IREDA gains 5% after board approves enhancement of borrowing programme for FY25 by ₹5,000 crore

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) are in focus after the company's board on Monday, March 17, approved the enhancement of borrowing programme for the current financial year by ₹5,000 crore.

The same is via taxable bonds, sub-ordinated tier II bonds, perpetual debt instruments, term loan from banks and FI's, lines of credit from international agencies, external commercial borrowings, short term loans and WCDL from the bank, the company said in an exchange filing.

The borrowing limit for the financial year 2025 has been increased from ₹24,200 crore to ₹29,200 crore.

On another note, last week, the company said the RBI has not acceded to its request of making an equity investment to develop and implement a 900 MW Upper Karnali Hydro Electric Power Project in Nepal.

The Upper Karnali Hydro Electric Power Project is a joint venture between IREDA, GMR Energy, GMR Power & Urban Infra, GMR Lion Energy, NEPAL Electricity Authority, and another state-run company SJVN Ltd. The JV agreement was signed earlier this year.

IREDA's equity investment in the venture was supposed to be around ₹174.22 crore for a 5% stake and it was supposed to be entitled to nominate one director on the board of the JV company.

In the third quarter, IREDA's Gross Non-Performing Assets (NPAs) rose 30.4% from the September quarter to ₹1,845.5 crore, while its Net NPAs increased by 53.75% sequentially to ₹1,024 crore.

In percentage terms, Gross NPA stood at 2.68% from 2.19% in September, while Net NPA stood at 1.5% from 1.04% in September.

Provision Coverage Ratio at the end of the December quarter stood at 44.5% from 52.9% in the previous quarter.

IREDA's Net Interest Income (NII) during the quarter increased by 39% from last year to ₹622.25 crore, while its net profit grew by 27% to ₹425.4 crore.

Provisions for the quarter tripled from September to ₹104 crore.

IREDA shares ended the previous trade session nearly 2% lower at ₹137.15 apiece. The stock has declined 38% this year, so far.

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