Government-owned lender Indian Renewable Energy Development Agency (IREDA) has reported a 45.9 % year-over-year (YoY) increase in profit after tax for the fourth quarter (Q4) of the financial year (FY) 2024 to ₹373.76 million (~$4.4 million) from ₹256.16 million (~$3.07 million).

The profit growth was primarily driven by the consistent growth in the company’s loan book and a significant reduction in its net non-performing assets (NPA).

IREDA’s total income in Q4 was recorded at ₹13.92 billion (~$166.9 million), a 34.3% YoY increase from ₹10.36 billion (~$124.2 million).

At the end of the quarter, the lender’s loan book recorded a 27% YoY increase to ₹596.98 billion (~$7.1 billion) from ₹470.76 billion (~$5.6 billion).

IREDA’s net worth saw a 44% YoY increase to ₹85.59 billion (~$ 1.02 billion).

Full Year 2024

The company’s net profit for FY 2024 was ₹12.52 billion (~$150.1 million), a 44.7% YoY increase from ₹8.65 billion (~$103.7 million).

The total income for the year was ₹49.65 billion (~$595.5 million), a 42.5% increase from ₹34.83 billion (~$417.8 million) recorded during the same period last year.

The solar sector accounted for the highest share of outstanding loans by IREDA as of March 2024, at 27%. Wind and Hydropower followed at 18% and 12% respectively.

The manufacturing sector accounted for 6% of the outstanding loan composition, whereas ethanol stood at 5% each, and the hybrid (wind and solar) segment was at 2%. The electric vehicle segment constituted 2% of the outstanding loans.

IREDA reported a 67% YoY increase in profit after tax for Q3 of FY 2024 to ₹3.36 billion (~$40.28 million) from ₹2.01 billion (~$24.1 million). The profit growth was driven by the consistent growth in the company’s loan book and a significant reduction in net non-performing assets to 1.52% in Q3 from 2.03% in the same period last year.

Last year, the company launched its retail division with an emphasis on providing loans in the Business-to-Consumer (B2C) sector. The strategic initiative is expected to target borrowers under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program, rooftop solar consumers and other B2C segments.