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