Renew, a leading renewable energy company, has announced a robust second-quarter performance for the fiscal year 2024, signaling favorable market conditions for renewable energy developers in India. The company has raised its EBITDA guidance and aims to complete between 1.75 and 2.25 gigawatts of projects by the end of the fiscal year.
During the quarter, Renew achieved a record-high quarterly profit after tax of $45 million, demonstrating its financial strength and growth potential. The company has also authorized a share buyback program of $250 million, indicating management’s confidence in the company’s value as an investment.
Renew has actively managed its portfolio by refinancing higher-cost debt, with plans to refinance $850 million of debt at a lower interest rate in the coming years. Through its asset recycling program, the company generated $565 million from asset sales year-to-date, further strengthening its financial position.
CEO Sumant Sinha emphasized the company’s commitment to capital discipline and highlighted its success in asset recycling. Sinha expressed optimism about the long-term recovery of wind power generation and provided updates on acquisitions, bidding, and asset recycling initiatives.
In addition, Renew’s focus on in-house module manufacturing allows for greater control over its supply chain. While the cost structure for in-house modules is estimated to be slightly higher compared to imported modules due to import duties, Sinha assured investors that the company’s cost of production remains competitive among Indian counterparts.
Renew’s CFO reiterated the company’s commitment to capital discipline and its ability to refinance debt at lower interest rates. The company has access to debt from various sources, including Power Finance Corporation and Rural Electrification Corporation. Renew recently signed a Memorandum of Understanding (MOU) worth $8 billion with these institutions, further solidifying its financial partnerships.
Moreover, Renew remains committed to its environmental, social, and governance (ESG) initiatives, releasing a sustainability report aligned with global reporting frameworks such as GRI, SASB, and TCFD. The report showcases the company’s clean electricity generation, carbon emissions reduction, water savings, and its goal to become carbon-neutral. Renew aims to reduce greenhouse gas emissions by 29.4% by 2027 and by 90% by 2040.
Frequently Asked Questions (FAQ)
1. How did Renew perform in the second quarter of fiscal year 2024?
Renew reported a quarterly profit after tax of $45 million, marking its highest profit in company history.
2. What is Renew’s share buyback program?
Renew has authorized a share buyback program of $250 million, reflecting management’s confidence in the company’s value.
3. How is Renew managing its debt?
Renew has been actively refinancing its higher-cost debt and plans to refinance $850 million at a lower interest rate in the next few years.
4. How much has Renew generated through its asset recycling program?
Renew has generated $565 million through asset sales year-to-date as part of its asset recycling program.
5. What are Renew’s goals for reducing greenhouse gas emissions?
Renew aims to reduce greenhouse gas emissions by 29.4% by 2027 and by 90% by 2040.
6. What are Renew’s financing sources?
Renew has access to debt from Power Finance Corporation and Rural Electrification Corporation, among other sources.
7. What is Renew’s strategy for module manufacturing?
Renew focuses on in-house module manufacturing to have greater control over its supply chain, despite slightly higher costs compared to imported modules.
Sources:
– Renew’s second quarter fiscal year 2024 earnings report