IREDA Q3 profits jump 67% on lower NPAs, loan book growth

Indian Renewable Energy Development Agency Ltd (IREDA) on Saturday reported a 67% year-on-year rise in quarterly net profit to Rs 335.54 crore, driven by a significant reduction in bad loans and expansion of its lending portfolio. Revenue from operations surged 44.21% to Rs 1,253.20 crore versus Rs 868.98 crore last year.

The state-owned green energy financier saw its loan book swell 33.50% to Rs 50,579.67 crore, while net non-performing assets dropped sharply from 2.03% to 1.52%. Gross NPAs also declined to 2.90% against 4.24% year-on-year. IREDA’s net worth grew 45.49% to Rs 8,134.56 crore.

The renewable infrastructure lender’s initial December listing after its 2021 IPO was at a 56% premium to the issue price. Shares continued surging on Saturday’s earnings release, hitting the 10% upper circuit limit at Rs 148.90 – a nearly 365% upside over the IPO price.

Analysts are bullish on IREDA’s growth outlook within India’s expanding renewable power sector. With profits rising on a cleaner balance sheet, the firm is poised to fund more projects supporting the country’s ambitious sustainability targets.