IEX earnings: Posts 9.6% YoY growth in consolidated net profit for Q2, but shares decline amid market coupling concerns

livemint.com:

Indian Energy Exchange (IEX) declared its first quarter results. The company reported a 9.6 percent increase in its consolidated net profit for the June quarter compared to the same period last year, reaching ₹75.8 crore. The rise in net profit was attributed to higher revenues.

In the corresponding quarter of the previous year, the company's net profit was ₹69.12 crore. However, IEX shares declined by over 4 percent following the announcement of the June quarter numbers. Over the past month, the stock has experienced a negative return of 6.4 percent.

Year-to-date, the stock fell by 15 percent, and over the last one year, it was down by 23 percent. In terms of financials, the company's revenue from operations increased by 5.7 percent year-on-year to ₹104 crore in the June quarter, compared to ₹98.35 crore in the same quarter of the previous fiscal year. The total income of the company also saw a 12 percent YoY increase, amounting to ₹127.36 crore in the quarter under review, compared to ₹113.39 crore in the corresponding period last year.

During the April-June period, the company's EBITDA (earnings before interest, taxes, depreciation, and amortization) rose slightly to ₹82 crore, as compared to ₹81 crore in the same period last year. However, the operating margin came in lower at 78.6 percent, compared to 82.1 percent in the year-ago period. Recently, IEX's share price experienced a significant decline, which could be related to the Central Electricity Regulatory Commission's plan to initiate market coupling.

The power ministry reportedly asked the CERC to start the market coupling process for multiple electricity exchanges to achieve uniform prices across exchanges. Ms. Sudha Pillai, the Non-Executive Independent