- Indian Energy Exchange (IEX) is the largest exchange for the trading of a range of electricity products in India in traded contract volume terms (FY17, CERC).
- IEX is the first energy exchange in India, having commenced operations in June 2008. It enjoys early mover advantage and strong brand recognition among participants in the energy trading industry in India.
- According to CERC, in FY16 & FY17 the company commanded a 99.6% and 99.4% market share respectively, of electricity contracts in the day-ahead-market (DAM), in volume terms. DAM, term-ahead-market (TAM) and renewable energy certificates (REC) put together constituted 93.7% (FY16) & 94.8% (FY17) of the traded contract volumes of electricity contracts that were conducted over the company’s exchange.
- As of August 31, 2017, the company had over 5,900 participants registered on its Exchange of which over 3,200 participants were active. Its participants registered to trade electricity contracts are located across 29 states and five union territories in India.
- According to CRIS, peak demand for power in India is expected to grow at a ~7.3% CAGR over FY17-22, which, in turn, is expected to increase the amount of power that can be traded through energy exchanges.
- The company has recorded revenue growth of ~14% CAGR over FY13-17 on the back of robust volumes while the operating margins have remained stable at ~72% over FY14-17. PAT has also grown in line with the revenue at CAGR of ~14% over FY13-17.