IREDA Q4 Results: Net Profit Surges 49% to Rs 502 Crore, Annual Profit Hits Record High

IREDA Reports 49% Surge in Q4 Net Profit to Rs 502 Crore

April 15, 2025 - Indian Renewable Energy Development Agency (IREDA), the state-owned non-banking financial institution, has announced a remarkable 49% year-on-year increase in its standalone profit after tax, reaching Rs 502 crore for the quarter ended March 31, 2025. This impressive performance was accompanied by a 37% jump in revenue from operations to Rs 1,904 crore during the same period.

Record-Breaking Annual Performance

The strong quarterly results have contributed to an outstanding full fiscal year performance for IREDA. For FY25, the company achieved its highest-ever profit after tax of Rs 1,699 crore, representing a substantial 36% increase compared to the previous fiscal year.

Key annual financial highlights include:

• Revenue from operations grew by 36% year-on-year to Rs 6,742 crore in FY25
• Net worth increased by 20% year-on-year to Rs 10,266 crore as of March 2025
• Loan book expanded by 20% to reach Rs 76,282 crore in FY25

Strategic Focus on Renewable Energy Financing

IREDA operates under the Ministry of New and Renewable Energy and specializes in providing financial assistance for renewable energy projects across India. The company's consistent growth trajectory reflects its pivotal role in supporting the nation's transition toward cleaner energy sources.

Pradip Kumar Das, Chairman and Managing Director of IREDA, expressed confidence in the company's strategic direction: "IREDA's sustained growth in revenue, profitability, and loan book underscores our strategic focus towards financing India's renewable energy ambitions. We remain committed to being the enabler of India's green energy transition through innovative financial solutions and strategic partnerships."

Expanding Role in India's Green Energy Transition

As a specialized non-banking financial institution, IREDA continues to play a crucial role in promoting, developing, and extending financial assistance for projects related to new and renewable energy sources. The company also supports initiatives focused on energy efficiency and conservation across the country.

The impressive financial results reflect IREDA's expanding footprint in India's renewable energy sector, which has been witnessing accelerated growth as the country pursues ambitious clean energy targets. The government has set a goal of achieving 500 GW of non-fossil fuel energy capacity by 2030, and financial institutions like IREDA are instrumental in mobilizing the necessary capital for this energy transition.

Market Position and Future Outlook

With its strengthened financial position, IREDA is well-positioned to capitalize on the growing opportunities in India's renewable energy landscape. The 20% growth in its loan book indicates robust demand for financing in the sector and IREDA's ability to meet this demand effectively.

The company's enhanced net worth of over Rs 10,000 crore provides a solid foundation for further expanding its lending activities and introducing innovative financial products tailored to the evolving needs of the renewable energy market.

As India continues to accelerate its shift toward renewable energy, IREDA's specialized financing capabilities and sector expertise are likely to remain in high demand, potentially supporting continued growth in the coming quarters.

Investment in Sustainable Development

Beyond the impressive financial metrics, IREDA's performance reflects its broader contribution to sustainable development goals. By channeling investments into renewable energy projects, the company is helping reduce carbon emissions, create green jobs, and enhance energy security across India.

The substantial growth in IREDA's operations also signals increasing investor confidence in India's renewable energy sector, which continues to attract both domestic and international capital despite global economic challenges.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India's Retail Inflation Drops to 3.34%: Lowest Since 2019 as Food Prices Cool

India's Retail Inflation Eases to 3.34%: Lowest Since 2019

April 15, 2025 - India's retail inflation has dropped to a five-and-a-half-year low of 3.34% in March, down from 3.61% in February, primarily driven by cooling food prices, according to the latest data released by the Ministry of Statistics and Programme Implementation.

Food Inflation Reaches Three-Year Low

The consumer food price inflation (CFPI) hit a remarkable three-year low of 2.7% in March, showing a significant decline from the 3.75% recorded in February. This substantial cooling in food prices has been a key factor in bringing overall inflation to its lowest level since 2019.

Several essential food items witnessed notable price reductions:

• Tomato prices plunged dramatically by almost 35% in March, steeper than February's 29% deflation
• Vegetable prices overall deflated by 7% for the second consecutive month
• Pulses and products prices experienced a 2.7% deflation
• Egg prices fell by over 3%

However, not all food categories saw price reductions. Rice and wheat prices increased by 4.9% and 9% respectively in March, though these figures were slightly lower than or equal to the previous month's increases of 5.3% and 9%.

Fuel and Regional Inflation Trends

Fuel and light inflation increased moderately to 1.48%, marking the first price rise in this category since September 2023. This slight uptick in energy costs was not enough to offset the overall downward trend in inflation.

Regional inflation data revealed interesting patterns across India:

• Rural inflation decreased to 3.25% in March from 3.79% in February
• Urban inflation increased marginally from 3.32% in February to 3.43% in March

State-wise inflation showed considerable variation:

• Kerala recorded the highest inflation rate at 6.6%
• Chhattisgarh, Maharashtra, Tamil Nadu, Karnataka, Assam, and Haryana all registered inflation above 3.3%
• Delhi and Telangana enjoyed the lowest inflation rates at just 1.5% and 1.1% respectively

Wholesale Prices Also Show Moderation

The wholesale price inflation (WPI) data, released simultaneously by the Commerce Ministry, aligned with the CPI trend, easing to 2.05% in March from 2.38% in February.

Key components of the WPI showed mixed movements:

• Primary articles prices increased modestly by 0.76%, down from 2.8% in February
• Fuel and power prices rose by 0.2%, reversing the previous month's 0.7% deflation
• Manufactured goods prices increased by 3.07%, up slightly from 2.86% in February
• The WPI food index rose at a slower pace of 4.66%, compared to 5.9% in February

RBI's Rate Cuts and Future Outlook

The slowing inflation comes after the Reserve Bank of India implemented two consecutive repo rate cuts of 25 basis points (0.25%) each. These reductions in the rate at which banks borrow from the RBI signal that the central bank is currently more concerned about economic growth than inflation.

Economic experts predict that inflation will likely remain below the 4% mark in the coming months, potentially paving the way for further monetary policy easing.

Upasna Bharadwaj, Chief Economist at Kotak Mahindra Bank, noted: "The softer than expected CPI will provide further comfort to the RBI to continue to prioritise growth. We retain our view that the RBI will continue on its accommodative stance with the terminal repo rate likely around 5% to 5.25%."

Most economists anticipate an additional 50 basis points rate cut in the near future, which could further stimulate economic activity and lending.

Impact on Housing and Consumption

While food and fuel inflation have moderated, some analysts point to persistent inflationary pressures in other household expense categories.

Vivek Rathi, National Director of Research at Knight Frank India, highlighted that "excluding the food and fuel basket, inflationary pressures persist among households, potentially tightening consumption expenditure, especially for lower-income households that are more sensitive to price increases."

He emphasized the importance of commercial banks passing on the benefits of rate cuts to consumers to support domestic consumption and growth, noting this is "also vital for boosting housing demand in the affordable segment."

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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