HomeBUSINESSReNew Power reports ₹10 cr net loss for Q1FY23

ReNew Power reports ₹10 cr net loss for Q1FY23


NEW DELHI: ReNew Energy Global Plc (ReNew Power) on Friday reported a net loss of 10.4 crore for June ended quarter of the current fiscal (Q1FY23) compared to a net profit of 42.5 crore in the year-ago period.

In a statement, the company said that the net loss includes a one-time expense for debt premium and the impact of a reclassification of a hedge loss from its balance sheet of 25.31 crore ($32 million) for refinancing of dollar-denominated bonds with lower cost rupee debt.

“Net loss for Q1 FY23 was 104 million ($1 million) compared to a net profit of 425 million ($5 million) for Q1 FY22,” it said.

The renewable power major’s total revenue during the period under review was 2,507 crore, rising 48.8% year-on-year (YoY).

Its adjusted EBITDA increased 49.7% to 2,015.7 crore in Q1 FY23.

In an interview to Mint in June, chairman and CEO of the company, Sumant Sinha, had said that the company continues to have a “robust growth”. “We have given the guidance also for next year and we are talking about 20% growth rate, in the current year as well, off the back of a year in which we increased our capacity by 40%. We are still talking of an additional 20% growth on top of that. So, there is fairly robust growth that will happen in this year as well,” he had said.

As of 30 June, ReNew’s portfolio comprised 12.9 GW, up 30.3% YoY, of which 7.6 GW has been commissioned and 5.3 GW is committed. At the end of the quarter, the company signed an additional 0.3 GW of power purchase agreements (PPA) bringing the company’s total portfolio to 13.2 GW currently.

On Wednesday, the Nasdaq-listed company said it has tied up a $1 billion project finance loan from 12 international lenders led by Rabobank. The company will utilise the external commercial borrowings (ECBs) for its hybrid round-the-clock (RTC) battery-enabled project.

ReNew has signed a PPA with the Solar Energy Corp. of India (SECI) for this project, which will include wind and solar farms set up across Karnataka, Rajasthan, and Maharashtra. The project will supply power day and night and compete against the baseload of fossil-fuel energy providers, such as coal. The company said that the interest rate, after hedging, is expected to be lower than the current average cost of debt on its balance sheet.

Last month, the company said it has refinanced its 2024 maturity dollar-denominated bonds worth $525 million with amortizing project debt from an Indian non-banking financial company.

The Goldman Sachs-backed company has massive expansion plans. In May, it announced investing 1 trillion in total in both Maharashtra and Karnataka in renewable energy projects, including battery storage. It has also announced a foray into the green hydrogen space. In April, along with Indian Oil Corp., and L&T, ReNew Power had announced a joint venture to produce green hydrogen.

The company has signed a memorandum of understanding (MoU) with Egypt’s government agencies and a sovereign fund to set up a green hydrogen manufacturing facility at the Suez Canal Economic Zone in the African country.

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