Confidence Petroleum India Ltd We Care For Nature Result Update Q2FY18
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Confidence Petroleum India Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2
Key Agenda 01 Key Highlights – Q2 & H1FY18 02 Company Overview 03 Business Segments & Outlook 3
1 Key Highlights – Q2 & H1FY18
Key Business Updates – H1FY18 New orders awarded worth Rs 3,619 mn BPCL, HPCL and IOCL have awarded combined orders for supply of ~30 lakh LPG cylinders worth Rs 3,619 mn, with an option of order for an equivalent quantity next year Launched Composite LPG Gas Cylinders Through our Associate company, Confidence Futuristic Energetech Ltd (formerly, Globe Industrial Resources Ltd); these are light weight cylinders available in sizes – 2, 5, 10 and 22 kg. New Cylinder manufacturing plant Commissioned three new units – two units at Saoner, Maharashtra with a capacity of 432,000 units p.a. each and one unit at Dhanbad, Jharkhand with a capacity of 500,000 units p.a. New LPG Bottling plant commissioned Commissioned a new plant at Uluberia, near Kolkata to provide bottling assistance to HPCL against the tender of 24,000 MTPA for 5 years New Auto LPG Dispensing Stations (ALDS) commissioned Commissioned 2 new ALDS at Hyderabad and Chennai, taking the total to 112 ALDS, across the country 5
Key Financials – Q2 & H1FY18 Revenue (Rs. mn) EBITDA (Rs. mn) PAT (Rs. mn) 64% 27% 3.9x 321 103 2,741 2,150 18% 77% 5.8x 196 60 171 1,310 1,114 96 21 9 Q2 Q2 H1FY17 H1FY18 Q2 Q2 H1FY17 H1FY18 Q2 Q2 H1FY17 H1FY18 FY17 FY18 FY17 FY18 FY17 FY18 6
Profitability Highlights – Q2 & H1FY18 Consolidated (Rs mn) Q2FY18 Q2FY17 y-o-y % H1FY18 H1FY17 y-o-y % FY17 FY16 1,310 1,114 17.6 2,741 2,150 27.5 4,969 3,547 Total Income Raw Material 905 874 3.5 1,954 1,691 15.5 3,597 2,529 Employee Expenses 47 61 -22.7 93 102 -8.8 192 125 Other Operating Expenses 187 82 126.5 373 162 130.9 768 546 171 96 77.3 321 196 64.1 412 346 EBITDA EBITDA Margin (%) 13.0 8.7 - 11.7 9.1 - 8.3 9.8 Depreciation 61 59 3.6 122 117 4.8 242 232 Other Income 5 4 35.1 10 7 37.2 18 15 30 29 1.5 61 57 7.1 120 110 Interest Profit Before Tax 85 12 614.5 147 29 411.8 69 19 Tax 25 3 716.1 44 8 466.7 21 8 Profit After Tax 60 9 578.4 103 21 391.6 48 11 4.6 0.8 - 3.8 1.0 - 1.0 0.3 PAT Margin (%) Share of profit/loss in associates -0 -0 55.1 -0 -0 23.3 -2 2 Minority interest 0 0 -0.8 0 0 -45.3 0 0 PAT after associates/minority 60 9 577.2 103 21 393.6 46 12 7
Balance Sheet Highlights – H1FY18 & FY17 Consolidated (Rs mn) Sep’17 Mar’17 Consolidated (Rs mn) Sep’17 Mar’17 Shareholder’s Funds 1,921 1,818 Non-current assets 2,620 2,601 Share capital 259 259 Fixed assets 2,281 2,277 Reserves & Surplus 1,662 1,559 Investments 100 98 Minority interest 170 170 Long term loans & advances 230 217 Non-current liabilities 1,262 1,256 Other non-current assets 9 8 Long term borrowings 642 672 Current Assets 1,538 1,472 Other long-term liabilities 519 488 Deferred tax liability 101 96 Inventories 543 541 Current liabilities 805 828 Trade receivables 633 614 Short Term Borrowings 482 452 Cash & cash equivalents 113 99 Trade Payables 257 288 Short term loans & advances 238 208 Other Current liabilities 33 53 Other current assets 11 10 Short-term provisions 33 36 Total Assets 4,158 4,072 Total Liabilities 4,158 4,072 Net debt to equity Fixed asset coverage Working capital 0.53x 1.74x ~48 days 8
2 Company at a Glance
Largest Private Sector LPG player Largest Cylinder Manufacturer in Asia with an installed capacity of ~50 lakh units Largest LPG Bottling Assistance Provider, to Oil Majors in India, with end-to-end solutions in LPG Presence across the Value Chain - from vendor to owner (Go Gas – owned brand) Pan India presence with a total of 15 cylinder manufacturing units, 58 bottling plants, 4 LPG blending plants and 112 ALDS stations Leading player in Auto LPG with presence in High Consumption States like Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra among others 10
Key Milestones in Our Journey Started cylinder Grew cylinder manufacturing New product – Started Indonesian manufacturing business by Composite Cylinders operations – LPG business, Forayed into Auto acquiring under the brand cylinder organically & LPG business; set manufacturing ‘ Go Gas Elite ’ manufacturing and inorganically up the first ALDS plants bottling in Maharashtra 1997 2000-01 2008 2010-11 2017-18 1999 2004-05 2009 2012-16 Started Packed LPG Added further Started bottling Entered into LPG marketing under capacities across assistance to Bottling business; the brand Go Gas ; segments and PSUs; added launched our own Started CNG High increased Pan India many new and brand called ‘ Gas Pressure cylinder presence sick units Point ’ (now Go manufacturing across India Gas ) cylinders 11
Strong Management Team Nitin Khara – Chairman & Managing Director Commerce Graduate and an industrialist with vast experience of 30+ years in the field of LPG and CNG Cylinder Manufacturing, LPG Bottling, Blending, and Marketing. Elesh Khara - Director Commerce Graduate with 25+ years of experience in the filed of LPG Cylinder Manufacturing. Has led business expansion by setting up new cylinder manufacturing units at various locations. Yatin Khara – President Manufacturing Post Graduate in Commerce and associated with the Group for 20+ years. Has been a key in successful completion of turnkey projects allotted by Oil Companies. Vimal Parwal – President Commercial Qualified ICWA with almost 27 years of experience in the field of LPG Manufacturing and Marketing. With the Group for 16+ years and has contributed significantly in achieving Company’s milestones. Jitendra Jain – Chief Financial Officer Chartered Accountant with an experience of ~20 years. Responsible for the maintaining the financials and optimising the costs effectively in order to maintain profitability across all the divisions. 12
Pan India Presence Alongside Demand Centres Strategically located alongside demand centers to ease transportation costs 4 15 Cylinder Manufacturing Units Blending Plants Capacity: ~50 lakh units Capacity: 30,000 MTPA 112 58 Auto LPG Dispensing Stations LPG Bottling Plants 13
Presence Across the Value Chain Evolved from Cylinder/LPG Manufacturer to an Integrated Player Across the Value Chain Cylinder Packed LPG – Go Gas Auto LPG Manufacturing Cylinder Manufacturing LPG Blending LPG Logistics & Bottling & Auto LPG Dispensing Stations Transportation (LPG and High Pressure) Bottling Assistance (ALDS) Packed Cylinder Marketing Cylinder Testing (domestic & commercial) and Repairs
3 Business Segments
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