Indian Energy Exchange Limited Research Report

Indian Energy Exchange Limited Research Report

 

Industry

Market Price

Recommendation

Target

Time Horizon

Energy

160

210

Buy

1 Year

 

Q1 FY 2023 Review

Indian Energy Exchange Limited reported net revenue of ₹9,835.19 Lakhs for the quarter ended June 30, 2022, compared to ₹9,102.96 Lakhs for June 30, 2021. EBIT and Profit After Tax were ₹9,186.24 Lakhs and ₹6,912.86 Lakhs for the quarter ended 30 June 2022, as compared to ₹8,243.46 Lakhs and ₹6,210.45 Lakhs during the corresponding quarter of the previous year.

 

Indian Energy Exchange Limited - Investment Summary

CMP (₹)

160

52 Week H/L

318.6/128.37

Market Cap (crores)

14,678

Face Value (₹)

01

Promoter Holding (%)

0.00

Non-Promoter Holding (%)

100

Total (%)

100.00

Book Value

₹7.83

EPS TTM

₹3.52

 

Indian Energy Exchange Limited - Overview

  • Indian Energy Exchange Limited (IEX) is India’s pioneering and premier power trading platform. The exchange provides an automated platform for the physical delivery of electricity.

  • IEX commands a market share of ~90% in the power exchange market.

  • IEX went into business in 2008 following the enactment of the Electricity Act, 2003, which permitted open access in terms of inter-state transmission, followed by the National Electricity Policy and a conducive framework put in place by CERC.

 

Indian Energy Exchange Limited Overview

 

Beta: 0.88

Alpha: 37.07

Risk Reward Ratio: 1.33

The margin of Safety: 22%

 

Indian Energy Exchange Limited - Quarterly Summary

Quarterly (INR in lakhs)

Jun-22

Mar-22

Dec-21

Sep-21

Jun-21

Revenue from Operations

9,835.19

11,208.35

11,754.22

11,037.98

9,102.96

 

 

 

 

 

 

Other income

1,504.29

1,635.73

1,323.68

1,192.44

1,184.82

Total Income

11,339.48

12,844.08

13,077.90

12,230.42

10,287.78

 

 

 

 

 

 

Total Expenditure

2,153.24

2,129.79

2,313.98

1,972.66

2,044.32

EBIT

9,186

10,714

10,764

10,258

8,243

 

 

 

 

 

 

Exceptional Items

54.23

742.04

 

 

 

PBT before exceptional Items

9,240

11,456

10,764

10,258

8,243
           

Finance cost

54.59

45.97

49.53

47.04

54.95

PBT

9,186

11,410

10,714

10,211

8,189

 

 

 

 

 

 

Tax Expenses

2,273.02

2,569.65

2,640.91

2,471.78

1,978.06

PAT

6,913

8,841

8,073

7,739

6,210

 

Business

  • IEX is India's first and largest energy exchange, providing a nationwide, automated trading platform for physical electricity delivery.

  • The exchange platform enables efficient price discovery and increases the accessibility and transparency of India's power market, while also improving trade execution speed and efficiency.

  • IEX has a robust ecosystem of over 6,800 participants spread across 29 states and 5 union territories, including 55 distribution utilities and 500 conventional generators.

  • It also has a strong customer base of 4400+ commercial and industrial customers from industries such as metal, food processing, textile, cement, ceramic, chemicals, automobiles, information technology industries, institutional, housing, real estate, and commercial entities.

  • Product segments:

  • Day Ahead Market (DAM) - IEX allows its participants to transact electricity in 15-minute blocks a day before delivery. Bids are submitted electronically by buyers and sellers.

  • Term Ahead Market (TAM) range for buying and selling electricity for up to 11 days. It allows participants to buy electricity on the same day through intra-day contracts

  • Renewable Energy Certificate (REC) - The Rec market facilitates environmental attribute transactions. Renewable Energy (RE) generators can choose to obtain RECs in exchange for the green attributes of their generation.

  • Energy Saving certificates (ESCERTS) - ESCerts are tradable certificates issued by the Bureau of Energy Efficiency under the Perform, Achieve, Trade Scheme, a market-based mechanism designed to incentivize energy efficiency in large energy-intensive industries.

    Indian Energy Exchange Limited Revenue Breakdown

  • Out of the total revenue generated, 98.99% has been generated from power exchange whereas 1.01% has been generated from gas exchange in FY 2022, compared to 99.28% and 0.72% in FY 2021.

 

Indian Energy Exchange Limited - Revenue Trend

Topline and Bottomline trend (crores)

Indian Energy Exchange Limited Topline and Bottomline trend

 

Indian Energy Exchange Limited EBIT Margin

 

Indian Energy Exchange Limited Shareholding Pattern

 

Indian Energy Exchange Limited - Ratio Analysis

 

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Profitability Ratio

 

 

 

 

 

EBITDA Margin

91.34%

95.60%

94.28%

90.93%

96.75%

EBIT Margin

86.88%

91.50%

88.35%

85.73%

92.75%

Net Profit Margin

57.14%

64.96%

68.34%

64.63%

69.88%

 

 

 

 

 

 

Return on Investment

 

 

 

 

 

Return on Asset – ROA

 

26%

26%

25%

22%

Return on Capital Employed – ROCE

 

66.17%

54.61%

52.67%

59.43%

Return on Equity – ROE

 

50.47%

46.35%

43.53%

47.84%

 

 

 

 

 

 

Liquidity Ratio

 

 

 

 

 

Current ratio (x)

1.37

1.27

1.46

1.93

1.54

Quick Ratio

1.37

1.27

1.46

1.93

1.54

 

 

 

 

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