Indian Energy Exchange soars 10% on strong Q2 show, 2:1 bonus issue
- IBEF
- October 25, 2021
Shares of the Indian Energy Exchange (IEX) improved 10% to Rs. 832.85 (US$ 11.12) on the BSE in Friday’s intra-day trade, after the firms announced 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, though, had cut some of its opening gains and was trading 4% higher at Rs. 789.15 (US$ 10.53) on the BSE. In contrast, the S&P BSE Sensex was up 0.60% at 61,286. A collective 6.6 million shares transaction took on the NSE and BSE. The stock had reached a record high of Rs. 956.15 (US$ 12.76) on Tuesday, October 19, 2021.
For Q2FY22, IEX on Thursday posted a near 75% jump in consolidated net profit at Rs. 77.38 crore (US$ 10.33 million), mainly due to higher revenues. In Q2FY21, the consolidated net profit stood at Rs. 44.33 crore (US$ 5.91 million). Total consolidated revenue grew 55.4% to Rs. 122.30 crore (US$ 16.32 million) from Rs. 78.71 crore (US$ 10.50 million) in the year-ago period.
The firm's board suggested a bonus issue of equity shares in the proportion of two shares of Rs. 1 (US$ 0.013) each for every one existing share of Rs 1 (US$ 0.013) each held by the shareholders as on the record date.
The second quarter of fiscal year 2021-22 saw a substantial expansion in the industry and economic activities leading to a rise in the total power consumption. The growing economic activity prompted demand for electricity. The national electricity consumption at 366 BU during the second quarter of the fiscal, saw 9.7% y-o-y growth while the peak demand touched 200.5 GW on July 7, 2021 was the highest ever recorded in the country.
Under Paris Climate Agreement, government commitment to lower carbon emissions will encourage use of Natural Gas. The government’s vision of expanding share of Natural Gas in total energy basket from 6% to 15% by 2030 will raise gas consumption in the economy from current 160 MMSCMD to 600+ MMSCMD.
Indian gas sector is prepared for a breakout growth in demand, led by city gas distribution (CGD) coupled with rising reliance on imported liquefied natural gas (LNG). Supported by rise in LNG terminal and gas T&D infrastructure allowing short term trading of gas, IEX stated in a press release.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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