Shares of the Indian Energy Exchange (IEX) rallied 10 per cent to Rs 832.85 on the BSE in Friday’s intra-day trade, after the company posted strong earnings for the second quarter ended September 2021 (Q2FY21) and also announced bonus shares in the ratio of 2:1.
At 09:30 am; the stock, however, had pared some of its opening gains and was trading 4 per cent higher at Rs 789.15 on the BSE. In comparison, the S&P BSE Sensex was up 0.60 per cent at 61,286. A combined 6.6 million shares changed hands on the NSE and BSE. The stock had hit a record high of Rs 956.15 on Tuesday, October 19, 2021.
For Q2FY22, IEX on Thursday posted a near 75 per cent jump in consolidated net profit at Rs 77.38 crore, mainly on the back of higher revenues. In Q2FY21, the consolidated net profit stood at Rs 44.33 crore. Total consolidated revenue grew 55.4 per cent to Rs 122.30 crore from Rs 78.71 crore in the year-ago period.
The company’s board recommended a bonus issue of equity shares in the proportion of two shares of Re 1 each for every one existing share of Re 1 each held by the shareholders as on the record date.
The second quarter of fiscal year 2021-22 saw a significant growth in the industry and economic activities leading to an increase in the overall power consumption. The increasing economic activity spurred demand for electricity. The national electricity consumption at 366 BU during the second quarter of the fiscal, saw 9.7 per cent year on year growth while the peak demand touched 200.5 GW on July 7, 2021 was the highest ever registered in the country.
Under Paris Climate Agreement, government commitment to reduce carbon emissions will promote use of Natural Gas. The government’s vision of increasing share of Natural Gas in total energy basket from 6 per cent to 15 per cent by 2030 will increase gas consumption in the economy from current 160 MMSCMD to 600+ MMSCMD.
Indian gas sector is poised for a breakout growth in demand, led by city gas distribution (CGD) coupled with increasing dependency on imported liquefied natural gas (LNG). Supported by ramp up in LNG terminal and gas T&D infrastructure enabling short term trading of gas, IEX said in a press release.
IEX is India’s premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.