Azure Power rating – Buy: Ebitda in Q1FY22 was 8% above estimate
Azure Power’s (Azure’s) Q1FY22 revenues rose 15% y-o-y and Ebitda rose 14% y-o-y to Rs 3.7 bn, 8% above expectations. 62-MW capacity has been added in the quarter and plans to reach 3 GW by end FY22e from 2 GW end FY21 is on track. Delays in the 4-GW SECI PPA and lower tariff have led to a reduction in our PT, apart from higher module costs. However, we believe Azure is best placed to profitably leverage India’s renewable energy theme as ROE focus remains. BUY.
SECI signs PSA for 800 MW of 12- GW tender: Azure won 4 GW of 12-GW manufacturing linked tender, which was long awaiting SEBs to come on board for the higher tariff.
