ReNew Records Net Profit of ₹609 Million in Q4 FY 2024, Up 723% YoY

The company’s revenue, however, fell by 4.4% YoY to ₹24.78 billion

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Independent renewable power producer ReNew recorded a total revenue of ₹24.78 billion (~$296.85 million) for the fourth quarter (Q4) of the financial year (FY) 2023-24, a year-over-year (YoY) decrease of 4.4% compared to ₹25.92 billion (~$310.51 million). The decrease in total income was primarily due to lower revenue recognized for the company’s transmission projects.

The net profit for the quarter was ₹609 million (~$7.29 million), up 722.9% YoY from ₹74 million (~$886,491 million). This increase was primarily driven by higher operating revenue, gain on sale of assets, higher finance income and lower other expense.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter was ₹16.81 billion (~$201.36 million), up 39.9% YoY from ₹12.01 billion (~$143.88 million).

As of March 31, 2024, ReNew’s total portfolio consisted of 13,456 MW, and commissioned capacity was 8,871 MW, an increase of 11% YoY, of which 4,463 MW was wind, 4,309 MW was solar, and 99 MW hydro.

During the quarter, the company commissioned 69 MW of wind and 585 MW of solar capacity against 46 MW of wind and 170 MW of solar capacity during Q4 FY 2023.

Total electricity sold in the quarter was 4,231 million kWh, an increase of 9.2% over Q4 FY 2023. Electricity sold in the quarter from wind assets was 1,849 million kWh, an increase of 8.9% over Q4 FY 2023. Electricity sold in the quarter from solar assets was 2,348 million kWh, a rise of 9.6% over Q4 FY 2023. Electricity sold for the quarter from hydro assets was 34 million kWh, similar to Q4 FY 2023.

ReNew’s weighted average Plant Load Factor (PLF) for the quarter for wind assets was 18%, compared to 20% for Q4 FY 2023. The PLF for the quarter for solar assets was 25.5%, compared to 26.5% for Q4 FY 2023.

During the earnings call, Sumant Sinha, Founder, Chairman, and Chief Executive Officer of ReNew, said that the company’s contracted capacity was 15.6 GW, with nearly 6 GW more secured from favorable bids, awaiting power purchase agreements within the next six to nine months. This brought the total capacity to over 21 GW.

Full Year 2024

ReNew recorded an annual revenue of ₹96.53 billion (~$1.15 billion) in FY 2024, a YoY increase of 8.1% compared to ₹89.31 billion (~$1.06 billion). The increase in total income was primarily due to higher operational capacity, gain on the sale of assets, and finance income.

The annual net profit was ₹4.15 billion (~$49.72 million) compared to a net loss of ₹ 5.03 billion (~$60.25 million).

The annual adjusted EBITDA was ₹69.22 billion (~$829.2 million), up 11.6% YoY compared to ₹62 billion (~$742.71 million).

In FY 2024, the company commissioned 497 MW of wind and 794 MW of solar capacity, against 187 MW of wind and 227 MW of solar capacity in FY 2023. In addition, the company operationalized 270 MW of wind and 380 MW of solar capacity, generating pre-commissioning revenue through sales in the merchant market, taking the total revenue-generating capacity to 9,521 MW. The company sold 400 MW of solar capacity.

Total electricity sold during the year was 19,061 million kWh, an increase of 11.3% from the previous year. Electricity sold from wind assets was 9,906 million kWh, an increase of 14.7% over FY 2023. Electricity sold from solar assets was 8,765 million kWh, a rise of 8.6%. Electricity sold from hydro assets was 390 million kWh, a decrease of 6.4%.

ReNew’s weighted average PLF for FY 2024 for wind assets was 26.4%, compared to 25.5% for FY 2023. The PLF for solar assets was 24.6%, compared to 24.8% for the previous year.

Sinha said the company seized the opportunity presented by increased auction volumes, securing approximately 8 GW of renewable energy capacity, which constituted almost 60% of its contracted capacity at the start of fiscal year 2024. Out of this, PPAs had been signed for 1.8 GW, along with a 438 MW contract with a corporate client.

Module Manufacturing

ReNew also responded to the ALMM policy, which limits module imports, by establishing its own production facility. This facility is now manufacturing solar modules at costs lower than imported ones, even with import duties factored in, providing a secure supply chain despite stringent import restrictions.

Sinha indicated that with a capacity of approximately 6 GW, the company would produce around 4.7 to 4.8 GW of modules. Considering the need for oversizing, about 2.7 to 2.8 GW would be utilized for self-use, leaving the remainder for market sales. The sales strategy includes two approaches: selling modules directly, possibly on a tooling basis, and bundling them with cells from the soon-to-be-launched manufacturing line.

He said the company was targeting two primary markets for cell sales. Domestically, there’s the DCR market. Internationally, the focus will be on the U.S. market, which is becoming more appealing due to new import restrictions on cells from China and Southeast Asia. This opened up opportunities for Indian cells. There was also potential for selling cells with modules within India.

Sinha projected that the company could sell 1 to 2 GW of modules and cells annually, separately or combined.

The company’s Q3 revenue was ₹19.3 billion (~$232 million), up 20% YoY compared to ₹16 billion (~$193 million) in the same period last year.

ReNew led the annual solar module manufacturing capacity additions in the calendar year 2023, accounting for 19% of the total capacity additional, according to Mercom’s India Solar Market Leaderboard Report 2024.

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