ReNew Energy Global Plc Q3 FY2024 earnings call

• India's renewable energy auction volume surged in fiscal 2024, with over 40 GW of auctions completed year-to-date and another 70 GW expected in the next few months. Complex projects now make up 38% of auctions vs. 8% last year.
• Solar module prices fell to historical lows of ~U.S. $0.11 per watt peak, benefiting project costs. Own manufacturing facility came online resolving supply challenges.
• Project execution: ~1.9 GW of assets erected, 825 MW commissioned, 475 MW wind turbines and 620 MW solar modules installed. Also installed 150 MWh battery storage and 276 km of transmission.
• DSO improved to 86 days from 272 days prior, releasing ~$200 million for growth.
• ESG initiatives: Recognized as top performers by Sustainalytics, maintained CDP climate change rating at B, received multiple awards including Terra Carta Seal.

There is no specific breakdown of product segments into distinct financial performances. However, key financial highlights include: Adjusted EBITDA guidance for FY 2024 increased to INR 63 billion to 66 billion. Cash from operations for the nine-month period ended December 31, 2023 was U.S. $616 million. Adjusted EBITDA for Q3 FY '24 was U.S. $150 million, an increase of about 8%.

• Adjusted EBITDA guidance for FY 2024 raised to INR 63 billion to 66 billion.
• Anticipate 1.75 to 1.95 GW of projects to generate revenue by FY 2024 end.
• Asset recycling: Sold 300 MW solar asset, expect ~$82M proceeds, ~$30 to $34M gain in Q4 '24 EBITDA.
• Won 3.6 GW of RE projects in Q3, market share up to 15% from 3% last year.

• Transmission delays due to stricter grid connectivity approvals from grid managers.
• Uncertainty around ALMM implementation as the government is still mulling over details.
• Variability in solar PLF due to short-term factors, requiring observation over the entire year.

Q: On competitive intensity and drivers, A: Sumant Sinha stated that most competitors have full pipelines, and with 40 GW of auctions this year vs. 12 GW last year, competitive intensity on individual projects has come down markedly.

Q: On module price impact on pipeline, A: Sumant Sinha said most capacity coming up in FY '25 will benefit from lower module prices, with modules bought in the last three months and beyond taking advantage of the price drop.

Q: On transmission delays, A: Sumant Sinha explained that grid managers are being stricter, causing delays in connectivity approvals, taking 3-4 months instead of a month earlier for some projects.

Q: On CapEx guidance and capacity to build, A: Sumant Sinha mentioned that 2.5 to 3 GW per year is still the assumption, but the company will ramp up execution capability as bids remain attractive.

Q: On ALMM and ministry abeyance, A: Sumant Sinha said the government is still mulling ALMM details, and the company is hedged as both a developer and manufacturer, with potential gains depending on ALMM relaxation.