IREDA has reported robust financial results for the second quarter and first half of fiscal year 2024-25. The state-owned non-banking financial company, which focuses on financing renewable energy projects, saw significant growth in both revenue and profitability, along with improvements in asset quality metrics.

Key Highlights

• Total revenue from operations increased by 27% to ₹2,056.88 crore in Q2 FY25, compared to ₹1,629.55 crore in Q2 FY24.
• Net profit rose by 42% year-over-year to ₹549.00 crore in Q2 FY25, up from ₹387.75 crore in Q2 FY24.
• For H1 FY25, total revenue grew 28% to ₹4,004.17 crore, while net profit increased 3% to ₹795.68 crore compared to H1 FY24.
• Earnings per share for Q2 FY25 stood at ₹1.97, up from ₹1.44 in Q2 FY24.
• The company's loan book expanded to ₹82,622.98 crore as of September 30, 2024, compared to ₹63,718.64 crore a year ago.
• IREDA maintained a strong capital position, with a Capital to Risk-weighted Assets Ratio (CRAR) of 20.10% as of September 30, 2024.
• Gross Non-Performing Assets (GNPA) ratio improved to 3.97% from 4.13% quarter-on-quarter, and 4.19% year-on-year.
• Net Non-Performing Assets (NNPA) ratio declined to 1.97% from 2.06% quarter-on-quarter, and 2.04% year-on-year.

Asset Quality Improvement

The reduction in both GNPA and NNPA ratios indicates better loan portfolio performance for the renewable energy financing company. This improvement in asset quality metrics suggests enhanced risk management practices and potentially stronger financial health for IREDA.

Management Commentary

IREDA's Chairman and Managing Director, Pradip Kumar Das, stated: "The robust growth in our loan book and profitability reflects the strong demand for renewable energy financing in India. We remain committed to supporting the country's clean energy transition through our focused lending activities."

Conclusion

The company continues to play a crucial role in India's renewable energy sector by providing financial support to various green energy projects across the country. IREDA's performance underscores the ongoing momentum in India's shift towards cleaner energy sources, while the improved asset quality metrics demonstrate the company's commitment to maintaining a healthy loan portfolio.

Indian Renewable Energy Development Agency Ltd. (IREDA), a Navratna PSU operating as a Non-Banking Financial Institution under the Ministry of New and Renewable Energy, is set to announce its quarterly results on October 14. The company, which focuses on renewable energy financing, has reported significant growth in its operational performance for the first half of the fiscal year.

Operational Highlights

IREDA has demonstrated robust growth in its key operational metrics:

*As of September 30, 2023

The company's loan sanctions saw a substantial increase of 86.00% year-over-year, reaching ₹33,148.00 crore in the April-September period. Loan disbursements also showed strong growth, rising by 54.00% to ₹15,043.00 crore. IREDA's outstanding loan book expanded by 31.00%, standing at ₹84,445.00 crore as of September 30, 2023.

Stock Performance

Despite the company's operational growth, IREDA's stock performance has been challenging:

The stock has experienced a significant decline of 32.32% year-to-date, currently trading at ₹150.09. It reached a 52-week high of ₹239.90 and a low of ₹137.01.

As IREDA prepares to release its Q2 results, investors and analysts will be keenly watching to see if the strong operational performance translates into improved financial results.

About IREDA

IREDA is a key player in India's renewable energy sector, providing financial support for sustainable energy projects. As a Navratna PSU, it plays a crucial role in the government's push for clean energy adoption and development.