Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

In our view, Azure's Q2/20-21 results were slightly better than expected. Revenue came in at the high end of guidance, while profitability was in line, after adjusting for the share appreciation rights. Cash flow improved, with better cash collection from overdue customers. On the back of the higher earnings, consolidated leverage and coverage ratios ameliorated but remained aggressive, with inadequate coverage ratios. In conjunction with this release, Azure has started to disclose its own version of leverage, i.e. Net Debt/EBITDA for operating assets, to remove the effect of debt incurred for construction of new projects which are not yet generating EBITDA. This metric was at 5.9x, which we deem acceptable. Liquidity was weak considering the company\s large capex requirements. We revise our recommendation to "Hold" from "Buy" on the AZUPOE Notes, despite strong fundamentals, as the Notes have rallied substantially since our initial "Buy" recommendation (at 7-8% yields), such that there is very little upside left, with the '22s yielding 1.6% and the '24s yielding 3.7%.

  In our view, Azure's Q2/20-21 results were slightly better than expected. Revenue came in at the high end of guidance, while profitability was in line, after adjusting for the share appreciation rights. Cash flow improved, with better cash collection from overdue customers. On the back of the higher earnings, consolidated leverage and coverage ratios ameliorated but remained aggressive, with inadequate coverage ratios. In conjunction with this release, Azure has started to disclose its own version of leverage, i.e. Net Debt/EBITDA for operating assets, to remove the effect of debt incurred for construction of new projects which are not yet generating EBITDA. This metric was at 5.9x, which we deem acceptable. Liquidity was weak considering the company\s large capex requirements.   We revise our recommendation to "Hold" from "Buy" on the AZUPOE Notes, despite strong fundamentals, as the Notes have rallied substantially since our initial "Buy" recommendation (at 7-8% yields), such that there is very little upside left, with the '22s yielding 1.6% and the '24s yielding 3.7%. 

Azure Power - Earnings Flash - Q2 FY 2020-21 Results - Lucror Analytics

Azure Power Global Ltd

Azure Power - Earnings Flash - Q2 FY 2020-21 Results - Lucror Analytics