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IEX soars after Q2 PAT jumps 75% YoY; board approves 2:1 bonus issue

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Capital Market
Last Updated : Oct 22 2021 | 9:31 AM IST

Indian Energy Exchange (IEX) hit an upper circuit of 10% at Rs 832.85 after the company's consolidated net profit jumped 75.34% to Rs 77.73 crore on 55.64% increase in net sales to Rs 110.38 crore in Q2 September 2021 over Q2 September 2020.

On a consolidated basis, profit before tax rose 74.64% year-on-year to Rs 102.11 crore during the quarter. EBITDA jumped 69.1% to Rs 106.96 crore in Q2 September 2021 over Q2 September 2020.

IEX's net profit climbed 23.73% and net sales rose 21.26% in Q2 September 2021 over Q1 June 2021.

Further, the IEX board has considered issuing two bonus equity shares for each equity share held (2:1). This is subject to the approval of shareholders through postal ballot.

During the quarter, electricity volumes on the exchange grew by 58% YoY with 25.9 BU volumes traded versus 16.5 BU in Q2 FY21. The growth in volumes was driven by substantial increase in electricity consumption as well as the preference by the distribution utilities to meet their short-term supply requirements in a competitive and flexible manner through IEX.

The Real-Time Market remained one of the fastest-growing electricity market segments on the exchange, achieving a growth of 125% YoY with 5.3 BU of volumes traded during thequarter. Continuing its outstanding performance, RTM contributed 20% to the overall volumes during the quarter.

On 21 August 2021, the Green Term Ahead Market marked its first anniversary, recording a cumulative volume of 3.4 BU since its inception and 1.7 BU in this quarter.

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On the gas market front, the Indian Gas Exchange witnessed an increase in both volume and participation. During the quarter, IGX traded approximately 10 lakh MMBTU in terms of cumulative volume.

Ministry of Petroleum & Natural Gas (MOPNG) vide its Office Memorandum dated 19 August 2021 has provided an additional mechanism to the domestic gas producers, who have been granted pricing and marketing freedom, to trade on gas exchanges. Accordingly, the domestic gas producers may sell quantity of gas, up to 500 MMSCM or 10% of annual production from contract, whichever is higher, per year through gas exchanges. This will provide cheaper gas and induce market liquidity and depth, the company said in a statement.

IEX is India's premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates.

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First Published: Oct 22 2021 | 9:13 AM IST

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