IEX Reports 50% YoY Increase in Profits for FY 2022, Trades 102 BU of Power During the Year

The Indian Energy Exchange (IEX), in its recently announced financial results for the fiscal year (FY) 2021-22 and fourth quarter (Q4) FY-22, reported a 50% year-on-year (YoY) increase in profit after tax from ₹2.054 billion (~$26.88 million) to ₹3.09 billion (~$40.43 million).

For Q4 FY22, the exchange reported a profit after tax of ₹884 million (~$11.57 million), a 45% YoY increase from ₹608 million (~$7.96 million) reported in Q4 FY-21.

The revenue for Q4 FY22 stood at ₹1.28 billion (~$16.75 million), a 28% increase from ₹1.003 billion (~$13.12 million) during the same period last fiscal year.

The total traded volume across all market segments during the quarter was 27 billion units (BU), recording YoY growth of about 21%.

The electricity market comprising of Day-Ahead Market (DAM), Real-Time Market (RTM), Term-Ahead Market (TAM), Green Day Ahead Market (GDAM), and Green Term Ahead Market (GTAM) segments contributed 24.8 BU volume during Q4 FY22, recording a 10.5% increase from 22.4 BU during the same period in the previous financial year. The renewable energy and energy-saving certificate segment contributed 2.2 BU during the quarter.

Financial Year 2021-22

The revenue reported for FY22 stood at ₹4.844 billion (~$63.49 million), a 36% increase from ₹3.562 billion (~$46.69 million) reported in FY-21.

The exchange saw a 37% YoY growth in trading during the FY-22 accomplishing 102 BU volume across all market segments. The electricity market contributed 95.6 BU volume and achieved a 29% YoY growth.

The certificate segment comprising Renewable Energy Certificates (REC) and Energy Saving Certificates (ESCerts) contributed 6.4 BU and achieved 813% YoY growth during FY-22.

The volume growth was primarily driven by increasing demand for electricity, flexible and efficient procurement at the exchange’s competitive prices, and significant traction by the new market segments.

In FY-22, the peak demand met reached 201 GW, a 6% YoY growth, while electricity consumption at 1,370 BU saw about 7.8% YoY growth.

During FY 2021-2022, the IEX traded 4,854 million units (MU) of renewable energy, a 517% year-over-year (YoY) growth.

Earlier this month, Central Electricity Regulatory Commission (CERC) directed the power exchanges to re-design their bidding software so that members can submit their buy bids at the maximum price of ₹12 (~$0.16)/kWh for DAM and RTM.

The CERC had recently approved the introduction of hydropower in GTAM following a petition by IEX.