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IREDA surges 12% on heavy volumes post strong March quarter results

The company reported 33% YoY growth in net profit in Q4, and successfully reduced its net non-performing assets (NPAs) to 0.99 per cent from 1.66 per cent in the year ago quarter.

Sensex, Nifty, stock brokers

Deepak Korgaonkar Mumbai

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IREADA Q4 impact on stock price: Shares of Indian Renewable Energy Development Agency (IREDA) surged 12 per cent to Rs 179.45 on the BSE in Monday's intra-day trade on the back of heavy volumes after the company reported 33.3 per cent growth in profit after tax (PAT) at Rs 337.38 crore in the March quarter (Q4FY24). The nation's largest pure-play green financing non banking finance company (NBFC) had posted PAT of Rs 864.63 crore in Q4FY23.

The company has successfully reduced its net non-performing assets (NPAs) to 0.99 per cent from 1.66 per cent in the year ago quarter. The loan book of IREDA has grown 26.8 per cent from Rs 47,052.52 crore as on Q4FY23 to Rs 59,698.11 crore as on Q4FY24.

Meanwhile, IREDA has achieved an all-time high annual loan sanctions of Rs 37,353.68 crore and disbursements of Rs 25,089.04 crore in financial year 2023-24 (FY24), registering an increase of 14.63 per cent and 15.94 per cent respectively, over previous financial year. This marks the highest annual loan disbursement and sanction in the company's history.

The management attributed the company's growth to the unwavering trust and support of its stakeholders, while extending gratitude to the Ministry of New & Renewable Energy and Board of Directors for their indispensable support and guidance.

At 11:12 am; IREDA stock price was up 8 per cent to Rs 173.60, as compared to 0.53 per cent rise in the S&P BSE Sensex. The average trading volumes at the counter nearly doubled with a combined 52.29 million shares changing hands on the NSE and BSE. The stock had hit a record high of Rs 215 on February 6, 2024.

The Government of India (GoI) owns a significant majority of the shares (75 per cent) in IREDA, making it a strategically important institution focused on financing the renewable energy sector. IREDA plays a vital role in providing finance to the critically important power infrastructure sector and ancillary industries.

The favorable macroeconomic scenario, along with government initiatives like the recently launched PM Suryoday Yojana 2024, is anticipated to be advantageous for the company.

IREDA, involved in financing renewable energy and ancillary industries such as solar batteries and semiconductors, stands to benefit from such schemes. Additionally, IREDA plays a crucial role in implementing and bolstering various government power infrastructure-related initiatives. With a 31 per cent market share (as per its DRHP) in renewable energy sector financing, IREDA is well positioned to benefit from the favorable industry dynamics, Brickwork Ratings had said in rationale.

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First Published: Apr 22 2024 | 11:31 AM IST

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