India Infoline

Indian Energy Exchange Ltd (IEX) reported good revenue and earnings growth for Q3FY18. Revenue grew by 21.3% yoy to Rs70.2cr. EBITDA stood at Rs58cr, up 28.1% yoy. EBIDTA margin rose by 441bps yoy to 82.6% due to reduction in technology costs from acquisition of trading software. Net Profit stood at Rs36.2cr for Q3FY18, up 26.5%.

Total sales volumes stood at 17,921mn units up by 62% yoy for Q3FY18. Sales volumes for 9MFY18 stood at 43,094mn units, up 32% yoy. Day-ahead and Term-ahead market volumes stood grew by 6% and 95% for the quarter respectively.

Renewable Energy Certificates reported an 806% yoy increase for the quarter.
Energy Savings Certificates reported a healthy transaction volume of 1,075mn units for the quarter.
Curtailment due to congestion stood at 0.5% for 9MFY18 against 4% for FY17.
Short term market volume stood at 77.35bn units for the period of April-October FY18. Total exchange volumes for the same period stood at 28,203mn units. We estimate that this brings IEX market share to 34.3% of the short-term electricity market.

IEX market share stands at 94% of exchange traded electricity volumes

Conference Call Highlights

With commissioning of new transmission lines congestion reduced sharply with 91 out of 92 days for the quarter reporting no congestion.

Share of transaction from distribution companies rose to 67% of total transactions for Q3FY18 against ~40% for Q3FY17

Energy Savings Certificates revenue likely to be seasonal and most probably would not match same levels in FY19.