IREDA Reports Highest-Ever Profit of ₹6.34 Billion in FY 22, an 83% Jump YoY

Indian Renewable Energy Development Agency (IREDA), a non-banking financial company (NBFC) under the Ministry of New and Renewable Energy (MNRE), recorded an all-time high annual profit after tax (PAT) of ₹6.34 billion (~$82.84 million) in the financial year (FY) 2021-22, an 83% year-over-year (YoY) growth compared to ₹3.46 billion (~$45.21 million) in the previous year.

The agency’s profit before tax was reported at ₹8.34 billion (~$108.96 million) for FY-22, a 46% YoY growth.

The loan book of IREDA in FY-22 saw a YoY growth of 22% to ₹339.31 billion (~$4.43 billion) compared to ₹278.54 billion (~$3.64 billion) last year.

The agency registered the highest-ever loan approval of ₹239.21 billion (~$3.13 billion), a 117% YoY growth compared to the previous year’s figure of ₹110.01 billion (~$1.44 billion).

IREDA also recorded the largest loan amount disbursed to date in FY-22 of ₹160.71 billion (~$2.10 billion), an 82% jump from₹88.27 billion (~$1.15 billion) in the previous year.

The net worth of the company as of March 31, 2022, reached ₹52.68 billion (~$688.41 million), a 76% YoY increase, which includes an equity infusion of ₹15 billion (~$196.02 million) on March 28, 2022, by the government of India.

In a stakeholder meeting, while discussing IREDA’s performance during the quarter, Pradip Kumar Das, IREDA’s Chairman & Managing Director, stated that feedback from various stakeholders helped IREDA significantly improve the ‘ease of doing business’ in terms of faceless loan approvals and disbursements, reduction in documentation and disbursement cycle for loan approval, and increased geographical footprint in the country.

Earlier in February, IREDA had signed a memorandum of understanding with the Ministry of New and Renewable Energy and set an annual performance target for 2021-22. The government set a target of ₹27.49 billion (~$359.24 million) for revenue from operations along with various performance-related key parameters like return on net worth, asset turnover ratio, and earning per share.

In April this year, IREDA approved a loan of ₹2.68 billion (~$35.02 million) to BluSmart Mobility, an electric ride-hailing platform — to buy 3,000 electric cars.

Previously, it also launched a program to promote the manufacture and deployment of infrastructure for emerging technologies, green mobility, and charging infrastructure. IREDA was expected to provide loans to the tune of 70% of the cost for the emerging technologies. The program also aims to provide financial assistance to EV fleet owners and operators and charging infrastructure owners.