India typically experiences a sharp increase in Power demand during the summer season, and IMD again has issued heatwave warnings across regions. With huge spikes in rising temperatures, the increase of air conditioners, coolers, fans, and refrigeration systems increases the power demand by Multifold.
About the Company
Indian Energy Exchange (IEX) is India’s premier energy trading platform, facilitating electricity trading, renewable energy certificates (RECs), and energy-saving certificates (ESCerts) through an efficient, transparent, and automated system. Established in 2008 and headquartered in New Delhi, IEX plays a crucial role in India’s power sector by enabling competitive, real-time, and day-ahead market trading of electricity among power producers, distribution companies, and industrial consumers.
How IEX Can Benefit from an Increase in Power Demand
Being a Marker leader, most of the electricity trading occurs on the IEX platform. As power consumption increases, the short-term electricity need will lead to increased activity, which will lead to Higher Trading Volume. The increase in demand also leads to an increase in activity, which leads to better price discovery for the sellers, enabling them to get higher margins.
Growth Levers that are mentioned By IEX are: Increase in power Consumption, Introduction of New Products & Regulatory Developments, Re-designing electricity market, Energy Transition, Diversity in Demand/Supply Patterns, and Ample Supply side availability.
Also read: Microcap stock in which Ashish Kacholia acquired fresh stake in Q4 to keep on your radar
Business Highlights
In FY24, the Company held an 84 percent market share, and till 9MFY25, it had increased its market share to 85 percent. Since, 2008 company’s volume on its exchange has grown at ~30 percent CAGR; as of Q3FY25, IEX has 8,100 + registered participants and 5,000+ Commercial & Industries.
Most of the revenue that is 44 percent of the total volume for an IEX exchange comes from Day-Ahead Market (DAM), 29 percent comes from Real-time Market (RTM), 11 percent comes from Certificates, 7 percent each comes from Term-Ahead Market (TAM) and Green market, and 2 percent comes from DAC (Day-Ahead Contingency Market).
Financial Highlights
The company reported a 13.91 percent YoY increase in revenue from Rs. 115 Crore in Q3FY24 to Rs. 131 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 5.75 percent in revenue from Rs. 139 Crore in the previous quarter.
Their Net profit saw an increase of 15.73 percent YoY from Rs. 89 Crore to Rs. 103 Crore for the same period. On a QoQ basis, the company reported a decrease of 2.83 percent in Net profit from Rs. 106 Crore in the previous quarter.
Written By Abhishek Das
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