ReNew Energy plc(US:RNW)2025-06-16 13:30Financial Data and Key Metrics Changes - The company reported a profit before tax of INR 10 billion, representing a 23% increase year-on-year [10] - Adjusted EBITDA for Q4 FY 2025 was INR 22.1 billion, a 32% increase compared to the previous year, driven by cost optimization and asset sales [21] - The EBITDA margin for the IPP business improved to almost 83%, up from just over 80% last year [9] Business Line Data and Key Metrics Changes - The total operating megawatts reached 11.2 gigawatts, a 17% increase year-on-year, and a 21% increase on a like-for-like basis after excluding asset sales [6] - The contracted portfolio now stands at 18.5 gigawatts, an 18% increase from the previous year [7] - The manufacturing business contributed around INR 4.2 billion to the consolidated EBITDA for FY 2025 [19] Market Data and Key Metrics Changes - The company secured a 14% market share in the bids participated in, winning 4.8 gigawatts plus 800 megawatt hours of BEST [8] - The macro environment in India remains robust, with over 50 gigawatts of auctions expected annually, maintaining attractive IRRs [7] Company Strategy and Development Direction - The company plans to expand its cell facility by an additional 4 gigawatts, aligning with its module manufacturing capacity [8] - The focus remains on capital recycling and judicious capital allocation to improve returns and support growth [16][27] - The company aims to build large land banks along with connectivity to enhance project delivery [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the renewable energy sector's growth in India, despite geopolitical and economic challenges [10] - The company anticipates continued growth in energy demand and a supportive regulatory environment for renewable energy [11][12] - The guidance for FY 2026 expects adjusted EBITDA between INR 87 billion to INR 93 billion, assuming similar weather patterns to FY 2025 [36] Other Important Information - The company achieved a top ESG rating, scoring 84.35 in the LSEG ESG rating, and was recognized in the Sustainalytics top-rated ESG companies list [31] - The company has impacted 1.7 million lives through its social responsibility initiatives, aiming for 2.5 million by 2030 [34] Q&A Session Summary Question: What are the assumptions for PLF in fiscal 2026? - Management expects PLF levels to be similar to those in FY 2025, at the lower end of the guidance range [42] Question: What are the expectations for module sales in FY 2026? - The company anticipates a mix of DCR and non-DCR sales, with a significant portion of the 1.4 gigawatt order book expected to be fulfilled throughout the fiscal year [44] Question: How will the Topcon facility be financed? - The financing plan includes 70% debt and 30% equity, similar to previous expansions, with ongoing discussions with lenders [46] Question: Are there plans to sell modules outside of India? - Currently, the contracted sales are primarily for the Indian market, with plans to build a presence in international markets [51] Question: How will the company take advantage of declining interest rates? - The company plans to refinance existing debt opportunistically and will benefit from lower rates on new debt for expansion projects [56]