IEX Records 21% Jump in Profits, Green Energy Trade Drops 50% YoY

The Indian Energy Exchange (IEX) has recorded a profit after tax (PAT) of ₹865 million (~$10.39 million) for the second quarter (Q2) of the financial year (FY) 2023-24, a 21.5% year-over-year (YoY) increase from ₹712 million (~$8.55 million).

The Exchange recorded an electricity trading volume of 26.35 billion units (BU), a 15% YoY increase. The trading volume comprised 24.07 BU from the conventional power market and 747.64 MU from the green market segment.

The green market segment witnessed a considerable dip of ~50% from 1.5 BU traded in Q2 FY23.

IEX recorded 1.391 million Renewable Energy Certificates traded during the quarter, equivalent to 1,391 MU. A total of 279,000 Energy Saving Certificates, equivalent to 279 MU, were also traded during the July to September period.

The company recorded a revenue of ₹1.33 billion (~$15.97 million) during Q2 FY24, a 17% jump from ₹1.14 billion (~$13.69 million) in Q2 FY23.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q3 were up by 19.4%, to ₹1.16 billion (~$13.93 million) from ₹975 million (~$11.71 million).

The company said that the power demand was much higher than anticipated for the monsoon months, with the peak power demand reaching nearly 240 GW in the first week of September. The power demand in Maharashtra, Uttar Pradesh, Gujarat, and Tamil Nadu increased considerably during the quarter.

Coal production in the country surged by 16.2% YoY to reach 205 million tons during the quarter, and the e-auction coal premium continued to drop through the last two quarters. The improved supply side scenario led to increased sell liquidity, but the unexpected surge in power demand caused the prices on the Exchange to stay higher during the quarter.

The average market clearing price in the Day-Ahead Market during the quarter was ₹5.88 (~$0.071)/kWh, 9% YoY higher than ₹5.40 (~$0.065)/kWh. The price was 14% higher compared to the previous quarter.

In October, IEX launched the High-Price Term Ahead Market and acquired a 10% stake in Enviro Enables India, a waste management tech company.

The Exchange recorded the lowest volume of renewable energy traded during 2023 in September at 230 MU, a 49.3% YoY decline.

During Q1 FY24, IEX reported a PAT of ₹758.2 million (~$9.1 million), a 10% YoY increase, and traded 910 MU in the green energy segment.

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