Indian Energy Exchange (IEX) Unveils Unaudited Financial Results for Q3 2023

IEX has announced its unaudited financial results for Q3 2023. The key highlights are:

• Total volumes in Q3FY’24 increased 16.8% from 24.2BU in Q3FY’23 to 28.3BU.

• Revenue in Q3 FY’24 increased 20.4% from Rs 117.3 Cr in Q3 FY’23 to Rs. 141.1cr.
• Profit After Tax in Q3 FY’24 increased 25.5% from Rs 71.2 Cr in Q3 FY’23 to Rs. 89.3cr.
• Consolidated Profit After Tax in Q3 FY’24 increased 18.9% from Rs 77.2 Cr in Q3 FY’23
  to Rs. 91.8cr.

In Q3 FY24, IEX reported a 16.8% YoY growth in trading volume, reaching 28.3 BU. The revenue increased by 20.3% YoY, and the PAT rose by 25.5%. The company declared an interim dividend of ₹1 per share. In the power sector, October saw a peak demand of 221 GW, and electricity consumption in Q3 FY24 rose by 10% YoY to about 380 BUs. Coal production increased by 13.1% YoY to 256 million tonnes, with dispatch to the power sector up by 11.7% YoY to 203.5 million tonnes. The e-auction coal premium declined, reaching around 40% under Shakti B8, and coal inventory on December 31, 2023, was at 13 days.

The improved supply scenario led to a rise in sell liquidity since November’23, with a 25% YoY increase in November 2023 and an 18% YoY increase in December 2023. This resulted in a price easing on the exchange, with the average market clearing price in the DAM segment at Rs. 5.00/unit during Q3 FY’24, compared to Rs. 5.80/unit in Q2 FY’24. Increased electricity consumption and improved supply alleviated constraints, leading to higher volumes of electricity traded on the Exchange.

Positive developments in the regulatory and policy landscape included the implementation of the revised Indian Electricity Grid Code, Sharing of Inter-State Transmission Charges Regulations, and the long-awaited GNA Regulations by CERC from October 1, 2023. This corrected the long-standing anomaly in transmission charges between collective and bilateral transactions. The Ministry of Power proposed Late Payment Surcharge Rules amendment, mandating generators to offer URS power in the market. Additionally, 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. These measures are expected to enhance sell liquidity on Exchanges, leading to a decline in power prices, offering an opportunity for Discoms and Commercial & Industrial consumers to optimize power procurement costs.

In the gas market, the Indian Gas Exchange (IGX) traded 84 lakh MMBtu during Q3 FY ’24, reflecting a 65% decline compared to the same quarter last fiscal due to significant variations between gas demand and supply. On a 9-month basis, IGX volumes were down by 7% in April-Dec FY’24 compared to April-Dec FY’23. Despite this, IGX’s profit after tax increased 14% YoY from Rs 16.3 crores in 9M FY’23 to Rs 18.6 crores in 9M FY’24. As gas prices continue their downtrend, IGX volumes are anticipated to pick up in the future.