IREDA signs MoU with SJVN and GMR Energy for a 900 MW hydroelectric project in Upper Karnali, Nepal

Indian Renewable Energy Development Agency (IREDA)’s shares were up nearly 5% on Tuesday after the company signed a Memorandum of Understanding (MoU) with SJVN and GMR Energy for a 900 MW hydroelectric project in Upper Karnali, Nepal. The company stated that the collaboration aims to enhance regional energy security by developing renewable energy infrastructure.

IREDA said that the project holds strategic importance for the company as it will help capitalise on Nepal’s significant hydropower potential. Additionally, the project also aligns with the company’s goals to develop renewable energy. IREDA’s board of directors had granted in principle approval to the project in July 2024. Pradip Kumar Das, chairman and managing director of IREDA, said that the investment in the project is in line with the company’s goals to advance renewable energy initiatives. The collaboration aims to support the sustainable growth of the companies while developing the hydropower sector in Nepal.

“This collaboration not only accelerates the development of Nepal’s hydropower sector but also strengthens regional energy cooperation, supporting our shared goal of sustainable growth,” he said.

Recently, the company has received in-principle approval to raise ₹4,500 crore through an equity issue. The company may raise the funds in one or more tranches through a Further Public Offer (FPO).

For the quarter ended June 30, 2024, IREDA reported a 30% year-on-year (YoY) rise in net profit to ₹384 crore. The company’s revenue from operations during the quarter climbed 32% YoY to ₹1,510 crore.

In Q1FY25, IREDA’s operating profit saw an uptick of 31% YoY to ₹454 crore. Meanwhile, the gross non-performing assets came down to 2.19% from 3.08% in the corresponding period last year. The net non-performing assets for the quarter reduced to 0.95% from 1.61% in the same period last year.

The company’s outstanding loan book at the end of the quarter grew by 34% YoY to ₹63,207 crore.

Shares of the company have risen by nearly 126% since the beginning of the year. The stock has gained over 294% in the past year.