IEX sizzles as Q4 PAT jumps 20% to Rs 46 cr

Indian Energy Exchange jumped 5.11% to Rs 163.50 after consolidated net profit jumped 20.5% to Rs 45.62 crore on 23% rise in net sales to Rs 69.44 crore in Q4 March 2020 over Q4 March 2019.

IEX said electricity volume jumped 39.6% to 13,835 MU in Q4 March 2020 from 9,908 crore in Q4 March 2019. The southern distribution utilities continued their preference for TAM contracts. On the price front, the day ahead market saw an overall decline in prices by 14% during Q4 FY'20. Attractive prices helped the commercial and industrial consumers increase procurement by 41% during the same quarter. Including REC, total volumes increased 29% YoY.

Consolidated EBITDA stood at Rs 63 crore in Q4 March 2020, rising 11.6% year on year from Rs 56 crore posted in Q4 March 2019.

Consolidated profit before tax (PBT) rose 8.6% to Rs 57.60 crore in Q4 March 2020 from Rs 53.04 crore reported in Q4 March 2019. Tax expense rose 8.4% year on year to Rs 12.61 crore in Q4 March 2020 from Rs 11.63 crore in the same period last year.

The company said it is all set to launch Real Time Market on 1 June 2020 and India's first Gas Exchange.

"Looking forward, COVID-19 has unfolded multitude of challenges for the power sector but at the same time presenting an opportunity to realign the sector towards higher efficiencies on structural, policy or operational aspects. In the post-COVID scenario, the nation is likely to see a lot more emphasis on automation, IT solutions, process innovations, customer centricity across the energy value chain and energy markets have a unique opportunity to drive the solutions," the company said.

IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates (RECs) and ESCerts (Energy Saving Certificates).

On the technical front, the stock's RSI (relative strength index) stood at 64.259. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock trades above its 50 and 100-day moving average (DMA) placed at 150.02 and 160.64 respectively. These levels will act as a crucial support zone in near term.

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