PSU stock jumps 11% after reporting 33% increase in net profits during Q4

Shares of this midcap company jumped upto 11 percent in Monday's trading session after reporting a 33 percent increase in net profits during Q4FY24. The shares have delivered a multibagger return of 186 percent to its shareholders in six months. 

With a market capitalization of Rs. 46,216 crores, the shares of Indian Renewable Energy Development Agency Ltd (IREDA) started Monday's trading session on a higher note at Rs. 179, gaining 11 percent compared to its previous close of Rs. 160.70, and are currently trading at Rs. 171 apiece. 

Such a bullish movement in the share price was observed after the company in an exchange filing announced January to March results. The revenue increased by 11 percent from Rs. 1,253 crores during the December quarter to Rs. 1,391 crores in the March quarter. In addition, the net profits increased marginally by around 1 percent from Rs. 336 crores to Rs. 337 crores during the same timeframe. 

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Comparing these metrics on a YoY basis, the revenue zoomed by 34 percent from Rs. 1,036 crores during Q4FY23 to Rs. 1,391 in Q4FY24. On the other hand, the net profits magnified by 33 percent from Rs. 254 crores to Rs. 337 crores during the same period. 

Furthermore, the Net Interest Income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, saw a notable 35.1 percent rise, reaching to Rs. 481.4 crores compared to Rs. 356.4 crores recorded in the same quarter of FY23. 

Moreover, the Loan Book of IREDA has grown from Rs. 47,052.52 crores as of 31st March 2023 to Rs. 59,698.11 crores as of 31st March 2024, registering a growth of 26.81 percent. 

The company has achieved all-time high annual Loan Sanctions of Rs. 37,353.68 crore and disbursements of Rs. 25,089.04 crores in Financial Year 2023-24, registering an increase of 14.63 percent and 15.94 percent respectively, over the previous financial year loan sanctions of Rs. 32,586.60 crores and disbursements of Rs. 21,639.21 crores. 

Additionally, the state-owned company has reduced its Net Non-Performing Assets (NPAs) to 0.99 percent in FY 2023-24 from 1.66 percent in FY 2022-23, demonstrating a significant reduction of 40.52 percent YoY. Further, the net worth of the company increased by 44.22 percent from Rs. 5,935.17 crores in FY22-23 to Rs. 8,559.43 crores during FY23-34. 

Headquartered in New Delhi, Indian Renewable Energy Development Agency was incorporated in 1987. It is a Mini Ratna government enterprise in the business of promoting, developing, and extending financial assistance for new and renewable energy (RE) projects, and energy efficiency and conservation (EEC) projects. 

Written By Vaibhav Patil

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