IREDA Posts a Record 61% YoY Growth in After-Tax Profits in FY 2020-21

The Indian Renewable Energy Development Agency (IREDA) posted a profit after tax of ₹3.46 billion (~$47.75 million) as against ₹2.1 billion (~$29.67 million) in the last financial year (FY), registering a massive growth of 61%.

The company reported an all-time high annual profit before tax of ₹5.7 billion (~$78.67 million) in the financial year (FY) 2020-21, albeit the Covid-19 pandemic had gripped the nation. The profit before tax of the company was ₹2.4 billion (~$33.26 million) during FY 2019-20.

IREDA earned ₹274.1 million (~$3.77 million) as revenue from solar sector operations in FY 2020-21 while it had earned ₹274.5 million (~$3.78 million) in FY 2019-20.

In November 2020, IREDA had signed a memorandum of understanding with the Ministry of New and Renewable Energy to set key targets for 2020-21. For IREDA, the Government of India set a revenue target of ₹24.06 billion (~$323.39 million) for 2020-21.

In FY 2020-21, IREDA’s total revenues for FY 2020-21 stood at ₹26.13 billion (~$360.12 million) against total revenue of ~$23.72 billion (~$326.93 million) earned in FY 2019-20.

The loan book of IREDA, a non-banking financial company (NBFC), has grown from ₹235.48 billion (~$3.24 billion) as of March 31, 2020, to ₹278.54 billion (~$3.83 billion) as of March 31, 2021.

The loan disbursement of ₹88.27 billion (~$1.21 billion) is the second-highest in the company’s history. By November 2020, IREDA had approved renewable energy loans worth ₹126.96 billion (~$1.69 billion) and disbursed ₹87.58 billion (~$ 1.17 billion) during FY 2019-20. Loan approved during the year, including co-financed projects, take over loans, would support capacity addition of 5.67 GW compared to 3.26 GW last year.

As of March 31, 2021, the net worth of the company had reached ₹29.95 billion (~$412.63 million) as against ₹25.21 billion (~$347.32 million) during the same period last year.

As of March 31, 2021, IREDA has ₹302.92 billion (~$4.17 billion) worth of assets against ₹276.5 billion (~$3.8 billion) in assets compared to the same period the year before. IREDA has liabilities to the tune of ₹23.20 billion (~$319 million) as of March 31, 2021, compared to the ₹22.02 billion (~$303.35 million) as of March 31, 2020.

Meanwhile, net non-performing asset reduction was recorded at 5.61% in FY 2020-21 as against 7.18% in FY 2019-20, a 22% drop.