IEX announces unaudited Financial results for quarter ending December 2023

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.

IEX announces unaudited Financial results for quarter ending December 2023

  • IEX REPORTS 28.3 BU OVERALL VOLUME IN Q3 FY24, 16.8% GROWTH YOY.
  • REVENUE FOR Q3FY24 STANDS AT INR 141.2 CRORE, MARKING 20.3% YOY INCREASE.
  • STANDALONE PAT FOR Q3 FY24 STANDS AT INR 89.3 CRORE, UP 25.5 % YOY.
  • COMPANY ANNOUNCES AN INTERIM DIVIDEND OF Rs 1 PER SHARE FOR FY24.

 

Mumbai: Key highlights of the unaudited standalone financial results for the third quarter ending December 31, 2023, as declared by the Company on 25 January 2024, are listed below:

  • 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.

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BUSINESS AND FINANCIAL PERFORMANCE HIGHLIGHTS

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.

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

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On the power sector front, 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.

The regulatory and policy landscape for the power market witnessed positive developments during the quarter. CERC implemented from 1st 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.

On the gas market front, the Indian Gas Exchange (IGX) traded total volumes of 84 lakh MMBtu during Q3FY '24, a decline of 65% over the same quarter last fiscal, due to large variations between demand and supply of gas. On 9 months basis,  IGX  volumes were down  7%  in  April-Dec  FY’24  as compared to  April-Dec  FY’23.  Profit after tax for IGX 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 trend, volumes at IGX would pick up going forward.

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