IREDA shares jump over 11% after company logs highest-ever net profit in FY24

IREDA, the nation's largest pure-play green financing NBFC, witnessed an 11.40% surge in its share price during today's early morning trading session, reaching ₹179 apiece. This increase was fueled by investor enthusiasm following the company's impressive financial performance in Q4FY24 and for the full fiscal year of FY24.

On Friday, post-market hours, the company released its FY24 financial results, achieving an all-time high annual profit after tax (PAT) of ₹1252.23 crore, marking an impressive growth of 44.83% over the previous fiscal year 2022–23.

Furthermore, the company has successfully reduced its net non-performing assets (NPAs) to 0.99% in FY 2023–24 from 1.66% in FY 2022–23, demonstrating a significant reduction of 40.52% year-on-year.

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The loan book of IREDA grew from ₹47,052.52 crore as of March 31, 2023, to ₹59,698.11 crore as of March 31, 2024, registering a growth of 26.81%. 

Additionally, the company achieved all-time high annual loan sanctions of ₹37,353.68 crore and disbursements of ₹25,089.04 crore in the financial year 2023–24, marking an increase of 14.63% and 15.94%, respectively, over the previous financial year loan sanctions of ₹32,586.60 crore and disbursements of ₹21,639.21 crore. 

This marks the highest annual loan disbursement and sanction in the company's history. The net worth of the company as of March 31, 2024, reached ₹8,559.43 crore as against ₹5,935.17 crore, year ending March 31, 2023, reflecting an increase of 44.22%, as per company's earnings filing. 

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In the March quarter (Q4FY24), the company posted a 33% YoY rise in its net profit to ₹337.38 crore, while the loan sanction improved by 98.42% YoY to ₹23,407.57 crore.

"IREDA's steadfast commitment to accelerating the adoption of renewable energy solutions in India indicates a promising trajectory for investors and stakeholders," said Pradip Kumar Das, Chairman & Managing Director of IREDA.

IREDA (Indian Renewable Energy Development Agency) is an NBFC established in 1987 to provide 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).

Within power financing NBFCs, the company holds the largest share of credit toward the RE sector, second only to Power Finance Corporation. However, unlike Power Finance Corporation, which is also involved in sectors such as infrastructure, roads, and mining, IREDA is solely dedicated to the RE sector.

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The company'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.

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