ReNew Power losses rise to Rs 985 crore in April-September on listing expenses

In August, ReNew Power became the first Indian renewable energy company to publicly list itself in the US through a special purpose acquisition company, and has received around $610 million in cash from the IPO. (Representative image)

ReNew Power on Thursday reported a net loss of Rs 984.9 crore in the first half of FY22 compared with a net loss of Rs 59.2 crore recorded in the corresponding period last year.

The company attributed the widening of losses to Rs 1,640.7 crore worth of additional expenses it had to incur to complete formalities — including issuance of share warrants and listing related share based payments — for listing on the Nasdaq stock market.

This is the first time the company announced its financial results after the listing.

In August, ReNew Power became the first Indian renewable energy company to publicly list itself in the US through a special purpose acquisition company, and has received around $610 million in cash from the IPO.

The company’s revenue for the first six months of FY22 was Rs 3,811.9 crore ($514 million), 26% over the same period in FY21. Earnings before interest, depreciation and amortisation (Ebitda) in H1FY22 was Rs 3,190.2 crore, an increase of 27.9% over H1FY21. The Ebitda margin — an indicator of profitability — was 83.7% in H1FY22 against 82.3% in the same period last year.

“We expect to deliver Ebitda of over $1.1 billion annually from our 10.3 GW portfolio, which is nearly double our Ebitda that we reported last year,” Sumant Sinha, chairman and CEO of ReNew Power, said. Stating that it will continue to be active on the mergers and acquisition front, Sinha said “there is a significant amount of assets up for sale currently and, based on the current market dynamics, we believe that we can purchase projects and achieve a better return than in the plain vanilla renewable energy market”.

ReNew Power recently signed two separate binding agreements for the acquisition of a 99 megawatt (MW) hydropower project in Uttarakhand and a 260 MW solar project in Telangana. The combined enterprise value of the acquisitions is around Rs 2,850 crore.

The company has an aggregate renewable energy capacity of more than 10,217 MW, out of which around 7,000 MW is currently operational. “We are on track to have 8,200 MW of capacity operating by the end of this fiscal year,” Sinha added.

By FY25, the company intends to own 18 GW of renewable energy assets.