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Indian Renewable Energy Development Agency Ltd. (IREDA) reported a significant increase in its net profit for the first quarter of the financial year ending March 2025. The non-banking financial institution (NBFC) saw its bottom line rise by 30% year-on-year to Rs 384 crore in the April-June quarter, compared to Rs 295 crore in the same period last year.
This strong performance was driven by a robust growth in IREDA's core business activities. Revenue for the quarter jumped 32% year-on-year to Rs 1,511 crore, compared to Rs 1,143 crore in the corresponding period of the previous year. This growth was primarily attributed to the surge in loan sanctions and disbursements.
During the quarter ended June, IREDA sanctioned loans worth Rs 9,136 crore, a substantial increase from the previous year. The company also recorded a remarkable 68% year-on-year growth in loan disbursements, reaching Rs 5,320 crore in the June quarter compared to Rs 3,174 crore in the same period last year. This robust loan growth indicates strong demand for financing in the renewable energy sector, which IREDA caters to.
The company's total loan book outstanding as of June 30, 2024, stood at Rs 63,150 crore, reflecting a substantial 33.77% increase over the Rs 47,207 crore recorded in the April-June period of the previous fiscal year. This continued growth in the loan book underscores IREDA's significant role in supporting the development of India's renewable energy sector.
The positive financial performance was reflected in the stock market as well. Shares of IREDA rose on Friday, closing 0.20% higher at Rs 284.26 apiece. The stock had risen as much as 7% during the trading session, hitting an all-time high for the second consecutive day. The stock's strong performance since its listing in November, with a 374% increase, reflects investor confidence in the company's future prospects and its contribution to the growth of India's renewable energy sector.