IEX’s Q1FY24 Results: Electricity Volume Surpasses 25.1 BU, Consolidated EBITDA Grows by 9.3% - SolarQuarter

IEX's Q1FY24 Results: Electricity Volume Surpasses 25.1 BU, Consolidated EBITDA Grows by 9.3% - SolarQuarter

Indian Energy Exchange Ltd (IEX) has released its unaudited financial results for the first quarter ended June 30, 2023, showcasing strong performance and growth in various segments. The company’s consolidated Q1FY24 with revenue surged by 12.3% year-on-year (YoY), reaching INR 127.4 crore, while the consolidated profit after tax (PAT) recorded a growth of 9.7% YoY, amounting to INR 75.8 crore.

Business Performance Highlights

During the first quarter of the fiscal year 2023-24, IEX witnessed a notable 6.9% YoY increase in electricity volume traded on the Exchange, with 23.7 billion units (BU) transacted. The conventional power market accounted for 22.8 BU, and the Green Market segment contributed 910 million units (MU). Additionally, 8.75 lakh Renewable Energy Certificates (RECs) equivalent to 875 MU, and 5.69 lakh ESCerts, equivalent to 569 MU, were traded, summing up the total volume to 25.1 BU, marking a 7.6% YoY growth.

The average market clearing price in Q1FY24 was recorded at Rs. 5.17 per unit, marking a significant 33% decline from the corresponding quarter of the previous year. This was driven by improved supply-side conditions, including enhanced coal supply, reduced e-auction coal prices, and declining imported coal and gas prices. The increased liquidity on the Exchange resulted in sharp price corrections, providing optimization opportunities and higher clearance for Discoms and Open Access consumers.

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New Initiatives

In line with its commitment to innovation and empowering market participants, IEX launched ‘PowerX,’ India’s first electricity price index. PowerX aims to provide competitive benchmark signals, enabling more effective and informed decision-making for industry stakeholders.

IEX also introduced ‘EnergX,’ a web-based bidding platform that offers seamless, secure access anytime and anywhere. It provides market data insights and simplifies financial reconciliation for all IEX Electricity segments. Additionally, IEX inaugurated the IEX Academy during the quarter, dedicated to upskilling professionals in the Electricity Markets, covering various domains such as power sector policies, regulatory frameworks, and power exchange operations.

Future Prospects

To enhance its product offerings and optimize opportunities for Discoms, IEX is actively exploring options to extend Term-Ahead Market contracts from 90 days to up to one year, a move aimed at providing more flexibility to market participants.

Gas Market Performance

In the gas market, Indian Gas Exchange (IGX) traded a total volume of 42.6 lakh MMBTU during Q1FY24, experiencing a slight decline of 9% compared to the same quarter last fiscal. The decrease in trade volumes was attributed to higher gas availability under long-term contracts and increased domestic gas production sold on a medium-term basis. Nonetheless, IGX reported a PAT of Rs. 3.43 crore during Q1FY24, showcasing a remarkable growth of 198% compared to the corresponding quarter in the previous year.

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Power Sector Highlights

The national electricity consumption during the first quarter of the fiscal year reached 408 BU, showing a modest growth of 1.8% YoY. The installed power generation capacity in India reached 422 GW (as of June 30, 2023), with renewable energy (RE) contributing to 177 GW, accounting for approximately 42% of the total installed power capacity.

The Government of India’s proactive measures, coupled with cooler-than-expected weather conditions, ensured adequate power supply and lower prices during the summer season, contributing to the positive power sector outlook.