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Business News/ Markets / Stock Markets/  IREDA upper Circuit: Share price gains 5% on strong business performance; Loan book in FY24 rises 26.71% year-on-year
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IREDA upper Circuit: Share price gains 5% on strong business performance; Loan book in FY24 rises 26.71% year-on-year

IREDA upper Circuit: Indian Renewable Energy Development Agency Limited share price gained 5% on Tuesday as the company reported strong business performance for FY24. Its Loan book rose 26.71% year-on-year

IREDA upper Circuit: share price gains 5% as company reported strong business performance during FY24 (Photo: Courtesy company website)Premium
IREDA upper Circuit: share price gains 5% as company reported strong business performance during FY24 (Photo: Courtesy company website)

IREDA upper Circuit: Indian Renewable Energy Development Agency Limited share price that gained 5%, also were locked in the upper circuit on Tuesday.

The gains were in the back of strong  business performance reported by IREDA for the quarter and year ended March 31, 2024 on a provisional basis.

In FY 2023–2024, IREDA recorded the highest-ever loan sanctioned at Rs. 37354 Crore and loan disbursed at Rs. 25089 Crore. At Rs. 59650 crore, the Loan Book has experienced a record rise of 26.71%, said the company in a filing on the exchanges on Monday, post market hours.

The loans sanctioned at 37,354 crore during FY24 were 14.63% higher than 32,587 sanctioned during FY23. 

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For the quarter ending 31st March 2024, the loan sanctioned at 23,796 crore more than doubled compared to 11,797  in the year ago quarter. This strong loan sanctions during Q4 lifted the FY24 show for IREDA

The loans disbursed at 25,089 crore during FY24 also increased 15.94% over 21,639 crore. This was supported by loan disbursals of 12,869 crore during Q4FY24 that increased by 13.98% over 11,291 crore disbursed during the year ago quarter.

Overall the Loan outstanding book at 59,650 crore during FY24 thereby rose 26.71% over 47,076 crore during FY23.

With this the expectations of strong financial performance during Q4FY24 have also increased.

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In Q3FY24, IREDA had announced a robust 67% rise in Profit After Tax (PAT), amounting to 335.54 crores. The remarkable achievement was ascribed to the steady expansion of the Loan Book and a noteworthy decline in Net Non-Performing Assets (NPAs) from 2.03% to 1.52% on an annual basis.

With the Government of India being the sole owner of IREDA, it is strategically significant for the growth and advancement of the Renewable  industry in India. The average cost of capital for the lender is steady due to the Government ownership.

Analysts say that with asset quality in place, the bottom line will expand quicker looking at strong energy sector demand, which will secure future capital expenditure plans in the power industry.

 

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 02 Apr 2024, 09:53 AM IST
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