ReNew’s Net Profits Rise to US$36 Million in Q2 2023
ReNew Energy Global, a firm based in India that produces renewable energy, has released its preliminary financial results for the first quarter of its 2024 fiscal year. These data show net profits of US$36 million (INR3 billion) and total revenues of US$300 million.
The company’s most recent statistics, which cover the three months ending in June 2023, are largely encouraging. Quarterly profits significantly outpaced the net losses of US$1 million the company incurred in the first quarter of its previous fiscal year, which ran from April to June 2022.
Renew’s results have remained mostly consistent because it is increasing its business at a time when the Indian solar industry as a whole is expanding. The Central Electricity Authority of the nation reports that India increased its solar capacity by 13.9 GW in the 2022 fiscal year, compared to 5.5 GW in the prior year.
Although solar capacity in India has increased to represent 54% of the nation’s renewable energy capacity, according to JMK Research, the company announced plans to invest in a 5GW renewable portfolio alongside Gentari Renewables India in July.
These projects have helped the company’s renewables portfolio expand, one of the most significant shifts for the business over the past 12 months. ReNew had a renewable capacity of 13.7 GW at the end of the first quarter of the 2024 fiscal year, an increase of 6.3% year over year, of which 8.4 GW were in operation and 5.3 GW were in various stages of development.
JMK Research also pointed out that India installed 6.7 GW of new solar capacity in the first half of this year, a 19% decline from the first half of 2022’s total installation, which raises concerns about the sector’s long-term viability in India.
In the past year, ReNew’s earnings before interest, taxes, depreciation, and amortization (EBITDA) have also decreased marginally, possibly due to waning confidence in the durability of growth in the Indian solar industry. EBITDA for the business decreased marginally from one year to the next. Between the first quarters of 2023 and 2024, total revenue decreased from US$305 million to US$300 million, while EBITDA decreased from US$246 million to US$227 million.
ReNew anticipates that its revenue stability will endure over the coming 12 months. The company forecasts its 2024 financial year to produce EBITDA of between US$723 million and US$795.4 million. The company’s overall EBITDA for its 2023 fiscal year was US$754 million, an increase of 12.4% above EBITDA at the end of the 2022 fiscal year.
What is Net Zero and why it is important for the Indian Economy?