ReNew Announces Results for the Fourth Quarter and Full Fiscal Year 2024: Reports PAT for FY24 and Provides Long Term Outlook
ReNew Energy Global reported its unaudited financial results for Q4 FY24 and the full fiscal year ended March 31, 2024. The company’s portfolio stood at ~13.5 GWs as of March 2024, with ~9.5 GWs generating revenue. For FY24, ReNew's total revenue was INR 96,531 million (US$ 1,158 million), up from INR 89,309 million (US$ 1,072 million) in FY23. The net profit for FY24 was INR 4,147 million (US$ 50 million), compared to a net loss of INR 5,029 million (US$ 60 million) in FY23. Adjusted EBITDA for FY24 was INR 69,216 million (US$ 831 million), and Cash Flow to Equity was INR 13,665 million (US$ 164 million).
For Q4 FY24, total revenue was INR 24,776 million (US$ 297 million). The net profit for Q4 FY24 was INR 609 million (US$ 7 million). Adjusted EBITDA for Q4 FY24 was INR 16,810 million (US$ 202 million). ReNew provided guidance for FY25, including an Adjusted EBITDA of INR 76-82 billion and CFe of INR 12-14 billion. The company expects a gross operating capacity of 15-16 GWs by FY27 and 19-20 GWs by FY29.
- Total revenue for FY24 increased to INR 96,531 million (US$ 1,158 million) from INR 89,309 million (US$ 1,072 million) in FY23.
- The net profit for FY24 was INR 4,147 million (US$ 50 million), a significant improvement from a net loss of INR 5,029 million (US$ 60 million) in FY23.
- Adjusted EBITDA for FY24 was INR 69,216 million (US$ 831 million), up from INR 62,004 million (US$ 744 million) in FY23.
- Net profit for Q4 FY24 was INR 609 million (US$ 7 million), compared to INR 74 million (US$ 1 million) for the same period in FY23.
- Days Sales Outstanding improved by 61 days year-on-year, ending Q4 FY24 at 77 days.
- Total revenue for Q4 FY24 was INR 24,776 million (US$ 297 million), a decrease from INR 25,916 million (US$ 311 million) in Q4 FY23.
- Cash Flow to equity for Q4 FY24 was an outflow of INR 8,091 million (US$ 97 million), compared to an outflow of INR 4,573 million (US$ 55 million) in Q4 FY23.
- Cash Flow to equity for FY24 decreased to INR 13,665 million (US$ 164 million) from INR 15,237 million (US$ 183 million) in FY23.
- The company's portfolio slightly decreased from ~13.7 GWs in March 2023 to ~13.5 GWs in March 2024.
Insights
ReNew Energy Global Plc has shown a notable turnaround from a net loss of INR 5,029 million (US$ 60 million) in FY23 to reporting a net profit of INR 4,147 million (US$ 50 million) in FY24. This signifies a significant improvement in the company's financial health and operational efficiency. The 14% increase in total revenue year-over-year to INR 96,531 million (US$ 1,158 million) indicates a positive trajectory, albeit the cash flow to equity has seen a decline from INR 15,237 million (US$ 183 million) in FY23 to INR 13,665 million (US$ 164 million) in FY24. This could be a point of concern, highlighting potential cash management or operating expense issues. The increase in Adjusted EBITDA from INR 62,004 million (US$ 744 million) to INR 69,216 million (US$ 831 million) reflects the company's ability to generate earnings from core operations, after adjusting for one-time charges. Investors should note the company's aggressive expansion plans, with projected growth in operating capacity to 19-20 GWs by FY29, which will require significant capital investments and effective project execution. The market often values growth prospects, but the ability to manage and finance such expansion without straining cash flow will be crucial.
The company's strategy to expand its portfolio to 15.6 GWs by May 31, 2024, through signing additional PPAs (Power Purchase Agreements) highlights strong market demand and the company's competitive positioning in the renewable energy sector. The long-term outlook provided by ReNew, aiming to reach 19-20 GWs by FY29 with a corresponding significant increase in Adjusted EBITDA and CFe, is highly optimistic and indicates confidence in market stability and future growth. However, such projections also come with risks related to market dynamics, regulatory changes and technological advancements. The company's performance will heavily rely on the successful and timely execution of these projects. The improvement in Days Sales Outstanding (DSO) to 77 days, a reduction by 61 days, is a positive development, indicating more efficient receivables management, which directly impacts liquidity and working capital.
Given that ReNew operates in a tightly regulated environment, especially concerning PPAs and grid connectivity, any forward-looking projections and current financial improvements must be viewed through the lens of regulatory compliance and risk. The company's ability to consistently secure PPAs and manage regulatory hurdles is essential for its planned expansion. Additionally, the capital recycling strategy, which involves selling assets to reinvest in new projects, introduces an element of legal and financial complexity. It requires stringent contracts and due diligence to prevent potential disputes or losses. Investors should watch for any regulatory updates or changes in government policies related to renewable energy, as these could significantly impact ReNew’s operational and financial performance.
GURUGRAM,
Operating Highlights:
- As of March 31, 2024, the Company’s portfolio consisted of ~13.5 GWs, of which ~9.5 GWs are generating revenue and ~4 GWs are committed, compared to ~13.7 GWs as of March 31, 2023. Subsequent to the year-end, the company signed ~2.2 GW of PPAs taking the portfolio to ~15.6 GW, as of May 31, 2024.
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Total Income (or total revenue) for FY24 was INR 96,531 million (
US ), compared to INR 89,309 (US$ 1,158 million $ 1,072 million ) for FY23. Net profit for FY24 was INR 4,147 million (US ) compared to a net loss of INR 5,029 million ($ 50 million US ) for FY23. Adjusted EBITDA for FY24 was INR 69,216 million ($ 60 million US ), as against INR 62,004 million ($ 831 million US ) for FY23. Cash Flow to equity ("CFe") for FY24 was INR 13,665 million ($ 744 million US ) compared to INR 15,237 million ($ 164 million US ) for FY23.$ 183 million -
Total Income (or total revenue) for Q4 FY24 was INR 24,776 million (
US ), compared to INR 25,916 (US$ 297 million $ 311 million ) for Q4 FY23. Net profit for Q4 FY24 was INR 609 million (US ) compared to INR 74 million ($ 7 million US ) for Q4 FY23. Adjusted EBITDA for Q4 FY24 was INR 16,810 million ($ 1 million US ), as against INR 12,010 million ($ 202 million US ) in Q4 FY23. Cash Flow to equity (“CFe”) for Q4 FY24 was an outflow of INR 8,091 million ($ 144 million US ) compared to an outflow of INR 4,573 million ($ 97 million US ) in Q4 FY23.$ 55 million - Days Sales Outstanding (“DSO”) ended Q4 FY24 at 77 days, a 61-day improvement, year on year.
Note: the translation of Indian rupees into
FY 25 Guidance
The Company expects to complete construction of between 1,900 to 2,400 MWs by the end of Fiscal Year 2025. The Company’s Adjusted EBITDA and Cash Flow to Equity guidance for FY25 are subject to weather being similar to FY24. The Company anticipates continued net gains on sales of assets, which is part of ReNew’s capital recycling strategy, and has included INR 1-2 billion of gains in the guidance below:
Financial Year |
|
Adjusted EBITDA |
|
Cash Flow to equity (CFe) |
FY25 |
|
INR 76 – INR 82 billion |
|
INR 12 – INR 14 billion |
We expect to reach gross operating capacity of 15 to 16 GWs by the end of Fiscal Year 2027 and 19 to 20 GWs, after capital recycling, by the end of Fiscal Year 2029. Accordingly, we are providing the following long term run rate guidance:
Operating GWs |
|
Adjusted EBITDA run rate |
|
CFe run rate |
15 – 16 |
|
INR 110 – INR 115 billion |
|
INR 30 – INR 32 billion |
19 – 20 |
|
INR 142 – INR 150 billion |
|
INR 35 – INR 42 billion |
Note: the translation of Indian rupees into
Webcast and Conference call information
A conference call has been scheduled to discuss the earnings results at 8:00 AM EDT (5:30 PM IST) on June 06, 2024. The conference call can be accessed live at: https://edge.media-server.com/mmc/p/3msa772f or by phone (toll-free) by dialing:
US/
Rest of the world: (+61) 7 3145 4010 (toll)
An audio replay will be available following the call on our investor relations website at https://investor.renew.com/news-events/events
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, operational and financial results such as estimates of nominal contracted payments remaining and portfolio run rate, and the assumptions related to the calculation of the foregoing metrics. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: the availability of additional financing on acceptable terms; changes in the commercial and retail prices of traditional utility generated electricity; changes in tariffs at which long-term PPAs are entered into; changes in policies and regulations including net metering and interconnection limits or caps; the availability of rebates, tax credits and other incentives; the availability of solar panels and other raw materials; our limited operating history, particularly as a relatively new public company; our ability to attract and retain relationships with third parties, including solar partners; our ability to meet the covenants in our debt facilities; meteorological conditions; supply disruptions; solar power curtailments by state electricity authorities and such other risks identified in the registration statements and reports that our Company has filed or furnished with the
About ReNew
Unless the context otherwise requires, all references in this press release to “we,” “us,” or “our” refers to ReNew and its subsidiaries.
ReNew is a leading decarbonization solutions company listed on Nasdaq (Nasdaq: RNW, RNWWW). ReNew's clean energy portfolio of ~15.6 GW on a gross basis as of May 31, 2024, is one of the largest globally. In addition to being a major independent power producer in
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Press Enquiries
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Investor Enquiries
Nathan Judge, Nitin Vaid | ir@renew.com
Source: ReNew Energy Global Plc
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