This energy stock surged 3.5% after an increase in total electricity volume. This August, the country recorded an all- time high peak demand of 236 GW with a highest single day consumption of 5126 MU on August 31.
Share price of IEX Limited opened at Rs. 141.10 per share and gained 3.5% to reach its intra- day high of Rs. 141.90 per piece. The stock gained 8.04% in the last month. In the last three years, the stock has grown by 114.39%.
In a recent filing the company reported an increase in total electricity consumption and prices. Total electricity volume for August 2023 is at 8469 MU which is an increase of 21% on YoY basis. The market clearing price for IEX stands at Rs. 6.89 per unit which has risen by 33% on an annual basis.
Recently, the Central Electricity Regulatory Commission announced its plans to initiate market coupling of various electricity exchanges. This meant IEX might lose its monopoly power over the energy market. In a span of one week in June 2023, its stock lost more than 15%.
As per Q1 FY24, IEX has 83.7% in overall electricity market share and still acts as the monopoly in the energy market. The stock started gaining positive momentum in the first week of September 2023.
The company has a market capitalization of Rs. 12,220 crore. Comparing their financials on a QoQ basis, they made a revenue of Rs. 104.04 crore in Q1FY24 which is a fall of 2.79% from Rs. 107.03 crore in the last quarter. The net profit for Q1FY24 is Rs. 75.83 crore which is a decrease of 14.16% from Rs. 88.34 crore in the last quarter. The net profit margin for the last quarter was 77.36% which decreased to 71.33% for the current one.
Indian Energy Exchange Limited serves as an online marketplace for a variety of power suppliers, including state electricity boards, open access customers, power dealers, and power producers. In essence, it enables participants to trade power and energy-related contracts.
Written by Bhumika Khandelwal
