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IREDA Q2 2024 Results: 36.2% YoY Growth in PAT to ₹387.75 Crores

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Synopsis:

Indian Renewable Energy Development Agency (IREDA) reported a Profit After Tax (PAT) of ₹387.75 crores for Q2 2024, reflecting a 36.2% year-on-year (YoY) growth. Revenue from operations reached ₹1,629.58 crores, a 40.9% YoY increase. The company also maintained a strong capital adequacy ratio (CRAR) of 20.24%.

Indian Renewable Energy Development Agency Limited (IREDA), a leading institution financing renewable energy projects, announced its Q2 2024 results, showcasing strong growth in its Profit After Tax (PAT) and revenue from operations. These numbers reflect IREDA’s continuing strength in renewable energy financing, supporting India’s green energy initiatives.

INDIAN RENEWABLE ENERGY

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Q2 2024 Highlights:

Revenue from operations: ₹1,629.58 crores, up from ₹1,482.76 crores in Q1 2024 and a 40.9% increase YoY from ₹1,152.96 crores in Q2 2023.

Profit After Tax (PAT): ₹387.75 crores, a 36.2% increase from ₹284.73 crores in Q2 2023.

Loan Assets: Total loan assets stood at ₹64,462.35 crores as of September 30, 2024.

Capital Adequacy Ratio (CRAR): 20.24%.

Gross NPA Ratio: Improved to 2.19%, down from 3.13% in Q2 2023.

Q2 2024 Lowlights:

Increased NPAs: ₹12,163.7 crores classified as stage III NPAs, impacting asset quality.

Rising Finance Costs: Finance costs increased to ₹1,030.18 crores from ₹793.16 crores in Q2 2023.

Slower QoQ PAT Growth: Marginal PAT growth from ₹383.69 crores in Q1 2024 to ₹387.75 crores in Q2 2024.

Impairment on Financial Instruments: ₹33.85 crores in impairments during Q2, compared to a reversal in the previous quarter.

Court-Mandated Accounts: High exposure to court-mandated stage III assets continues to affect the balance sheet.

Major Announcements:

·       IREDA’s board approved the issuance of ₹2,590 crores worth of non-convertible securities through private placement to support its future lending activities.

·       The company incorporated a new subsidiary, IREDA Global Green Energy Finance IFSC Ltd, focusing on foreign currency financing for renewable energy projects.

Financial Table for IREDA’s Q2 FY’25 Results:

Metrics

Q2 FY 2024

Q1 FY 2024

Q2 FY 2023

Revenue from Operations (₹ crores)

1,629.58

1,482.76

1,152.96

Other Income (₹ crores)

8.32

4.31

6.31

Total Income (₹ crores)

1,630.38

1,510.71

1,176.96

Finance Costs (₹ crores)

1,030.18

974.93

793.16

Employee Benefits Expense (₹ crores)

20.86

19.84

21.02

Depreciation & Amortization (₹ crores)

9.43

8.63

7.13

Impairment on Financial Instruments (₹ crores)

33.85

-30.04

-16.93

Total Expenses (₹ crores)

1,170.47

1,033.97

797.06

Profit Before Tax (₹ crores)

459.91

475.74

379.9

Profit After Tax (₹ crores)

387.75

383.69

284.73

Net Profit Margin (%)

24.56%

24.97%

24.97%

Detailed Explanation of Key Metrics:

Revenue Growth: IREDA’s revenue from operations grew by 40.9% year-on-year, reaching ₹1,629.58 crores in Q2 2024, compared to ₹1,152.96 crores in Q2 2023. This significant rise demonstrates the growing demand for renewable energy financing. Revenue also increased by 9.9% quarter-on-quarter (QoQ) from ₹1,482.76 crores in Q1 2024.

PAT Growth: IREDA achieved a Profit After Tax (PAT) of ₹387.75 crores in Q2 2024, a 36.2% YoY growth compared to ₹284.73 crores in Q2 2023. On a quarterly basis, PAT increased marginally from ₹383.69 crores in Q1 2024, reflecting sustained profitability in a challenging market.

Loan Asset Expansion: Loan assets continued to grow, reaching ₹64,462.35 crores as of September 30, 2024, driven by strong demand in the renewable energy sector. The company also improved its asset quality, reducing its Gross NPA ratio to 2.19% from 3.13% in the previous year.

Capital Adequacy: The company maintained a CRAR of 20.24%, showcasing its solid capital position and ability to absorb potential risks while continuing to expand its loan book.

Management Commentary:

Pradip Kumar Das, Chief Managing Director of IREDA, highlighted the company’s robust performance in Q2 2024, stating, "Our 36.2% growth in PAT reflects IREDA’s strong commitment to financing renewable energy projects in India. We continue to expand our portfolio while maintaining a healthy capital adequacy ratio and improving asset quality. Our future looks bright as we embark on new international ventures with our subsidiary in GIFT City."

Conclusion:

IREDA’s Q2 2024 results highlight the company’s strong financial growth, driven by robust revenue and PAT increases. The company’s focus on renewable energy financing, coupled with its expanding loan portfolio and improved asset quality, ensures its leading position in the sector. IREDA’s continued strategic initiatives, including its international expansion, position it well for sustained growth in the renewable energy landscape.

This version uses the corrected numbers for Profit After Tax and ensures all amounts are mentioned in ₹ crores, as per your request.

Navratna Stock IREDA share price closed at ₹232.70 up by 0.68% at the end of the trading session on 10th October, 2024.

Source:  IREDA Q2 FY’25 Results Official Press Release on BSE

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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