Shares of this smallcap power trading company fall over 4% on weak operational performance in Q2
After a weak Q2 operational show, shares of the smallcap energy trading company IEX fell in Fridays session.
Indian Energy Exchange share price, IEX Q2 results: Shares of the Indian Energy Exchange (IEX) in Friday's session (October 25) fell over 4 per cent to the day's low price of Rs 176.25 after the company's earnings were announced a day before. At the last count, shares of the energy trading company were down 3.69 per cent or Rs 6.8 at Rs 177.45 per share.
Primarily, shares were dragged lower amid weak operational performance by the smallcap company in the July-September quarter.
In Q2FY25, the company recorded a consolidated PAT at Rs 108.3 crore, marking an over 26 per cent increase year-on-year (YoY) in comparison to Rs 86 crore reported during the same period last year. Zee Business research estimated PAT to come in at Rs 104 crore.
The revenue also climbed 28.4 per cent on-year to Rs 139.4 crore as against Rs 108.5 crore reported during the corresponding period last year. The revenue, however,was below Zee Business research estimates of Rs 141 crore.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) took a hit and came in below estimates of Rs 132 crore at Rs 120 crore, a 30.4 per cent on-year increase. During Q2FY24, the company's EBITDA stood at Rs 92 crore. Likewise, margin also came in below Zee Business analysts estimates at 86 per cent, a 1.3 per cent or 130 bps increase on-year.
In its investor presentation, the company however highlighted 6 main growth levers for the company:
- Increase in power consumption
- New products and regulatory developments
- Energy transition
- Re-designing electricity market
-Diversity in demand/supply patterns
-Ample supply side availability
IEX share price performance
The company's stock over the past year has gained nearly 41 per cent, with its stock currently trading at a discount of over 27 per cent to its 52-week high price of Rs 244.4 per share.
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