Indian Energy Exchange rallies 8%, hits new high ahead of Q3 results

The company's board will, on Thursday, also consider declaration of interim dividend to the members of the company for FY21

Shares of Indian Energy Exchange (IEX) rallied 8 per cent to hit a new high of Rs 253 on the BSE on Monday in an otherwise weak market ahead of the announcement of its December quarter (Q3FY21) results on Thursday. In comparison, the S&P BSE Sensex was down 0.83 per cent at 48,626 points, at 10:59 am.

IEX, on Friday, announced that the company's board of directors, in its meeting scheduled to be held on Thursday, January 21, 2021, will also, inter alia, consider declaration of interim dividend to the members of the Company for the Financial Year 2020-2021. The purpose of determining the entitlement of the shareholders for the interim dividend, if any, approved by the board will be Saturday, January 30, 2021, it said.

In the past one month, the IEX's stock has outperformed the market by surging 17 per cent, against 3.4 per cent rise in the S&P BSE Sensex.

On January 5, the company said the electricity market at Indian Energy Exchange traded an all-time high volume of 7260 MU during the month of December 2020 witnessing a 52 per cent year on year (YoY) during the month.

The real-time electricity market continued to witness exceptionally good response from the market participants. The market registered an all-time high-volume of 1129 MU in Decemeber’20 since commencement on June 1, 2020 and achieved 26 per cent month on month (MoM) growth in volume.

IEX has seen the highest-ever quarterly volumes in the company’s history of 20,167 MU i.e. growth of c.62 per cent year on year (YoY). The major reason was increase in volumes in day-ahead market (DAM) along with incremental volumes from the real-time market (RTM) and Green term ahead market (TAM) segments.

Analysts at LKP Securities expect the company to generate revenue in the range of Rs 80-90 crore in the Q3FY21 i.e. c.35-50 per cent YoY growth with an expected profit after tax (PAT) in the range of Rs 50-58 crore.

IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.