ReNew Energy plc(US:RNW)2022-06-15 19:13Financial Data and Key Metrics Changes - For fiscal year 2022, total income rose by 27% year-on-year, adjusted EBITDA increased by over 32%, and cash flow to equity jumped almost 93% [27][26][28] - The company reported 7.6 gigawatts of operating capacity, with an expected increase to 8.1 gigawatts following a 528 megawatt acquisition [26][27] Business Line Data and Key Metrics Changes - The company signed 2.5 gigawatts of Power Purchase Agreements (PPAs) in the last month, bringing the total gross portfolio to 12.8 gigawatts [11][12] - The corporate business has grown significantly, with a total portfolio of corporate accounts now at about 1.3 gigawatts, including over 900 megawatts with PPAs, a threefold increase in about a year [16] Market Data and Key Metrics Changes - Demand for renewable energy has surged due to an electricity crisis in India, with spot electricity prices reaching the regulated cap of INR 12 (approximately $0.15) [15] - The company noted a strong uptick in demand for renewable energy from corporate customers during the electricity crisis [15] Company Strategy and Development Direction - The company aims to capitalize on the growing green hydrogen market, with a joint venture established with Indian Oil Corporation to lead in this sector [22][23] - ReNew is focused on capital discipline, ensuring that all growth and investments are value accretive, with plans for capital recycling to enhance returns [10][13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the robust growth potential in India's renewable energy market, driven by increasing electricity demand and government targets for renewable installations [7][8] - The company expects to achieve 20% EBITDA growth in fiscal year 2023, with guidance reflecting a prudent approach to potential weather impacts [47][48] Other Important Information - The company is increasing its module manufacturing capacity to six megawatts, which will produce about 3.3 gigawatts of AC capacity [18][19] - ReNew has committed to various ESG initiatives, including planting 100,000 trees by 2025 and achieving water positivity by 2030 [39][40] Q&A Session Summary Question: Expected weather impact on fiscal '23 - Management indicated that the $40 million to $60 million weather impact is assumed for both wind and solar assets, with expectations for normal performance [52][53] Question: Guidance dependency on new assets - The guidance factors in the acquisition benefits, but the reliance on new additions for current year revenues and EBITDA is lower, primarily shaped by the existing portfolio [54][57] Question: Manufacturing plan and cell capacity - The company aims for a balanced cell and module capacity over time, with current cell capacity being slower to roll out due to complexity [58][59] Question: Inflation and interest rates impact - Management noted that new projects will factor in higher interest rates, with existing projects insulated from significant impacts due to prior refinancing [64][65] Question: Corporate PPA opportunity - The corporate PPA market has less competition, requiring bespoke solutions for corporate customers, which the company has been developing over time [66][69]