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

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And maybe we’ll end up with slightly higher than the half of what we were targeting earlier. But as I said, please take all these as tentative guidance at this point of time, we will be announcing probably by the full year when we have a clearer picture of the total PPAs that we will take over. And maybe by back month, maybe from the time we will approach you for the full year results, we’ll have a much better idea on both the number and the size of the assets that we will take over and the time line for full integration.

Sumant Sinha: If I just add to that. Yes. Sorry. I was just saying that, look, as you know, most trends, most M&A transactions are as Kedar was saying, shares transferred. This one was a slight sale because of the specific situation involved here, and that process has just taken a bit longer than anticipated and expected because of the transfer of so many different things. But I think it’s something that we’re now fairly close to completing, and it is something that should be finished by early next year. And that will then also allow us to get back to you on exactly what percentage you’re going to acquire. But there were one or two assets within that, that we said might be something that we don’t really want to go ahead with or are harbored to close because of all these regulatory issues. And that’s why we have decided to sort of decrease the amount that we were acquiring a little bit.

Nikhil Nigania: Appreciate that answer. The second question was regarding the asset sale use, which is going around about 1.1 gigawatt to potential entities like any views if possible to share on that, the rationale and the conductor?

Sumant Sinha: Kedar, let me just a take a stab at taking that. So capital recycling as a strategy is something that we’ve talked about quite a bit in the past. And I think most global renewable energy companies follow the same strategy, and we are doing the same. I think the idea really is that we can build more than we can necessarily hold or want to hold. And so therefore, building more than allows us to capitalize on value creation or create value in those assets that we’re building and then sell them at higher multiples. So I think that’s an energy sensible strategy for us to pursue. And so Nikhil, you’ve seen in the future, certainly us looking at selling more assets, which is not to say that our portfolio will not grow.

It will grow as well. And look, you can’t — there’s a lot of news in the Indian side that you are aware. And so we just have to wait for something specific to be announced by us before — until that point, we really can’t comment, as you well know.

Nikhil Nigania: Great, thanks Sumant for the answer. Sorry, two more questions quickly then. One is where you think around that ALM restrictions might get relaxed in the near term? If that happens, does it help deepen time lines for any projects? And related to that, on the RTC project, which is a big one, last time, the guidance was for Q2 FY 2024, does that change as it stands today or if that mix has changed?

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