Ireda Eyes Steady Growth Ahead As Loan Sanctions Rise

Indian Renewable Energy Development Agency Ltd. will likely see its earnings grow steadily in the upcoming quarters as loan sanctions have been rising in the second and the previous quarter, according to a top executive.

The energy sector financing firm has been "growing phenomenally" in the last 18 quarters, Pradip Kumar Das, chairman and managing director told NDTV Profit. "In every quarter we are setting a benchmark for ourselves," he said.

Loan sanctions have considerably spiked in this period and, certainly, the execution is going to happen for this quarter and the last one, Das said. "Since our sanction has gone up, we are confident that we are going to further improve in the third and fourth quarters," he added.

The company reported a net profit of Rs 388 crore during the three months ended September, an increase of 36% from the year-ago period.

Loan disbursements rose to Rs 9,787 crore, a 56% increase from Rs 6,273 crore recorded in September 2023. Ireda's outstanding loan book was Rs 64,500 crore, a 36% increase from Rs 47,514 crore in the previous year.

The size of its upcoming retail business is expected to be about Rs 8 lakh crore, and Das envisages a 11–12% share in the space. The company got the approval of Department of Investment and Public Asset Management and Renewable Ministry to set up a retail business unit.

Ireda's stock rose as much as 2.66% during the day to Rs 239.0 apiece on the NSE. It was trading 0.69% higher at Rs 235.3 apiece, compared to a 0.02% decline in the benchmark Nifty 50 as of 10:32 a.m.

It has risen 292% during the last 12 months and has advanced by 128% on a year-to-date basis. The total traded volume so far in the day stood at 2.1 times its 30-day average. The relative strength index was at 53.

One out of the two analysts tracking the company has a 'buy' rating on the stock, and one has a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 2.1%.