The Indian Renewable Energy Development Agency Ltd (IREDA) announced its financial performance for the second quarter of the fiscal year 2024-25 (Q2FY25) on Thursday, October 10, showcasing robust growth in both net profit and revenue. The state-owned renewable energy financer posted a 36.2% year-on-year increase in net profit, touching ₹387.75 crore, and a 41.3% jump in revenue compared to the same period last year.

Key Highlights of IREDA's Q2FY25 Performance:

• Net Profit Growth:
  IREDA reported a 36.2% year-on-year (YoY) surge in net profit for Q2FY25, amounting to ₹387.75 crore, as compared to ₹284.73 crore in the corresponding quarter last year.

• Revenue from Operations:
  The company's revenue from operations soared 41.3% YoY to ₹1,629.55 crore, up from ₹1,152.96 crore in Q2FY24. Sequentially, revenue saw an 8% increase from ₹1,510.28 crore reported in the June quarter (Q1FY25).

• Net Worth Expansion:
  As of June 30, 2024, IREDA's net worth stood at ₹9,110.19 crore, marking an impressive 44.83% YoY growth from ₹6,290.40 crore.

• Share Price Movement:
  IREDA shares have witnessed positive momentum recently. On Thursday, the stock ended 1.12% higher at ₹233.75 apiece on the BSE, ahead of its Q2 results. On the previous day, the stock closed at ₹231.15, representing a 2.92% rise.

Sequential Performance Overview:

• Net Profit Sequential Growth:
  Compared to the June quarter (Q1FY25), where the company posted a net profit of ₹383.69 crore, Q2FY25 saw a modest sequential increase of 1.1% in net profit.

• Revenue Comparison:
  The revenue from operations grew by 8% sequentially, from ₹1,510.28 crore in Q1FY25 to ₹1,629.55 crore in Q2FY25.

Peer Analysis and Technical Insights:

• Peer Performance:
  Other public sector financiers like Power Finance Corporation (PFC) and REC Ltd. are also being closely monitored. Both stocks are currently at crucial support levels of 200-SMA, indicating potential recovery if these levels are defended. For REC, the key support is at 500, while for PFC, it stands at 470.

• Technical Outlook for IREDA:
  According to Kapil Shah, Technical Analyst at Emkay Global, IREDA's stock shows strong intermediate corrections and currently hovers around the ₹207 support level after a 33% drop from its peak. If the stock surpasses ₹240, it could potentially see upward movement towards ₹265 and ₹305. A bullish sentiment is likely to continue if prices remain above the ₹208 mark.

Performance in Previous Quarters:

• In Q1FY25, IREDA posted a net profit of ₹383.69 crore, driven primarily by higher revenues, which amounted to ₹1,510.71 crore during the period, compared to ₹1,143.50 crore in the same quarter last year.

• The company has continued to maintain a solid financial performance over the first half of FY25, reflecting strong growth in the renewable energy financing sector.

Market Perspective:

IREDA's consistent performance is a positive indicator for the Indian renewable energy finance sector, reflecting the increasing focus on sustainable energy investments. With its substantial rise in net worth and operational revenues, the company is positioned to play a pivotal role in financing India's green energy initiatives.

Conclusion:

IREDA's Q2 results highlight a strong financial footing and a commitment to driving growth in the renewable sector. Investors and analysts will continue to watch the company’s future moves closely, especially in the context of India's broader green energy transition.

This blog summarizes IREDA's performance in Q2FY25 and provides key financial insights for stakeholders, emphasizing the significant YoY and sequential growth across various metrics.