Q1 Results: ReNew Sees 86% Decline In Net Profits

Q1 Results: ReNew Sees Dip In Profits, Surge In Operational Capacity

Renewable energy company ReNew today announced the financial results (unaudited) of first quarter of financial year 2024-25. The NASDAQ-listed company said that it has seen a surge in its operating capacity by around 24 percent Year on year. ReNew’s clean energy contracted portfolio was ~15.6 GW as of Aug 15, 2024.

The company said that as of June 30, 2024, the Company’s portfolio consisted of ~15.6 GWs, of which ~9.6 GWs are commissioned and ~6.0 GWs are committed, compared to ~13.7 GWs as of June 30, 2023.

The Company’s commissioned capacity has increased 14.0% year-over-year to ~9.6 GWs as of June 30, 2024. Subsequent to the end of the quarter, the company commissioned 400 MWs of solar and 14 MWs of wind capacity, taking the total commissioned capacity to ~10 GWs as of August 15, 2024. The comoany has reiterated it’s guidance of a portfolio increase of between 1750 MW to 2250 MW during the financial year.

Revenue for Q1 FY25 stood at Rs 22,811 million (US$ 274 million), compared to INR 21,250 million (US$ 255 million) for Q1FY24. Thus, on a Year-on-Year (YoY) basis, the company led by Sumant Sinha witnessed a rise of 7.3 percent. On the other hand, its net profit for Q1 FY25 was INR 394 million (US$ 5 million) compared to INR 2,983 million (US$ 36 million) for Q1 FY24, reporting a decline of 86 percent.

Adjusted EBITDA for Q1 FY25 was INR 18,979 million (US$ 228 million), as against INR 18,599 million (US$ 223million) for Q1 FY24.

The profit drop could be attributed to a surge in employee costs (up 25%), finance costs (up 10%), and higher depreciation at 15%.

Sumant Sinha, the CEO of ReNew in the latest inventors’ call expressed optimism with the rolling out of the original mandate of the ALMM scheme. He said that the inclusion of ReNew under the ALMM has empowered it to have a secured source of modules. This is in addition to the right cost which enables it to be a key differentiator in the Indian renewable landscape. 

He told the investors that the form has executed 2 GW of capacity over the last 12 months. It also had an execution guidance of 1.9 GW to 2.4 GW for FY25. Sinha told the investors that around 600 MW of clean energy projects are in the advanced stages of completion. He said the ReNew signed 2.2 GW of PPA during the Q1 of FY25.