Government-owned lender Indian Renewable Energy Development Agency (IREDA) has reported a 30% year-over-year (YoY) increase in profit after tax for the first quarter (Q1) of the financial year (FY) 2024-2025 to ₹3.84 billion (~$46 million) from ₹2.95 billion (~$35.4 million).

The profit growth was primarily driven by the consistent expansion of the company’s loan book and a significant reduction in its net non-performing assets (NPA).

IREDA’s total income in Q1 was recorded at ₹15.11 billion (~$181.3 million), a 32% YoY increase from ₹11.43 billion (~$137.2 million).

At the end of the quarter, the lender’s loan book recorded a 33.77% YoY increase to ₹631.50 billion (~$7.58 billion) from ₹471.22 billion (~$5.65 billion).

IREDA’s net worth saw a 44.8% YoY increase to ₹91.10 billion (~$1.09 billion).

Key Financial Highlights

• Loan sanctions surged by 387% to ₹92.10 billion (~$1.11 billion)
• Loan disbursements grew by 68% to ₹53.20 billion (~$638.4 million)
• Gross NPA ratio improved to 2.19% from 3.08% in Q1 FY 2024
• Net NPA ratio decreased to 0.95% from 1.61% in the same period last year

Pradip Kumar Das, Chairman and Managing Director of IREDA, commented on the results,  “IREDA’s robust performance in the first quarter underscores our commitment to accelerating the deployment of renewable energy solutions in India. The substantial increase in loan sanctions and disbursements reflects our proactive approach in supporting projects that contribute to India’s renewable energy goals.”

IREDA reported a 45.9 % YoY increase in profit after tax for the fourth quarter (Q4) of the FY 2024 to ₹373.76 million (~$4.4 million) from ₹256.16 million (~$3.07 million).

Last year, the company launched its retail division emphasizing loans in the Business-to-Consumer (B2C) sector. The strategic initiative will target borrowers under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program, rooftop solar consumers, and other B2C segments.