Home Business & Finance Indian Energy Exchange Ltd’s Q4FY18 standalone net profit rises 16.3% yoy to Rs31.4cr
Indian Energy Exchange Ltd’s Q4FY18 standalone net profit rises 16.3% yoy to Rs31.4cr

Indian Energy Exchange Ltd’s Q4FY18 standalone net profit rises 16.3% yoy to Rs31.4cr

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The company’s standalone revenue stood at Rs62.9cr, up 7.1% yoy but down 2.9% qoq

Indian Energy Exchange Ltd Q4FY18

Standalone Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 62.9 7.1
EBITDA 51.2 19.5
EBITDA Margin (%) 81.5 843
Net Profit (adjusted) 31.4 16.3

Indian Energy Exchange Ltd (IEX) reported steady revenue and earnings growth for Q4FY18. Revenue grew by 7.1% yoy to Rs62.9cr. EBITDA stood at Rs51.2cr, up 19.5% yoy. EBIDTA margin rose by 843bps yoy to 81.5% due to reduction in technology costs from acquisition of trading software. Net Profit stood at Rs31.4cr for Q4FY18, up 16.3% yoy.

  • Total sales volume stood at 12,450mn units for Q4FY18, up 10% yoy. Sales volumes for FY18 stood at 45,146mn units, up 26% yoy. Total volumes for the Day-ahead and Term-ahead market grew by 13% yoy for the quarter.
  • Renewable Energy Certificates (REC) reported 6% yoy decrease for the quarter.
  • Energy Savings Certificates (E-certs) reported a healthy transaction volume of 213mn units for the quarter.
  • Congestion led to loss of 0.43% of volumes for IEX in FY18.
  • IEX market share stands at 97% of exchange traded electricity volumes.
  • The Board has decided to not go ahead with the proposed buyback.

Conference Call Highlights

  • The management has stated that power demand is likely to grow at ~6% for FY19. Due to the issues relating to availability of coal, generators and distribution companies would continue to prefer the short term market. Thus, IEX is poised to grab a disproportionately large part of the new power demand, and trading volumes are likely to grow at 20% in FY19.
  • Tax rate would be 29% for FY19 against 33% for FY18, due to changes in tax rules.
  • The management sees the issue of coal availability abating, as rising domestic coal production and softer international coal prices would help thermal power generators.

Technical View:

Indian Energy Exchange Ltd is currently trading at Rs. 1,660.25, down by 10.2 points or 0.61% from its previous closing of Rs. 1,670.45 on the BSE.
The scrip opened at Rs. 1,670 and has touched a high and low of Rs. 1,676.15 and Rs. 1,658 respectively. So far 18,092 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 100 DMA.

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