It was a mixed bag from IEX as revenue was up, but margins declined. Going forward, July is looking flat on YoY basis, but is ahead of June, said Rajiv Srivastava, MD and CEO of IEX.
“This has been a pretty solid quarter for us. The volumes grew 14.5 percent year-on-year (YoY), the revenue grew 15.6 percent on a standalone basis, and profit was up 8.3 percent. Had it not been for fund commitment on COVID-19 care, profit also would have gone almost about 14-15 percent,” Srivastava told CNBC-TV18 in an interview.
Srivastava further added that July is looking flat on YoY basis, but is ahead of June.
“July is looking a little flat over YoY but a little ahead of June. It is flat YoY just because in July what happens is 2-3 parameters play out. One, the industry recovery we thought would happen as fast and as robust as we expected it to happen, has not turned around to be that way. I think the supply chains across the country continue to be a lot more broken than we had thought. My personal estimate is it will take a couple of months to get fixed,” he said.
July also sees a lot of non-conventional power generation, Srivastava said.
“The second thing is, in the month of July, a lot of non-conventional generation kicks in. So, there is a lot more hydro generation and a lot more wind generation which are all must run, you cannot control that. So, you have to just feed it back into the grid and that curtails demand. So, those are the reasons, otherwise July last year was very good for us and staying flat YoY is a pretty reasonable situation right now,” he added.
Speaking about the real-time electricity market, he said, “Real-time market has been extremely good for us. Since the time we launched on June 1, till now, we have already done more than billion-plus units in electricity across the country. Real-time has got a real solid fundamental goodness to it, it allows discoms and it allows any other generator to buy when they need and so it really is a hugely flexible market. You can buy at a short time, really as close to real-time as possible. So, you can really dispatch power within an hour of your procurement versus what you do on the other markets is at least 2.5 hours earlier. So, it allows you to manage your demand-supply fluctuations on an absolutely real-time basis. That has been really the goodness of the whole market.”Watch video for the full report