IEX Q4 and FY 2022 Results; Profit Grows 50% on 36% Growth in Topline

India’s premier energy exchange, IEX has announced its fourth quarter and full year results for FY22.

Key Highlights from the results are:

      (* All amounts are represented in the table are in Rs Crores)

Particulars	Q4FY21 IEX March’22 Update-Green Trading Contracts, High Avg. Solar Prices Of Rs 5.64/unit Also Read	Q4FY22	YoY	FY21	FY22	YoY
Electricity Volume (in BU)	22.4	24.8	10.5%	74.0	95.6	29.2%
REC Certificates Volume (in BU)	–	2.2	–	0.7	6.4	813.5%
Total Volume (in BU)	22.4	27.0	20.5%	74.7	102.0	36.5%
Total Revenue	100.3	128.4	28.0%	356.2	484.4	36.0%
Total Operating Expense	16.4	17.1	4.7%	67.2	67.4	0.2%
EBITDA	83.9	111.3	32.6%	289.0	417.0	44.3%
Profit before tax	79.8	114.1	42.9%	270.4	405.2	49.8%
Income Tax Expense	19.0	25.7	35.1%	65.0	96.6	48.6%
PAT	60.8	88.4	45.3%	205.4	308.6	50.2%

 

BUSINESS AND FINANCIAL PERFORMANCE HIGHLIGHTS

The revenue for the fourth quarter for the fiscal year 2022 increased by 28% from Rs. 100.3 Cr. in Q4FY’21 to Rs. 128.4 Cr. The Profit after Tax (PAT) increased from Rs 60.8 Cr to Rs 88.4 Cr., seeing 45% YoY growth. Total traded volume across all market segments during the quarter at 27 BU saw about 21% YoY growth. The board declared a final divided of Rs 1 per equity share.

The Exchange accomplished102 BU (billion units) volume across all market segments with 37% YoY growth. The electricity market comprising DAM, RTM, TAM, GDAM and GTAM segments contributed 95.6 BU volume, and achieved 29% YoY growth while the Certificate segment constituting REC and ESCerts contributed 6.4 BU and achieved 813% YoY growth. The Profit after Tax (PAT) for the FY-22 increased from Rs 205.4 Cr to Rs 308.6 Cr., with growth of more than 50% YoY.

In fiscal year 2022 for India, the peak demand met reached 201GW, seeing 6% YoY growth, while the electricity consumption at 1,370 BU saw about 7.8% YoY growth. That also places trading volumes at under 7.5% of total, leaving a long runway to the national target of 25% of volumes on the exchange. As on 31st March 2022, the total installed power generation capacity stands at 399 GW and renewables capacity at 157GW constituting 39% of total installed generation capacity.

During the year, to provide seamless bidding experience and with zero manual intervention, the Exchange implemented automated bidding through Application Programming Interface (API) for the Real Time Market. It plans to soon implement API based automated bidding for DAM, G-DAM and REC segments.

POLICY AND REGULATORY UPDATES

The Central Electricity Regulatory Commission approval to the procedure for implementation of the National Open Access Registry will enable automation, increased efficiency and transparency in several market processes making them seamless, enabling automated transmission allocation, leading to greater efficiency in the power market.

The CERC has also issued draft Connectivity and General Network Access Regulations 2022 which will simplify as well as rationalize transmission allocation, transmission pricing and support strengthening and augmentation of the transmission network. These regulations, when implemented, would further support the growth of the power market.

The CERC Ancillary Services Regulations 2022, the Exchange markets will have an opportunity to commence Tertiary Reserve Ancillary Services, towards supporting the system operator in increasing the system reliability and maintaining the grid frequency stability close to 50 Hz.

Further, CERC proposed amendments to DSM Regulations linking deviations to the block-wise price discovered at the Exchange to the deviation penalty would go a long way in maintaining grid stability and safety

IEX says it is pro-actively working towards commencing Longer Duration Contracts in both electricity and renewable energy, National Open Access Registry, Ancillary Markets, Gross Bidding Contracts, and Capacity Markets, and are optimistic about commencing these segments in fiscal year 2023.