ReNew Energy plc(US:RNW)2023-07-31 15:03Capacity and Growth - The total commissioned capacity of the company reached 7.98 GW as of March 31, 2023, with an additional 5.72 GW of committed capacity [437]. - The company's operational capacity has grown 4.0 times from March 31, 2017, to March 31, 2023, demonstrating strong organic and inorganic growth [438]. - The company expects to further increase its total commissioned capacity both organically and through acquisitions, impacting future operational results [440]. - As of March 31, 2023, projects with power purchase agreements (PPAs) based on bidding-based tariffs accounted for 66.4% of total capacity, indicating a shift towards competitive bidding models [446]. Financial Performance - Total income increased from Rs. 54,491 million for the year ended March 31, 2021, to Rs. 89,309 million for the year ended March 31, 2023, reflecting significant growth [438]. - Total income increased by 29% to Rs. 89,309 million for the year ended March 31, 2023, compared to Rs. 69,195 million for the year ended March 31, 2022 [481]. - Revenue from the sale of power rose from Rs. 59,349 million in the year ended March 31, 2022, to Rs. 78,223 million in the year ended March 31, 2023 [481]. - Revenue from the sale of power constituted 90% of total revenue for the year ended March 31, 2023, highlighting the company's reliance on power sales [449]. Expenses and Costs - Operation and maintenance expenses increased from Rs. 3,935 million in 2021 to Rs. 5,528 million in 2023, representing 8%, 8%, and 7% of revenue for the respective periods [454]. - The cost of raw materials and consumables used increased significantly to Rs. 6,956 million in the year ended March 31, 2023, from Rs. 324 million in the previous year, due to construction costs for transmission projects [486]. - Other expenses increased by 37% to Rs. 13,636 million in the year ended March 31, 2023, from Rs. 9,925 million in the previous year, driven by capacity additions and increased travel costs [489]. - Finance costs increased by 22% to Rs. 50,966 million in the year ended March 31, 2023, from Rs. 41,712 million in the previous year, primarily due to higher borrowing amounts [490]. Profitability and Loss - The loss for the year ended March 31, 2023, was Rs. 5,029 million, a decrease from Rs. 16,128 million in 2022 [478]. - The company incurred a loss of Rs. 5,029 million in the year ended March 31, 2023, compared to a loss of Rs. 16,128 million in the previous year, which included a one-time listing-related expense [491]. - Adjusted EBITDA for the year ended March 31, 2023, was Rs. 62,004 million (US$ 754 million), an increase from Rs. 55,144 million in 2022 [508]. Cash Flow and Liquidity - Net cash generated from operating activities for the year ended March 31, 2023, was Rs. 65,572 million (US$ 798 million), up from Rs. 42,390 million in 2022 [518]. - Net cash used in investing activities for the year ended March 31, 2023, was Rs. 74,978 million (US$ 912 million), primarily due to purchases of property, plant, and equipment [522]. - Net cash generated from financing activities for the year ended March 31, 2023, was Rs. 19,113 million (US$ 233 million), driven by proceeds from long-term loans and borrowings of Rs. 153,602 million [525]. - The company expects cash generated from operations and capital market funding to continue as primary sources of liquidity [516]. - The company believes that expected cash generation will be sufficient to finance working capital requirements for the next 12 months [517]. Borrowings and Interest - As of March 31, 2023, total borrowings amounted to Rs. 530,407 million, including CCDs of Rs. 16,999 million [457]. - The weighted average interest cost of borrowings decreased from 9.69% in 2021 to 9.30% in 2023 [457]. - The company has long-term interest-bearing loans with outstanding amounts of Rs. 70,888 million for non-convertible debentures and Rs. 102,703 million for term loans from banks as of March 31, 2023 [529]. - Interest rates for term loans from banks range from 7.61% to 11.49%, with maturities extending from January 2024 to June 2042 [529]. Employee and Operational Expenses - Employee benefits expenses were Rs. 4,413 million for the year ended March 31, 2023, compared to Rs. 4,501 million in 2022 [478]. - Employee benefit expenses decreased to Rs. 4,413 million in the year ended March 31, 2023, from Rs. 4,501 million in the previous year, due to the absence of additional incentives related to the Nasdaq listing [487]. - Depreciation and amortization expenses increased to Rs. 15,901 million for the year ended March 31, 2023, from Rs. 13,764 million in 2022 [478]. - Depreciation and amortization increased by 16% to Rs. 15,901 million in the year ended March 31, 2023, from Rs. 13,764 million in the previous year, reflecting an increase in the asset base [488]. Regulatory and Legal Matters - The Government of India is formulating policies to boost wind-based capacity additions, which may impact the market in the medium term [458]. - The company is subject to legal proceedings but does not expect any material adverse effects on its financial position from these matters [538]. - The company maintains various liability insurance coverage to protect its assets from losses arising from normal business operations [538]. - No off-balance sheet arrangements are reported by the company [540]. Accounting and Estimates - The company emphasizes the importance of critical accounting estimates that reflect its financial condition and results, requiring complex judgments due to inherent uncertainties [545]. - Recent accounting pronouncements are detailed in Note 4.2 of the audited consolidated financial statements included in the report [545].