ReNew Q3 FY23 Results- Net Loss Shrinks 36%, Revenues Up 19%

ReNew Energy Global Plc , which now terms itself a global decarbonisation solutions company, announced its consolidated results for Q3 FY23 and nine months ended December 31, 2022 last week.

Operating Highlights:

• As of December 31, 2022, the Company’s portfolio consisted of 13.4 GWs, a 30.2% increase year on year, of which 7.8 GWs are commissioned and 5.6 GWs are committed. Approximately ~0.3 GW of Purchase Power Agreements (“PPAs”) were signed in the quarter and only ~1% of the total portfolio awaits PPAs/contracts.

  

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• Total Income (or total revenue) for Q3 FY23 was INR 16,077 million (US$ 194 million), an increase of 19.4% over Q3 FY22. Adjusted EBITDA(2) for Q3 FY23 was INR 11,628 million (US$ 141 million), an increase of 10.2% over Q3 FY22. Net loss for Q3 FY23 was INR 4,013 million (US$ 49 million) compared to a net loss of INR 6,384 million (US$ 77 million) for Q3 FY22. Cash Flow to equity(2) (“CFe”) for Q3 FY23 was INR 2,682 million (US$ 32 million), a decrease of 47.3% over Q3 FY22.

• Total Income (or total revenue) for the first nine months of FY23 was INR 63,493 million (US$ 768 million), an increase of 23.1% over nine months of FY22. Adjusted EBITDA(2) for the first nine months of FY23 was INR 49,995 million (US$ 604 million), an increase of 17.8% over nine months of FY22. Net loss for the first nine months of FY23 was INR 5,103 million (US$ 62 million) compared to a net loss of INR 12,573 million (US$ 152 million) for nine months of FY22. Cash Flow to equity(2) (“CFe”) for the first nine months of FY23 was INR 19,810 million (US$ 239 million), an increase of 10.6% over the first nine months of FY22.

• Days Sales Outstanding (“DSO”) ended Q3 FY23 at 178 days, a 78 day improvement year on year. On the back of clear arrangements for future payment schedules agreed with multiple State Discoms, DSOs are on track for a substantial improvement over the remainder of the year.

  

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Other key highlights include 282 MW of fresh corporate PPAs, taking its total portfolio of corporate PPAs to 1.8 GW. This is expected to reach 4-5 GW by 2025. Post completion of its cell and module manufacturing facilities in Rajasthan, the firm expect 60% of its projects to be self supplied.

After its recent recent repositioning as a decarbonisation solutions firm, the firm has launched services divisions focused on both Energy services(energy efficiency and more) and Carbon Offsets in an effort to move away from an asset heavy model as well as make the best use of its expertise in the renewable sector. With manufacturing facilities for solar cells and modules set to come online in 2023 besides it’s strong push into the C&I market,  the next 12 months will be crucial for the firm to convince its investors that it can pull off the rejig successfully. Informed sources tell us that there is nothing the firm would like more than to see at least 30% of revenues come from the non-utility energy segment by 2025.