IEX’s Revenue for FY23 Dips 2% YoY to ₹4.7 Billion, Trades 97 BU

The volume declined by 5% YoY due to sell-side liquidity constraints


The Indian Energy Exchange (IEX) has reported a profit after tax (PAT) of ₹883 million (~$10.7 million), a slight decrease of 0.1% year-on-year (YoY) in the fourth quarter (Q4) of the financial year (FY) 2023.

The high input costs impacted the sell-side liquidity as the government attempted to meet the rising power demand by increasing the coal supply during the quarter.

During the quarter, the total volumes on the Exchange declined 3% YoY to 26.1 billion units (BU). The volume of electricity traded during the quarter was 24.3 BU, a decrease of 2% YoY, and the total certificates traded during Q4 amounted to 1.8 BUs, an 18% YoY decrease.

The revenue for the quarter stood at ₹1.29 billion (~$15.6 million), a 0.9 % increase YoY.

The quarter’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was ₹1.16 billion (~$14 million), up 4 % YoY.

The average Day Ahead Market price during the quarter was ₹6.07 (~$0.073)/ kWh, higher by 13% YoY.

Financial Year 2023

The PAT reported for FY23 stood at ₹3.06 billion (~$37 million), down 0.9% YoY.

IEX traded 96.8 BU, a decline of 5% YoY due to sell-side liquidity constraints. During the year, certificates’ volume was at 6.2 BUs, down 1.6% YoY. Due to a demand-supply mismatch, the Day-Ahead market price was ₹5.96 (~$0.072)/ kWh, higher by 36% YoY.

Liquidity was affected due to supply constraints that led to higher prices of e-auction coal, imported coal, and gas.

The revenue for the FY23 year fell by 2.1% YoY to ₹4.74 billion (~$57.3 million).

The EBITDA for FY23 dipped 1.8% YoY to ₹4.09 billion (~$49.5 million).

IEX Product Mix

“With gradual improvement in domestic production of coal, improvement in coal inventory, which is at 14 days compared with 11 days last fiscal, and lowering prices of e-auction coal, imported coal, and imported gas, we expect lower clearing prices of power on the Exchange, and the volumes to improve on the back of cost optimization by power distribution companies and open access consumers,” the Exchange stated.

As coal production and inventory rise and fuel prices drop, IEX expects the power exchange prices to fall and volumes to increase due to cost savings for distributors and consumers.

In April, Central Electricity Regulatory Commission (CERC) directed the power exchanges to re-design their bidding software so members can submit their buy bids at the maximum price of ₹12 (~$0.15)/kWh for Dah Ahead Market and Real Time Market.

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