IEX slips 5%, hits 52-week low on disappointing September quarter results

Shares of Indian Energy Exchange (IEX) hit a 52-week low of Rs 134 as they declined 5 per cent on the BSE in Friday's intra-day trade amid heavy volumes. The company reported 11 per cent year-on-year (YoY) fall in total revenue at Rs 113.80 crore in the  September quarter (Q2FY23), while its profit after tax contracted 8 per cent YoY to Rs 71.20 crore.

At 03:00 PM, IEX was trading 4.5 per cent lower at Rs 134.45, as compared to 0.01 per cent rise in the S&P BSE Sensex. The average trading volumes on the counter jumped over four-fold with a combined 12.4 million shares having changed hands on the NSE and BSE till the time of writing of this report.

In the past six months, the stock has tanked 43 per cent, as against 2.3 per cent rise in the benchmark index. It has corrected 56 per cent from its 52-week high level of Rs 304.05, touched on December 10, 2021.

IEX’s total volume for Q2FY23 stood at 23117 MUs vs 25856 MUs in the same quarter last year, and 23439 MUs in Q1FY23, translating into a de-growth of 10.5 per cent YoY and 1.3 per cent QoQ. The company said the volumes were impacted due to supply side constraints, led by high prices of e- auction coal, imported coal and gas.

Going ahead, easing supply-side constraints and lower demand in the impending winter season, an increase in liquidity on the exchange platform leading to reduction in prices is likely, which will provide opportunity to discoms to optimize their power procurement and commercial and industrial consumers to buy cheaper power it stated.

"IEX’s volumes are declining QoQ for two consecutive times. It is mainly due to CERC imposing a capping of Rs 12 on all the segments of power exchanges which has forced buyers and sellers into bilateral agreement. Apart from that launch of new Power Trading platform Hindustan Power has also challenged IEX monopoly and has adversely impacted the volumes. On positive front Government’s plan to launch a high price market specifically for gas-fired and battery storage plants in coming three months will prove to be a boost for IEX volumes. Company should continue to face challenges in near term," ICICI Securities said in a note.