IEX Dividend At Rs 1 per Share; Net Profit At Rs 88 Cr

Trading platform for physical delivery of electricity, renewable power, renewable energy certificates, and energy saving certificates, Indian Energy Exchange (IEX) has announced its financial results for the fourth quarter (Q4) and the year ended March 31, 2023 (FY23).

During Q4 FY’23, IEX achieved an overall volume of 26 Billion Units (BUs), registering a 7.9% QoQ growth. In addition, total certificates traded during Q4 FY’23 amounted to 1.8 BUs, a 50% QoQ increase. However, total volumes declined by 3.3% in Q4 FY’23, compared to Q4 FY’22, due to supply-side constraints. The average Day-Ahead Market price during the quarter was Rs.6.07/unit, higher by 13% on a YoY basis.

On a consolidated basis, revenue for Q4 FY23 increased 10.5% on a QoQ basis, from Rs 117.4 crore in Q3 FY23 to Rs 129.6 crore this quarter. 

However, despite a decline in traded volumes in Q4 FY’23 compared to Q4 FY’22, the total revenue for Q4 FY23 witnessed a growth of 1% on a YoY basis. As a result, Consolidated PAT at Rs 88.3 crore grew 14% on a QoQ basis compared to Rs 77.2 crore in Q3 FY23.

For the fiscal year 2023, IEX traded 96.8 BU, a decline of 5% YoY due to sell-side liquidity constraints. During the year, the certificates’ volume was at 6.2 BUs. For the fiscal year 2023, the Day-Ahead price was Rs. 5.96/ unit, higher by 36% YoY due to a demand-supply mismatch. The liquidity was affected due to supply constraints that led to higher prices of e-auction coal, imported coal, and gas.

For the full fiscal year 2023, on a consolidated basis, revenue declined by 2.1% on a YoY basis, from Rs 484.4 crore in FY 2022 to Rs 474.1 crore in FY 2023. Consolidated PAT at Rs 305.9 crore de-grew 0.9% on a YoY basis compared to Rs 308.6 crore in FY22. The Indian Gas Exchange (IGX) was a subsidiary of the Indian Energy Exchange (IEX) until January 16, 2022. IGX became an associate company of IEX w.e.f January 17, 2022, and was the consolidated basis of the equity method in the above numbers.

For fiscal year 2023, the company’s Board of Directors announced a final dividend of Rs. 1, equivalent to 100% of the face value of equity shares. During the year, the company also did a buyback of equity shares from the open market route, amounting to Rs. 98 crores. Consequently, during the buyback period, the company purchased and extinguished 69.7 lakh equity shares from the stock exchange comprising 0.78% of the pre-buyback paid-up equity share capital.

With gradual improvement in domestic production of coal, improvement in coal inventory, which is at 14 days compared with 11 days last fiscal, and lowering prices of e-auction coal, imported coal, and imported gas, IEX says it expects lower clearing prices of power on the Exchange, and the volumes to improve on the back of cost optimization by Discoms and open access consumers.

This fiscal, IEX formed a wholly-owned subsidiary, the International Carbon Exchange (ICX). ICX will leverage opportunities in the voluntary carbon market, leading to transparent and optimal price discovery for carbon credits.