EKI Energy Services Reports Strong Q1 FY24-25 Results

On July 23, 2024, EKI Energy Services Limited (EKI), a top global provider of carbon credits, announced its financial results for the first quarter of 2024-25.

The company saw a boost in revenue to ₹136.20 crore, thanks to its new focus on power trading. EKI is also investing in efforts to reduce carbon emissions, including projects like cookstoves and bio-briquettes, and has launched an AI-driven ESG compliance platform through its associate, WOCE Solutions.

Additionally, EKI is working with FARI Solutions to improve carbon credit processes and support sustainable practices as COP29 approaches in Azerbaijan. Chairman Manish Dabkara praised the company’s results and highlighted its commitment to a low-carbon future.

Financial Highlights

EKI Energy Services Limited reported consolidated revenue of ₹178.21 crore, reflecting its shift towards diverse business areas. The company’s new power trading segment contributed ₹136.20 crore to this revenue.

EKI is well-positioned for future growth with strong cash flow, a healthy cash balance, and ample liquidity. The company generated ₹62 crore from operations and holds liquidity of ₹177.33 crore at the company level and ₹208.85 crore at the group level, mainly in fixed deposits and other investments.

EKI achieved a profit in the first quarter of FY25 and anticipates increased turnover and margins in the coming quarters. The company also expects to see a positive impact on turnover and margins from upcoming carbon credit issuances from community projects. EKI and its group companies operate with “NIL DEBT,” except for vehicle loans.

Strategic Expansion

EKI’s move into power trading has been a major success, adding ₹136.20 crore to its revenue in Q1 FY25. This strong performance shows EKI’s skill in spotting and taking advantage of new market opportunities. By expanding into power trading, EKI is setting itself up for more growth in the energy sector and strengthening its efforts to diversify its revenue sources.

Chairman and Managing Director of EKI Energy Services Ltd, Manish Dabkara, said, “Q1 FY’25 marks a significant step forward in EKI’s strategic expansion. Our entry into power trading has yielded promising results, contributing substantially to the quarter’s revenue. We are confident that this new venture will be a key driver of future growth.”

On July 24, 2024, the share price of EKI Energy Services Ltd opened at ₹385.00, touching the high price at ₹406.95 as of 12:01 PM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.