India’s ReNew Energy Returns To Profitability

• ReNew says its Jaipur-located 4 GW solar module manufacturing plant is now fully online  
• Another 2.4 GW DC cell and module capacity is scheduled to come online by Q4/2024 
• Operational capacity increased to 8.4 GW with the commissioning of 415 MW, taking cumulative portfolio to 13.7 GW at the end of June 2023

Nasdaq-listed Indian renewable energy company ReNew Energy Global has announced the full commissioning of its 4 GW solar module manufacturing plant in Jaipur that produces 2 GW AC modules, in a move that helps it secure modules for the growing project pipeline.  

The management revealed this while sharing its unaudited financial results for Q1/2024 (period ending June 2023). It added that construction for 2.4 GW DC module and cell capacity is currently underway, with the plant expected to come online in Q4/2024 (period ending March 2024).  

In-house manufacturing of solar components also provides cost advantage, the management pointed out, as compared to importing cells and modules from China for which India charges 25% and 40% Basic Customs Duty (BCD).   

ReNew returned to profitability in Q1/2024 (period ending June 2023) with a net profit of INR 2,983 million ($36 million) vis-à-vis net loss of -INR 104 million (-$1 million) in the previous year as portfolio increased 6.3% to 13.7 GW.  

Its total annual revenues declined by over 1% to INR 24,659 million ($300 million) and adjusted EBITDA by more than 7% to INR 18,599 million ($227 million). Philip Shen of ROTH MKM said the decline was attributed by the company to lower-than-expected electricity sold from wind assets.   

ReNew commissioned 415 MW during the quarter, increasing its total operational capacity to 8.4 GW, increasing it by 10% YoY. Cumulative portfolio of the company at the end of June 2023 improved by 6.3% to 13.7 GW, comprising 8.4 GW operational and 5.3 GW committed capacity.   

"We believe the accelerated pace of auctions in India with 50 GW planned annually is driving a meaningful improvement in the bidding environment," stated Shen. "We see recent auction wins supporting RNW's growth into FY'26 and FY'27. MoUs signed with PFC and REC provide visibility into debt financing, while RNW's 5GW strategic partnership with Gentari provides access to equity capital through minority project sales." 

The company believes it is on track to meet the FY 2024 capacity addition guidance of 1.75 GW to 2.25 GW, targeting to commission 300 MW to 500 MW in Q3/2024 and between 1 GW to 1.3 GW in Q4/2024.   

The management has also reiterated adjusted EBITDA forecast of INR 60,000 million and INR 66,000 million for FY 2024.