The Indian Renewable Energy Development Agency (IREDA) is in the spotlight after announcing a 27% increase in its profit for the December quarter. The profit reached ₹425.38 crore, compared to ₹335.53 crore from the same time last year.
In the third quarter of FY25 (Q3FY25), IREDA’s total revenue from its operations jumped by 35.6% from a year ago, reaching ₹1,698.45 crore, up from ₹1,252.85 crore in Q3FY24. Compared to the previous quarter, the profit (PAT) grew by 10%, going from ₹387.75 crore in Q2FY25 to the current ₹425.38 crore. The total revenue also saw a 4.2% increase from ₹1,629.56 crore in the prior quarter.
Revenue Breakdown for Q3FY25
In the October-December quarter, IREDA earned ₹1,654.45 crore from interest income, up from ₹1,577.05 crore in Q2FY25 and ₹1,208.10 crore in Q3FY24. However, it earned ₹16.46 crore from fees and commissions, which was lower than previous quarters.
Other notable income grew significantly, with total other income in Q3FY25 at ₹30.93 crore, a rise from ₹9.53 crore in Q2FY25 and ₹16.69 crore in Q3FY24.
IREDA’s Expenses
The company spent ₹1,160.78 crore in the December quarter, which is lower than the previous quarter (₹1,170.48 crore) but higher than last year’s ₹867.06 crore. This amount includes costs for loan interest, employee salaries, and other expenses.
Debt and Asset Quality
As of December 31, 2024, IREDA’s debt-to-equity ratio increased to 5.89 from 5.13 a year earlier. Its asset quality is also worth noting; the Gross Non-Performing Assets (NPAs) rose to ₹1,845 crore but dropped as a percentage of total advances to 2.68%, down from 2.90% last year.
Outstanding Loans and Stock Performance
IREDA’s outstanding loans reached ₹68,960 crore, up by 36% from ₹50,580 crore last year.
For stock market fans, IREDA’s share price closed at ₹215.9, down 3.3%. Although the stock has dipped 10% over the past six months, it gained a whopping 109% over the last year. The average target price for IREDA shares is ₹205, which suggests it might drop by about 5% from where it currently stands. The consensus from analysts is to ‘Hold’ on to the stocks.
Leave a Reply