EKI Energy Services Limited (EKI Energy) (BSE: 543284), one of the leading companies in the carbon credit industry in India, announced its Q2 and H1 FY2022 results. The Company continued its growth momentum and reported total revenues of Rs. 637 crores in H1 FY2022. The strong business performance has been supported by higher demand and pricing of carbon credits, increasing global awareness of GHG emissions and widening carbon credit demand-supply gap.
H1 FY2022 Performance Highlights:
Q2 FY2022 Performance Highlights:
- Revenues from operations of Rs. 637 crores (Rs. 191 crores for full year FY2021)
- EBITDA of Rs. 157 crores; margins expanded to 24.6% (Rs. 25 crores for full year FY2021)
- PAT of Rs. 117 crores with margins of 18.4% (Rs. 19 crores for full year FY2021)
- Revenues from operations of Rs. 443 crores
- EBITDA of Rs. 109 crores; margins 24.5%
- PAT of Rs. 81 crores with margins of 18.3%
Commenting on the business performance, Chairman and Managing Director, Mr. Manish Dabkara: "EKI Energy has reported another outstanding quarter with a robust business performance. This strong growth is supported by growing global carbon credit demand, increasing net-zero commitments by various countries and voluntary emission reduction pledges by corporates. During H1 FY22 our margins jumped to 24.6% as compared to 13.3% in FY21 supported by higher carbon pricing and effective cost control measures. Considering the higher demand for carbon credits and a widening demand-supply gap in the global markets, we had entered in a major deal to purchase carbon credits in H1 FY22.
As part of our business strategy of continuous expansion across different geographies and industries, we are also exploring new avenues of business. EKI Energy is exploring attractive business opportunities arising from the proposed Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The scheme is applicable from 2021 and voluntary for all countries until 2027 but many countries including the US and China have already implemented the scheme and other countries to follow in the near term. The implementation of CORSIA will increase global carbon credit demand substantially and will increase the demand-supply gap further.
With improving market dynamics, the current carbon offsetting demand is sustainable and expected to increase in future. We are positively looking forward to the scheduled COP26, which is expected to bring more stringent guidelines to control emission and increase emission reduction targets. The increasing awareness for reduction in global emissions and collective efforts of various regulatory bodies is expected to increase the pricing and scope of carbon pricing instruments over time.
Going forward, with strong business fundamentals, higher demand for carbon credits supported by evolving global carbon credit markets and economic recovery from the Covid-19 pandemic, we are confident of continuing strong growth momentum and maximizing shareholder value."
Shares of EKI Energy Services Ltd was last trading in BSE at Rs. 3223.95 as compared to the previous close of Rs. 3070.45. The total number of shares traded during the day was 15600 in over 10 trades.
The stock hit an intraday high of Rs. 3223.95 and intraday low of 3223.95. The net turnover during the day was Rs. 50293620.00.
Source : Equity Bulls