IEX Reports 8% Rise In Net Profit In Q1 On YoY

The Indian Energy Exchange (IEX) has announced its financial results for Q1 of FY 24. The overall picture of the report revealed that while the leading Indian energy exchange firm witnessed a rise in its income and net profit on a year-on-year basis, its income and net profit plunged on Quarter-on-Quarter (QoQ) basis. 

The unaudited consolidated financial results for Q1 of FY24 said that its total income increased from Rs 113.39 crore (Q1 FY23) to Rs 127.27 crore in the last quarter, registering a growth of 12.24 percent. Its net profit also increased from Rs 68.58 crore to Rs 74.13 crore on YoY.

The company said that its electricity volume meanwhile witnessed a rise of 6.9 percent on YoY. It also reported positive growth in total revenue, EBITDA and PAT on a YoY basis. 

“Electricity volumes on the Exchange grew by 6.9% YoY with 23.7 BU volumes traded in Q1FY24 versus 22.2 BU in Q1 FY23. The volume comprised 22.8 BU in the conventional power market and 910 MU in the Green Market segment. Additionally, 8.75 lac Renewable Energy Certificates (REC), equivalent to 875 MU and 5.69 lac ESCerts, equivalent to 569 MU were traded on the Exchange, taking the total volume to 25.1 BU across all segments in Q1FY24. The overall volumes registered a growth of 7.6% YoY,” a media statement by IEX said. 

However, on the QoQ basis, the total income dropped 1.76 percent. While its total income stood at Rs 129.54 crore in Q4 of FY23, it decreased to Rs 127.27 crore in Q1 of FY24. Similarly, its profit decreased by around 10.53 percent from Rs 82.86 crore to Rs 74.13 crore on QoQ.  

The IEX detailed report also said that the average market clearing price during Q1 FY24 stood at Rs 5.17 per unit, showing a significant decline of 33 percent on a YoY. IEA said that lower price provides optimisation opportunities for state discoms and open access consumers. 

“The improvement in the supply-side scenario, driven by enhanced coal supply, reduced e-auction coal prices, and consistently declining imported coal and gas prices, led to increased liquidity on the Exchange. This resulted in sharp price corrections, providing optimization opportunities and higher clearance for Discoms and Open Access consumers,” IEX said. 

IEX claims that it has more than 99 percent of the market share of Day-Ahead Market (DAM) and Real Time Market (RTM) whereas its overall electricity market share stands at around 88.3 percent among all other power exchanges in the country. 

IEX has been in the news recently for a stock market dip in fortunes, despite its margins and smart performance. The issue at hand has been the push for market coupling by the government, besides the entry of HPX as a serious competitor.