IEX shares in news as Q2 net profit rises 21%; firm says supply-side constraints easing

Shares of Indian Energy Exchange Ltd (IEX) will be in focus on Friday morning after the trading platform for physical delivery of electricity, renewables & certificates reported a 21.43 per cent year-on-year (YoY) rise in consolidated net profit at Rs 86.46 crore for the September quarter compared with Rs 71.20 crore in the same quarter last year.

Net sales, IEX said, was up 14.01 per cent YoY at Rs 108.53 crore for the September quarter compared wit Rs 95.20 crore in the same quarter last year. Other income for the quarter grew 31.60 per cent at Rs 24.44 crore compared with Rs 18.57 crore YoY.

In a presentation, IEX said supply side constraints continued to ease through the September quarter. IEX said coal production rose 16 per cent YoY at 205 mt. This was against Q1's 8.6 per cent YoY growth. IEX said imported coal prices fell to $56 per tonne  in September from $86 per tonne in September last year. The September quarter's average coal inventory stood at 13 days.

E-auction premium, IEX said, is easing since January 2023, down from premium of 182 per cent over notified price in January to 106 per cent in September. E-auction premium had touched 425 per cent in May 2022 and in September 2022 it was 276 per cent. IEX said imported gas prices are back to near levels seen two years ago. Average gas price at $13 per mmBtu in Q2, down 70 per cent YoY.

"These factors are going to increase sell liquidity on the exchange," IEX said.

IEX said while supply side has been easing; unexpected weather conditions increased power demand during monsoon months. It said power demand n Q2 rose 13 per cent YoY at 436 BUs; peak demand for Q2 touched all-time high of 239 GW. IEX said the average price of power w up at Rs.5.88 kWh per unit from Rs 5.40 kWh per unit in Q2; an increase of nearly 9 per cent over Q2’FY23; price higher 14 per cent QoQ in Q2.

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