Indian Energy Exchange Ltd (NSE:IEX) Q2 2025 Earnings Call Highlights: Strong Trading Volume ...

In This Article:

  • Revenue: INR 167.8 Crores, a growth of 26.2% YoY in Q2 FY 25.

  • Consolidated PAT: INR 108.3 Crores, an increase of 25.2% YoY in Q2 FY 25.

  • Trading Volume: 36.7 billion units in Q2 FY 25, a growth of 38.2% YoY.

  • RTM Segment Growth: 31% YoY increase, nearly 11 billion units in Q2 FY 25.

  • Green Market Volumes: Increased by 46% to nearly 2.6 billion units in Q2 FY 25.

  • IGX Traded Volume: INR 118 LAC for Q2 FY 25 compared to INR 195 LAC in Q2 FY 24.

  • IGX PAT: INR 6.1 Crores in Q2 FY 25 compared to INR 7.8 Crores in Q2 FY 24.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Indian Energy Exchange Ltd (NSE:IEX) reported a strong trading volume of 36.7 billion units in Q2 FY25, marking a growth of 38.2% year-on-year.

  • The company maintained a high market share of approximately 83% in the electricity market.

  • The Real-Time Market (RTM) segment saw significant growth, with volumes increasing by 31% year-on-year, highlighting its importance in managing short-term electricity needs.

  • The company is actively pursuing diversification opportunities, including the establishment of a coal exchange and exploring carbon exchange possibilities.

  • Indian Energy Exchange Ltd (NSE:IEX) has been accredited as India's first renewable energy certificate issuer, enhancing its position in the renewable energy market.

Negative Points

  • Electricity demand growth was slow during the second quarter due to better-than-expected monsoon, resulting in flat power demand growth of only 0.5% year-on-year.

  • The company experienced a decline in month-on-month volumes from July to September, attributed to reduced demand from certain states like Bihar.

  • There is uncertainty regarding the approval and launch of new long-duration contracts, which have been pending regulatory approval.

  • The market share of Indian Energy Exchange Ltd (NSE:IEX) has decreased over the years, from 94% in FY22 to 83% currently, due to increased competition and the introduction of long-duration contracts.

  • The company reduced transaction fees for Renewable Energy Certificates (REC) due to a significant drop in REC prices, which could impact revenue from this segment.

Q & A Highlights

Q: What is Indian Energy Exchange's market share in the current quarter compared to other exchanges? A: Rohit Bajaj, Executive Director, stated that the market share is approximately 83%.

Q: Can you explain the reduction in transaction fees for the REC market? A: Rohit Bajaj explained that the rates in the REC market have decreased, leading to a reduction in transaction fees from INR 20 to INR 10 per certificate.