Conference Call with EKI Energy Services Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Commercial services and suppliers company EKI Energy Services Ltd. declares Q3FY22 result: EKI Energy reports 9M FY2022 revenues of Rs. 1,325 crores 9M FY2022 EBITDA of Rs. 370 crores and PAT of Rs. 278 crores 9M FY2022 Performance Highlights: Revenues from operations of Rs. 1,325 crores (Rs. 191 crores for full year FY2021) EBITDA of Rs. 370 crores; margins expanded to 27.9 % (Rs. 25 crores for full year FY2021) PAT of Rs. 278 crores with margins of 21.0% (Rs. 19 crores for full year FY2021) Q3 FY2022 Performance Highlights: Revenues from operations of Rs. 688 crores EBITDA of Rs. 213 crores; margins 31.0% PAT of Rs. 161 crores with margins of 23.4% Commenting on the business performance, Mr. Manish Dabkara, CMD and CEO, EKI Energy Services Ltd. said, “We are truly delighted to report that we have continued our outstanding performance in Q3 FY2022 as well with revenue from operations for the 9M FY2022 at Rs. 1,325 Cr, up from Rs. 637 Cr in H1 FY2022. Robust business growth has been supported by higher demand and increasing carbon credits prices along with changing climate related regulations, increasing awareness of GHG emissions reduction and carbon neutrality pledges by corporates. During the 9M FY2022, our EBITDA and PAT margins almost doubled from FY2021 levels to 27.9% and 21.0% respectively. As a brand we are always innovating for newer green technologies and projects with which we can offer a wider range of offerings to our customers globally. In line with this, we have been consistently launching strategic projects including a JV with a unit of oil major Royal Dutch Shell for Nature-based Solutions; apart from the incorporation of an associate for the backward integration of carbon credit supply. We promise to continue pioneering state-of-the-art green initiatives that can help companies globally to reduce their carbon footprint and significantly contribute towards building a greener tomorrow. We are certain that higher global carbon credit demand, new demand generation from CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and cryptocurrencies, coupled with a positive outcome of the recently concluded COP26, are all together expected to widen the carbon credit demanasupply gap further enabling increased market opportunities. With strong business fundamentals and cutting-edge offerings, we are confident of maintaining our current growth momentum and maximizing value for all our stakeholders”. Result PDF
H1 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) Q2 FY2022 Performance Highlights: 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. EK! 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.” Result PDF