IREDA Q1 Results 2024 Live Updates: Net profit rises 30% to ₹383 crore, NII up 37% YoY

Brokerage firms, tracking the stock, expect the company to report a strong set of numbers on a yearly basis. However, they are expecting a mixed set of numbers on a quarter-on-quarter (QoQ) basis.

Domestic brokerage firm Phillip Capital expects the company to report a net interest income of 501.8 crore up 40.8 per cent YoY and 12 per cnet QoQ. Net interest margins (NIMs) may contract marginally on a sequential basis, coming in at 3.55 per cent but YoY growth is seen at 41 basis points (bps).

According to the business update, IREDA’s domestic mutual funds reduced their stake in the company, opting to book profits as the stock reached new highs. As of June 30, Mutual funds hold a 0.24 percent stake in IREDA, down from half a percent at the end of March 2024.

In its Q1FY25, business update shared late last month, IREDA said it recorded loan sanctions of ₹9,136 crore in the June quarter, up 382.62 percent on-year (YoY). The PSU’s loan disbursements for the quarter came in at ₹5,320 crore, up 67.61 percent YoY.

The outstanding loan book stood at ₹63,150 crore, up 33.77 percent over the year-ago’s ₹47,207 crore.

The stock has seen interest from foreign investors. In the quarter that ended June 30, the foreign portfolio investors (FPIs) increased their ownership in the company to 2.7 percent, up from 1.36 percent in the previous quarter.

Indian stock market benchmarks—the Sensex and the Nifty 50—rose nearly a per cent each to hit fresh all-time highs in intraday trade on Friday, July 12, on gains led by select IT and banking heavyweights.

Nifty 50 hit a fresh all-time high of 24,592.20, while the Sensex made a fresh peak of 80,893.51 during the session.

Nifty 50 jumped 186 points, or 0.77 per cent, to settle at a fresh closing high of 24,502.15. The Sensex also settled at its fresh closing high of 80,519.34 with a gain of 622 points, or 0.78 per cent.

Amit Goel, Co-Founder & Chief Global Strategist, Pace 360:
 

In the upcoming budget, we could see a Production Linked Incentive (PLI) scheme related to the renewable energy sector, including devices such as windmills and solar panels. 

There will likely be an increased focus on renewable energy to achieve the ambitious goal of sourcing 50% of India’s electricity needs from renewable sources by 2030.

The company is engaged in promoting, developing, and extending financial assistance for projects related to new and renewable sources of energy, energy efficiency, and conservation. We remain positive on the long-term growth prospects of the company.

Ahead of the announcement of Q1FY25 results, shares of IREDA settled 0.37 per cent higher at ₹284.65, before hitting a 52-week high of ₹304.6 apiece on the BSE.
On the NSE, shares of IREDA settled 0.11 per cent higher at ₹284 apiece, before hitting a 52-week high of ₹304.50.

Amit Goel, Co-Founder & Chief Global Strategist, Pace 360:

‘’For the June quarter, foreign portfolio investors doubled their stake in the renewable energy PSU, holding a 2.7% stake in the company as of June 30, 2024, compared to a 1.36% stake in the March 2024 quarter. The stock rose by about 15% to close at ₹283 on Thursday, and the company’s market capitalization exceeded ₹76,000 crore.

In the June 2024 quarter, IREDA recorded loan sanctions of ₹9,136 crore, up 382.62 percent YoY from ₹1,893 crore in the same period the previous year. The outstanding loan book was ₹63,150 crore at the end of the quarter, up 33.77 percent YoY, while loan disbursements for the quarter totaled ₹5,320 crore, up 67.61 percent YoY.”

IREDA Q1 Results 2024 Live: Indian Renewable Energy Development Agency Limited (IREDA) raised ₹1,500 crore on June 21 through issuance of bonds. The bond issuance consisted of base issue of ₹500 crore and green shoe option of ₹1,000 crore, received an overwhelming response from investors, being oversubscribed 2.65 times, the company had said in an exchange filing. The funds were raised at an annual interest rate of 7.44% for a tenure of 10 years and 2 months.

The capital raising will enable the company to further strengthen efforts in financing green energy projects, contributing to India’s goal of achieving 500 GW non-fossil fuel installed capacity target by 2030, Pradip Kumar Das, Chairman & Managing Director, IREDA said.

IREDA Q1 Results 2024 Live: Foreign portfolio investors (FPI) increased their stake in IREDA to 2.7% in the quarter ended June 2024 from 1.36% in the March quarter. On the contrary, domestic mutual funds have slashed their stake in the multibagger PSU. Indian mutual funds held 0.24% stake in IREDA at the end of June 2024 as against 0.53% stake held by them at the end of March 2024.

IREDA Q1 Results 2024 Live: Loan growth to aid interest income

IREDA Q1 Results 2024 Live: IREDA is anticipated to report a decent loan growth in the quarter ended June 2024 which may aid interest income. The company’s renewable disbursement in the solar energy segment is likely to pick up, analysts said on IREDA Q1 results today.

IREDA Q1 Results 2024 Live: IREDA share price has given multibagger returns since its listing in November 2023. IREDA share price has risen over 27% in one week and nearly 60% in one month. Over the past three months, IREDA stock price has jumped more than 74% and it has rallied 184% year-to-date (YTD). From its IPO price of ₹32 per share, IREDA shares have jumped by a robust 852%.

IREDA Q1 Results 2024 Live: IREDA shares are looking positive on the chart pattern, said Sumeet Bagadia, Executive Director at Choice Broking. The PSU stock has made a strong base at ₹250, and it is facing hurdles at ₹300 and ₹350 on the daily and weekly charts. So, IREDA share price may touch the ₹350 mark in the near term once it breaches the immediate hurdle of ₹300 on a closing basis, he added.

IREDA Q1 Results 2024 Live: Given India’s commitment to the sustainable development goals (SDGs) and the targets set on renewable energy capacities, IREDA’s strategic role as the nodal agency for promoting, developing, and financing renewable energy and energy efficiency (EE) projects in India is significant. IREDA’s focus on funding the RE sector, business growth is expected to remain healthy at around 25-30% CAGR, with market share expected at around 29% in incremental financing. In its Q1FY25 business update shared, IREDA had recorded loan sanctions of Rs. 9,136 crores in the June quarter, up 382.62% YoY. The PSU’s loan disbursements for the quarter came in at Rs. 5,320 crores, up 67.61% YoY. This further suggests that the company will produce robust numbers, said Manish Chowdhury, Head of Research at StoxBox.

IREDA Q1 Results 2024 Live: The NBFC is expected to post a net interest margin (NIM) of 3.40% in the June 2024 quarter of FY25, registering an expansion of 34 basis points (bps) from 3.06% in the same quarter last fiscal, as per Phillip Capital. However, IREDA’s NIM in Q1FY25 is expected to contract by 3 bps from 3.43% in, QoQ.

IREDA Q1 Results 2024 Live: IREDA Q1 net profit is expected to jump 25% to ₹368.6 crore from ₹294.6 crore in the year-ago quarter, according to Phillip Capital estimates. The company had reported a net profit of ₹337.4 crore in the March 2024 quarter. IREDA Q1 profit growth is expected to be 9.2% sequentially.

IREDA Q1 Results 2024 Live: IREDA is expected to report strong earnings growth in the quarter ended June 2024. IREDA Q1 net interest income (NII) is estimated to rise 42.4% to ₹525.5 crore from ₹369 crore in the same quarter last year. The PSU company reported NII of ₹481.4 crore in the March 2024 quarter. The sequential growth in Q1FY25 NII is expected to be 9.2%.

IREDA Q1 Results 2024 Live: IREDA share price rallied more than 7 in early trade on Friday ahead of the announcement of Q1 results today. IREDA stock price jumped as much as 7.14% to a record high of ₹303.85 per share on the BSE. IREDA shares have been on a significant uptrend for the last three straight sessions. In these three days, IREDA share price has surged from ₹240.53 to ₹303.70 apiece on the NSE, marking a substantial growth of 25%. 

IREDA Q1 Results 2024 Live: Indian Renewable Energy Development Agency Ltd (IREDA), the renewable sector financier, will announce its Q1 results today. IREDA is a government-owner non-banking financial company (NBFC) engaged in financing the renewable sector.