Shares of the Indian Renewable Energy Development Agency (IREDA) slipped 3.2% on Friday, January 10, reaching a low of Rs 209 on the BSE after unveiling its third-quarter results, which highlighted a 27% year-on-year (YoY) growth in net profit, totaling Rs 425.38 crore compared to Rs 335.53 crore during the same timeframe last year.
In addition, total operational revenue in Q3FY25 surged by 35.6% YoY to Rs 1,698.45 crore, up from Rs 1,252.85 crore in the matching quarter of the prior financial year.
On a sequential basis, the profit after tax (PAT) witnessed a 10% rise from Rs 387.75 crore reported in Q2FY25. The top line expanded by 4.2% quarter-on-quarter from Rs 1,629.56 crore in the July-September span.
IREDA Q3FY25 revenue breakdown
IREDA noted October-December quarter interest income at Rs 1,654.45 crore, increasing from Rs 1,577.05 crore in Q2FY25 and Rs 1,208.10 crore in Q3FY24. The agency garnered Rs 16.46 crore in fees & commission income during the reported quarter, which marked a decline both QoQ and YoY. For the quarter ended September, this income was Rs 25.64 crore compared to Rs 19.88 crore in the same quarter last year.
Other income reported in Q3FY24 stood at Rs 30.93 crore, up from Rs 9.53 crore in Q2FY25 and Rs 16.69 crore in Q3FY24.
IREDA Q3FY25 expenditures
The government-operated firm reported total expenses of Rs 1,160.78 crore for the quarter ending December 31, 2024, slightly reduced sequentially from Rs 1,170.48 crore in Q2FY25 but higher than Rs 867.06 crore a year prior.
These expenditures encompass finance costs, employee benefit costs, Corporate Social Responsibility (CSR) spending, and more.
IREDA debt-to-equity metrics
IREDA’s debt-to-equity ratio on December 31, 2024, climbed to 5.89, compared to 5.13 on December 31, 2023.
IREDA asset quality in Q3FY25
The company’s Gross NPAs reached Rs 1,845 crore in the quarter ending December 31, 2024, up from Rs 1,465 crore in the previous year’s period. As a proportion of total advances, NPAs recorded 2.68% versus 2.90% in Q3FY24.
Net NPA for Q3FY25 stood at Rs 1,024 crore, compared to Rs 757 crore in Q3FY24, decreasing by 2 basis points to 1.50% from 1.52% in Q3FY24.
IREDA operating income (Before Depreciation, Impairment & Tax)
The operating profit soared by 51% to Rs 652 crore from Rs 432 crore the previous year.
IREDA outstanding loan portfolio
The outstanding loan portfolio amounted to Rs 68,960 crore by the end of Q3FY25, a 36% YoY rise from Rs 50,580 crore as of December 31, 2023.
IREDA shares target evaluation
As per Trendlyne insights, the stock’s average target price is set at Rs 205, indicating a downside potential of 5% from the current market levels. The consensus recommendation from two analysts classifies the stock as a ‘Hold’.
IREDA shares performance overview
Closing at Rs 215.9 on Thursday, IREDA shares fell 3.3% on the BSE, while the benchmark Sensex declined 0.68%. The stock has experienced a 10% drop over the past six months but has surged 109% over the last year. The company currently boasts a market capitalization of Rs 58,028 crore.