IREDA in focus: Shares of Indian Renewable Energy Development Agency Limited (IREDA) rallied as much as 8.90 per cent to hit a fresh all time high of Rs 310 per share on Monday.
The uptick in stock price came after the company announced a strong set of June quarter results (Q1FY25).
The state-owned company’s revenue from operations soared 32 per cent on a year-on-year (Y-o-Y) basis to Rs 1510.3 crore in Q1FY25. The profit before tax (PBT) rose 8 per cent during the same period to Rs 475.74 .
Operating profit (before depreciation, impairment & tax) stood at Rs 454.3 crore in the June quarter of FY25, zooming 31 per cent, from Rs 348 cror in the same quarter a year ago,
The company’s cost of borrowings slipped 7.8 per cent in Q1FY25 from 7.83 per cent in Q1FY24.
Interest income came in at Rs 1,482.8 crore in June quarter of FY25, up 31 per cent to Rs 1,132.7 crore in Q1FY24. Net interest margin (NIM) rose to 3.29 per cent in Q1FY25, from 3.23 per cent in Q1FY24.
Additionally, the company’s yield on loan assets (gross) stood at 10.01 per cent as on 30 June 2024 as compared with 9.64 per cent as on 30 June 2023.
IREDA is a public sector enterprise established in 1987. It operates under the ownership of the Government of India and falls under the administrative oversight of the Ministry of New and Renewable Energy (MNRE).
Last year in November, IREDA conducted an initial public offering (IPO) and got listed on the NSE and BSE, marking a major milestone in its history. IREDA stock listed at Rs 50 on BSE, a premium of 56.25 per cent over the IPO issue price of Rs 32.
IREDA’s primary mission is to promote and facilitate the development of projects related to renewable energy sources and energy efficiency.
As a Non-Banking Financial Institution (NBFC) and a Mini Ratna (Category – I) enterprise, it plays a crucial role in providing financial assistance and other essential services to support the growth of green power capacity.
Additionally, IREDA finances the establishment of solar manufacturing units and encourages the adoption of renewable energy to foster sustainable development.
At 9:32 AM, shares of IREDA were trading 4.16 per cent higher at Rs 296.50. By comparison, BSE Sensex was up 0.20 per cent at 80,676.65 levels.
First Published: Jul 15 2024 | 9:40 AM IST
