Posted by On February 10th, 2024, Indian Renewable Energy Dev Agency Ltd (IREDA )showcased a stellar performance, driving its share price to new heights on the National Stock Exchange (NSE). Analyzing its financials, including the income statement, balance sheet, and cash flow, provides insights into the company’s robust growth trajectory and investor sentiment.
Latest News Update:
Indian Renewable Energy Development Agency (IREDA) Achieves AAA/Stable Rating for Bonds!
In a groundbreaking development for India’s renewable energy sector, the Indian Renewable Energy Development Agency (IREDA) has received a significant accolade. The renowned credit rating agency, ICRA, has bestowed upon IREDA an esteemed AAA/Stable rating for both its taxable and non-taxable bonds. This rating reflects the steadfast commitment of IREDA towards promoting sustainable energy initiatives and fostering investor confidence.
The AAA rating, the highest credit rating assigned by ICRA, underscores IREDA’s strong financial fundamentals, prudent risk management practices, and its pivotal role in advancing renewable energy projects across the country. It signifies a vote of confidence from the financial community in IREDA’s ability to meet its financial obligations with utmost reliability and stability.
This prestigious rating comes at a pivotal moment as India intensifies its efforts to transition towards a greener and more sustainable energy landscape. With the government’s ambitious targets for renewable energy capacity expansion, IREDA’s AAA/Stable rating sets a benchmark for excellence in the financing and development of renewable energy projects.
The recognition by ICRA reaffirms IREDA’s position as a cornerstone institution driving India’s renewable energy revolution. It not only enhances the agency’s borrowing capabilities but also paves the way for attracting greater investments into the renewable energy sector. The AAA/Stable rating is a testament to IREDA’s unwavering commitment to fostering sustainable development and accelerating India’s journey towards a cleaner, greener future.
This monumental achievement by IREDA heralds a new era of growth and opportunity for India’s renewable energy sector. It underscores the nation’s resolve to embrace renewable energy as a cornerstone of its economic and environmental sustainability efforts. With the AAA/Stable rating, IREDA stands poised to catalyze transformative change, ushering in a brighter, more sustainable future for generations to come.
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IREDA Share Price Surge:
Power Grid Corporation of India Ltd witnessed a notable surge in its share price, with a previous close at ₹189.05. The day’s range fluctuated between ₹179.60 and ₹179.60, showcasing stability within the trading session. The company’s market capitalization stood impressively at 482.72 billion INR, reflecting investor confidence in its growth prospects. Notably, the P/E ratio at 35.67 further underscores positive investor sentiment.
IREDA Financial Performance
Income Statement Analysis:
Examining the annual income statement for 2023 reveals a substantial increase in revenue by 15.41%, totaling 13.97 billion INR. Operating expenses significantly declined by 29.91%, enhancing the company’s net income to 8.65 billion INR, reflecting a remarkable 36.48% increase. The net profit margin also surged to 61.91%, highlighting robust operational efficiency.
Quarterly income statement data for December 2023 portrays a similar trend of growth. Revenue escalated by 51.84%, reaching 4.39 billion INR, while net income surged by 67.15% to 3.36 billion INR. Notably, the net profit margin expanded to 76.46%, indicating improved profitability and operational effectiveness.
Annual Income Statement
| INR | 2023 | Y/Y CHANGE |
|---|---|---|
| Revenue (INR) | 13.97B | 15.41% |
| Operating expense | 2.27B | -29.91% |
| Net income | 8.65B | 36.48% |
| Net profit margin | 61.91 | 18.24% |
| Earnings per share | — | — |
| EBITDA | — | — |
| Effective tax rate | 24.11% | — |
Balance Sheet Overview:
Analyzing the annual balance sheet for 2023 reveals a strengthened financial position for Power Grid Corporation of India Ltd. Cash and short-term investments surged by 34.58% to 7.13 billion INR, contributing to a total asset increase of 37.43% to 504.47 billion INR. While total liabilities grew by 41.58%, equity remained stable at 59.35 billion INR.
In the quarterly balance sheet, cash and short-term investments experienced a slight decline, yet total equity strengthened to 65.81 billion INR. The price-to-book ratio stood at 6.56, reflecting the company’s strong fundamentals and investor confidence in its long-term growth prospects.
Annual Balance Sheet:
| INR | 2023 | Y/Y CHANGE |
|---|---|---|
| Cash and short-term investments | 7.13B | 34.58% |
| Total assets | 504.47B | 37.43% |
| Total liabilities | 445.12B | 41.58% |
| Total equity | 59.35B | — |
| Shares outstanding | 2.28B | — |
| Price to book | 7.28 | — |
| Return on assets | 1.98% | — |
| Return on Capital | — | — |
Cash Flow Analysis:
Reviewing the annual cash flow statement for 2023, despite a decline in cash from operations by 134.92%, Power Grid Corporation of India Ltd demonstrated resilience. Cash from financing activities surged by 134.62%, contributing to a net change in cash of 73.56 million INR. Notably, the company maintained positive free cash flow, reflecting its ability to generate cash despite operational challenges.
Annual Cash Flow:
| INR | 2023 | Y/Y CHANGE |
|---|---|---|
| Net income | 8.65B | 36.48% |
| Cash from operations | -123.43B | -134.92% |
| Cash from investing | -172.09M | 83.94% |
| Cash from financing | 123.68B | 134.62% |
| Net change in cash | 73.56M | 108.19% |
| Free cash flow | — | — |
Answer & Question:
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What is the full form of IREDA?
Ans – The full form of IREDA is Indian Renewable Energy Dev Agency Ltd.
-
Where is Ireda headquarters?
Ans – The Headquarters of IREDA is in India Habitat Centre, East Court, Core-4A, 1st Floor, Lodhi Road, New Delhi, India
Conclusion:
Power Grid Corporation of India Ltd’s robust financial performance underscores its resilience and adaptability in a dynamic market environment. With impressive growth across revenue, net income, and operational efficiency, the company continues to attract investors’ attention. As it navigates challenges and explores new opportunities, Power Grid Corporation of India Ltd remains a key player in the renewable energy sector, poised for sustained growth and value creation.