IREDA shares drop for first time in five days; stock down 6%

The decline is being seen as profit-booking by investors after IREDA shares gained over 20% in the previous four sessions ahead of the company’s earnings announcement for the quarter ended June 2024 (Q1FY25).

IREDA shares closed 6% lower at ₹272.2 apiece on the NSE. On Monday, the stock had hit its fresh all-time high of ₹310 after the Q1 results announcement.

The scrip has surged over 56% this month and 166% year-to-date. In the past year, the stock has rallied by a massive 364%.

On Friday, after market hours, IREDA announced that its Q1 net profit grew 30% to ₹383.7 crore compared with ₹294.6 crore in the year-ago period. Revenue also rose 31% to ₹1,501.7 crore during the quarter from ₹1,143.5 crore a year ago.

IREDA also managed to lower its non-performing asset (NPA) ratio from 1.61% in Q1 FY24 to 0.95% in Q1 FY25.

Earlier this month, IREDA had said in its business update that its loan sanctions skyrocketed by almost 383% to ₹9,136 crore during the June quarter compared with the year ago-period.

Loan disbursements, meanwhile, were recorded at ₹5,320 crore during the quarter, up almost 68% compared with a year ago. IREDA’s outstanding loan book at the end of Q1 FY25 stood at ₹63,150 crore, up 34% year-on-year.

IREDA was also in focus after the PSU earned the ‘Navratna’ status amid the government’s increasing focus on the renewable energy sector.