A 24% increase in operating capacity helped ReNew’s Q1 FY25 revenues improve by 7% YoY
It continues to guide for the construction of 1.9 GW to 2.4 GW of renewable energy capacity in FY25
In-house module manufacturing is on track in Jaipur and Dholera; cell factory is due for completion in FY25
Nasdaq-listed Indian renewable energy company ReNew Energy Global Plc exited Q1 FY25 (period ending June 30, 2024) with its revenues growing over 7% year-over-year (YoY) to INR 22,811 million ($274 million), thanks to around 24% increase in operating capacity.
ReNew’s adjusted EBITDA of $228 million increased marginally from $223 million reported the previous year. However, its net profit of $5 million narrowed from $36 million a year ago.
It added 1.4 GW solar and 578 MW wind capacity since Q1 FY24, taking its total portfolio to 15.6 GW at the end of June 2024. Out of this, with the inclusion of 5.1 GW solar, 10 GW is operational, and 5.6 GW is committed. For the latter, the share of solar is 3.5 GW, while that of wind is 2.1 GW.
With India’s protectionist measures such as the Approved List of Models and Manufacturers (ALMM) in place, ReNew believes it has a significant competitive advantage with its own manufacturing. It is a secure source of modules for the company that says its module supply is now fully met in-house.
ReNew’s Jaipur, Rajasthan-located 4 GW module factory supplied 1 GW capacity in FY 2024 and is currently producing over 2 GW/year. The 2.5 GW cell and module fab in Dholera, Gujarat rolled out 200 MW modules in FY25 YTD, and a full ramp-up is expected by Q3 FY25.
The cell facility on location is scheduled to be completed in FY25 which will also cater to both domestic and export markets, according to ReNew Chairperson Sumant Sinha.
ReNew has also secured 600 MW in 3rd party contracts for module supply from Indian companies.
The company has reiterated its FY 2025 guidance for the construction of 1.9 GW to 2.4 GW of renewable energy capacity, with adjusted EBITDA between INR 76 billion and INR 82 billion, and cash flow to equity within INR 12 billion to INR 14 billion.
Its confidence stems from the fact that out of the over 8 GW capacity it won in FY24, ReNew has secured power purchase agreements (PPA) for 2.2 GW, and more are expected to follow over the next few months.
Justin Clare of Roth MKM noted that this provides more confidence in the long-term growth expectations of ~16-18% growth in operating capacity and adjusted EBITDA through FY'29.
.png?w=50&fm=png){kind=logo}