Investing
EKI Energy shares slump amid financial setbacks, optimistic about recovery post COP 28
© Reuters.
EKI Energy Services, a firm involved in carbon credits development and supply, saw a significant 10% drop in its shares on Monday, September 25, 2023. This decline followed an 85.53% decrease in the company’s revenue for the June quarter, dropping from INR 435.64 crore in the same quarter of the previous year to INR 63.04 crore. The company also reported a consolidated loss of INR 33.28 crore in the recent June quarter, compared to a profit of INR 57.83 crore in the same period last year.
Prior to this, EKI Energy had reported a loss of INR 47.55 crore during the March quarter. The firm’s shares hit a lower circuit limit at INR 560.15 on the BSE, marking an additional 10% drop following last Friday’s trading session.
Despite these setbacks, EKI Energy remains hopeful about a potential recovery in the upcoming quarter, after the Conference of the Parties (COP 28). The firm attributes its financial struggles to several external factors including the ongoing Russia-Ukraine conflict, persistent inflation, rising interest rates, global economic stagnation, and decreased discretionary spending which have collectively reduced demand within the broader carbon credit industry.
In response to these challenges, EKI Energy has invested INR 92 crore from its own resources into community-based projects up until Q1 as part of its strategic expansion plan. The company is also diversifying its operations by venturing into new sectors such as pellet manufacturing and power trading through its subsidiaries.
On the regulatory front, EKI Energy noted that India is working towards establishing a regulated Cap and Trade emission trading market. This move would limit ‘carbon credits certificates’ trade among obligated businesses, aligning with practices seen in similar global markets.
Furthermore, India is developing offset markets for voluntary participation and is in the process of setting up a registry and MVR modalities that align with international standards. This development is expected to enhance the credibility of the market and foster trust among participants.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
-
Side Hustles6 days ago
Mark Zuckerberg Is Now Second Richest Person in the World
-
Investing6 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles6 days ago
Meta Previews Movie Gen, AI Tools That Turn Dreams to Videos
-
Investing4 days ago
Hurricane Helene Hits Spruce Pine Mine, Quartz Used for Tech
-
Investing5 days ago
Israel stocks lower at close of trade; TA 35 down 0.23% By Investing.com
-
Investing6 days ago
BCA says investors should fade the real estate rally By Investing.com
-
Passive Income6 days ago
Learn a New Language with This Fresh Approach
-
Passive Income5 days ago
Go Paperless with the PDF Reader Pro for $49.99