IREDA’s Loan Approvals for Renewables Swell by 89% QoQ in Q2 FY23
The company's profit for the second quarter dropped by 19%
November 14, 2022
Indian Renewable Energy Development Agency (IREDA) has posted a profit of ₹1.84 billion (~$22.83 million) in the second quarter (Q2) of the financial year (FY) 2023, marking an increase of 67% compared to ₹1.10 billion (~$13.65 million) during the same period last year.
However, the profit decreased by 19% sequentially.
The public sector undertaking’s total income grew 17% year-over-year (YoY) to ₹7.92 billion (~$98.28 million) in Q2 FY23. The numbers rose by 0.7% quarter over quarter (QoQ).
IREDA’s loan book total for the quarter stood at ₹337.83 billion (~$4.19 billion), up 17% YoY from ₹288.56 billion (~$3.58 billion). The company approved loans of ₹112.26 billion (~$1.39 billion) during the quarter, up 89% against ₹59.25 billion (~$735.29 million) in Q2 FY22.
IREDA’s net non-performing assets reduced to 2.72% YoY from 4.87%, a 44% reduction.
The company stated that the impact of Covid-19 led to volatility in global and Indian financial markets and a significant decrease in global and local economic activities. It would continue to use digital technology to monitor any material changes to future economic conditions closely.
1H FY 2023
IREDA reported a profit of ₹4.11 billion (~$51.01 million) in the first half (1H) of FY23, an increase of 37% YoY.
The total income grew to ₹15.78 billion (~$195.83 million), up 14% against ₹13.85 billion (~$171.87 million) during the same period last year.
The company’s net worth was ₹56.38 billion (~$699.67 million) at the end of September, up 69% compared to ₹39.33 billion (~$488.09 million) during the corresponding period last year.
Commenting on the results, Pradip Kumar Das, Chairman and CMD of IREDA, said, “IREDA has registered growth in quarterly profit before tax and profit after tax by 76.15% and 67.14% respectively, and has also registered a significant reduction in gross and net NPAs, which is a significant achievement for any non-banking financial company.”
In August this year, IREDA signed a memorandum of understanding (MoU) with the Bank of India for co-lending, co-origination, and loan syndication for renewable energy projects.
Earlier, the Cabinet Committee on Economic Affairs had approved the equity infusion of ₹15 billion (~$201.27 million) in IREDA. The additional equity infusion will help IREDA lend ₹120 billion (~$1.61 billion) to the renewable energy sector, facilitating the debt requirement for an additional capacity of approximately 3,500-4,000 MW.
IREDA had posted a total income of ₹7.86 billion (~$98.69 million) for Q1 FY23, a YoY leap of 11.97% from ₹7.02 billion (~$88.15 million).