ReNew Energy Global plc (ReNew), India’s leading renewable energy company, announced its consolidated results for Q3 FY22 and nine months ended December 31,2021.
Operating Highlights:
- The commissioned capacity of the Company increased by 1.1 GW during Q3 FY22 of which 0.8 GW was added organically. As of December 31, 2021, the Company’s portfolio consisted of 10.3 GW of which 7.4 GW are commissioned and 2.9 GW are committed.
- Total Income (or total revenue) for nine months of FY22 was INR 51,581 million (US$ 693 million), an increase of 25.6% over nine months of FY21. Total Income for the Q3 FY22 was INR 13,462 million (US$ 181 million), an increase of 24.7% over Q3 FY21.
- Net loss for nine months of FY22 was INR 12,573 million (US$ 169 million) compared to a net loss of INR 4,093 million (US$ 55 million) in nine months of FY21. The net loss for nine months of FY22 included INR 13,158 million (US$ 177 million) of charges related to listing on Nasdaq Stock Market LLC, issuance of share warrants, listing related share-based payments and others.
- Adjusted EBITDA(2) (Non-IFRS) for nine months of FY22 was INR 42,456 million (US$ 571 million), an increase of 27.5% over nine months of FY21. Adjusted EBITDA for Q3 FY22 was INR 10,554 million (US$ 142 million), an increase of 26.0% over Q3 FY21. Adjusted EBITDA was not adjusted for the net negative impact of weather relative to normal of approximately INR 4,082 million (US$55 million) for nine months of FY22 and approximately INR 1,116 million (US$ 15 million) for Q3 FY22.
- Non-IFRS Cash Flow to Equity (2) (“CFe”) from Operating Assets for nine months of FY22 was INR 17,904 million (US$ 241 million), an increase of 115.7% over nine months of FY21. Non-IFRS Cash Flow to Equity from Operating Assets for Q3 FY22 was INR 5,085 million (US$ 68 million), an increase of 811.7% over Q3 FY21.
Key Operating Metrics
As of December 31, 2021, our total portfolio consisted of 10,331 MW. Commissioned capacity was 7,440 MW of which 3,749 MW was wind, 3,592 MW solar and 99 MW were hydro. We commissioned 160 MW of wind and 1,325 MW of solar capacity during the nine months of FY22 and 97 MW of wind and 769 MW of solar capacity during Q3 FY22. We acquired 260 MW of solar assets during Q3 FY22.
Electricity sold
Total electricity sold for nine months of FY22 was 10,475 million kWh, an increase of 1,933 million kWh, or 22.6%, over nine months of FY21. Total electricity sold for Q3 FY22 was 2,917 million kWh, an increase of 548 million kWh or23.1%, over Q3 FY21.
Electricity sold for nine months of FY22 for wind assets was 6,677 million kWh, an increase of 1,350 million kWh, or 25.3%, over nine months of FY21. Electricity sold for nine months of FY22 for solar assets was 3,617 million kWh, an increase of 402 million kWh or 12.5%, over nine months of FY21. Electricity sold for nine months of FY22 for hydro assets was 181 million kWh. The hydro assets were acquired in the month of August 2021.
Electricity sold for Q3 FY22 for wind assets was 1,373 million kWh, an increase of 33 million kWh or 2.5%, over Q3 FY21. Electricity sold for Q3 FY22 for solar assets was 1,433 million kWh, an increase of 404 million kWh or39.2%, over Q3 FY21. Electricity sold for Q3 FY22 for hydro assets was 111 million kWh. The hydro assets were acquired in the month of August 2021.
Plant Load Factor
Our weighted average Plant Load Factor (“PLF”) for nine months of FY22 for wind assets was 28.0%, compared to 24.5%, for nine months of FY21 due to an improvement in wind resource. The PLF for nine months of FY22 for solar assets was 22.0% compared to 22.3% for nine months of FY21.
Our weighted average PLF for Q3 FY22 for wind assets was16.7%, compared to 18.1% for Q3 FY21. The PLF for Q3 FY22 solar assets was 21.0% compared to 21.3% for Q3 FY21.
Total Income
Total Income for nine months of FY22 was INR 51,581 million (US$ 693 million), an increase of 25.6% over for nine months of FY21. The increase in total income was primarily due to increase in capacity and higher wind PLFs as a result of improved wind resource. Total Income for Q3 FY’22 was INR 13,462 million (US$ 181 million), an increase of 24.7% over Q3 FY’21. The increase in total income was primarily due to increase in capacity. Total income includes Finance Income of INR 1,235 million (US$ 17 million) for nine months of FY22 and INR 428 million (US$ 6 million) for Q3 FY22.
Employee Benefit Expenses
Employee benefits expense for nine months of FY22 was INR 3,423 million (US$ 46 million), an increase of 267.8% over nine months of FY21. Employee benefit expenses for Q3 FY22 was INR 1,141 million (US$ 15 million), an increase of 246.0% over Q3 FY21. The increase is primarily due to INR 2,220 million (US$ 30 million) expense in nine months of FY22 as a result of share-based payment expense and other listing expenses.
Other Expenses
Other Expenses, which includes Operating & Maintenance (O&M) as well as General & Administrative (G&A), for nine months of FY22 was INR 6,495 million (US$ 87 million), an increase of 30.4 % over nine months of FY21. The increase was in line with increase in operating capacity and certain investments for future growth. Other expenses for Q3 FY22 was INR 2,178 million (US$ 29 million), an increase of 51.4% over Q3 FY21. Other expenses for Q3 FY21 included a onetime positive adjustment of INR 168 million (US$ 2 million) on account of assets held for sale resulting in lower comparable expense base for the period and therefore higher percentage of variance. The increase without this onetime adjustment is in line with increase in operating capacity and certain investments for future growth.
Net Loss
The net loss for nine months of FY22 was INR 12,573 million (US$ 169 million) compared to a net loss of INR 4,093 million (US$ 55 million) in nine months of FY21. The net loss for nine months of FY22 included INR 13,158 million (US$ 177 million) of charges related to listing on Nasdaq Stock Market LLC, issuance of share warrants, listing related share-based payments and others.
Adjusted EBITDA (2)
Adjusted EBITDA (Non-IFRS) for nine months of FY22 was INR 42,456 million (US$ 571 million), an increase of 27.5% over nine months of FY21. Adjusted EBITDA for Q3 FY22 was INR 10,554 million (US$ 142 million), an increase of 26.0% over Q3 FY21. Adjusted EBITDA was affected by the net negative impact of weather relative to normal of approximately INR 4,082 million (US$55 million) for nine months of FY22 and approximately INR 1,116 million (US$ 15 million) for Q3 FY22.
Run Rate Guidance
The Company is reiterating its run rate adjusted EBITDA, Cash Flow to equity and Net Debt guidance, for its current operating portfolio of 7.3 GW (after the recent rooftop sale) and total portfolio of 10.2 GW, in line with previous disclosures:
| ($ in millions) | Run Rate Adjusted EBITDA | Run Rate Cash Flow to equity | Net Debt |
| 7.3 GW Operating Portfolio | $825- $890 | $265 – $287 | ~$4,175 |
| 10.2 GW Total Portfolio | $1,115-$1,205 | $383-$413 | $5,650-$5,850 |
We continue to expect that adjusted EBITDA, excluding the impact of weather, for fiscal year 2022 will be approximately INR 60,750 million (or US$810 million using a foreign exchange rate of Indian rupees into U.S. dollars of INR 75.00 to US$1.00). The negative weather impact for the first nine months of fiscal year 2022 was approximately $55 million.
Note: Construction (including land acquisition) typically takes approximately six to 18 months for utility-scale wind energy projects, and four to 12 months for utility-scale solar energy projects. PPAs are typically signed three to six months after receipt of the LOA although there have been recent delays in receiving PPAs principally due to COVID-19.
