Why did IREDA shares fail to hold gains after Q3 results? Details here

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IREDA share price: State-owned Indian Renewable Energy Development Agency (IREDA) share was in demand on Friday, January 10, 2025, as the scrip soared as much as 3.17 per cent to hit an intraday high of Rs 222.75 per share on the back of healthy profit and net interest income (NII).

 

The company’s net profit climbed about 27 per cent year-on-year to Rs 425.4 crore in the December quarter of financial year 2025 (Q3FY25), from Rs 335.5 crore in the same quarter a year ago (Q3FY24).

 

IREDA’s net interest income (NII) zoomed 39 per cent annually to Rs 622.3 crore in Q3FY25, from Rs 448.1 crore in Q3FY24. NII is calculated by subtracting finance cost from interest income. 

 

However, the IREDA share failed to sustain the gains as they dropped up to 3.42 per cent to an intraday low of Rs 208.50 apiece on the back of rising non performing assets (NPAs) sequentially.

 

IREDA’s gross non performing assets (GNPA) came in at 2.68 per cent in Q3FY25, as opposed to 2.19 per cent in the last quarter of the same fiscal year (Q2FY25). Its net non performing assets (NNPA) also deteriorated to 1.50 per cent in Q3FY25, from 1.04 per cent in Q2FY25. 

 

IREDA Q3 business update 

 

The company posted a strong December quarter of the financial year 2025 (Q3FY25) business update. The loan sanctioned zoomed 129 per cent year-on-year (Y-o-Y) to Rs 31,087 crore, as opposed to Rs 13,558 crore in the same quarter previous fiscal year (Q3FY24).

 

Its loan disbursements popped 41 per cent Y-o-Y to Rs 17,236 crore in Q3FY25, from Rs 12,220 crore in Q3FY24, IREDA said. 

 

Meanwhile, the loan book O/s at the end stood at Rs 69,000 crore in Q3FY25, up 36 per cent annually from Rs 50,580 crore in Q3FY24.

 

IREDA IPO 

 

In November 2023, IREDA conducted an initial public offering (IPO) and got listed on the NSE and BSE, marking a major milestone. IREDA stock listed at Rs 50 on BSE, a premium of 56.25 per cent over the IPO issue price of Rs 32.

 

About IREDA

 

Established in 1987, IREDA is a public sector enterprise. It operates under the ownership of the Government of India and falls under the administrative oversight of the Ministry of New and Renewable Energy (MNRE). 

 

IREDA's primary mission is to promote and facilitate the development of projects related to renewable energy sources and energy efficiency. 

 

As a Non-Banking Financial Institution (NBFC) and a Mini Ratna (Category – I) enterprise, it plays a crucial role in providing financial assistance and other essential services to support the growth of green power capacity. 

 

Additionally, IREDA finances the establishment of solar manufacturing units and encourages the adoption of renewable energy to foster sustainable development.

 

The market capitalisation of IREDA is Rs 56,738.71 according to BSE. The company falls under the BSE 200 category.

 

At 11:00 AM, IREDA shares were trading 2.32 per cent lower at Rs 210.90. By comparison, BSE Sensex was 0.17 per cent lower at 77,490.38 levels.