Indian Energy Exchange (IEX) on Thursday (July 27) posted a 9.6 percent year-on-year (YoY) rise in its consolidated net profit to Rs 75.8 crore in the June quarter compared to the year-ago period on the back of higher revenues. The consolidated net profit of the company was Rs 69.12 crore in the year-ago quarter, the company said in a BSE filing.

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IEX shares fell more than 4 percent on June quarter numbers. Over the past month, the stock has experienced a negative return of 6.4 percent. On a year-to-date basis, the stock fell 15 percent, while it was down 23 percent in the last one year.

The power trading exchange's revenue from operations rose 5.7 percent YoY to Rs 104 crore, compared to Rs 98.35 crore in the corresponding quarter of last fiscal.

Total income of the company increased 12 percent on-year to Rs 127.36 crore in the quarter under review from Rs 113.39 crore in the same period a year ago.

The company's Ebitda (earnings before interest, taxes, depreciation and amortization) rose marginally to Rs 82 crore during the April-June period as against Rs 81 crore YoY. The operating margin came in at 78.6 percent versus 82.1 percent in the year-ago period.

Recently, IEX witnessed a steep fall in its share price that could be related to the Central Electricity Regulatory Commission's plan to initiate market coupling. The power ministry has reportedly asked the CERC to start a market coupling process of multiple electricity exchanges, with an aim to make prices uniform across exchanges.

Sameet Chavan, Head of Research, Technical and Derivatives at Angel One, said, "IEX is an Indian electronic system-based power trading exchange regulated by the Central Electricity Regulatory Commission (CERC). The stock has been a laggard for the last 15-odd months. Stock prices tumbled in the last couple of sessions after the reports said that the power ministry has directed the CERC to undertake the 'Market Coupling' mechanism for spot power trading. Technically speaking, we do not see any near-term relief in the prices as the decline is backed by humongous volumes. The stock is trading at a new two-year low and hence, we advise traders to stay away from the stock till things do not stabilise."

First Published:Jul 27, 2023 3:10 PM IST