During the second quarter of FY23, IEX posted a consolidated net profit of ₹71.20 Crore --- lower than ₹77.39 Crore in Q2FY22 ---- though better than ₹69.13 Crore in Q1FY23.
• In general terms, a buyback is a corporate action in which a company buys back its shares from existing shareholders, usually at a price higher than the market price.
The Indian Energy Exchange (IEX) will consider the buyback proposal on 25 November. IEX is India's leading energy exchange, an automated trading platform for electricity, renewable energy and physical delivery of certificates. IEX shares closed on a flat note on Friday.
IEX said in its regulatory filing, "A meeting of the Board of Directors of the Company is scheduled to be held on Friday, November 25, 2022, to consider, inter alia, a proposal for buyback of fully paid-up equity shares of For. Company."
On the BSE, the IEX scrip closed at ₹138.40, down 0.5%. The shares had touched a day's high and low of ₹140 per share and ₹137.50, respectively.
At the current price level, the market cap of IEX is around ₹12,437.59 Crore.
In general terms, a buyback is a corporate action in which a company buys back its shares from existing shareholders, usually at a price higher than market value. When a company buys back, the number of shares outstanding in the market is reduced.
According to the BSE website, among the many benefits of buyback are --- improving earnings per share; improving return on capital, return on net worth, and increasing long-term shareholder value; provide an additional exit route for shareholders when shares are undervalued or thinly traded; increasing the consolidation of stake in a company; return surplus cash to shareholders; achieving the optimal capital structure; and to support the share price during sluggish market conditions, among others.
During the second quarter of FY23, IEX posted a consolidated net profit of ₹71.20 Crore --- lower than ₹77.39 Crore in Q2FY22 ---- though better than ₹69.13 Crore in Q1FY23. Consolidated Total Income was ₹113.77 Crore in Q2FY23 as compared to ₹122.30 Crore in Q2FY22 and ₹113.39 Crore in Q1FY23.
As on September 30, 2022, IEX has cash and cash equivalents of approximately ₹77.85 Crore as compared to ₹224.16 Crore as on September 30, 2021.
The Company's Earning Per Share (EPS) as on September 30, 2022 is approximately ₹0.78.
IEX shares have declined heavily this year. Year-to-date, the IEX stocks have declined over 46% on the BSE. It was approximately ₹258 per share as on January 3, 2022.
Meanwhile, shares on Dalal Street declined over 4% between November 14 and 18.
Last month, IEX achieved a volume of 7972 MU, which included green power trade of 403 MU and 3.58 Lakh REC (equivalent to 358 MU). That said, the overall volume on the exchange in October '22 was lower by 13% on a higher volume base than last year, and lower by 2% on a MOM basis due to lower REC trading.
Earlier, on November 4, IEX had said in its monthly performance update that going forward, "further correction in prices due to improvement in coal availability and reduction in demand due to onset of winter, cost optimization by discoms and open access." The opportunity will provide the consumer, resulting in an increase in volume on the exchange."
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