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IEX Hits Record High After Strong Business Update

IEX Hits Record High After Strong Business Update


Indian Energy Exchange (IEX) rose 2.56% to Rs 396.35 after the electricity market at IEX entered the new fiscal year 2022 with 7707 MU volume in the month of April 21, achieving a 90.2% YoY growth.

While the growing electricity consumption has been one of the key factors behind the consistent performance of the exchange market. Its robust value proposition in terms of competitive prices, flexible and efficient procurement positions exchange as the most preferred destination for power procurement for both the distribution utilities as well as the industrial consumers.

IEX’s day-ahead market traded 5699 MU volume in April 2021 achieving a significant 54% YoY growth. The average monthly price at Rs 3.70 per unit witnessed 53% increase over Rs 2.42 in the corresponding period in 2020. The increase in price was primarily due to increase in demand and sharp slump in electricity prices in April 2020 due to a stringent nationwide lockdown.

The term-ahead market comprising intra-day, contingency, daily & weekly contracts traded 349 MU during the month.

The real-time market saw highest ever monthly volume of 1473 MU in April 2021, achieving 4.2% MoM growth. It also recorded the highest single day volume of 68.36 MU on 3 April 2021.

With sell-side bids at 1.8X of cleared volume, the market continued to have ample availability of power. IEX said that the growing volume in the real-time electricity market showed its acceptance by distribution utilities and industrial consumers as the go-to platform for addressing the real-time electricity demand-supply balance with the delivery of power at just 1-hour notice.

The green term-ahead market traded 186 MU volume during April 2021 comprising 78 MU in the solar segment and 108 MU in the non-solar segment, achieving a significant 262% MoM growth.

During the month, IEX commenced the Cross Border Electricity Trade (CBET) on its platform marking a significant milestone to build an integrated South Asian regional power market.

As a first-of-its kind initiative, the new market segment allows the Exchange market to expand its reach beyond India to the South Asia region, thus supporting the growth of energy ecosystem in the region in an efficient and sustainable manner.

Nepal was the first country to trade in the day-ahead market on the Exchange on 17 April 2021. The other South Asian countries like Bhutan and Bangladesh are expected to join the platform soon, and the market is likely to grow at a fast pace in the coming months.

The REC trading session which was scheduled on 29 April 2021 did not take place due to the stay order from APTEL in response to the petitions filed by a few Renewable Energy Associations.

IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates.

The company’s consolidated net profit grew by 39.5% to Rs 58.14 crore on 42.8% rise in net sales to Rs 85.23 crore in Q3 FY21 over Q3 FY20.

Shares of IEX extended their winning run to fourth consecutive trading session. The stock has rallied 7% in four days from its previous closing low of Rs 370.25 on 30 April 2021. The counter hit a record high of Rs 406 in intraday today.

Source: Capital Market
Anand Gupta Editor - EQ Int'l Media Network