ACME Solar (ACMESOLAR) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue rose to Rs 18,023.22 million from Rs 11,862.66 million; net loss narrowed to Rs 468.66 million from Rs 2,403.54 million.

• Operational solar capacity reached 1,814 MW, with 1,555 MW under construction at March 31, 2019.

• Standalone results remained loss-making: revenue of Rs 2,556.92 million and net loss of Rs 106.78 million.

Financial highlights

• Consolidated revenue from operations was Rs 16,718.99 million vs Rs 10,961.34 million; other income was Rs 1,304.23 million vs Rs 901.32 million.

• Consolidated loss before tax was Rs 58.14 million vs Rs 441.99 million; finance costs rose to Rs 10,173.20 million from Rs 6,503.15 million.

• Standalone total revenue was Rs 2,556.92 million vs Rs 1,625.37 million; loss before tax widened to Rs 126.26 million from Rs 74.64 million.

• Standalone finance costs increased to Rs 1,125.11 million from Rs 347.43 million; loss per share was Rs 1.02 vs Rs 0.50.

Outlook and guidance

• Plans to expand the solar project portfolio with profitability as the primary focus; bids to target government and government-backed buyers with timely tariff-payment records.

• Solar-park bids are intended to reduce land, infrastructure, cost, risk and development-time burdens; value engineering aims to improve efficiency, availability and output.

• Further lender negotiations and debt refinancing are planned to lower borrowing costs; capital-base augmentation and debt reduction steps have been initiated.