Energetica India Magazine October-November 2021

EKI Energy PAT Zooms 127% QoQ to Rs 81 Cr in Q2 FY22; Shares Hit 52 Week High 32 energetica INDIA- Oct-Nov_2021 EKI Energy Services Limited, alsopopularly known as EnKing In- ternational, has reported a significant growth of 127.3 per cent in itsnet profit after tax (PAT) toRs81.25croreonQ-o-Qbasisduring thesecondquarter of FY2022, on thebackof higher demandand pricing of carbon credits, increasing global awareness of GHG emissions andwidening carbon credit demand-supply gap. The net profit of the company, one of the leading companies in the carbon credit industry in India, stoodat Rs 35.74 croreduring the first quarter of FY2022. However, it had a net profit of Rs 18.58 crore in the entire 2020-21 fiscal. Moreover, the total revenue of the company, too, grew by 129.3 per cent to Rs 443.68 crore, during the quarter under review, against Rs 193.49 crore inQ1 FY2022. During H1 FY2022, the company has reported total revenues of Rs 637 crore, exceeding revenue for full year FY 2021 at Rs 191.02 crore. Commenting on the business performance, Chairman and Managing Director, Manish Dabkara, said “EKI Energy has re - ported another outstanding quarter with a robust business per - formance. 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 de - mand for carbon credits and a widening demand-supply gap in the global markets, we had entered in a major deal to purchase carbon credits inH1 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 busi - ness 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 aware - ness 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 de - mand for carbon credits supported by evolving global carbon credit markets and economic recovery from the Covid-19 pan - demic, we are confident of continuing strong growth momentum andmaximizing shareholder value.” After posting robust financial performance, the company’s shares at the Bombay Stock Exchange hits 52 week high at Rs 4536.25 apiece. FINANCE