EKi energy Q1 FY24 earning call key highlights. #ekienergy 🧵 ⬇️
#1. Industry outlook: Management is expecting the sector may get a turnaround in near future (as transparency improves and more National or regional emission trading systems may thrust the growth)
#1. Industry outlook: Management is expecting the sector may get a turnaround in near future (as transparency improves and more National or regional emission trading systems may thrust the growth)
#2. Service offering: MoU with ‘Inclusive energy’ (uk) to strengthen digitisation of carbon MRV (monitoring, reporting and verification) for biogas energy in voluntary markets.
Collaboration with WOCE to provide IT and IOT software solution for carbon and consultancy solution.
Collaboration with WOCE to provide IT and IOT software solution for carbon and consultancy solution.
#3. New markets : Incorporated subsidiaries in Singapore and Turkey for organic growth.
#4. Diversification of business:
New verticals - Trying to introduce manufacturing and supply of bio fuel (bio pallets, bio gas, CNG), power trading audit and certification. Plans to make these long term verticals down the line.
New verticals - Trying to introduce manufacturing and supply of bio fuel (bio pallets, bio gas, CNG), power trading audit and certification. Plans to make these long term verticals down the line.
#5. Auditor’s qualification: Concerns raised by auditor is getting examined with consultation from legal council. They did not share more details citing the matter is sub judice.
Previous revenue recognition issue has been sorted out by adjusting in the new audited figures.
Previous revenue recognition issue has been sorted out by adjusting in the new audited figures.
#6. Reason for negative results (loss): Inventories held in their books (old credits) had to be sold with lower prices (-ve) due to market prices (cc) corrected over 80%.
For existing inventory of cc, they will hold for the right time to sell, not willing to sell in panic.
For existing inventory of cc, they will hold for the right time to sell, not willing to sell in panic.
#7. Quality of carbon credits : VCMI, ICVCM and other certification bodies are planning to come up with rating definitions and guidelines. Addressing the integrity and quality issues will be via new guidelines - probably get issued by Nov/Dec 2023 or Jan 2024.
#8. Market wise cc split: EKI’s 70% credit comes from india market and 30% comes from international market.
#9 Sale of carbon credits: India won’t restrict the VCM credit to trade outside (internationally).
However, India’s CCTS compliance credits won’t be allowed to be sold in international market without Govt permission.
However, India’s CCTS compliance credits won’t be allowed to be sold in international market without Govt permission.
#10. Shell JV update: Both Shell and Eki jointly infused equity of 8cr INR. 2-3 projects are on boarded. Revenue booking will happen in 2025/26 with credit generation from the project in phased manner.
#11. Closing comments: Management remains positive in VCM with their diversification in operations and their ability in this space while leveraging technology.
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Thank you for reading. As always, enjoy your investing journey.
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Thank you for reading. As always, enjoy your investing journey.
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