IREDA Records 19% YoY Jump in Profit to ₹2.25 Billion in Q1 FY 23

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A non-banking financial company (NBFC) under the Ministry of New and Renewable Energy (MNRE), the Indian Renewable Energy Development Agency (IREDA) posted a total income of ₹7.86 billion (~$98.69 million) for the first quarter (Q1) of the financial year (FY) 2022-23, a year-over-year (YoY) leap of 11.97% from ₹7.02 billion (~$88.15 million) in Q1 of FY 2021.

IREDA’s loan book total for the quarter stood at ₹3.27 billion (~$41.06 million), up YoY by 22.47% from ₹2.67 billion (~$33.53 million).

IREDA posted a profit of ₹2.26 billion (~$28.25 million), a YoY increase of 19.16% from ₹1.9 billion (~$23.86 million). The company’s operating margin for the period was 43.21%, while the net-profit margin stood at 28.74%.

The percentage of IREDA’s net non-performing assets (NPAs) reduced to 2.92% in Q1 FY 23 from 4.77% in Q1 FY 22, a significant reduction of 38.78% YoY, while the gross NPA was 5.33%, a YoY fall of 34.28% from 8.11% in FY 22.

IREDA’s profit before tax (PBT) for Q1 was ₹3.4 billion (~$42.69 million), a surge of 71.71% from ₹1.98 billion (~$24.86 million) in the same period last year.

The company said revenue generation from operations is likely to remain slow due to the constraints posed by the Covid-19 pandemic, which has led to significant volatility in global and Indian financial markets, while there is a decrease in global and local economic activities.

In a stakeholder meeting, highlighting IREDA’s future strategies, Pradip Kumar Das, IREDA’s Chairman & Managing Director, said that IREDA was in the process of setting up a debt fund in the form of an Alternate Investment Fund (AIF) to tap large institutional investors including pension funds, insurance funds, environmental, social and governance funds. The AIF would also help IREDA in financing new projects for borrowers who are nearing the exposure limit. IREDA is also planning asset-based securitization by issuing pass-through certificates.

The MNRE, in its new guidelines for the second phase (Tranche II) of the Production-Linked Incentive (PLI) program, appointed SECI as the implementing agency replacing IREDA, which managed the first phase.

IREDA’s net worth stood at ₹55.14 billion (~$692.18 million), a leap of 74.33% over the ₹31.63 billion (~$397.1 million) in the same period last year. The company disbursed ₹8.52 billion (~$106.95 million) loan in Q1, up 28.12% YoY from ₹6.65 billion (~$83.48 million).

In April this year, IREDA approved a loan of ₹2.68 billion (~$35.27 million) to BluSmart Mobility, an electric ride-hailing platform, to buy 3,000 electric cars.

The company had signed an agreement with OMC Power to develop a rural renewable energy ecosystem as a part of a long-term relationship. OMC will be getting economic support to set up renewable energy plants to provide sustainable energy in the villages of Uttar Pradesh.