ReNew Energy plc(RNW) - 2024 Q4 - Annual Report

Financial & Operating Highlights ReNew achieved substantial portfolio and commissioned capacity growth by March 31, 2025, with significant increases in Q4 and full-year FY25 total income and net profit Key Metrics Summary ReNew reported significant growth in its portfolio to ~17.3 GW and commissioned capacity to ~10.7 GW as of March 31, 2025. Both Q4 and full-year FY25 saw substantial increases in Total Income and Net Profit, driven by expanded operational capacity and initial contributions from the new module and cell manufacturing business. The company's commissioned capacity grew by 12.4% year-over-year - As of March 31, 2025, the total portfolio grew to ~17.3 GW from ~13.5 GW a year prior. Commissioned capacity increased by 12.4% YoY to ~10.7 GW[4][7] - The new module and cell manufacturing operations contributed significantly, with external sales of INR 9,914 million in Q4 FY25 and INR 13,373 million for the full fiscal year FY25[7] Q4 FY25 vs Q4 FY24 Financial Performance (in INR million) | Metric | Q4 FY25 | Q4 FY24 | Change | | :--- | :--- | :--- | :--- | | Total Income | 34,391 | 24,776 | +38.8% | | Net Profit | 3,137 | 609 | +415.1% | | Adjusted EBITDA | 22,118 | 16,810 | +31.6% | FY25 vs FY24 Financial Performance (in INR million) | Metric | FY25 | FY24 | Change | | :--- | :--- | :--- | :--- | | Total Income | 109,070 | 96,531 | +13.0% | | Net Profit | 4,591 | 4,147 | +10.7% | | Adjusted EBITDA | 79,188 | 69,216 | +14.4% | Detailed Performance Analysis This section analyzes operational and financial performance, including electricity sold, plant load factors, income statement details, and liquidity Operating Performance Electricity sold increased by 18.3% in Q4 and 13.1% for the full year FY25, driven primarily by a significant 24.1% YoY increase in generation from solar assets due to expanded capacity. However, Plant Load Factors (PLF) for both wind and solar assets experienced a slight decline compared to the previous year Electricity Sold (in million kWh) | Period | Wind | Solar | Hydro | Total | YoY Change (Total) | | :--- | :--- | :--- | :--- | :--- | :--- | | Q4 FY25 | 1,830 | 3,134 | 40 | 5,004 | +18.3% | | FY25 | 10,255 | 10,875 | 435 | 21,565 | +13.1% | Weighted Average Plant Load Factor (PLF) | Period | Wind PLF | Solar PLF | | :--- | :--- | :--- | | Q4 FY25 | 17.4% | 24.8% | | Q4 FY24 | 18.4% | 25.5% | | FY25 | 24.4% | 23.6% | | FY24 | 26.4% | 24.6% | Financial Performance (P&L Analysis) Total income grew 38.8% in Q4 and 13.0% in FY25, boosted by increased operational capacity and new manufacturing sales, though partially offset by lower merchant tariffs. Net profit also saw a significant rise, particularly in Q4, due to higher revenues and manufacturing contributions. Key expenses like raw materials and finance costs increased in line with business expansion, with manufacturing operations being a primary driver for the rise in raw material and employee costs - Total Income for Q4 FY25 increased by 38.8% to INR 34,391 million, and for FY25, it rose by ~13.0% to INR 109,070 million. Growth was driven by increased operational capacity and manufacturing sales, partially offset by lower merchant tariffs and asset sales[12][14] - Raw materials and consumables costs surged in FY25 to INR 10,468 million from INR 3,844 million in FY24, primarily due to consumption of INR 9,397 million attributable to the new module and cell manufacturing operations[16][17] - Finance costs for FY25 increased by 10.2% to INR 52,352 million, mainly due to borrowings for increased operational assets and manufacturing operations[24] - Net profit for Q4 FY25 was INR 3,137 million, a substantial increase from INR 609 million in Q4 FY24. For the full year FY25, net profit was INR 4,591 million compared to INR 4,147 million in FY24, with manufacturing operations contributing INR 2,623 million to the FY25 net profit[26][27][28] Financial Position & Liquidity The company maintained a strong liquidity position with INR 82,951 million in cash and bank balances as of March 31, 2025. Net debt stood at INR 640,067 million. Cash from operations remained stable year-over-year, while cash used in investing activities decreased significantly due to lower capital expenditure. Days Sales Outstanding (DSO) improved by 6 days to 71, indicating better receivables management Cash Flow Summary (in INR million) | Cash Flow from | FY25 | FY24 | | :--- | :--- | :--- | | Operating Activities | 69,223 | 68,931 | | Investing Activities | (75,822) | (162,535) | | Financing Activities | 19,984 | 82,417 | - Capital expenditure for renewable energy projects in FY25 was INR 78,188 million (US$ 915 million) for commissioning 1,287 MW of solar, 193 MW of wind, and 150 MWh of battery storage[37] - As of March 31, 2025, the company had a strong liquidity position with INR 82,951 million (US$ 971 million) in cash and bank balances[38] - Net debt as of March 31, 2025, was INR 640,067 million (US$ 7,492 million)[39] - Days Sales Outstanding (DSO) improved to 71 days as of March 31, 2025, from 77 days a year earlier[40] FY26 Guidance This section outlines the company's financial and operational projections for the upcoming fiscal year Financial Outlook For Fiscal Year 2026, ReNew expects to add 1.6 to 2.4 GW of new capacity. The company projects an Adjusted EBITDA between INR 87-93 billion and Cash Flow to Equity (CFe) of INR 14-17 billion. This guidance incorporates anticipated gains from asset sales (INR 1-2 billion) and significant contributions from the manufacturing business (INR 5-7 billion of Adjusted EBITDA) - The company expects to complete the construction of 1.6 to 2.4 GWs by the end of Fiscal Year 2026[32] - Guidance includes INR 1-2 billion in Adjusted EBITDA from asset sales and INR 5-7 billion from external sales from module and cell manufacturing operations[32] FY26 Financial Guidance (in INR billion) | Metric | Guidance Range | | :--- | :--- | | Adjusted EBITDA | 87 - 93 | | Cash Flow to Equity (CFe) | 14 - 17 | Significant Corporate Developments This section details recent strategic transactions, including asset sales, manufacturing stake sales, and a non-binding acquisition proposal Strategic Transactions and Proposals ReNew has engaged in several key strategic activities, including an agreement to sell a minority stake in its manufacturing business to British International Investment (BII) for US$100 million and the completed sale of a 300 MW solar asset. A major development is the receipt of a non-binding offer from a consortium including Masdar and CPP Investments to acquire all outstanding shares of the company for US$7.07 per share. A Special Committee of the Board has been formed to evaluate this proposal - Signed an agreement to sell a minority stake in its manufacturing business to British International Investment PLC ("BII") for INR 8,700 million (US$100 million)[42] - Concluded the sale of a 300 MW operating solar asset to Anzen India Energy Yield Plus Trust in March 2025, receiving proceeds of ~US$ 56 million[43] - Received a non-binding proposal from a consortium (including Masdar, CPP Investments, ADIA, and Sumant Sinha) to acquire the company's entire issued share capital not already owned by them for US$7.07 per share[44] - The Board of Directors formed a Special Committee of independent directors to consider the non-binding proposal and evaluate all strategic opportunities[45][46] Non-IFRS Financial Measures This section defines and explains the rationale behind the company's use of non-IFRS financial measures Definition and Rationale The company utilizes Adjusted EBITDA and Cash Flow to Equity (CFe) as key non-IFRS measures to provide supplemental insight into its performance. Adjusted EBITDA is defined as Profit/(loss) adjusted for taxes, finance costs/income, depreciation, and other specific non-operational items, aiming to reflect ongoing operational profitability. CFe is defined as Adjusted EBITDA adjusted for non-cash items, interest paid, taxes paid, and normalized loan repayments, intended to show cash generation from operating assets in a capital-intensive business - Adjusted EBITDA is a non-IFRS measure defined as Profit/(loss) for the period adjusted for items such as tax, finance costs, depreciation, and share-based payments. It is used to assess ongoing financial performance and improve comparability[49][50] - Cash Flow to Equity (CFe) is a non-IFRS measure defined as Adjusted EBITDA plus non-cash expenses and finance income, less interest paid, tax paid, and normalized loan repayments. It is used to assess cash generation from operating assets[53][54] - Management believes these non-IFRS measures are useful for investors and analysts to compare operating performance, make management decisions, and evaluate the company, as they exclude items that can vary widely across industries or due to capital structure[51][57] Consolidated Financial Statements This section presents the company's consolidated financial statements, covering the balance sheet, income statement, cash flows, and non-IFRS measure reconciliations Consolidated Statement of Financial Position As of March 31, 2025, ReNew's total assets grew to INR 959,724 million from INR 873,935 million a year prior, primarily driven by an increase in Property, Plant and Equipment. Total equity rose to INR 131,113 million from INR 121,697 million, while total liabilities increased to INR 828,611 million, reflecting higher borrowings to fund expansion Key Balance Sheet Items (in INR million) | Item | As at March 31, 2025 | As at March 31, 2024 | | :--- | :--- | :--- | | Total Assets | 959,724 | 873,935 | | Total Non-current assets | 841,625 | 769,498 | | Total Current assets | 118,099 | 104,437 | | Total Equity | 131,113 | 121,697 | | Total Liabilities | 828,611 | 752,238 | | Total Non-current liabilities | 632,252 | 610,194 | | Total Current liabilities | 196,359 | 142,044 | Consolidated Statement of Profit or Loss For the fiscal year ended March 31, 2025, Total Income increased to INR 109,070 million from INR 96,531 million in FY24. Despite a rise in total expenses to INR 99,014 million, driven by higher raw material and finance costs, the company's Profit for the period grew to INR 4,591 million from INR 4,147 million in the prior year Key Profit or Loss Items (in INR million) | Item | For the year ended March 31, 2025 | For the year ended March 31, 2024 | | :--- | :--- | :--- | | Total Income | 109,070 | 96,531 | | Total Expenses | 99,014 | 88,234 | | Profit before tax | 10,034 | 8,142 | | Profit for the period | 4,591 | 4,147 | Consolidated Statement of Cash Flows For fiscal year 2025, net cash generated from operating activities remained stable at INR 69,223 million. Net cash used in investing activities saw a significant decrease to INR 75,822 million from INR 162,535 million in FY24, primarily due to lower capital expenditure. Net cash from financing activities was INR 19,984 million, a decrease from the prior year Consolidated Cash Flow Summary (in INR million) | Item | For the year ended March 31, 2025 | For the year ended March 31, 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 69,223 | 68,931 | | Net cash used in investing activities | (75,822) | (162,535) | | Net cash generated from financing activities | 19,984 | 82,417 | | Net increase/(decrease) in cash | 13,385 | (11,187) | Reconciliation of Non-IFRS Measures The company provides a detailed reconciliation of its non-IFRS measures to the nearest IFRS figures. For FY25, a Profit for the period of INR 4,591 million was reconciled to an Adjusted EBITDA of INR 79,188 million by adjusting for items like finance costs, taxes, and depreciation. This Adjusted EBITDA was further reconciled to a Cash Flow to Equity (CFe) of INR 14,869 million after accounting for cash interest, taxes, and loan repayments Reconciliation of Net Profit to Adjusted EBITDA for FY25 (in INR million) | Description | Amount | | :--- | :--- | | Profit for the period | 4,591 | | Less: Finance income | (4,572) | | Add: Share in loss of JCE | 22 | | Add: Depreciation and amortisation | 20,670 | | Add: Finance costs and FV change | 52,352 | | Less: Change in fair value of warrants | (595) | | Add: Income tax expense | 5,443 | | Add: Share based payment expense | 1,277 | | Adjusted EBITDA | 79,188 | Reconciliation of Adjusted EBITDA to CFe for FY25 (in INR million) | Description | Amount | | :--- | :--- | | Adjusted EBITDA | 79,188 | | Add: Finance income | 4,572 | | Less: Interest paid in cash | (43,493) | | Less: Tax paid | (2,222) | | Less: Normalised loan repayment | (23,614) | | Add/ less: Other non-cash items | 438 | | Total CFe | 14,869 |