ReNew Energy plc(US:RNW)2024-08-16 15:08Financial Data and Key Metrics Changes - The company reported a 24% increase in operating capacity year-over-year, with over 2 gigawatts of projects constructed [11] - Revenue increased by approximately INR 3.9 billion due to higher megawatts, but adjusted EBITDA only increased by about INR 400 million due to various factors including lower PLF and absence of late payment surcharges [12] Business Line Data and Key Metrics Changes - The company signed 2.2 gigawatts of Power Purchase Agreements (PPAs) during Q1 FY '25 and expects to sign the majority of the remaining PPAs from the current pipeline within the fiscal year [10] - Module manufacturing capacity is scaling up, with the Jaipur facility expected to produce over 2 gigawatts of modules this year, while external sales contracts for module supply have been secured for around 600 megawatts [10] Market Data and Key Metrics Changes - The company noted that the auction market remains robust, with recent auction wins expected to generate returns higher than historical averages [6] - The overall power demand in India is growing at 7% to 8% annually, with renewables being the primary alternative to meet this demand due to limited coal capacity additions [36] Company Strategy and Development Direction - The company aims to double its operating portfolio by 2029, having already converted 2.2 gigawatts into PPAs from auction wins [5] - The focus remains on disciplined bidding for future growth, targeting projects with lower risk and higher return profiles [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on annual EBITDA guidance despite weather-related impacts in Q1, with expectations for Q2 to be 10% to 15% higher than Q1 [20] - The company is proactively managing its construction timelines to align with transmission construction timelines, ensuring connectivity for its projects [42] Other Important Information - The company achieved a 5-star safety rating from the British Safety Council for one of its projects, emphasizing its commitment to safety [7] - The inaugural annual integrated report for fiscal year 2023-24 was released, showcasing significant strides in ESG efforts and transparency [14] Q&A Session Summary Question: Potential revenue and margin profile for 600 megawatts of external module sales - Management indicated that these sales are to customers within India, with agreed margins that will contribute to future EBITDA [21] Question: Performance of commissioned RTC and peak power projects - Current sales are happening through the merchant market, with attractive realizations better than base case expectations [22] Question: Asset recycling opportunities - Management stated that asset recycling will be opportunistic, with discussions ongoing for potential monetization [23] Question: Timing of 600 megawatts of module sales - Most sales are expected to occur towards the end of the financial year, with some potentially slipping into the next fiscal year [25] Question: Wind PLFs and equipment issues - Management clarified that underperformance is solely due to weather, with no systemic issues with wind turbine performance [33] Question: Solar cell capacity commissioning timeline - Initial trial production for solar cells is expected in the next few months, with full capacity anticipated by the end of the financial year [37] Question: Transmission tie-up for commissioned capacity - All transmission connectivity is fully tied up for the current and future capacities, with proactive measures taken to secure optimal substations [41]