Indian Energy Exchange’s Q3 net profit down to ₹77 crore

“On a consolidated basis, revenue for the quarter grew by 3.1% quarter on quarter (QoQ) 113.8 cr in Q2FY’23 117.4 cr in Q3FY’23. PAT grew by 8.4% QoQ from 71.2 crores 77.2 crore with a margin of 66%, the company said in a statement.

During Q3 FY23, the exchange recorded a power volume of 23 BU, a growth of 9% QoQ, but down 2% YoY.

The trading volume was affected to a great extent due to supply side constraints due to high prices of e-auction coal.

REC (Renewable Energy Certificates) volumes at 1.2 BU during the third quarter of FY 2022-23 saw a 68 per cent year-on-year decline due to exceptionally high REC volumes in the year-ago period Due to which the stalled demand was met. By placing a moratorium on REC trading by APTEL for a period of 16 months, it said.

The total volume on the exchange during Q3 FY2023 was 24.2 BU, which is a growth of 5% sequentially across all market segments. However, volumes declined by 12% due to power supply side constraints, higher prices discovered during Q3FY23 and higher REC business volumes during the quarter under review.

E-auction coal prices remained high during the quarter. While the quarterly average price premium declined from 293% in Q2FY23 to 242% in Q3FY23, it was significantly higher as compared to 35% of the special forward e-auction price for the power sector in FY22. As a result, input costs for gencos remained high.

Average clearing price in day before market due to persistently high spot e-auction coal prices 4.56 in Q3 FY2023, while less than 5.40 in the previous quarter, but still high for providing adaptability to discoms and open access consumers, it said.

Improvement in coal inventories and reduction in e-auction prices are expected to bring down power prices on the exchange and provide cost optimization opportunities to discoms and open access consumers. This is expected to result in higher volumes on the exchange.

IGX traded a total gas volume of 24.42 million MMBtu during Q3 FY23, a 568% YoY growth. The growth was, to a large extent, the result of the participation of major domestic gas producers and an increase in the number of participants.