Power Sales Volume up 40%, 20% Rise in Profit in Q4 for IEX

Power sales volume jumped nearly 40% at IEX to 13,835 MU in the January-March period, following which its March quarter consolidated net profit witnessed a significant rise.

Power sales volume jumped nearly 40 percent at Indian Energy Exchange (IEX) to 13,835 million units (MU) in the January-March period, following which its March quarter consolidated net profit witnessed a significant rise. The IEX had recorded electricity sales volume of 9,908 MU in the quarter ended March 31, 2019, IEX said in a statement on May 15, 2020. For the full 2019-20 financial year, IEX recorded power sales volume of 53,862 MU, up from 52,189 MU in 2018-19.

Elaborating further the company said “TAM (term ahead market) volumes increased 89 percent year-on-year. The southern distribution utilities continued their preference for TAM contracts. On the price front, the day-ahead market saw an overall decline in prices by 14 percent during Q4 FY’20.”

It also stated that attractive prices helped the commercial and industrial consumers increase procurement by 41 percent during the same quarter.

The IEX on May 13, 2020, had posted over 20 percent jump in consolidated net profit at Rs 45.61 crore for the quarter ended March 31, 2020, on the back of higher revenues. Total income rose to Rs 79.59 crore during the quarter under review, from Rs 67.83 crore in the year-ago period. For 2019-20, the company’s consolidated net profit stood at Rs 175.71 crore, as compared to Rs 165.03 crore in 2018-19. Total income for the fiscal rose to Rs 297.40 crore from Rs 294.15 crore in 2018-19, it said.

On coronavirus, the company said COVID-19 has unfolded a multitude of challenges for the power sector but has also presented an opportunity to realign the sector towards higher efficiencies on structural, policy, or operational aspects. In the post-COVID-19 scenario, the nation is likely to see a lot more emphasis on automation, IT solutions, process innovations, customer-centricity across the energy value chain, and energy markets have a unique opportunity to drive the solutions, it added.

Earlier this month, the IEX had stated that the electricity market at IEX saw a trade of 4052 MU in the month of April 2020, witnessing a decline of 6.6 percent YoY. In its monthly power market update, the trading platform stated that its 6.6 percent decline was incurred while the national peak demand at 133 GW declined 25 percent YoY in the month of April.

“This was mainly due to contraction in commercial and industrial demand in lieu of the COVID-19 related preventive lockdown,” it had stated.