- 07 Nov 2023
- ICICI Securities
STRONG POWER DEMAND ENABLES 20% VOLUME GROWTH
IEX - 195 Change: -0.15 (-0.08 %)News: IEX achieved 926 crore units of total electricity volume in October 2023, registering an increase of 21% on YoY basis. The Day-Ahead Market (DAM) volume increased to 4,74 crore units in October ’23, from 438 crore units in October '22, growing 8.3 % YoY. The Real-Time Electricity Market (RTM) volume increase to 240 crore units in October ‘23, an increase of 6.1% YoY. Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,91.1 crore units during October ‘23, higher by 207.6 % on YoY basis.
Views: Strong demand for power consumption in Q2FY24 and October 2023 has enabled strong volume growth for IEX. But we believe that valuations are reasonable levels coupled with regulatory risks that leave little room for upside.
Impact: Neutral