Eki Energy Services Ltd. · BSE:EKI
Eki Energy Services — Q2 FY2023 Earnings Presentation
42 slides from Eki Energy Services's earnings presentation, Nov 4, 2022
Slide 1: BSE filing cover letter for investor presentation
November 4, 2022 To, BSE Limited Corporate Relationship Department, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001. Scrip Code: 543284 Symbol: EKI Subject: Investor Presentation Dear Sir(s), Pursuant to regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2
Slide 2: Transitioning World to a More Carbon Neutral Company
TRANSITIONING WORLD TO A MORE CARBON NEUTRAL COMPANY EKI Energy Services Limited (Brand name- “EnKing International”) Investor Presentation – November 2022
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by EKI ENERGY SERVICES LIMITED (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: EKI at a Glance
EKI AT A GLANCE 3,000+ 1.5X Clients Growth in 40+ Countries Revenues YoY 1000+ 1.7X Growth in Projects EBITDA YoY 200+ 1.7X Employees with Growth in PAT 14+ years of YoY experience ₹ 151.3 Cr. 180+ Mn Cash flow from credits mobilised Operations 3 Growth rates are for H1 FY23
Slide 5: H1 & Q2 FY23 Financial Results Update
H1 & Q2 FY23 FINANCIAL RESULTS UPDATE BALANCED ROADMAP FOCUSSING ON PLANET AND PROFITS
Slide 6: Key Financial and Operational Highlights
KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS Consistent growth in margins despite global Sustainable market in terms of 01 slowdown and economic headwinds carbon credit demand & growth 06 02 Strong operating cash flow Increasing backward integration via community & nature based projects to 05 generate l
Slide 7: Robust Growth in Standalone Revenues and Profitability
ROBUST GROWTH IN STANDALONE REVENUES AND PROFITABILITY Revenue from Operations EBITDA & Margins PAT & Margins (₹ Cr) (₹ Cr) (₹ Cr) +50.4% +74.3% +73.3% 957.6 272.9 202.6 636.8 156.5 116.9 25% 28% 18% 21% H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 +19.5% +17.7% +1.4% 443.5 449.5 129.9 95.6 108.7
Slide 8: Healthy Pipeline of Credits
HEALTHY PIPELINE OF CREDITS Credit Pipeline visibility till FY24 - ~375.6 Mn Stock in hand – 9.99 Mn Credits 4.9% 6.2% 0.7% 0.1% 0.5% 0.0% 19.4% Technology based Community based 34.0% Others Nature Based Energy Efficiency 59.7% 74.6% Credits sold in H1 FY23 - ~38 Mn Geographic dispersion of Sales –
Slide 9: Launch of Climate Impact Fund
LAUNCH OF CLIMATE IMPACT FUND EKI has partnered with –Impact Capital Asset Management Pte. Ltd. (ICAM), a Monetary Authority of Singapore licensed Fund Management Company, to launch INR 1000 crores (USD 125 Mn) Climate Impact Fund EKI will invest up to INR 200 crores (USD 25 Mn) as an anchor investo
Slide 10: Focussed on Capital Efficiency
FOCUSSED ON CAPITAL EFFICIENCY Return on Capital Employed (%) # Return on Equity (%) * SATISFACTION AND SUSTAINABILITY 236.7% 176.5% KEY TO GROWTH 120.2% 153.8% 112.7% 139.5% 53.1% 40.1% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Cash Flow from Operations (₹ Cr) Cash & Debt Balance (₹ Cr) 30.3 15.6 Cas
Slide 11: Standalone Financial Performance
STANDALONE FINANCIAL PERFORMANCE Particulate (₹ Cr) Q2 FY23 Q2 FY22 Y-o-Y H1 FY23 H1 FY22 Y-o-Y Revenue from Operations 449.5 443.5 1.4% 957.6 636.8 50.4% Purchase of stock-in-trade 217.8 352.7 519.5 488.8 Changes in Inventories 42.0 -66.6 54.0 -81.0 Employee Benefits Expense 14.6 4.8 24.8 8.6 Other
Slide 12: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Particulate (₹ Cr) Q2 FY23 H1 FY23 FY22 Revenue from Operations 460.4 970.1 1800.1 Purchase of stock-in-trade 209.8 510.3 1333.1 Changes in Inventories 38.9 48.5 -195.9 Employee Benefits Expense 17.1 28.1 25.3 Other Expenses 51.5 94.6 122.1 EBITDA 143.0 288.5 515.5
Slide 13: Standalone Balance Sheet Statement
STANDALONE BALANCE SHEET STATEMENT Equity & Liabilities (₹ Cr) Sept’22 Mar’22 Sept'21 Assets (₹ Cr) Sept’22 Mar’22 Sept'21 Equity Share Capital 27.5 6.9 6.9 Property, plant and equipment 2.1 1.5 1.3 Capital Work-in-Progress 0.1 0.1 0.1 Other Equity 584.1 402.4 149.8 Intangible Assets 3.6 0.0 0.0 Tot
Slide 14: Consolidated Balance Sheet Statement
CONSOLIDATED BALANCE SHEET STATEMENT Equity & Liabilities (₹ Cr) Sept’22 Mar’22 Assets (₹ Cr) Sept’22 Mar’22 Equity Share Capital 27.5 6.9 Property, plant and equipment 4.4 2.8 Other Equity 591.4 402.2 Capital Work-in-Progress 0.1 0.3 618.9 409.1 Right of Use Assets 2.5 - Intangible Assets 3.6 0.0 N
Slide 15: Business Overview: Steering the Planet to Net Zero
BUSINESS OVERVIEW STEERING THE PLANET TO NET ZERO
Slide 16: Our Growth Journey
OUR GROWTH JOURNEY 2008 2009 2011 2013 2014 ▪ EKI was ▪ Started first ▪ Company ▪ Initiated the first ▪ After analyzing the founded as a project in became closely project under the carbon credit market sole Verified Carbon held Public Gold Standard and realizing its proprietorship Standard(VCS) Limi
Slide 17: Our Offerings
OUR OFFERINGS CARBON CREDIT OFFSETING Both have reduction commitments Company A Company B CARBON ASSET MANAGEMENT Consulting the sellers Consulting the buyers We offer carbon sustainability A carbon credit is a tradable Once companies have decided to We identify buyers of carbon We also locate selle
Slide 18: Our Business Process
OUR BUSINESS PROCESS Project Owner role including selection of EKI Client Validation + Registration Process Verification & Issuance Process Sale of Carbon Credits Selection of EKI Project Identification Selection of DOE for Documentation as per Approved Project Implementation Validation Methodology
Slide 19: Our Global Reach
OUR GLOBAL REACH Turkey Switzerland India Jordan Egypt Thailand Mexico Ghana UAE Kenya Vietnam Singapore Philippines Brazil Indonesia Argentina We have a widespread global presence which Working with leading brands and leaders makes carbon credit supply easy and performs across the world, EKI is ded
Slide 20: Our Target Market
OUR TARGET MARKET India, Target Date – 2070 to reduce UK, Target Date – 2050 The UK Germany, Target Date – 2045 net its amount of goods produced per already passed a framework law for zero emissions by 2045. The cabinet unit of energy by 45% by 2030 & cutting emissions in 2008, setting a adopted a 6
Slide 21: Commitments Made by Different Countries & Corporates
COMMITMENTS MADE BY DIFFERENT COUNTRIES & CORPORATES BBVA commits to reduce emissions from its oil and Nissan strengthens its commitment to reduce carbon gas client portfolio by 30% by 2030 footprint MEXICO – Aware of the need to move towards a world BBVA is committed to clean energy and will suppor
Slide 22: Our Esteemed Partnerships
OUR ESTEEMED PARTNERSHIPS TOGETHER, WE WILL ACCELERATE SUSTAINABLE GROWTH
Slide 23: Our International Clients
OUR INTERNATIONAL CLIENTS World Bank Group International Monetary Fund The United Nations Office Siemens AG, Germany for Project Services Kenya State Electricity Shell, Singapore Volkswagen, Burgos Wind Farm, Philippines Generation Company, Kenya Germany Pacific Light, Singapore Xuan Thien Group Hal
Slide 24: Our National Private Clients
OUR NATIONAL PRIVATE CLIENTS 23
Slide 25: Our National PSU's Clients
OUR NATIONAL PSU’S CLIENTS NTPC NHPC Airports Authority Indore Smart City Oil and Natural M.P. Paschim Kshetra Varanasi Smart City Rajasthan State of India Development Gas Corporation Vidyut Vitaran Co. Development Mines and Minerals Hindustan Indian Oil Housing & Urban India Tourism Kerala State Ma
Slide 26: Our Association and Empanelment
OUR ASSOCIATION AND EMPANELMENT International partnerships provides us a platform for product innovation Carbon Markets Association of India Membership with IETA (International ASSOCHAM Global Gold Consultant of Carbon (CMAI) Emissions Trading Association) Disclosure Project (CDP) Membership with Co
Slide 27: Our Association and Empanelment (Cont'd)
OUR ASSOCIATION AND EMPANELMENT (Cont’d) Services Exports Promotion Council RESC International I am SME of India BEE ESCO INDIA Solar Baba Turkey World Biogas Association Forum Energy Technology 26
Slide 28: Unsurpassed Opportunity: World's Next Big Sunrise Industry
UNSURPASSED OPPORTUNITY WORLD’S NEXT BIG SUNRISE INDUSTRY
Slide 29: Industry Opportunity
INDUSTRY OPPORTUNITY NET ZERO GROWING USAGE INDIA’S CLIMATE CHANGING NEW BUSINESS EMISSIONS PLEDGE COMMITMENTS REGULATIONS AVENUES ▪ 137 countries have ▪ Companies are increasingly ▪ India’s international climate ▪ Stringent regulations and ▪ Community (Green cooking, Clean committed to work toward
Slide 30: Domestic Carbon Credit Market Developments
DOMESTIC CARBON CREDIT MARKET DEVELOPMENTS Carbon credits play an important role Carbon credits are imperative and integral for climate positive actions National ETS Indian carbon market is gearing up for a revolution with the development of National ETS [National Cap & Trade Regulatory Carbon Marke
Slide 31: Voluntary Carbon Market Developments
VOLUNTARY CARBON MARKET DEVELOPMENTS No restriction on Voluntary Carbon exports No restriction on Voluntary Carbon Exports from India since Voluntary Credits are not governed by Article 6 of Paris Agreement and no issues related to double counting Strong demand for Voluntary Credits Demand for volun
Slide 32: Existing Business Opportunities
BUSINESS OPPORTUNITIES Company is constantly identifying projects within & outside Indian territory that reduce carbon emissions, protect biodiversity, and deliver measurable benefits aligned with the aims of the Kyoto Protocol, Paris Agreement and the UN Sustainable Development Goals. Solar Energy
Slide 33: New Business Opportunities
NEW BUSINESS OPPORTUNITIES Nature Based Solutions Consultancy Community Based Projects Sustainability JV agreement with Shell to extend carbon consultancy − We provide Improved Cookstoves (ICS) to rural Solutions for sustainability reporting including services in nature-based solutions projects. Thi
Slide 34: Backward Integration
BACKWARD INTEGRATION GHG REDUCTION TECHNOLOGIES PVT. LTD. ✓ Strengthening the backward integration of carbon credit supply chain through community development-based projects ✓ Started manufacturing cook stoves in Nashik plant in April 2022 with capacity of 5 mn+ units per year. ✓ Strategic managemen
Slide 35: Amrut Nature Solutions Pvt Ltd
AMRUT NATURE SOLUTIONS PVT LTD PARTNER WITH SHELL OVERSEAS INVESTMENTS B. V. (THE NETHERLANDS) Objectives ✓ Providing offsets to emissions through Nature Based Solutions in the areas of forestry, agriculture including agroforestry, horticulture, grasslands, wetlands, blue carbon, peatlands etc. Oper
Slide 36: Looking Ahead
LOOKING AHEAD IMAGINE A NET-ZERO WORLD. A WORLD WHERE HUMANITY HAS COME TOGETHER AND DEFEATED THE CLIMATE CRISIS..
Slide 37: Key Strategies
KEY STRATEGIES SATISFACTION AND SUSTAINABILITY Addition of new clients & projects across the Globe With the acquisition of new talent pool and development of existing human KEY TO GROWTH capital, Company is aiming to enter into new geographies across the Globe, where it see huge potential for climat
Slide 38: Key Takeaway
KEY TAKEAWAY 14+ years of advisory Well established Global corporate experience in the network of 1000+ commitment to innovative and high greenhouse gas become a net-zero growth climate efficient projects company by 2030 change industry Fully integrated Experienced end to end management team solutio
Slide 39: Annexures
ANNEXURES VITAL LINK BETWEEN THE CORPORATES AND ENVIRONMENT
Slide 40: Environment, Social Initiatives & Recognitions
ENVIRONMENT, SOCIAL INITIATIVES & RECOGNITIONS Environment Social • Our projects are aligned with Kyoto • For social upliftment, contributed ₹ 21.19 Protocol, Paris Agreement and the UN SDGs lakh in Multi specialty hospital cum medical college for world class medical education • Committed to protect
Slide 41: EKI @ COP 27
EKI @ COP 27 EKI Participation @ COP 27 Addressing the Article 6: Double CBAM Agreement Counting & by European Corresponding council Adjustments November 09 - November 11 - Morocco Pavillion Namibia Pavillion • Expect this year to be a step up from last year as more & more countries firm up on their
Slide 42: Thank You
THANK YOU EKI Energy Services Ltd CIN :L74200MP2011PLC025904 Ms. Itisha Sahu cs@enkingint.org Mr. Bhavin Soni +91 98335 37225 bhavin.soni@linkintime.co.in Ms. Ashish Chovatia +91 99300 44680 ashish.chovatia@linkintime.co.in
EKI Energy Services — Q2 FY2023 Earnings Presentation on 6ix