IEX Shares surge on positive power market update

IEX Delivers Impressive Electricity Volume Growth

IEX reported a significant 19% year-on-year (YoY) increase in electricity volume for Q1 FY25, reaching 28,178 MU. This positive momentum continued, with the total volume for the quarter, including certificates, reaching 30,354 MU, representing a 20.8% YoY growth.

June 2024 mirrored this positive trend. IEX recorded a 24.7% YoY increase in electricity volume (10,185 MU) compared to June 2023. The total monthly volume, including certificates, also rose by 19.4% YoY.

Growth Spans All Market Segments

The positive trend wasn't limited to overall volume. IEX's different market segments also experienced significant growth. The day-ahead market (DAM) saw a substantial rise of 18.2% YoY in June 2024, reaching 4,849 MU. Similarly, the real-time electricity market (RTM) volume witnessed a 20.1% YoY increase, reaching 3,213 MU in June 2024.

While DAM volumes for Q1 FY25 showed a moderate 6.7% YoY growth, RTM volumes displayed robust growth of 26.8% YoY, reaching 9,193 MU. The day-ahead contingency and term-ahead market (TAM) also experienced substantial increases - 23.3% YoY in June 2024 and 28.4% YoY for Q1 FY25.

Stock and Financial Performance

IEX shares have risen about 300% over the past five years driven by its financial performance. Over the past five fiscal years, the company’s revenues have risen from ₹257 crore to ₹449 crore while net profit rose from ₹175 crore to ₹339 crore.

However, IEX shares are still trading below the high of about ₹320 they reached in 2022 after rising over sixfold from ₹50 levels in 2020.