Indian Energy Exchange’s Revenues Up by 20% YoY in FY 2021

The profits increased by 34% in Q4 FY 2021 compared to the same period last year


The Indian Energy Exchange’s (IEX) revenue in financial year (FY) 2021 was up by nearly 20% and stood at ₹3.56 billion (~$48.48 million) compared to ₹2.97 billion (~$40.45 million) in the previous year. According to the company’s financial statement, the increase in revenues can be attributed to the 41% increase in transaction revenue.

The revenues stood at ₹1.003 billion (~$13.66 million) in the fourth quarter (Q4) of FY 2021, an increase of 26% compared to ₹796 million (~$10.84 million) in Q4 FY 2020.

The FY 2021 saw the highest ever yearly electricity volume of 73.9 BU traded, which was the highest at the exchange since 2008. Q4 FY 2021 witnessed the highest ever electricity volumes at 22.4 BU and growth of nearly 62% compared to the same period last year.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹839 million (~$11.43 million), an increase of nearly 4% compared to ₹805 million (~$10.96 million) in the previous quarter. The figures were up by 34% compared to the same period last year. The figures for FY 2021 stood at ₹2.89 billion (~$39.36 million), increasing by 19% compared to ₹2.42 billion (~$32.96 million) in FY 2020.

The profit after tax for Q4 FY 2021 stood at ₹608 million (~$8.28 million), an increase of nearly 5% compared to ₹581 million (~$7.91 million) in Q3 2021. The numbers were up by nearly 34% compared to ₹456 million (~$6.21 million) during the same period last year.

The growth was mainly driven by the competitive power prices, growth in electricity consumption, availability of adequate domestic coal, and the commencement of the real-time market and the green term-ahead market.

The day-ahead market registered a clearing price of ₹2.82 (~$0.038)/kWh in the FY 2021, which was nearly 6% lower than the price in FY 2020.

Another key aspect of the results is the success of the real-time electricity market, which commenced trading on June 1, 2020, and the market crossed the 1 BU mark for four consecutive months from December 2020 to March 2021. Since the commencement of the trading, the market has traded 9,468 MU until March 2021.

Similarly, the green term-ahead market, which started trading in August last year, recorded a cumulative number of 785 MU since commencement. The exchange launched green daily and weekly contracts on its green market trading platform in December last year.

The exchange traded a record 78 MU of solar power in April, a 272% surge from the 21 MU traded in March 2021. The exchange’s real-time power market registered a trading volume of 7,707 MU in April 2021, achieving a 90.2% YoY growth.

Last month, the exchange introduced cross-border electricity trade on its platform. The initiative is a step towards building an integrated South Asian regional power market.