ReNew Energy’s Q4/FY2022 Financial Results

• ReNew Energy increased revenues by 27% on annual basis and adjusted EBITDA by 31.7% on annual basis in Q4/FY2022
• Its net loss during Q4/FY2022 widened due to charges related to its NASDAQ listing
• Company increased its cumulative portfolio to 12.8 GW comprising 6.8 GW solar PV capacity

Indian renewable energy company ReNew Energy Global Plc increased its revenues and adjusted EBITDA for Q4/FY2022 (period ending March 31, 2022) by 27% and 31.7% YoY, but $174 million charges related to NASDAQ listing widened its net loss to $213 million during the period.

ReNew increased its commissioned capacity to 7.6 GW at the end of the reporting period with the addition of 130 MW. It has another committed capacity of 3.1 GW. Management said it has entered into definitive agreements to purchase 528 MW of renewable energy assets and signed power purchase agreements (PPA) for an additional 1.6 GW.

Its cumulative portfolio rose to 12.8 GW comprising 6.8 GW solar, 100 MW hydro and 5.9 GW wind energy capacity.

Sharing an update for its manufacturing plans, the company said this will be realized in 3 phases, comprising 2.1 GW AC module plant 1 in Rajasthan's Jaipur in Q4/FY 2023. Module plant 2 with 1.2 GW AC capacity and 1.1 GW AC cell plant in Gujarat's Dholera are expected to be commissioned in Q2/FY2024.

In May 2021, the company had announced plans to enter manufacturing with 2 GW solar and module production capacity in Gujarat (see ReNew Power Unveils 2 GW Solar Manufacturing Plans).

The increase in planned capacity for modules to 6.4 GW DC/3.3 GW AC is to meet its in-house needs as the management looks at de-risking growth of core development business since the company expects India to face a major shortfall of module supply for the next several years.

It cites the government mandate of 40% Basic Customs Duty (BCD) on imported solar modules and 25% on solar cells, and the need to source modules for government related projects from enlisted members of Approved List of Models and Manufacturers (ALMM) for this feared short supply of modules in the Indian market.

ReNew expects to incur an investment of $325 million to $350 million on implementing this capacity.

The management has guided for its adjusted EBITDA in FY 2023 as between INR 66,000 million to $69,000 million ($846 million to $884 million).

Roth Capital believes ReNew "delivered a mixed FQ4 and provided lower-than-expected FY'23 guidance. That said, RNW meaningfully expanded its total portfolio to 12.8GW in FQ4 from 10.2GW in FQ3, and we see further growth potential ahead given the strong power demand in India and ~21GW of planned renewable energy bids in the coming months."