Indian Energy Exchange (IEX) Q4 18/19 earnings summary

Executive summary

• FY19 revenue reached ₹294.16 crore, up 14.87% YoY; PAT rose 25.33% to ₹165.04 crore, while electricity traded grew 13% to 52,168 MU.

• The exchange retained its leadership position, with a 97.2% share of India’s electricity exchange market and 6,429 registered participants at FY-end.

Financial highlights

• Operating revenue was ₹254.08 crore, up 10.25% YoY; total revenue rose to ₹294.16 crore from ₹256.07 crore.

• EBITDA increased 15% to ₹242.90 crore; PAT rose 25.33% to ₹165.04 crore, and cash profit reached ₹175.46 crore, up 24%.

• Other income rose 56.43% to ₹40.08 crore, supported by higher investment returns; reported earnings also included ₹50.85 lakh provision for sharing investment returns with members.

• Operating cash flow was ₹138.27 crore; cash and cash equivalents ended FY19 at ₹50.82 crore.

Outlook and guidance

• India’s power market is projected to expand to 1,905 BU by FY22 from 1,372 BU in FY19, supported by industrial growth, electrification, rising incomes and GDP growth.

• Growth plans include real-time markets, longer-duration contracts, cross-border trade, green-energy products, derivatives, ancillary markets and gas-market opportunities.

• Management expects exchange trading to benefit from policy reforms, greater renewable integration, open-access improvements and increased short-term procurement by distribution utilities.