IEX Reports 50% YoY Increase in Profits for FY 2022, Trades 102 BU of Power During the Year

The exchange reported a 45% YoY increase in profits for the Q4 FY22


The Indian Energy Exchange (IEX), in its recently announced financial results for the fiscal year (FY) 2021-22 and fourth quarter (Q4) FY-22, reported a 50% year-on-year (YoY) increase in profit after tax from ₹2.054 billion (~$26.88 million) to ₹3.09 billion (~$40.43 million).

For Q4 FY22, the exchange reported a profit after tax of ₹884 million (~$11.57 million), a 45% YoY increase from ₹608 million (~$7.96 million) reported in Q4 FY-21.

The revenue for Q4 FY22 stood at ₹1.28 billion (~$16.75 million), a 28% increase from ₹1.003 billion (~$13.12 million) during the same period last fiscal year.

The total traded volume across all market segments during the quarter was 27 billion units (BU), recording YoY growth of about 21%.

The electricity market comprising of Day-Ahead Market (DAM), Real-Time Market (RTM), Term-Ahead Market (TAM), Green Day Ahead Market (GDAM), and Green Term Ahead Market (GTAM) segments contributed 24.8 BU volume during Q4 FY22, recording a 10.5% increase from 22.4 BU during the same period in the previous financial year. The renewable energy and energy-saving certificate segment contributed 2.2 BU during the quarter.

Financial Year 2021-22

The revenue reported for FY22 stood at ₹4.844 billion (~$63.49 million), a 36% increase from ₹3.562 billion (~$46.69 million) reported in FY-21.

The exchange saw a 37% YoY growth in trading during the FY-22 accomplishing 102 BU volume across all market segments. The electricity market contributed 95.6 BU volume and achieved a 29% YoY growth.

The certificate segment comprising Renewable Energy Certificates (REC) and Energy Saving Certificates (ESCerts) contributed 6.4 BU and achieved 813% YoY growth during FY-22.

The volume growth was primarily driven by increasing demand for electricity, flexible and efficient procurement at the exchange’s competitive prices, and significant traction by the new market segments.

In FY-22, the peak demand met reached 201 GW, a 6% YoY growth, while electricity consumption at 1,370 BU saw about 7.8% YoY growth.

During FY 2021-2022, the IEX traded 4,854 million units (MU) of renewable energy, a 517% year-over-year (YoY) growth.

Earlier this month, Central Electricity Regulatory Commission (CERC) directed the power exchanges to re-design their bidding software so that members can submit their buy bids at the maximum price of ₹12 (~$0.16)/kWh for DAM and RTM.

The CERC had recently approved the introduction of hydropower in GTAM following a petition by IEX.