ReNew Energy Global Plc (NASDAQ:RNW) Q3 2023 Earnings Call Transcript

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Angie Storozynski: Thank you. I just wanted to ask a bigger picture question. So given all of the scrutiny surround Adani Green and their financing, I understand that there’s very little comparison between your stock and theirs even before the sell out as far as multiples are concerned. But I’m just wondering is there any change to the competitive landscape to questions that you’re being asked by future lenders for your renewable power projects, are you — do you feel like this turmoil surrounding Adani Green is giving you an edge and bidding for some assets and again, any lessons learned from how you can improve your disclosures going forward?

Sumant Sinha: Yes. So Angie, look I think, frankly speaking, as you said in your own question, we are a very different company from Adani in terms of a whole variety of different factors. I would say that in terms of our operating situation, nothing really has changed as such. I think that we were already considered I think a very high quality company in terms of ESG issues and that continues to be the case. It is also reflected in all the ratings that we have got. There haven’t really been any bids that have happened post this whole situation that one can point to and therefore say that this is how the situation might change. But I think what will happen is that there will be an appreciation for high-quality, well-driven companies that are truly following the whole ESG methodology in everything that they do.

And so in that sense, I would be hopeful that people will look at us with slightly, what should I say, a high degree of attraction perhaps. But let me leave it at that because I don’t know how the — what impact it might have on the Adani Group in terms of how that situation evolves. It’s something that I don’t know and I’m not aware of. And it’s really too early to be able to comment on whether we’ve seen them change their behavior in the marketplace and so on. So let me just leave it at that. Kedar, I don’t know if there’s anything that you’d like to add.

Kedar Upadhye: No, I would just say that since we are listed on U.S., we do follow very extensive 6-K and 20-F disclosures, which are both for financial and operational data and management commentary, pretty extensive in nature. And we will continue to enhance those disclosures. Thanks.

Angie Storozynski: Okay. And then an unrelated question, if I may. So you mentioned that the SECI is granting extensions to CODs for some of the assets. And I don’t think I fully understood what you were trying to say. You were suggesting that you actually might bring projects early on to capture merchant’s earnings and just use this fact that there could be an allowed delay in official COD or is it about just the fact that the component prices are falling and so the economics of the projects might get improved if you were to delay them?

Sumant Sinha: Actually Angie, it’s both. And so each case might be different. Wherever it is allowed for us to postpone, and we feel that in the postponement, we can get lower prices that will allow us to potentially postpone the project and lower the CAPEX and still meet SECI’s commissioning requirements. So that is one potential strategy that we could follow. The second potential strategy is that we could potentially commission projects earlier and sell them in the merchant market and then sort of lay them off to SECI based on the SECI commissioning extension that we’ve got. So the point is that it gives us a lot more flexibility to optimize with the project cost or revenues. And so we fully intend to use the flexibility that we’ve been given to maximize on the returns of our projects. So it will allow us to increase the returns either by using either one of these two strategies.

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