EKI Energy Services stock hits 5% upper circuit on robust business performance in Q3FY22

19 Jan 2022 , 09:17 AM

EKI Energy Services Limited has announced its results for the third quarter and 9 months period ending December 31, 2021 for FY 21-22.

The company continued a strong growth momentum and reported total revenues of Rs1,325cr for the 9 months period of FY 21-22. The strong business performance has been supported by higher demand and pricing of carbon credits driven by changing regulations for climate control, increasing awareness of GHG emissions reduction, carbon neutrality pledges and widening carbon credit demandsupply gap.

9M FY2022 Performance Highlights:

• Revenues from operations of Rs1,325cr (Rs191cr for full year FY2021)
• EBITDA of Rs370cr; margins expanded to 27.9 % (Rs25cr for full year FY2021)
• PAT of Rs278cr with margins of 21.0% (Rs19cr for full year FY2021)

Q3 FY2022 Performance Highlights:

• Revenues from operations of Rs688cr
• EBITDA of Rs213cr; margins 31.0%
• PAT of Rs161cr with margins of 23.4%

Commenting on the business performance, 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 Rs1,325 Cr, up from Rs637 Crin 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 demand-supply 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.”

At around 9:17 AM, EKI Eneregy hits 5% upper circuit at Rs11,298.25 per piece on Sensex.