ReNew open to selling minority stake in solar module manufacturing capacity: CEO Sumant Sinha

In addition to being an independent power producer in India, ReNew provides end-to-end solutions in the areas of clean energy, value-added energy offerings through digitalisation, storage, and carbon markets.

Renew Energy Global (Nasdaq: RNW), a decarbonisation solutions company, is looking at selling a minority stake in its solar module manufacturing units, the company's founder, chairperson and Chief Executive Officer Sumant Sinha said on November 20.

ReNew is setting up a 2-GW module manufacturing capacity in Dholera, Gujarat, and another 4 GW in Rajasthan, both of which are now in the process of getting commissioned. The facility is being built under the second tranche of the Production-Linked Incentive (PLI) scheme being offered for high efficiency solar module manufacturing units by the Indian government.

"We are totally open to selling some stake of our solar module manufacturing plant. We do not intend to keep 100 percent stake of it. Our intention behind setting up such units is to assure ourselves of supply security and as long as we are able to do that, it meets our primary objective," Sinha said in a post-earnings call with analysts.

ReNew, on November 20, reported a net profit of Rs 377.1 crore for the quarter that ended in September, compared to a net loss of Rs 98.6 crore for Q2 FY23.

The company registered a total revenue of Rs 2,863.2 crore in Q2 FY24 compared to Rs 2,240.9 crore in the year-ago period. Adjusted EBITDA for Q2 FY24 was Rs 2,129.8 crore, as against Rs 1,820.9 crore in Q2 FY23. Cash Flow to equity (“CFe”) for Q2 FY24 was Rs 934.6 crore, compared to Rs 712.5 crore in Q2 FY23.

As of September 30, 2023, the ReNew’s portfolio consisted of 13.8 GWs, compared to 13.4 GWs as of September 30, 2022, of which 8.3 GWs are commissioned and 5.5 GWs are committed.

ReNew's Chief Financial Officer (CFO) Kailash Vaswani also said the company consummated transactions worth Rs 772 crore ($93 million) so far in FY24. "The $93 million includes three deals - the company's partnership with Malaysia’s state-run oil and gas company, Petroliam Nasional Bhd; the 100 MW renewable asset sale to Technique Solaire; and the amount we got from Norfund for our transmission business," he said.

Overall, the company has raised about Rs 4,700 crore ($565 million) from asset recycling in total so far.