IREDA shares fell 4% in Friday’s trade after the company announced its June quarter results. While revenue grew 28.9% year-on-year to ₹1,947 crore, investor sentiment took a hit due to a sharp deterioration in asset quality. As of 9:45 AM, the shares were trading 4.17% higher at Rs 162.56.
Gross NPAs rose to 4.13% from 2.45% in the March quarter, and net NPAs climbed to 2.05% from 1.35%. This spike comes amid concerns over IREDA’s exposure to Gensol Engineering, which is currently undergoing insolvency proceedings. The company’s total exposure to Gensol stands at ₹470 crore.
Although the National Company Law Tribunal (NCLT) has admitted IREDA’s insolvency plea, the pressure on asset quality weighed heavily. Net profit dropped 35.7% YoY to ₹247 crore, down from ₹384 crore in the same period last year.
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