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IEX rallies after decent business update for September

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Capital Market
Last Updated : Oct 05 2020 | 6:16 PM IST

Indian Energy Exchange (IEX) surged 4.51% to Rs 215.55 after the electricity market at IEX traded a volume of 5675 million units (MU) in September 2020, recording a 45% year-on-year increase.

The national peak demand in the same period saw a 2% year-on-year (YoY) increase and energy consumption recorded a 6% YoY increase, according to the data published by the NLDC.

The company's day-ahead market cleared volume of 4781 MU during September 2020. The market continued to witness high sell side liquidity with the total sell bids at 9669 MU being more than twice of the cleared volume. With robust sell side liquidity, the average market clearing price at Rs. 2.69 per unit saw a decline of 3% on a YoY basis over Rs 2.77 per unit in September 2019 helping both the distribution utilities and industries to accrue significant financial savings.

IEX said, "Attractive prices and ample availability supported the southern, western and northern state distribution utilities to leverage the Exchange market for meeting their short-term electricity requirements as well as for replacement of costlier power in order to optimize their overall cost of power procurement. One Nation One Price prevailed during all 30 days of the month making Exchange the most reliable platform for power procurement."

The trade in the term-ahead market stood at 107 MU for the month.

IEX's Real-time electricity market (RTM) registered a total trade of 704 MU during September 2020. The market saw 41.76 MU as the highest volume being traded on a single day on September 02, 2020. During the month, the sell bids were at 2159 MU and the buy bids were at 924 MU. With sell side at nearly 2.3 times the buy side, the average market discovered at Rs 2.52 per unit was attractive for buyers. On a cumulative basis, the market has achieved a volume trade of 2865 MU in the first four months since inception on 1 June 2020.

IEX commenced trading in the green term-ahead market on 21 August 2020. The company said it received an overwhelming response since launch and has registered volume of 82.92 MU during September 2020.

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Shares of IEX fell 1.46% in the previous two sessions. The stock is just 1.6% away from its 52-week high of Rs 219.05 hit on 16 September 2020.

IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates (RECs) and ESCerts (Energy Saving Certificates).

Indian Energy Exchange (IEX)'s consolidated net profit rose 6.3% to Rs 42.09 crore on 12.1% jump in net sales to Rs 67.88 crore in Q1 June 2020 over Q1 June 2019.

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First Published: Oct 05 2020 | 4:00 PM IST

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