IREDA shares surged by more than 11% following the company’s announcement of its highest-ever net profit in FY24. In its FY24 financial results released after-market hours on Friday, IREDA reported a record annual profit after tax (PAT) of ₹1252.23 crore, marking a remarkable growth of 44.83% over the previous fiscal year 2022–23. Additionally, the company significantly reduced its net non-performing assets (NPAs) to 0.99% in FY24 from 1.66% in FY23, reflecting a substantial year-on-year reduction of 40.52%.
IREDA’s loan book expanded from ₹47,052.52 crore as of March 31, 2023, to ₹59,698.11 crore as of March 31, 2024, representing a growth of 26.81%. Furthermore, the company achieved record-high annual loan sanctions of ₹37,353.68 crore and disbursements of ₹25,089.04 crore in FY24, marking increases of 14.63% and 15.94%, respectively, over the previous fiscal year’s figures.
The company’s net worth as of March 31, 2024, stood at ₹8,559.43 crore compared to ₹5,935.17 crore as of March 31, 2023, indicating a significant increase of 44.22%, according to the company’s earnings filing.
In Q4FY24, IREDA posted a 33% year-on-year rise in net profit to ₹337.38 crore, while loan sanctions improved by 98.42% year-on-year to ₹23,407.57 crore.
Pradip Kumar Das, Chairman & Managing Director of IREDA, expressed optimism about the company’s commitment to accelerating the adoption of renewable energy solutions in India, signaling a promising trajectory for investors and stakeholders.
IREDA, established in 1987 as an NBFC, specializes in providing innovative financing in renewable energy (RE) and energy efficiency, conservation, and environmental technologies. It operates as a wholly owned Government of India (“GoI”) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).
Among power financing NBFCs, IREDA holds the largest share of credit toward the RE sector, second only to Power Finance Corporation. Unlike Power Finance Corporation, which is also involved in sectors such as infrastructure, roads, and mining, IREDA is solely dedicated to the RE sector.
IREDA’s shares debuted on Indian exchanges on November 29 at ₹60 each, surpassing its issue price of ₹32. Within less than two weeks of listing, the stock witnessed an impressive surge of 105.33%. However, after reaching an all-time high of ₹214.80, profit booking occurred, leading to the stock currently trading 17.40% lower from that peak. Nevertheless, it remains up by 456% from its IPO price.