IREDA Q3 Results: Navratna Lender Delivers 35.5% Revenue Growth, Profit Hits Rs.425 Cr; Shares In Focus

Indian Renewable Energy Development Agency Limited, better known as IREDA, has unveiled the financial results for the December quarter (Q3 FY25) on Thursday, which saw a 35.8% jump in its revenue along with higher disbursement and improved asset quality.

IREDA Q3 FY 2024-25 Financial Results

IREDA's revenue from operations reached Rs.1,698.99 crore in Q3 FY 2024-25, marking a 35.57% increase compared to Rs.1,253.20 crore in the corresponding quarter of the previous fiscal year. The company also reported a profit before tax (PBT) of Rs. 538.20 crore, showing a 39.38% growth from Rs. 386.14 crore in Q3 FY 2023-24. IREDA's Profit After Tax (PAT), or net profit, stood at Rs.425.37 crore, registering a 26.77% QoQ increase from Rs.335.54 crore in the same quarter of the previous fiscal year.

The company also expanded its lending operations in this quarter as IREDA's loan book expanded to Rs.68,959.61 crore, showing a 36.34% increase compared to Rs.50,579.67 crore in Q3 FY 2023-24. Loan sanctions during the quarter amounted to Rs. 13,226.81 crore, representing a 45.01% growth compared to Rs. 9,121.11 crore in Q3 FY 2023-24. Similarly, the company's loan disbursements reached Rs. 7,448.96 crore, up by 25.27% from Rs. 5,946.45 crore in the same period last year due to IREDA's active participation in financing clean energy projects.

Improved profitability for the shareholder was also seen. IREDA's earnings per share (EPS) improved to Rs. 1.58, registering a 15.03% growth from Rs. 1.38 in Q3 FY 2023-24.

IREDA Strong Performance in Q2FY 25

The second quarter of FY25 for IREDA was quite profitable, where the company posted a strong growth in revenue of Rs. 1630, rising 38.5% YoY. This performance surpassed the Rs 1,510 crore posted in the June quarter.

A substantial rise in net interest income (NII) was also seen, which surged by 52% (YoY), reaching Rs 546.9 crore, compared to Rs 359.8 crore in Q2 FY24.
For the period between July and September in FY25, IREDA's Gross Non-Performing Assets (NPA) ratio held steady at 2.19% in Q2 FY25. Meanwhile, the net NPA ratio saw a slight uptick, moving from 0.95% in the previous quarter to 1.04%. The company's debt-to-equity ratio remained virtually unchanged at 5.85x, compared to 5.83x in June.

IREDA Shares Movement Today

On January 10, IREDA shares are in negative territory once again despite strong Q3 results that were announced yesterday post trading hours. The stock opened today at Rs. 218 and quickly fell 1.93% to Rs. 211.93 at around 11:30 am.

Over the past five days, IREDA's shares have experienced a short-term dip of 6.16%. Additionally, the stock has faced a more significant pullback, losing over 14% in value over the past six months. In fact, IREDA's stock has delivered impressive multibagger returns in the current year, soaring by an astonishing 106% due to the company's strong financial performance in the second quarter of FY25. Moreover, IREDA's shares are now trading more than 600% higher than their IPO price of Rs 32.

About IREDA

A part of the Navratna organization, IREDA (Indian Renewable Energy Development Agency Limited) was formed in 1987 by the government of India. Being a public sector enterprise, IREDA operates under the Ministry of New and Renewable Energy (MNRE) and provides financial assistance for the development of renewable energy projects across the country. IREDA provides a wide range of financial products, including project financing, term loans, and short-term loans, to companies and entities involved in the renewable energy sector.