Indian Energy Exchange (IEX), which reported flat revenues and net profit for Q4 FY23 and the fiscal year, has said that it is exploring options for setting up a coal exchange in India.
In this context, it was noted in an investor presentation that the Ministry of Coal has appointed a consultant for finalising the framework for a coal exchange in India.
This would then be the third exchange subsidiary that the energy exchange is setting up, after the Indian Gas Exchange in 2020 and the Indian Carbon Exchange in December 2022.
Further, IEX plans to also bring in trading in petroleum product pipeline capacity, the company has told businessline.
It has reported a net profit of ₹82.8 crore for the last quarter and ₹292.69 crore for FY23, compared with ₹80.8 crore and ₹302.51 crore, respectively, for FY22.
The company’s board has recommended a dividend of ₹1 per share of face value of ₹1 (100 per cent).
Revenues for the quarter and the full year were ₹129.60 crore and ₹474 crore, respectively, compared with ₹127.75 crore and ₹477.87 crore for Q4 and FY22.
Also read: Average electricity prices on IEX during FY23 rose 35% on higher demand
The company expects a bright future both because of new products (derivatives, contracts for differences, and virtual PPAs) and new businesses (carbon exchange, coal exchange, and pipeline capacity trading).
Moreover, it expects business growth from wind and solar companies who set up capacities from which they would sell their electricity through the market, rather than through long-term power purchase agreements with customers—because such ‘merchant capacities’ fetch returns (IRR) of 18-20 per cent compared with 12-14 per cent under PPAs.
In 2022-23, IEX also did a buyback of equity shares from the open market route. It purchased and extinguished 69.7 lakh equity shares from the stock markets, spending ₹98 crore. The bought-back shares amounted to 0.78 per cent of the pre-buyback equity share capital of the company.
On the NSE, the IEX share (of the face value of Re 1) was ₹156, which was 25 paise (16 per cent) higher than the previous close.