua 2b & 4 offshore wind farm. The firm commissioned the 230 MW onshore wind farm Plum Creek in Nebraska ahead of schedule and on budget, and received tax equity funding from our partners. It acquired the 227 MW solar PV project Muscle Shoals, located in Alabama. sustainability notes at record-low rates last week, the largest-ever from a corporation. The San Francisco-based firm plans to use the proceeds from the green tranche to finance projects that meet eligible categories, including green buildings, renewable energy, sustainable water and wastewater management and projects that support sustainable living behaviours. The firm in January had said that it had reached its goal to

When completed, expectedly in Q3 2021, it will be the largest solar farm in the southeastern US. The firm has reiterated its EBITDA guidance of DKK 16-17 billion in 2020. But has lower its expectation on gross investments by DKK 2 billion to DKK 28-30 billion in 2020 due to

changed timing of payments. use 100 percent renewable electricity by 2020 through energy sources like solar and wind as part of its sustainability commitment across its operations, including 131 offices in 76 countries and four global processing centres. “At Visa, we see both a responsibility and an opportunity to make broad shifts toward a sustainable and inclusive future,” Al Kelly, chief executive officer of Visa Inc said at the time.