ReNew reports a record profit of ₹415 crore during FY24

ReNew Energy Global (ReNew) has scripted a turnaround in FY24, reporting a net profit of ₹414.7 crore on the back of higher income, from a net loss of ₹503 crore in the previous fiscal year, the Gurugram-headquartered company said on Thursday.

Though the Nasdaq-listed renewable energy firm witnessed a net profit surge from ₹7.4 crore in the March quarter of FY23 to ₹60.9 crore in Q4 FY24, its revenue declined 4.4% from ₹2591.6 crore to ₹2477.6 crore during the period.   

However, for the full year, ReNew's revenue stood at ₹9,653 crore, up from ₹8932 crore in FY23.

For FY25, the firm expects adjusted Ebitda to be at ₹7,600-8200 crore, with cash flow to equity at ₹1,200-1,400 crore. Ebitda, a measure of profitability to net income, stands for earnings before interest, taxes, depreciation and amortisation.

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Cash flow to equity is a metric of how much cash can be distributed to equity shareholders of a company through dividends or stock buybacks.

ReNew aims at doubling capacity

“During the last two or three years, we were impacted by issues like the covid-19 pandemic, receivables, logistic expenses, and rupee depreciation. All of these things are behind us, and now our core inherent business performance is showing up,” ReNew's chairman and chief executive Sumant Sinha told Mint in a post-results interview.

“We are looking at doubling our capacity and growing at 16-18% annually over the next seven years.” The company has also set an ambitious capital expenditure plan of about ₹65,000 crore over the next four to five years, he said.

ReNew aims to expand its portfolio, adding another 1,900-2,400 MW to its existing 13.5 GW capacity by the end of FY25, the company said in a statement.

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Competitive edge

"Our future growth will come from our core renewable energy businesses, where we have a lot of competitive advantage. In wind, we are India's largest IPP (independent power producer), and in solar, we are the second largest IPP," Sinha added.

At the end of FY24, ReNew's net debt reached ₹54,581 crore, rising from ₹4,363.9 crore in the previous fiscal year. Going forward, it plans to increase borrowing from the domestic market due to escalating costs of funds in the international market.

The company has already refinanced bonds worth about $1 billion in the last 18 months, using domestic sources of liquidity, Sinha said. “We have not had any problems with refinancing or raising debt capital. About three-quarters of our capex comes from debt. I don't anticipate any issues at all.”

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