IREDA posts robust growth in Q2 earnings; stock gains

11 Oct 2024 , 11:50 AM

Shares of the Indian Renewable Energy Development Agency (IREDA) rose despite a lower market as investors hailed the PSU’s fiscal second-quarter profits. The company’s net profit increased 36% year on year (YoY) to ₹387.75 Crore, owing to greater revenues.

The company’s counter rose to an intraday high of ₹239.90 on NSE.

IREDA is the country’s largest NBFC focused solely on green lending. During the reporting year, the state-owned firm’s total operating income increased by 38% year on year to ₹1,630.38 Crore. The company’s net income increased 52% year on year to ₹546.8 Crore.

IREDA’s loan book climbed by 35.88% year on year to ₹64,564 Crore in the July-September quarter. IREDA’s asset quality remained constant when compared to the June quarter. Gross NPA remained constant at 2.19%, while net NPA was 1.04%. The renewable energy financier’s debt-equity ratio rose to 5.85x from 5.83x the previous quarter.

On October 10, the company announced that it had gained approval from DIPAM and the Ministry of New and Renewable Energy to establish a wholly-owned subsidiary for its retail operation.

This will comprise PM KUSUM, rooftop solar, and other consumer-focused renewable energy areas, such as electric vehicles, energy storage, green technology, and energy efficiency, according to the company’s filing.

At around 11.41 AM, IREDA was trading 0.42% lower at ₹232.70, against the previous close of ₹233.69 on NSE.

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