Business Update : IREDA stock hits upper circuit following strong Q4

Business Update

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Business Update : The stock of Indian Renewable Energy Development Agency (IREDA) zoomed 5 percent to hit its upper circuit in trade on April 2 following healthy quarterly business updates.

Business Update : IREDA recorded the highest number of loans sanctioned, coming in at Rs 37,354 crore for the financial year ended March 31, 2024. This was up 14.63 percent from Rs 32,587 crore last year.

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At 10.45am, the IREDA stock was quoting Rs 149.75 on the NSE, higher by 5 percent from the previous session’s closing price.

For the quarter ended March 31, IREDA sanctioned loans of Rs 23,796 crore, clocking an on-year growth of 101.7 percent from Rs 11,797 crore from the same quarter a year back.

Loan disbursements for the quarter stood at Rs 12,869 crore, up around 14 percent from Rs 11,291 crore from Q4FY23.

On March 28, the IREDA board of directors approved a proposal of Rs 24,200 crore borrowing for 2024-25. It included raising through bonds, perpetual debt instruments (PDI), term loans, commercial papers, and external commercial borrowings (ECB), a regulatory filing said. Business Update

On March 20, the NSE revoked the inclusion of IREDA in several key indices due to the firm’s non-compliance with the Sebi portfolio concentration norms. Business Update

“As IREDA breached one of the requirements of Sebi Portfolio Concentration Norms for Equity Exchange Traded Funds (ETFs) and Index Funds related to impact cost, the committee has decided to revoke its earlier decision to include IREDA announced on February 28, 2024,” said the NSE in a press release. Business Update

IREDA shares have jumped 150 percent over the past six months, outperforming the benchmark Nifty 50 index that recorded gains of around 15 percent during the same time period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Business Update

The surge in IREDA’s stock price can be attributed to their positive financial performance in the last quarter (Q4) of FY24, as reported on April 2nd, 2*.* Business Update

Here’s a breakdown of why the stock price rose:

  • Strong Business Update: IREDA released a business update showcasing impressive results for Q4FY24.
  • Record Loan Activity: The company sanctioned the highest ever loan amount in FY24, exceeding ₹37,354 crore, representing a 14.63% increase compared to the previous year.
  • Profitability Jump: IREDA’s net profit witnessed a significant rise of 67.15% YoY (year-over-year) in Q4FY24, reaching ₹335.54 crore.
  • Revenue Growth: They also reported a healthy growth of 44.2% in net revenue for Q3FY24 compared to the same period last year. Business Update

These positive financial indicators likely triggered investor confidence, leading to a surge in demand for IREDA’s stock. The upper circuit limit refers to the maximum permissible increase in the stock price within a single trading day, indicating strong buying pressure.

Overall, IREDA’s performance in Q4FY24 seems to have impressed investors, reflected in the significant rise in their stock price. Business Update

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