ReNew reports US$1 million loss last quarter despite income jumping 50%

ReNew Power has a portfolio of more than 100 operational utility-scale PV and wind projects in India. Image: ReNew Power via Twitter.

Indian independent power producer (IPP) ReNew Power reported a net loss of INR104 million (US$1 million) last quarter, which it said was as a result of a one-time expense for the refinancing of US bonds with lower cost rupee debt.

Specifically, the Gurugram-based company said the expense related to debt premium and “the impact of a reclassification of a hedge loss from the balance sheet of INR2,531 million (US$32 million)”.

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It is the second consecutive quarter the energy company has reported a loss. It ended its 2022 financial year with a net loss of US$213 million, despite seeing a 27% rise in revenue. The company put the majority (US$174 million) of this down to its listing on the NASDAQ last August.

Elsewhere, however, the company fared relatively well this quarter. Its total income for Q1 FY23 was INR25,007 million (US$316 million), an increase of 48.8% over Q1 FY22, while its cash flow to equity for the quarter was INR14,562 million (US$184 million), an increase of 104.0% over Q1 FY22.

In a results presentation, ReNew said its FY2023 was “on track” as it touted its ability to “deliver returns above the cost of capital” and reiterated its FY2023 guidance of an adjusted EBITDA of INR66,000-69,000 million.

“We are on track to meet our FY2023 guidance so far this year,” ReNew said during its presentation.

The company’s portfolio grew to 12.9GW, a 30.3% increase year on year, of which 7.6GW are already commissioned and 5.3GW are committed. Moreover, the company has just landed a US$1 billion financing deal for a ‘Round-The-Clock’ (RTC) renewable energy project in India, marking the biggest single-project clean energy deal in the country.

The IPP said that roughly 95% of its expected EBITDA for FY2023 would come from operating assets, which should provide stakeholders with “greater confidence in our growth”.

It is also expecting significant growth from the “higher return, higher growth corporate power purchase agreement (PPA) market”, which now stands at 10% of its current portfolio, up from 3% a year ago, but which is expected to deliver 25-30% of recent and expected future portfolio growth, according to ReNew.

ReNew also said it sees a “significant growth” opportunities in the green hydrogen market, calling it a “multi-billion dollar opportunity” but cautioning that “it is still very early in the development process”.

“Any contract and material capital commitment are likely still some time away”.

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