Indian Energy Exchange (IEX) posted its standalone net profit at ₹78 crore for the September quarter, up 69% from ₹46 crore in the year-ago period.
On a consolidated basis, the profit for the quarter ended rose by 75% to ₹77 crore.
The company’s board has put forth a proposal of bonus issue of equity shares in the ratio of 2:1, which is subject to the approval of shareholders through postal ballot.
The said proposal states that for every 1 share a person holds in the company, the respective person will get 2 additional shares.
The record date for the bonus is yet to be revealed but it is likely to be credited within two months from the date of Board approval, that is by December 20, 2021.
The bonus shares will be issued out of free reserves created out of profits of the company available at the end of the fiscal.
The bonus issuance follows a 72 percent increase in the company’s stock in the September quarter, beating the S&P BSE Power Index by 16 percent.
On Tuesday, the IEX rose to a record high of 956. However, stock was losing consecutively over the previous two days, declining over 10%.
On Thursday, IEX stock fell almost 4% to ₹757.95 on NSE. Since the beginning of 2021, the scrip has surged 267%.
Revenue from operations of the company surged by 56% to ₹109 crore in the said quarter from ₹70.7 crore prior-year period.
Segment-wise, revenue from the gas exchange rose to ₹2 crore from ₹24 lakh in the same period of last year.
IEX’s total expenses stood at ₹17.9 crore in the reporting period, while the total income increased to ₹121 crore.
“Over the next decade, with India increasingly looking at EVs (electric vehicles) and big companies like Tata Power focusing in that area, the demand for energy is going to rise, and IEX is rightly placed for this kind of outlook,” said Gaurav Garg, head of research at CapitalVia Global Research, reported Mint.
The shares of IEX inched up 5 percent on Friday morning. It closed its intraday at Rs 764.70.