Indian Energy Exchange (IEX) Q4 17/18 earnings summary

Executive summary

• FY18 total revenue rose 9.96% YoY to ₹25,607.14 lakh; PAT increased 15.94% to ₹13,168.52 lakh. Electricity volumes reached a record 46,215 MUs.

• Day Ahead Market (DAM) share was 98.4%; electricity-market share was 97%, and all-product traded volume was 56,843 MUs, up ~26% YoY.

Financial highlights

• Operating revenue increased 16.01% YoY to ₹23,044.80 lakh; other income fell 25.14% to ₹2,562.34 lakh as treasury income declined.

• EBITDA rose 18.46% YoY to ₹21,049.51 lakh; PBT grew 15.04% to ₹19,999.51 lakh and PAT rose 15.94% to ₹13,168.52 lakh.

• Basic EPS increased 14.21% to ₹44.61; diluted EPS rose 16.94% to ₹44.05.

• Total expenses declined 4.99% to ₹5,607.63 lakh; excluding depreciation and finance costs, operating expenses fell 17.41% to ₹4,557.63 lakh.

Outlook and guidance

• Growth opportunities include longer-duration electricity contracts, cross-border exchange transactions with Bhutan, Nepal and Bangladesh, and potential natural-gas trading.

• Management expected faster power-market growth as rural electrification, renewables, lower gate-closure times and possible retirement of older plants support short-term trading.

• India’s electricity demand was projected to reach 1,905 billion units by FY22 from 1,348.4 billion units in FY17.