Shares of Indian Renewable Energy Development Agency shot up 7.5% in early deals on April 16 after the power lender posted strong results for the March quarter, sparking a buying spree among investors.
The state-run company’s net profit for the quarter gone by surged nearly 49% on year to Rs 501.55 crore, up from the Rs 337.39 crore that it reported in the same period of FY25. Revenue from operations also grew 37% year-on-year to Rs 1,905.06 crore.
Further lifting sentiment, the company’s interest income during the reporting quarter also recorded a sharp jump of 40% to Rs 1,861.14 crore.
The company’s asset quality improved in the quarter under review as net non-performing assets (NPAs) margin fell to 0.99% in Q4, down from 1.5% in the last quarter. Gross NPA margin stood at 2.45 percent during the reported quarter.
Meanwhile, there were also dark spots in IREDA’s Q4 numbers. The company also clocked in a net profit margin of 25.14% for FY25, however, this remains largely around the same level that was seen in FY24. Operating margin though, recorded slight decline on year to 31% in FY25 as compared to 33.92% in FY24.
However, the company managed to lift its net interest margin for FY25 which came at 3.27%, up from the 2.85% that it clocked in a fiscal ago.
The state-run company’s Q4 results were largely along market expectations as investors were factoring in a strong performance. It was this optimism that had triggered a 9% surge in the stock in the last session, in the run-up to the results announcements. After facing strong selling in recent months, IREDA’s shares made a strong turnaround, with a sharp 20% upmove in the last month. Even with that though, the stock still remains down 24% for the year thus far.
