Business context and reporting period
ReNew Energy Global Plc is an India-focused renewable energy and decarbonization company, with wind, solar, hydro, transmission, manufacturing and energy-storage activities. This is its annual Form 20-F for the fiscal year ended March 31, 2024—not a standalone 2023 Q4 filing. The audited consolidated financial statements use IFRS as issued by the IASB; the auditor gave an unqualified opinion.
At March 31, 2024, commissioned capacity was 8.87 GW, with a further 3.93 GW committed and 650 MW generating pre-commissioning merchant revenue. The company reported a 15.6 GW gross portfolio as of May 31, 2024, including 6.12 GW of committed capacity.
Financial and operating performance
Amounts below are in Indian rupees (Rs.) millions unless stated otherwise. Fiscal 2024 comparisons are with fiscal 2023.
| Metric | FY2024 | FY2023 | Change or context |
|---|---|---|---|
| Revenue | 81,319 | 78,223 | Up 4% |
| Total income | 96,531 | 89,309 | Up 8% |
| Profit/(loss) before tax | 8,142 | (2,470) | Turned profitable |
| Profit/(loss) for the year | 4,147 | (5,029) | Turned profitable |
| Adjusted EBITDA | 69,216 | 62,004 | Up 12%; non-IFRS measure |
| Cash flow to equity (CFe) | 13,665 | 15,237 | Down 10%; non-IFRS measure |
| Net cash from operating activities | 68,931 | 65,572 | Up 5% |
| Net cash used in investing activities | (162,535) | (74,978) | Higher capital investment |
| Net cash from financing activities | 82,417 | 19,113 | Higher net financing inflow |
| Cash and cash equivalents at year-end | 27,021 | 38,182 | Down 29% |
| Total borrowings | 647,316 | 530,407 | Includes Rs. 18,536 of compulsorily convertible debentures |
FY2024 revenue was predominantly power sales: wind revenue was Rs. 40,847 million, up 13%, and solar revenue was Rs. 33,671 million, up 5%. Wind plant load factor rose to 27.6% from 26.5%; solar plant load factor eased to 24.7% from 24.9%. Finance costs and fair-value changes in derivatives declined 7% to Rs. 47,506 million. Depreciation and amortization rose 11% to Rs. 17,583 million.
The company reported Rs. 50,706 million of bank balances other than cash and cash equivalents, in addition to Rs. 27,021 million of cash and cash equivalents; some deposits are pledged or otherwise restricted. Capital expenditure on property, plant, equipment, intangible and right-of-use assets was Rs. 153,839 million. The filing states management expects operating cash, credit facilities and project finance lines to cover working capital needs for the next 12 months.
Material changes and unusual items
- Profitability improved from a loss to a profit, supported by higher operating capacity, improved wind generation, higher finance income and a gain on asset disposals.
- The company sold 400 MW of operating solar assets during FY2024, reporting a gain of Rs. 3,659 million and cash proceeds of approximately US$104 million, including US$8 million expected from change-in-law claims.
- Investing cash outflow more than doubled, primarily reflecting Rs. 153,839 million of asset purchases. Financing cash inflow included Rs. 413,976 million of borrowing proceeds, partly offset by Rs. 280,350 million of repayments and Rs. 52,190 million of interest paid.
- FY2023 included Rs. 1,430 million of liquidated damages and impairment of carbon credits in other expenses. FY2022 included Rs. 10,512 million of one-time listing and related expenses.
- The company repurchased 10.7 million Class A shares for approximately US$59.5 million during FY2024. About US$11 million remained under its US$250 million repurchase authorization at year-end.
Outlook, management commentary and risks
No formal consolidated financial guidance for FY2025 is stated in the provided filing text. Management describes continued growth in utility-scale renewables, hybrid and firm-power projects, storage, solar manufacturing and transmission. The company reported winning more than approximately 8 GW of auctions in FY2024; about 2.15 GW had been converted to PPAs by May 2024. It also reported signing approximately 2.2 GW of contracts after year-end. These are company-reported pipeline and activity figures, not revenue or earnings guidance.
- Funding and leverage: Borrowings increased materially, and debt agreements include restrictive covenants. Some subsidiaries had covenant-ratio or security-creation breaches; the company had sought waivers or extensions, and reported no lender acceleration notices as of the report date. It cannot assure that lenders will grant relief.
- Receivables and customer concentration: Gross trade receivables were Rs. 24,212 million, including Rs. 21,079 million from government-owned or controlled entities. Government utility customers accounted for 63% of total income, and one state distribution company exceeded 10% of total income.
- Project and resource risks: Generation depends on wind, solar and hydrological conditions; grid congestion, transmission delays, permitting, land access, supply constraints and construction overruns may affect output, timing and returns. Wind resource availability in recent years was described as generally below projections at several projects.
- Regulatory and legal uncertainty: Material matters include disputes over tariffs and change-in-law recovery, group-captive requirements, transmission charges, force-majeure terminations and customs duties on solar imports. An appeal concerning termination of certain PPAs remains pending; other proceedings and claims are detailed in the filing. Management does not expect current matters, individually or collectively, to materially affect results, but outcomes remain uncertain.
- Solar supply and policy: Reinstatement of approved-model and manufacturer requirements for certain government-supported solar projects from April 1, 2024 may affect procurement costs and timelines. A challenge to customs changes affecting project imports remains pending.
- Goodwill and operating estimates: Goodwill was Rs. 11,596 million. The auditor identified impairment testing of the Ostro wind group as a critical audit matter, highlighting sensitivity to plant load factor, operating costs and discount rates. No goodwill impairment was reported for FY2024.
- Governance and compensation: FY2023 material weaknesses in financial-reporting controls were reported as remediated by March 31, 2024; management and the auditor concluded controls were effective at year-end. CEO Sumant Sinha received a discretionary special bonus of Rs. 335 million for FY2024, in addition to fixed and contractual bonus compensation.
Important facts for investors to verify
- Reconcile reported revenue of Rs. 81,319 million with the segment table’s total of Rs. 81,121 million, and confirm the scope of each figure.
- Review debt maturities, interest rates, covenant compliance and the status of requested lender waivers; assess liquidity after planned project spending and debt service.
- Assess collectability and aging of the Rs. 24,212 million gross receivables, particularly government-related balances and amounts subject to litigation or payment plans.
- Track committed-project commissioning, conversion of auction wins into PPAs, and the cost, timing and utilization of manufacturing facilities.
- Monitor outcomes of major tariff, customs, land, transmission and PPA disputes, and whether expected recoveries or liabilities are reflected in the accounts.
- Evaluate the sustainability of adjusted EBITDA and CFe alongside IFRS profit and operating cash flow; both adjusted measures have company-defined limitations.