IEX expects DISCOM relief measures to create value chain
New Delhi-headquartered power and renewal energy certificate (REC) trading company, Indian Energy Exchange (IEX) has reported 10.9 per cent increase in electricity volumes, on Friday. The stock can be expected to show strong sustainability after government announcements regarding DISCOMs.
As part of the largest economic revival package by government, Finance Minister announced Rs 90,000 crore liquidity boosts to DISCOMs, which included PFC/REC loans, rebates and reforms. The company expects that this package would create the much-needed financial liquidity in the power sector value chain.
The company released a statement along with its quarterly results, which threw light on the electricity demand installed capacity. It reported that demand grew by 1.6 per cent YoY for the quarter despite a large drop in March 2020. While the demand remained positive, the total capacity reached 370 GW as on March 31, 2020 with 24 per cent contribution from renewable energy.
On the financial front, it reported 25 per cent growth in sales on YoY basis, largely due to volume growth. The electricity volumes registered growth in Q4FY20, from 9,908 MU to 13,835 MU.
The stock price on Friday jumped 4.8 per cent in intraday trade to Rs 163 on BSE.