IEX achieves 37% yoy volume growth in Q3FY22; Stock recovers early losses

25 Jan 2022 , 03:59 PM

Indian Energy Exchange Limited (IEX) on a standalone basis, revenue for the quarter increased by 32.4%, from Rs95.7cr in Q3FY21 to Rs126.7cr in Q3FY22. The Profit After Tax grew by 33% yoy from Rs60.1cr in Q3FY21 to Rs79.9cr in Q3FY22, with a margin of 63.1%. The company has announced an interim dividend of 100% per equity share.

During the quarter, volumes on the Exchange grew by 37% yoy with 27.6 BU volumes traded versus 20.1BU in Q3FY21. The growth in volumes was driven by a substantial increase in electricity consumption as well as the resurgence of trading in REC’s and ESCERT’s.

The Real-Time Market continues to be one of the fastest-growing electricity market segments on the Exchange, achieving a growth of 70% YoY with 4.8 BU of volumes traded during the quarter.

The green market, including the day ahead and term ahead market, cumulatively traded 1.2 BU during the quarter, and contributed 5% to overall electricity volumes.

On the REC front, a total of 38.28 lakh certificates, and a total of 2.86 lakh Energy Saving Certificates traded during the quarter.
On 9-month basis, total volumes on the Exchange grew by 43.4% yoy with 74.9 BU volumes traded in 9M FY22 versus 52.2BU in 9M FY21. On a standalone basis, revenue for the 9MFY22 increased by 37%, from Rs255.6cr. in 9MFY21 to Rs350.1cr in 9MFY22. PAT grew by 48.1% yoy from Rs149.7cr in 9MFY21 to Rs 221.6 Cr in 9MFY22, with a margin of 63.3%.

Towards close of trade on Tuesday, Indian Energy Exchange Ltd was trading at Rs239.30 per share down by Rs0.95 or 0.4% from its previous closing of Rs240.25 per share on the BSE.

Power Sector Highlights
In the third quarter of the fiscal year 2022, India has seen good growth in economic and industrial activities. This increase in activity also spurred the demand for electricity. The national electricity consumption stood at 321 BU during the quarter, registering a 5% CAGR growth over last 2 years.

In December 2021, India’s installed power generation capacity reached 393 GW seeing 4.8% yoy growth. The renewable energy capacity including large hydro reached 151 GW from 137 GW in the fiscal year 2020, achieving 10.5% YoY growth. The share of renewables in India’s total capacity base has increased to 38% aligned to India’s commitment at COP26 Summit in Glasgow, where an ambitious target of achieving 500GW of renewable energy by 2030 was announced