ReNew Energy Global Plc Q4 FY2024 earnings call

• Unwavering purpose to create a carbon-free world, focusing on growth with returns exceeding cost of capital.
• In FY’24, India auctioned over 62 gigawatts of RE capacity; ReNew won ~8 gigawatts, with a contracted portfolio at 15.6 gigawatts and a pipeline over 21 gigawatts by 2029.
• Favorable macroeconomic environment with policy consistency and demand growth in sectors like EV and data centers; solar and battery prices low improving project returns.
• Asset recycling strategy to fund growth, aiming to monetize ~2 gigawatts by FY’29; ROCE for operational assets over 1 year is ~11%, better than consolidated.
• FY’25 EBITDA guidance INR76-82 billion, operationalize 1,900-2,400 MW, CFE INR12-14 billion.
• Differentiated capabilities in firm power and complex projects, leveraging in-house EPC, digital, and project development.
• ESG initiatives: multiple awards, CSR impact, employee-driven programs.

No detailed product segment financials provided; focus on renewable energy overall with key growth and operational highlights across the sector.

• FY’25 EBITDA expected INR76-82 billion, operationalize 1,900-2,400 MW, CFE INR12-14 billion.
• Long-term goal: 16%-18% annual EBITDA growth through decade, reaching INR142-150 billion run rate EBITDA by FY’30.
• CFE expected to grow over 25% annually, ROCE 11%-12% consolidated, improve leverage net debt to EBITDA by 25%.

• Interconnection access bottlenecks delaying project commissioning.
• Policy changes or regulatory uncertainties affecting auction outcomes and PPA signing.
• Supply chain challenges in solar module availability and costs.
• Weather-related impacts on power production, though mitigated by digital capabilities.

Q: On interconnection and project participation in FY’25 A: ReNew blocks interconnected areas, bids selectively for higher IRRs.

Q: PPA signing for won projects A: ~1.8 gigawatts signed, remainder expected in 6-9 months.

Q: Solar module manufacturing sales A: Balance capacity to be sold domestically and internationally, ramp up ongoing.

Q: IRR difference between complex and solar projects A: Complex projects have higher IRRs due to lower competition and harder execution.

Q: Conservatism in guidance A: Market-dependent, target top end but conservative.

Q: Transmission impact A: Shift in project development strategy to account for transmission charges, considering co-location.