IREDA Q2 Net Profit Rises 36% Amid Increased Revenue

The Indian Renewable Energy Development Agency (IREDA) reported a 36 percent increase in its profit after tax (PAT), reflecting a rise to Rs 387.75 crore for the second quarter ending September 30, 2024. This growth, as compared to Rs 284.73 crore during the same period in the previous fiscal year, has been attributed to heightened revenues, according to a filing with the exchange.

During the June quarter, IREDA recorded a net profit of Rs 383.69 crore. The state-owned firm witnessed a rise in total income from operations, which climbed by 38.52 percent to Rs 1,630.38 crore from Rs 1,176.96 crore a year prior. Notably, the company’s Net Interest Income (NII) surged by 52 percent, reaching Rs 546.8 crore compared to Rs 359 crore last year.

The share price of IREDA settled at Rs 232.70 per share on the National Stock Exchange (NSE), marking a 0.68 percent increase. The market capitalization of the company has risen to Rs 62,826.50 crore. IREDA remains the largest pure-play green financing non-banking financial company (NBFC) in India.

Pradip Kumar Das, the Chairman and Managing Director (CMD) of IREDA, expressed satisfaction with the results, stating, “Q2 results reflect our unwavering dedication to advancing India’s renewable energy goals. The substantial growth in loan sanctions and disbursements underscores the company’s commitment to supporting green projects across the nation,” as quoted by Press Trust of India (PTI).

IREDA’s loan book experienced an increase of 35.88 percent, reaching Rs 64,564 crore from Rs 47,514 crore in the same quarter of the prior year. Loan sanctions witnessed a substantial rise to Rs 8,723.78 crore, nearly four times the Rs 2,852.05 crore marked in last fiscal’s second quarter. Loan disbursements also climbed by 43.93 percent to Rs 4,461 crore from Rs 3,099 crore in the previous year’s quarter.

As a non-banking financial institution under the jurisdiction of the Ministry of New and Renewable Energy, IREDA plays a pivotal role in promoting, developing, and extending financial assistance for renewable energy and energy efficiency projects throughout India.