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Informist, Thursday, Jul. 10, 2025

 

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--IREDA Apr-Jun net profit INR 2.47 bln vs INR 3.84 bln year ago 
--IREDA Apr-Jun revenue INR 19.47 bln vs INR 15.10 bln year ago 
--IREDA Apr-Jun total income INR 19.60 bln vs INR 15.11 bln year ago 
--IREDA gross NPA 4.13% as of Jun 30 vs 2.45% quarter ago, 2.19% yr ago 
--IREDA net NPA 2.06% as on Jun 30 vs 1.35% quarter ago, 0.95% year ago 
--IREDA capital adequacy ratio 19.58% as of Jun 30 vs 15.26% year ago

--IREDA Apr-Jun net interest margin 3.60% vs 3.29% year ago 

--IREDA Apr-Jun cost of borrowing 7.40% vs 7.78% year ago 

 

NEW DELHI - Indian Renewable Energy Development Agency Ltd. Thursday reported a year-on-year fall in its net profit for the quarter ended June because of a jump in impairment on financial instruments. This is the first time IREDA's net profit has declined year on year since it was listed on exchanges in November 2023.

 

The company's net profit for Apr-Jun fell 36% on year to INR 2.47 billion. Sequentially, the company's net profit was down 51%. IREDA had reported a net profit of INR 5.02 billion for Jan-Mar led by a robust rise in the interest income.

 

IREDA reported impairment on financial instruments of INR 3.63 billion in the June quarter against a INR-300-million gain on this head a year ago.

 

Shares of IREDA Thursday ended 2.3% higher at INR 169.64 on the National Stock Exchange. The company released its financial results after market hours Thursday.

 

The public sector company's asset quality worsened during the June quarter. IREDA's gross non-performing asset ratio rose to 4.13% as of Jun. 30 from 2.45% a quarter ago and 2.19% a year ago. The net NPA ratio increased to 2.06% at the end of June from 1.35% a quarter ago and 0.95% a year ago.

 

IREDA's asset quality worsened as the company re-classified a borrower's outstanding loan of INR 7.83 billion as a stage-III NPA from stage-II asset. "The Company had provided adequate impairment provision in earlier years against such accounts under the ECL (Expected credit loss) Methodology which also exists as on 30.06.2025," IREDA said in its financial results.

 

The public-sector company also downgraded the loan accounts of Gensol Engineering Ltd. and Gensol EV Lease Pvt. Ltd. to NPA during the June quarter. IREDA had received an interim order report from Securities and Exchange Board of India on Apr. 16 regarding irregularities in operations of Gensol Engineering.

 

IREDA in May filed application to initiate corporate insolvency resolution process against Gensol Engineering under the Insolvency and Bankruptcy Code in the National Company Law Tribunal. It also moved the Debt Recovery Tribunal for recovering debts from Gensol Engineering and its arm Gensol EV Lease seeking a recovery of INR-5.10-billion dues from Gensol Engineering and INR-2.19-billion dues from Gensol EV Lease.

 

For the June quarter, IREDA reported total income of INR 19.60 billion, up 30% on year. Revenue from operations for Apr-Jun grew 29% on year to INR 19.47 billion. Other income rose to INR 122 million during Apr-Jun from INR 4 million a year ago.

 

Total expenses jumped 60% to INR 16.55 billion because of higher impairment on financial instruments. IREDA's finance costs during Apr-Jun rose 25% on year to INR 12.18 billion.

 

The capital adequacy ratio of the company rose to 19.58% as of Jun. 30 from 15.26% year ago. IREDA's net interest margin for Apr-Jun rose to 3.60% from 3.29% a year ago. The cost of borrowing for the June quarter was 7.40%, lower than 7.78% a year ago.  End

 

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

 

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