Indian Energy Exchange Reports Strong Q1 FY25 Performance Amidst Record Power Demand

Indian Energy Exchange Limited (IEX) announced robust financial results for the quarter ended June 30, 2024 (Q1 FY25), marked by record-breaking power demand and increased trading volumes.

Trading Volume and Revenue Surge

The exchange witnessed a significant 21.1% year-on-year (YoY) growth in total trading volume, reaching 30.4 billion units (BUs). This surge was driven by both electricity (28.2 BUs) and certificate (2.2 BUs) trading. Consequently, consolidated revenue climbed 21.3% YoY to Rs. 154.5 crore, while profit after tax (PAT) surged by 27.2% to Rs. 96.4 crore.

Record Power Demand and Supply Management

India experienced unprecedented peak power demand of 250 GW during the quarter, surpassing the previous record of 243 GW. This surge, coupled with an 11.2% YoY increase in energy consumption to 452 BUs, underscored the need for efficient power management.

The government’s proactive measures, including increased coal supply, sale of surplus power, and ensuring higher power plant availability, helped stabilise the market. Despite the surge in demand, the average market clearing price in the Day Ahead Market remained relatively stable at Rs 5.26/unit.

Coal Production and Auction Dynamics

India’s coal production rose by nearly 11% YoY to 247 million tonnes during the quarter. However, auction premiums under the Shakti B8 auction have moderated to around 20% in the last three months. Coal inventories stood at approximately 18 days in July 2024.

Gas Market Gains Momentum

The Indian Gas Exchange (IGX) also exhibited strong growth, with total traded volumes increasing by 176% YoY to 11.8 million MMBtu. IGX’s profit after tax surged 120% YoY to ₹7.6 crore.

About IEX

IEX is India’s premier energy exchange, providing a nationwide, automated trading platform for the physical delivery of electricity, renewable power, renewable energy certificates, and energy-saving certificates.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.