The government-owned lender Indian Renewable Energy Development Agency (IREDA) has reported a profit after tax of ₹2.95 billion (~$35.54 million) for the first quarter (Q1) of the financial year (FY) 2024, an increase of 30% year-over-year (YoY).

The quarter saw a significant reduction in the net NPAs to 1.61% from 2.92% during the same period last year, representing a 45% YoY drop.

Over the previous year, IREDA’s loan book expanded to ₹472.07 billion (~$5.69 billion) as of June 30, 2023, showcasing a 44% YoY growth from ₹326.79 billion (~$3.94 billion).

During Q1 FY24, the company disbursed loans of ₹31.73 billion (~$382.26 million), up 272% YoY.

The company’s total income from operations stood at ₹11.43 billion (~$137.69 million), up 45% from ₹7.86 billion (~$94.69 million) during the same period last year.

During the quarter, the company also received an interest amount of ₹384.51 million (~$4.63 million) and repayment of principal of ₹62.93 million (~$758,382) on the loans to government-related entities.

One of the significant transactions recorded was that of Rewa Ultra Mega Solar’s (RUMSL) loan repayment of ₹16.25 million ($195,767).

The company had previously disclosed its plans for an initial public offering involving a partial sale of the government’s stake in the company. It had also received approval from the cabinet for the same, which was granted due to changes in IREDA’s capital structure, brought about by a government infusion of ₹15 billion (approximately $180.71 million) in funds in the preceding year.

In April this year, the Department of Investment and Public Asset Management under the Ministry of Finance invited bids from book-running lead managers (BRLMs) to assist in the process of listing the government’s equity in IREDA. The government intends to select a maximum of three merchant bankers who possess a background in conducting public offerings. These selected bankers will collaborate as BRLMs.

Earlier this year, IREDA was granted an ‘Infrastructure Finance Company (IFC) status by the Reserve Bank of India, enabling better exposure to renewable energy sector financing. The IFC status is expected to help the non-banking financial company achieve competitive fundraising rates by providing access to a broader investor base.

The company posted a profit of ₹2.54 billion (~$30.59 million) for Q4 FY 2023, a jump of 12% YoY. For the January-March period, the lender’s revenue came in at ₹10.36 billion (~$124.81 million), an increase of 38.87% YoY.