The government-owned lender Indian Renewable Energy Development Agency (IREDA) has reported a 54% year-over-year (YoY) increase in profit after tax for the second quarter (Q2) of the financial year (FY) 2023-24, from ₹1.84 billion (~$22.13 million) to ₹2.85 billion (~$34.28 million).

The considerable profit growth was primarily driven by the consistent growth in the company’s loan book and a significant reduction in its net non-performing assets (NPA) to 1.65% in Q2 FY24 from 2.72% in the same period last year, a 39% improvement.

IREDA’s total income from operations was recorded at ₹11.77 billion (~$141.55 million), a 49% YoY increase from ₹7.92 billion (~$95.25 million).

At the end of the quarter, the lender’s loan book recorded a 41% YoY increase from ₹337.83 billion (~$4.06 billion) to ₹475.14 billion (~$5.71 billion).

IREDA’s net worth saw a 17% YoY increase to ₹65.81 billion (~$791.45 million).

1H FY 2024

The company’s net profit for the first half (1H) of FY 2024 was ₹5.79 billion (~$69.64 million), a 41.23% YoY increase from ₹4.1 billion (~$49.31 million).

The total income from operations for 1H was ₹23.2 billion (~$297.03 million), a 47% increase from ₹15.78 billion (~$189.78 million) recorded during the same period last year.

Pradip Kumar Das, Chairman and Managing Director of IREDA, stated, “IREDA remains committed to its commitment of accelerating the adoption of renewable energy solutions in the country. These positive financial results are a testament to IREDA’s steady dedication to facilitating the growth of the renewable energy sector in India, which contributes to the nation’s energy transition and environmental sustainability.”

The Central Public Sector Enterprise’s status was recently elevated from ‘Schedule B’ to ‘Schedule A,’ providing the agency greater financial autonomy and enabling strategic decisions to enhance its mission of expediting renewable energy adoption nationwide. This status elevation is expected to empower the agency with increased financial autonomy to advance renewable energy adoption in India and facilitate green projects in various states.

IREDA has been in the process of issuing an initial public offering (IPO) and had recently, through the Ministry of Finance, invited bids to select an advertising agency for listing and partial disinvestment of the Union government’s shareholding and raise funds.

Consequent to the necessary approvals, IREDA has filed the Draft Red Herring Prospectus with SEBI on September 8, 2023, to issue fresh equity shares to the tune of 15% of its post-issue capital along with divestment of the Government of India’s shareholding.

The company reported a profit after tax of ₹2.95 billion (~$35.48 million) for Q1 of FY 2024, an increase of 30% YoY, as the NPAs dropped to 1.61%.