Indian Energy Exchange (IEX) Q4 19/20 earnings summary

Executive summary

• FY20 electricity traded volume rose 3.3% YoY to 53,881 MU despite weak economic growth and subdued national electricity demand.�

• PAT increased 7.8% to Rs 17,791.61 lakh; revenue was nearly flat at Rs 29,715.22 lakh. Lower prices supported higher procurement by commercial and industrial consumers.�

• Growth initiatives included the June 2020 launches of Real-Time Market and Indian Gas Exchange, both after FY20 year-end.�

Financial highlights

• Standalone revenue was Rs 29,715.22 lakh vs Rs 29,415.86 lakh in FY19; operating revenue grew 1.16% to Rs 25,703.11 lakh.�

• Standalone PAT was Rs 17,791.61 lakh vs Rs 16,503.67 lakh, up 7.8% YoY; PBT was Rs 22,778.63 lakh vs Rs 23,174.50 lakh.�

• Consolidated revenue was Rs 29,740.06 lakh and PAT Rs 17,571.79 lakh; IGX contributed only five months of set-up activity and recorded a Rs 219.82 lakh loss.�

• Total expenditure increased 11.14% to Rs 6,936.59 lakh, including higher employee costs, depreciation and finance costs; other operating expenses declined 29.63%.�

• Lower tax rates reduced income-tax expense to Rs 4,987.02 lakh from Rs 6,670.83 lakh, including a one-time Rs 562 lakh saving on opening deferred tax liability.�

Outlook and guidance

• Strategic aim to expand electricity delivery duration from 2.5 hours–11 days to as long as 365 days and broaden market products and segments.�

• Planned offerings included longer-duration contracts, cross-border trade, Green TAM and DAM, exchange-based ancillary services and gross bidding, subject to regulatory approvals where applicable.�

• Management anticipated greater technology-led energy markets and post-COVID emphasis on green energy, digitization and automation; no specific financial forecast was stated.�

• RTM began trading June 1, 2020; IGX commenced operations June 15, 2020, extending activity into real-time power and physical natural-gas markets.�