IEX’s Profit for Q1 FY 2024 Up 10% YoY to ₹758 Million, Trades 25 BU
The average market clearing price at the Exchange declined by 33% YoY to ₹5.17/kWh
The Indian Energy Exchange (IEX) has reported a profit after tax of ₹758.2 million (~$9.2 million), an increase of 10% year-on-year (YoY) in the first quarter (Q1) of the financial year (FY) 2024.
Electricity volumes on the exchange witnessed a 6.9% YoY growth during the April-June period, with 23.7 BU traded. The conventional power market accounted for 22.8 BU, while the green market segment saw 910 MU traded.
In all, 875,000 renewable energy certificates, equivalent to 875 MU, and 569,000 ESCerts, equivalent to 569 MU, were also traded, resulting in a total volume of 25.1 BU across all segments. Overall, the volumes registered a 7.6% YoY growth.
The revenue for the quarter stood at ₹1.27 billion (~$15.5 million), a 12% increase YoY.
The quarter’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was ₹1.05 billion (~$12.7 million), up 9% YoY.
The average market clearing price declined by 33% YoY to ₹5.17 (~$0.063)/kWh during the quarter. The supply-side improvements, including enhanced coal supply, reduced e-auction coal prices, and declining imported coal and gas prices, have contributed to increased liquidity on the Exchange.
As a result, there have been significant price corrections, offering optimization opportunities and improved clearance for power distribution companies and open access consumers.
In May, the Central Electricity Regulatory Commission approved the introduction of the TRAS market segment on all three power exchanges.
Earlier this year, the Central Electricity Regulatory Commission approved the introduction of hydropower in the Green Term Ahead market following a petition by IEX.
IEX reported a profit after tax of ₹883 million (~$10.7 million), a slight decrease of 0.1% YoY in the Q4 of the financial year 2023.
The exchange established a subsidiary, International Carbon Exchange, to facilitate trading in the voluntary carbon market. The goal of this subsidiary is to reduce global greenhouse gas emissions by 45% by 2030 and help achieve the target of limiting global warming to 1.5 degrees.