homebusiness Newscompanies NewsIndian Energy Exchange hopes to grow volumes by 15% in FY24 as power demand rebounds
Indian Energy Exchange hopes to grow volumes by 15% in FY24 as power demand rebounds
In an interaction with CNBC-TV18, Rohit Bajaj, ED-Business Development, Strategy and Regulatory Affairs, Indian Energy Exchange said the second quarter was good for the company as there has been a rebound in the overall power demand in the country.
Power trading platform, Indian Energy Exchange (IEX) reported its financial result for the quarter that ended September 2023 on Thursday, November 2. The company posted a 21.5% rise in net profit to ₹86.5 crore from ₹71.2 crore in the year-ago period.
In an interaction with CNBC-TV18, Rohit Bajaj, ED-Business Development, Strategy and Regulatory Affairs of the Delhi-based company said, "There has been a tremendous rebound in the overall (power) demand in the country," adding that supply-side issues are now resolved and coal production in the country has improved.
India's overall energy consumption surged by 22% to 139 billion units in October, marking a significant increase from the previous year, per data published by the Grid Controller of India (GRID-India). Cooler summers and lower-than-expected rainfall led to subdued power demand this year. While the power ministry predicted a peak power demand of 230 gigawatts (GW), the projection was not met until August, which proved to be the driest month in over a century.
"The upsurge in power demand prompted distribution companies (Discoms) to actively purchase power on the exchange to meet the increased demand, thereby leading to a significant increase in trade volumes on IEX," the company said in a regulatory filing
In the September quarter, the company's total income jumped 16% to ₹132.97 crore from ₹113.77 crore in the corresponding period a year ago. EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the quarter grew 16.5% to ₹92 crore from ₹79 crore last year. The margin was at 84.8% against 83% in September 2022.
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The company recorded a trading volume of 26.53 billion units for the period under review, up from 23.12 billion units in the second quarter of financial year 2023. marking a growth of 15% year-on-year. Bajaj expects to maintain the volume growth at 15% for the current financial year.
"We are in the process of launching more products. Today, we are allowed to do only up to three months (contracts). Going forward, we are seeking approval to launch up to 11-month contracts. We are hopeful that we will regain market share and bring it back to the levels of 90%. Blended should be in the range of 85% as of now," Bajaj said.
The shares of the company ended 1.44% higher at ₹126.65 apiece. The stock has gained in five out of the last 10 trading sessions but it is down close to 11% in 2023 so far. The market capitalisation of the company is ₹11,943 crore.
(Edited by : Shweta Mungre)
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