Indian Energy Exchange: 

IEX witnessed good growth in electricity volumes traded during 3QFY23 despite supply-side issues. Total volumes traded were up 5% QoQ basis, at 24.2 billion units. Electricity prices in December 2022 averaged around Rs 5.2 per unit, higher by 48% on a YoY basis. IEX, which commands close to 90% market share in the power trading exchange business, has announced a share buyback worth up to Rs 98 crore. Electricity demand and generation are growing at a decent pace, with higher demand from the industry and households. In November 2022, India’s coal-based power generation grew at 16.3% on a YoY basis. The Day Ahead Market (DAM) segment contributed around 60% to its total volumes in December. While DAM volumes were impacted because of the spike in prices, other segments like Term Ahead market (TAM) recorded a good 135% jump in volumes in December 2022. Contribution from the gas exchange and long-duration contracts would further support volumes and margins. Positive on IEX given the valuation comfort, market leader in power exchange pace and volume revival in key segments to boost earnings.