Indian Energy Exchange shares hike 6% on recording highest volumes in May

The electricity volumes at 9,568 MU, increased 21 per cent Y-o-Y and the renewable energy certificates (REC) at 1,055 MU, increased 640.3 per cent Y-o-Y, Indian Energy Exchange said

The shares of Indian Energy Exchange (IEX) zoomed 6.3 per cent at RS 167.50 per share on the BSE in Thursday’s intraday trade. This came after the company on Wednesday said that it has achieved monthly overall volume of 10,633 million units (MU), in May 2024, marking a 28.9 per cent year-over-year increase. 

The electricity volumes at 9,568 MU, increased 21 per cent Y-o-Y and the renewable energy certificates (REC) at 1,055 MU, increased 640.3 per cent Y-o-Y, the company said in an exchange filing.

“At Rs. 165 per certificate, the REC market recorded an all-time low price in the trading session held on 29th May 2024. These prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations,” the company statement said. 

 

Proactive measures taken by the government and the regulators, including the sale of surplus un requisitioned power on power exchanges, increased fuel supply and ensuring higher availability of generating units led to an increased sell liquidity on the exchanges which kept the prices under control on exchanges, the management said. 

According to government data published in May, the country's energy consumption reached 156.3 billion units, representing a 15 per cent increase on a year-on-year basis. 

IEX facilitates power trading in India by offering an electronic platform to diverse participants in the power market. These include State Electricity Boards, Power producers, Power traders, and Open Access Consumers, encompassing both Industrial and Commercial entities.
 

It reported a 9.5 per cent increase in consolidated profit after tax (PAT) to Rs 96.7 crore for the March 2024 quarter, a rise from Rs 88.34 crore PAT recorded during the fourth quarter of the previous fiscal. Total income also saw an uptick to Rs 149.28 crore from Rs 129.58 crore in January-March FY24.

At 11:16 AM; the stock of the company was trading 5.22 per cent higher at Rs 165.25 a piece. By comparison, the BSE Sensex was trading 1.13 cent higher. The stock of the company is trading at price to earnings valuation of 43.15 times.