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NBFC stock jumps 3% after it incorporates subsidiary for PM KUSUM EV and rooftop solar

Published 11-10-2024, 01:11 pm
Updated 11-10-2024, 06:45 pm
© Reuters.  NBFC stock jumps 3% after it incorporates subsidiary for PM KUSUM EV and rooftop solar
INAR
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Shares of this NBFC, which provides financial assistance for renewable energy and energy efficiency projects, rose 3 percent after receiving approval from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of New and Renewable Energy to establish a wholly-owned subsidiary for its retail business in renewable energy.

Price Movement

Shares of Indian Renewable Energy Development Agency Ltd (NS:INAR) (IREDA) reached an intra-day high of Rs.239.95 per share in Friday’s trading session, rising 2.7 percent from its previous close of Rs.233.69 per share. The share price has retreated since then and is currently trading at Rs.234.00 apiece.

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What is the news

IREDA has received approval from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of New and Renewable Energy to establish a wholly-owned subsidiary for its retail business.

This subsidiary will focus on initiatives such as PM KUSUM, rooftop solar, and other B2C segments in the renewable energy sector, including electric vehicles, energy storage, green technologies, sustainability, and energy efficiency.

Recent Developments

IREDA has incorporated IREDA Global Green Energy Finance IFSC Limited, a wholly-owned subsidiary based in GIFT City, Gandhinagar, to facilitate foreign currency financing. Additionally, IREDA signed a Memorandum of Understanding (MoU) with SJVN (NS:SJVN) and GMR for a 900 MW hydro power project in Nepal.

Quarterly Results

In its latest financial update, the company reported remarkable net sales of Rs.1,630 crore for Q2 FY25, reflecting a 38.5 percent increase from Rs.1,177 crore in Q2 FY24 and an 8 percent from Rs.1,510 crore in previous quarter Q1 FY25.

Moreover, net profits surged by 36 percent to Rs.388 crore in Q2 FY25, compared to Rs.285 crore in Q2 FY24, and 1.04 percent from Rs.384 crore in Q1 FY25, highlighting stable growth during the period.

Asset Quality

In terms of NPA management, gross NPA rose to Rs.1,415 crores from Rs.1,411 crores as of September 30, 2024. Net NPA increased to Rs.666 crore from Rs.581 crores. The gross NPA ratio dropped from 2.36 percent last quarter to 2.19 percent, while the net NPA ratio inclined from 0.99 percent to 1.04 percent.

About the company

The Indian Renewable Energy Development Agency (IREDA) is a public sector enterprise focused on providing financial assistance for projects related to renewable energy and energy efficiency.

Operating under the Ministry of New and Renewable Energy, IREDA aims to promote sustainable energy solutions and has recently gained recognition as a ‘Navratna’ company, enhancing its operational autonomy and investment capabilities.

Written by – Siddesh S Raskar

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