IREDA shares hit 5% upper circuit on strong Q4 business update, highest-ever loan sanctions in FY24
Upstox
2 min read • Updated: April 2, 2024, 2:10 PM
Summary
IREDA’s loan sanctioned amount more than doubled year-on-year (YoY) in the fourth quarter of FY24 at ₹23,796 crore compared to ₹11,797 crore in the same period last year.
Indian Renewable Energy Development Agency Ltd (IREDA) shares were locked in the upper circuit limit of 5% on Tuesday after the company reported a strong business update for the quarter ending on March 31, 2024 (Q4FY24).
The state-owned company in a stock exchange filing reported that it recorded the highest ever loan sanctions and disbursals in the financial year 2023-24 (FY24).
IREDA sanctioned total loans of ₹37,354 crore in FY24, an increase of 14.63% from ₹32,587 crore in the preceding fiscal. The loan sanctioned amount more than doubled year-on-year (YoY) in the fourth quarter of FY24 at ₹23,796 crore compared to ₹11,797 crore in the same period a year ago.
The company disbursed total loans of ₹25,089 crore in FY24, recording a healthy double-digit growth of 15.94% from ₹21,639 crore in the preceding financial year, and by 14% year-on-year in Q4FY24 at ₹12,869 crore from ₹11,291 crore in the corresponding year-ago quarter. IREDA’s loan book outstanding for FY24 stood at ₹59,650 crore, indicating an uptick of 26.71% from the previous year’s ₹47,076 crore.
Last week, the state-owned company’s Board of Directors gave its approval to a proposal of borrowing ₹24,200 crore for the financial year 2024-25 (FY25). This includes raising funds through taxable bonds or green foreign currency bonds or Tier-II bonds, along with perpetual debt instruments (PDI), and green foreign currency bonds, among others.
After a gap up opening at ₹146.45 apiece, IREDA shares were locked at 5% upper circuit limit at ₹149.75 per piece on the NSE, following the company’s strong business updates for Q4FY24 and the full financial year ending March 31, 2024.
IREDA’s net profit rose sharply by 67.15% on a year-on-year (YoY) basis to ₹335.54 crore in the quarter ended December 31, 2023, compared to ₹200.75 crore reported in the same period last year.
Its net revenue also made a healthy growth of 44.2% at ₹1,252.85 crore in third quarter of the financial year 2024 compared to ₹868.67 crore in the corresponding period of the previous fiscal year.