IEX Q3 Results- Revenue Up 20.3%, Volumes 16.8% YoY

India’s premier power exchange, the India Energy Exchange(IEX) has announced its Q3 results for FY24. The firm reported a decent set of numbers, with revenues up 20.3% YoY to Rs 141.2 crores, even as power traded on the exchange rose to 28.3 BU a 16.8% growth YoY. Standalone profit after tax rose to 89.3 crores, up 25.5 % YoY

During the quarter, IEX recorded a trading volume of 28.3 BU, an increase from 24.2 BU in Q3 FY’23, marking a growth of 16.8% YoY. This volume includes 25.9 BU from the conventional power market segment and 0.4 BU from the green market segment. The Exchange also traded 20.3 lakh certificates during the quarter.

Revenue for the company grew by 20.3% YoY, increasing from Rs. 117.4 Cr. in Q3 FY23 to Rs. 141.2 Cr. in the current quarter. On a standalone basis, the PAT for Q3 FY24 saw a YoY increase of 25.5%, rising from Rs. 71.2Cr. in Q3 FY23 to Rs. 89.3 Cr. in Q3 FY24.

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The company’s Board of Directors announced an interim dividend of ₹1 per share, equivalent to 100% on a face value of ₹1 each for the financial year 2023–24.

On the power sector front, IEX reports that October witnessed a high peak power demand of 221 GW. Electricity consumption during Q3 FY24 increased by 10% YoY, reaching approximately 380 BUs. On the fuel side, during the quarter, India’s coal production increased by a robust 13.1% YoY to reach 256 million tonnes and coal dispatch to the power sector increased nearly 11.7% YoY to 203.5 million tonnes. E-auction coal premium continued its decline since the beginning of this financial year. The coal premium under Shakti B8 action has come down to around 40%. Coal inventory on 31st December 2023 stood at 13 days.

This improved supply scenario resulted in increased sell liquidity since November’23. Sell bids in collective auctions increased by 25% YoY in November 2023 and 18% YoY in December 2023, which led to an easing of prices on the exchange. During Q3 FY’24, the average market clearing price in the DAM segment was Rs. 5.00/unit, compared to Rs 5.80/unit in Q2 FY’24. Increased electricity consumption coupled with easing supply side constraints led to an increase in the volumes of electricity traded on the Exchange.

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The regulatory and policy landscape for the power market witnessed positive developments during the quarter. CERC implemented from 1^st October 2023, the revised Indian Electricity Grid Code; the Sharing of Inter-State Transmission Charges Regulations; and the long awaited GNA Regulations. With this the long-standing anomaly in transmission charges between collective and bilateral transactions has been corrected. The Ministry of Power proposed Late Payment Surcharge Rules amendment, mandating generators to offer URS power in the market. Further, the extension of Section 11 directive for ICB generators until June 30, 2024, and Shakti Policy amendment allowing power plants without PPAs to participate in market segments were noteworthy developments. All these measures will lead to a further improvement in sell liquidity on Exchanges, leading to a decline in power prices. This is expected to present an opportunity for Discoms and Commercial & Industrial consumers to optimize their power procurement cost.