In This Article:
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Adjusted EBITDA Growth: 14% increase driven by cost optimization.
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Profit After Tax: 31% increase primarily due to lower G&A and finance costs.
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Operating Capacity Growth: Approximately 30% increase net of asset sales.
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Total Portfolio Growth: 18% increase, or 21% after adjusting for asset sales.
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Contracted Portfolio: Expanded to 16.3 gigawatts, including 900 megawatt-hours of battery storage.
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Cash Operating Activities: Increased to INR 20.1 billion, a 10% year-on-year increase.
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Cash Profit: Increased by 31% from INR 9.2 billion to INR 12.1 billion for the quarter.
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Net Debt-to-EBITDA Leverage: Maintained below 6x, specifically at 5.9x.
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Solar Module Manufacturing: 6.4-gigawatt facilities fully operational, with trial production of cells started.
Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ReNew Energy Global PLC (NASDAQ:RNW) reported a 14% growth in adjusted EBITDA for the quarter, driven by cost optimization.
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The company has commissioned 860 megawatts to date in this fiscal year and is on track to meet its guidance of installed megawatts.
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ReNew Energy Global PLC (NASDAQ:RNW) has secured an external order book of over 900 megawatts, ensuring surplus capacity is sold in the market.
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The company's solar module manufacturing facilities are fully operational, with trial production of cells having started.
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ReNew Energy Global PLC (NASDAQ:RNW) has achieved a 31% increase in profit after tax, primarily due to lower G&A and finance costs.
Negative Points
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The company's share price movement has been affected by US macro factors, despite these having little bearing on its business.
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There is a potential risk of delay in the RTC project due to transmission readiness, although the company does not currently expect this.
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ReNew Energy Global PLC (NASDAQ:RNW) faces challenges with wind PLFs, which are down by 300 basis points, affecting performance.
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The company has legacy PPAs with lower tariffs, which may not be favorable compared to current market conditions.
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There is a significant gap in PPA conversion, with about 40 gigawatts of PPAs not signed off from all auctions.
Q & A Highlights
Q: Can you provide more details on the RTC project's timeline and potential transmission delays? A: Sumant Sinha, CEO, confirmed that the RTC project is on track for completion in the second half of fiscal 2025, with no expected delays in transmission readiness. Some capacity might be sold in the merchant market before the PPA is fully operational, but this will be limited.