Business context and reporting period
Renew Energy Global plc’s Form 20-F is an audited annual report for the fiscal year ended March 31, 2022—not a standalone 2021 Q4 filing. The filing does not provide a clear value for 2021 Q4 results. Financial statements are prepared under IFRS as issued by the IASB; amounts below are in Indian rupees (INR), generally millions.
The company develops, owns and operates wind, solar and hydro power projects in India. At March 31, 2022, it reported 7.57 GW commissioned capacity and 3.12 GW committed capacity. The August 2021 SPAC business combination and Nasdaq listing materially affected reported expenses, equity and ownership.
Key financial and operating metrics
| Metric | FY ended March 31, 2022 | Prior comparable period |
|---|---|---|
| Revenue | INR 59,349 million | INR 48,187 million; up 23% |
| Total income | INR 69,195 million | INR 54,491 million; up 27% |
| Net loss | INR 16,128 million | INR 8,032 million loss |
| Adjusted EBITDA (non-IFRS) | INR 55,144 million | INR 41,870 million; up 32% |
| Net cash from operating activities | INR 42,390 million | INR 32,081 million |
| Cash and cash equivalents | INR 28,379 million | INR 20,679 million |
| Total borrowings | INR 444,260 million | INR 376,233 million at March 31, 2021 |
Revenue remained overwhelmingly power sales (99% of revenue in each of the three fiscal years presented). FY2022 wind revenue was INR 33,861 million and solar revenue INR 24,060 million. Wind plant load factor rose to 26.4% from 23.6%; solar plant load factor was 23.3%, compared with 22.8%.
Operating cash flow increased despite a INR 9,732 million increase in trade receivables. Investing cash outflow was INR 124,747 million, including INR 89,830 million of purchases of property, plant and equipment, intangible assets and right-of-use assets, and INR 15,929 million for acquisitions. Financing cash inflow was INR 90,038 million, including INR 67,978 million from the capital transaction, alongside substantial borrowing proceeds and repayments.
Current assets were INR 135,212 million and current liabilities INR 101,279 million. Current trade receivables were INR 44,819 million; total gross trade receivables were INR 46,791 million, with INR 44,120 million due from government-owned or controlled entities. Bank balances other than cash equivalents were INR 50,741 million, and some deposits were pledged or otherwise restricted.
Material changes versus prior comparable period
- Revenue growth reflected higher commissioned capacity and stronger wind generation, as well as solar capacity additions and acquisitions. Wind generation increased 24% and solar generation increased from 4,320 million kWh to 5,677 million kWh.
- Net loss widened to INR 16,128 million. FY2022 included INR 10,512 million in listing and related expenses and INR 690 million in warrant fair-value charges. The company also reported INR 2,410 million of share-based payment expense associated with the listing. Management stated that the net loss included INR 11,202 million of listing- and warrant-related charges.
- Finance costs and fair-value changes on derivatives rose 9% to INR 41,712 million. Depreciation and amortization rose 14% to INR 13,764 million as the asset base expanded.
- Cash and cash equivalents increased, but borrowings also rose. The company issued $400 million of 4.56% notes in January 2022, due in 2032, and reported total borrowings of INR 444,260 million at year-end.
Outlook, management commentary, risks and unusual items
Management said expected operating cash generation, credit facilities and project-finance lines should cover working-capital needs for the next 12 months, subject to operating performance and access to financing. The filing does not provide a consolidated revenue, profit or cash-flow forecast. It describes plans to expand wind and solar capacity, develop firm-power and storage offerings, and build 1.1 GW of solar-cell and 3.3 GW of module manufacturing capacity, expected to be commissioned in phases over the next two fiscal years.
After year-end, the company disclosed that it had entered into agreements to purchase 528 MW of renewable assets and signed approximately 1.6 GW of additional PPAs, bringing its stated portfolio to 12.8 GW. This was reported in a later Form 6-K, not as year-end commissioned capacity.
- Offtaker and collection risk: 74% of FY2022 total income came from PPAs with central and state government utility companies; two state distribution-company customers each represented more than 10% of income. Andhra Pradesh DISCOM receivables were INR 17,411 million. A favorable March 2022 High Court ruling affirmed PPA tariffs and payment obligations, but an appeal and requests for more time to pay remained pending.
- Debt and refinancing: Borrowings are substantial, secured and subject to restrictive covenants. The filing discloses covenant breaches at some subsidiaries and breaches for which waivers or extensions had been sought; no lender had accelerated debt on that basis as of the report. Notes due in 2022 and other near-term repayments warrant attention.
- Bird-protection order: The Supreme Court’s transmission-line directions may affect projects in Rajasthan and Gujarat. The company identified 1,813.8 MW of operational capacity and 2,375 MW of under-development capacity as potentially affected; the order’s implementation and cost allocation were uncertain.
- Tariff, policy and execution: Fixed-price PPAs can limit recovery of cost increases; lower auction tariffs, import duties on solar equipment, grid constraints, land and permitting delays, weather variability and project commissioning deadlines could pressure returns and cash flows.
- Other contingencies and unusual events: Legal and tax disputes include change-in-law claims, entry-tax matters and project-related proceedings. The filing says current contingencies were not expected to have a material effect, but some outcomes and potential losses could not be estimated clearly. A fatal accident involving a contract worker occurred at a Rajasthan solar site in November 2021; the company reported no claims or penalties as of the filing.
- Reporting controls: Management concluded disclosure controls were effective at March 31, 2022. The filing contains no management assessment or auditor attestation of internal control over financial reporting because of the newly public company transition period.
Most important facts an investor should verify
- Confirm that the intended period is FY2022: this 20-F does not report standalone 2021 Q4 financial results.
- Review the full IFRS statements and notes for debt maturities, covenant waivers, collateral, restricted cash and the ability to refinance near-term obligations.
- Track collection of government-utility receivables, especially Andhra Pradesh DISCOM balances, and the status of appeals and payment schedules.
- Assess the likely cost, timing and project impact of the Supreme Court transmission-line order in Rajasthan and Gujarat.
- Reconcile reported net loss with listing charges, warrant accounting and share-based compensation; evaluate Adjusted EBITDA and Cash Flow to Equity as non-IFRS measures alongside IFRS cash flows.
- Verify delivery dates, financing and returns for committed projects, manufacturing facilities and the post-year-end portfolio additions.