Shares of ReNew Energy Global (RNW), an Indian renewable power company, plummeted 7.94% in intraday trading on Thursday, as the company reported a significant drop in quarterly profit and higher operational costs.
The company's net income for the fiscal 2025 first quarter fell a staggering 86% to 394 million rupees ($5 million), down from 2.98 billion rupees ($36 million) a year earlier. This sharp decline in profit was attributed to several factors:
- The sale of 400 megawatts of assets as part of ReNew's capital recycling strategy, which impacted revenue.
- Lower wind farm capacity utilization, with the company reporting a lower wind power plant load factor, a measure of capacity utilization.
- Higher finance and operational costs as ReNew expanded its operational capacity, putting pressure on profitability.
