IREDA granted ‘Navratna status’ from department of public enterprises
IREDA’s performance in the January-March quarter exhibited enhanced margins and improved asset quality.
Indian Renewable Energy Development Agency (IREDA) has been granted ‘Navratna’ status from the Department of Public Enterprises, on Friday.
The Indian government grants Navratna status to premier public sector undertakings (PSUs), empowering them to execute significant investments of up to ₹1,000 crore without requiring approval from the central authority.
These firms are permitted to allocate up to 30% of their net worth annually, provided it remains under ₹1,000 crores. Additionally, they have the option to participate in joint ventures, forge partnerships, and set up overseas subsidiaries.
To qualify for Navratna status, a company must first attain the Miniratna category I designation and be included in Schedule A of CPSEs.
IREDA’s performance in the January-March quarter exhibited enhanced margins and improved asset quality. Comparing year-on-year figures, IREDA witnessed a 32 per cent rise in net profit, while it remained consistent quarter-on-quarter at ₹337 crore.
In the March quarter, IREDA experienced a notable 26.8 per cent increase in Assets Under Management (AUM) compared to the previous year, reaching ₹59,698 crore. Furthermore, when juxtaposed with the December quarter, the growth in AUM stood at 18 per cent.
IREDA shares ended 2.2% higher on Friday’s trading session, reaching ₹170.95 per share on the NSE. Year-to-date, IREDA shares have yielded a return of over 63%, with the stock boasting a one-year return of 184%. The stock was listed on exchanges last year on November 29, experiencing a remarkable surge of 87% from its issue price, marking it as one of the standout listings of the year.
IREDA offers financial assistance to projects that produce electricity using fresh and sustainable sources. The government holds a 75% ownership stake in the company.
Established in March 1987, IREDA operates as a ‘miniratna’ public limited government entity, under the administrative jurisdiction of the Ministry of New and Renewable Energy (MNRE).
Source : Livemint
