EKI Energy

- Currently, the company does not have an immediate cash or fund-raising requirement. - Existing cash flows are managing operational needs successfully. - There are significant business growth opportunities and plans to increase project execution and scale joint ventures. - If attractive opportunities arise, the company may consider raising funds to expand further. - No specific plans or finalized decisions for new debt or equity fundraising have been made at present. - The company is monitoring the business environment and opportunities to decide on potential future fund-raising.

- EKI Energy is forming a joint venture (JV) with Shell Netherlands focused on nature based solution (NBS) projects involving forests, grasslands, wetlands, and sustainable agriculture to sequester carbon. Shell will be the major capital provider, with EKI bringing expertise and project execution capabilities. - The JV will work on fundraising and managing funds to implement projects on ground, with Shell providing majority of capital; EKI may co-invest strategically. - EKI has incorporated an associate company, GHG Reduction Technologies Pvt Ltd, to undertake backward integration by manufacturing and trading cook stoves and other carbon reduction technologies. This company has a near-term order pipeline of about Rs. 200 Crores. - Currently, no immediate large capital raising is planned, but EKI is open to raising funds if good expansion opportunities arise. - Inventory build-up includes advance payments to carbon credit project owners (~Rs. 80 Crores) to secure mandates competitively. - Overall, strategic investments include geographical expansion, new verticals (NBS consultancy, sustainability reporting), and backward integration initiatives.

- During the last nine months of FY2022, EKI Energy supplied around 70 million carbon credits. - For the next quarter, they are targeting nearly 30 million credits. - For FY2023, the expected volume is between 100 to 150 million credits, with potential for further increase monthly. - The company has a strong pipeline of approximately 150 million credits for the next 3 to 12 months, indicating sustained business growth. - Expansion into new geographies (e.g., Dubai, Indonesia, Kenya) and new verticals like nature-based solution consultancy and sustainability reporting supports future growth. - Backward integration through joint ventures (e.g., with Shell for nature-based solutions) and new manufacturing initiatives (e.g., cook stoves) are expected to contribute to long-term sustainability and revenue growth. - Increasing global carbon credit demand, regulations, and corporate climate pledges provide strong market tailwinds for growth.

- Revenue guidance for FY2023 expected between 100 to 150 million carbon credits supplied, with potential for volume increase due to new contracts. - Q3 FY2022 revenue: Rs. 688 Crores with 55% QoQ growth; 9M FY2022 revenue at Rs. 1,325 Crores, showcasing strong growth momentum. - EBITDA for Q3 FY2022 at Rs. 214 Crores (31% margin), PAT at Rs. 161 Crores (23.4% margin); PAT margin improved from 21% in FY2021, indicating rising profitability. - Long-term sustainability driven by new business verticals: nature-based projects JV with Shell and backward integration through GHG Reduction Technologies Pvt Ltd. - Business expansion into new geographies (Dubai, Indonesia, Kenya) and verticals (NBS consultancy, sustainability reporting) expected to support future earnings growth. - Management confident of maintaining current growth momentum with expanding project pipeline (150 million credits over next 3-12 months). - No immediate fund requirement; growth capital to be raised if attractive opportunities arise.

- EKI Energy has a pipeline of around 150 million carbon credits expected to be supplied in the next 3 to 12 months. - They are targeting supply of nearly 30 million credits in the next quarter. - For the next financial year, the volume of credits is expected between 100 to 150 million, with potential to increase as new contracts are signed monthly. - The associate company GHG Reduction Technologies Private Limited has a near-term order pipeline of around Rs. 200 Crores. - The order volumes for GHG Reduction Technologies are expected to increase further in the next year.