IREDA shares rally up to 11% on record profit, strong loan growth in FY24

Indian Renewable Energy Development Agency Ltd. (IREDA) shares surged up to 11% on Monday after the renewable energy financier reported record profits for the March quarter.

IREDA shares opened higher and surged up to 11% to hit an intraday high of ₹179 per share on the NSE following strong quarterly numbers. More than 3.68 crore shares of the company changed hands on the exchange.

The stock has rallied more than 64% in 2024 so far while in the past year it has given returns of 186%. The stock is trading 16% lower from its 52-week high of ₹214.8 apiece hit on February 6, 2024.

IREDA shares were trading 6.63% higher at ₹171.35 apiece at 10.36AM on the NSE.

IREDA posts record profit in FY 2023-24

India’s largest pure-play green financing NBFC reported an all-time high annual profit after tax (PAT) of ₹1,252.23 crore for FY24, marking an impressive growth of 44.83% over the previous fiscal. IREDA reported a PAT of ₹864.63 crore in 2022-23. This was largely led by strong uptick in loan yields which jumped to 9.9% as of Q4FY24 vs 9.6% in previous year same period.

The asset quality of IREDA has significantly improved over past 5 years. The Gross Non-Performing Assets (GNPA) ratio has come down from 10.08% in FY20 to 2.3% in FY24. Similarly, the Net Non-Performing assets for FY24 as come down to 0.99% from 7.18% in FY20. The superior asset quality remains key advantage for the company over others.

For the March quarter, IREDA reported a 33% growth in net profit to ₹337.38 crore compared to ₹253.62 crore in the March quarter of FY22. This was largely due to 34% increase in interest income at ₹1,329 crore in Q4FY24 against ₹994 crore in previous year same period.

Loans sanctioned rose by over 98% to ₹23,407.57 crore in March quarter against ₹11,796.95 crore in Q4FY23. Loan disbursements rose by 13% to ₹12,869.35 crore compared to ₹11,291.09 crore in the year ago period.

Total loan book stood at ₹59,698.11 crore as of March 31, 2024 against ₹ 47,052.52 crore as of March 31, 2023, up 26.81%.

The company achieved all-time high annual Loan Sanctions of ₹37,353.68 crore and disbursements of ₹25,089.04 crore in 2023-24, registering an increase of 14.63% and 15.94% respectively.

In the previous financial year, loan sanctions stood at ₹32,586.6 crore and disbursements at ₹ 21,639.21 crore.