Thread by @ValueEducator

#IEX Q3 Concall Highlights ⚡

Watch the video for better understanding

Link :

Like & Retweet for better reach !

Financial Update

1. Revenue for the quarter increased by 32.4% from 95.7 Crores in Q3 of FY2021 to 126.7 Crores in Q3 of FY2022.

2. PAT grew by 33% YoY from Rs 60.1 Cr in Q3FY21 to Rs 79.9cr in Q3FY22 with a Margin of 63.1%.

3. Revenue for the 9M FY22 increased by 37%, from Rs. 255.6 Cr. in 9M FY21 to Rs. 350.1 Cr. in 9M FY22.

4. PAT grew by 48.1% YoY from Rs 149.7 Cr in 9MFY21 to Rs 221.6 Cr in 9MFY22, with a margin of 63.3%.

POLICY AND REGULATORY UPDATES

1. On 16th December 2021, CERC issued the draft CERC (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2021.

This will simplify, ease, and clarify how transmission access will be available for participants on the Exchange.

Post implementation of GNA, decision making by market participants, to participate on the Exchange, will not be contingent upon transmission access and charges. GNA will promote the development of the power market in the country.

2. On 6th October 2021, the 10 year long pending jurisdictional conflict related to power market between CERC and SEBI was resolved paving way for the introduction of long duration contracts in power and renewable energy on the Power Exchanges.

This will also enable the launch of Electricity Derivatives on Commodity Exchanges.

3. Electricity derivatives will smoothen out the price volatility and also buyers will be able to hedge their positions and take delivery in spot markets.

This will lead to an increase in the Exchange transactions.

4. IEX has already applied for approval of longer duration contracts to CERC.

5. CERC also issued the draft Deviation Settlement Mechanism (DSM) and Related Matters Regulations, 2021, linking the DSM charges to the time block-wise price discovered on the Exchange. Implementation of this initiative will help to further deepen the real-time market.

6. The National Open Access Registry (NOAR) is also likely to be implemented in fiscal year 2022. NOAR will automate processing of open access and considerably reduce the lead time taken in the various procedures.

This will also make the transmission allocation more transparent and efficient.

POWER SECTOR HIGHLIGHTS

1. At the end of December 2021, India's renewable installed capacity was 151 gigawatt. The share of renewable energy in India's total capacity base has increased to 38%.

2. National Electricity consumption stood at 321 BU during the quarter, registering a 5% CAGR growth over the last 2 years.

Business Update

1. In the month of October due to high demand and supply constraints from the domestic coal, domestic coal inventory was only about 4 days which led to an increase in the price of electricity and their prices increased to about Rs 8.01 per unit.

However, with an increase in coal supply, the domestic coal inventory has now increased to 9 days in the month of December and their prices in the month of November were about Rs.3 and in December was Rs.3.54 paisa per unit.

2.Traded volumes on the Exchange grew by 37% YoY with 27.6 BU volumes traded versus 20.1BU in Q3 FY’21. The growth in volumes was driven by an increase in electricity consumption as well as resurgence of trading in REC’s and ESCERT’s.

3. Gujarat, Andhra Pradesh, Punjab, Maharashtra, and Haryana contributed the highest to Exchange’s electricity volumes

4. Trading in the Renewable Energy Certificates Market restarted on the 24th of November 2021 after a 16-month gap. Company seeing a very strong momentum on REC trading.

5. The Real-Time Market continues to be one of the fastest-growing electricity market segments on the Exchange, achieving a growth of 70% YoY with 4.8 BU of volumes traded during the quarter.

6. The green market, including the day ahead and term ahead market, cumulatively traded 1.2 BU during the quarter, and contributed 5% to overall electricity volumes.

7. On the REC front, a total of 38.28 lakh certificates, and a total of 2.86 lakh Energy Saving Certificates traded during the quarter

8. Cross Border Trade with Bhutan commenced in the Day-Ahead market. Company is closely working with key stakeholders in Bangladesh to garner their participation as well

9. The Exchange is now gearing to launch the Longer Duration delivery contracts in electricity and renewable segment. Company is also working on other new segments such as Exchange based Ancillary Markets, Capacity Markets as well as Gross Bidding Contracts.

IGX

1. After a sale of 4.93% stake to IOCL, IEX Holding in IGX is reduced to 47% now and now IGX is not a subsidiary company of IEX, it is an associate company of IEX

2. In Q3 2021 IGX recorded a trade volume of 3.6 million MMBTU. Cumulatively 5 million MMBTU was traded through IGX during the year.

3. IGX achieved breakeven in Q3 FY22.

4. IOCL has joined IGX as a new strategic partner.