Transcript Document

Indraprastha Gas Limited
Corporate Presentation
July 2005
CNG for Clean & Green Environment
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Agenda
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•
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•
•
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Overview of Indian Oil & Gas sector
Overview of Gas sector
CNG and PNG business in India
Indraprastha Gas
Opportunity
Financial Overview
Risks
CNG for Clean & Green Environment
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Overview of Indian Oil & Gas sector
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Structure of the sector
• Aggregate consumption of petroleum products107 MMTPA, Gas
demand is 120 mmscmd, supply of 80 mmscmd.
• Sector dominated by Public Sector Undertakings: ONGC, IOCL,
GAIL, HPCL & BPCL.
• Reliance Industries (RIL) a formidable private sector player.
• Cairn Energy, British Gas, NIKO, Hardy, UNACOL & SHELL
have domestic presence & plan to increase investments.
• Government walks on a tight rope while maintaining balance
between economics & politics in the sector.
• Present Government Committed to sectoral reforms.
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Gas sector
• Demand (120 mmscmd) outstrips the
supply (80 mmscmd)
• ONGC and OIL together produce 90%
of gas.
Demand Supply Scenario*
m m s cm d
FY04
Demand
Supply
Gap
120
80
40
Natural Gas User Profile*
Spong
Iron
4%
• Gas from APM fields subsidized to the
extent of 50% of the price, Non-APM
gas sold at market rate.
Others
13%
Pow er
42%
Shrinkage
9%
Fertilizer
32%
*Source: Industry
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Gas availability is expected to increase as:
• Recent gas discoveries by:
– Cairn (Western coast)
– RIL (KG D-6)
– ONGC & others
• Import of LNG by:
– Petronet LNG Limited:
• Dahej Terminal already operational
• Kochi terminal expected by FY08
– SHELL:
• Gas import expected shortly from Hazira (Gujarat)
• Gas import by Pipeline:
– Iran
– Myanmar
Availability of Gas to Increase
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Gas Pipeline Policy likely to be finalized:
• Draft gas transmission pipeline policy issued:
– Issues of “Open Access” and “Common Carrier” discussed
– Final policy expected shortly
National transportation Network to expand:
• GAIL plans to roll out National Gas Grid
• RIL has proposed pipeline connecting East and West coast.
• Participation of Regional players (like GSPC) also expected to
increase.
Policy initiatives & additional supply to increase gas penetration in
India.
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Indraprastha Gas Limited
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Value Chain of CNG
STEEL PIPELINE – NATURAL GAS CARRIER
19-22 Kg/cm2g
19-22 Kg/cm2g
CNG
Compressor
CNG
Compressor
250 Kg/cm2g
Mobile
Cascade
250 Kg/cm2g
Mobile
Cascade
Storage
Cascade
MOTHER
STATION
Storage
Cascade
Dispenser
Dispenser
<=200 Kg/cm2g
ONLINE
STATION
<=200 Kg/cm2g
CNG
Vehicle
CNG
Vehicle
Mobile
Cascade
Mobile
Cascade
Booster
DAUGHTER
STATION
Dispenser
<=200 Kg/cm2g
CNG
Vehicle
Dispenser
DAUGHTER
BOOSTER STATION
<=200 Kg/cm2g
CNG
Vehicle
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CNG business has shown robust growth
since FY00.
Sales have grown at 200% CAGR over
past 4 years.
Increased CNG dispensing stations from
meagre 30 to 135 in 4 years including 2
CNG facilities in Noida.
Presently caters close to 0.1 mn vehicles
in Delhi with sales of 0.90 mn kg/day.
Contributes 95% to turnover.
Vehicles running on CNG
Sales (mn Kg/Day)
100
90
80
0.9
0.8
0.7
70
60
50
40
30
0.6
20
10
0.2
0.5
0.4
0.3
mn kg/ day
•
Thousands
CNG Business
0.1
-
0.0
FY00
FY01
FY02
FY03
FY04
FY05
IGL DTC OMC Total
Mother
37
22
-
59
On line
12
-
22
34
-
-
4
4
Daughter Booster
10
-
28
38
Total
59
22
54
135
Daughter
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PNG Business
• AT present PNG penetration in Delhi
is low (< 1%).
300
250
Revenue from PNG (Rs mn)
16.0
PNG Sales (mscm)
14.0
12.0
200
• Business contributes 5% to turnover.
• Daily average sales of 50K scmd,
largely contributed by commercial
segment.
10.0
150
8.0
6.0
100
50
4.0
2.0
0
0.0
FY01
FY02
FY03
FY04
FY05
PNG Volumes Breakup as on 30.6.2005
• Management is committed to grow
the business as potential is huge.
Domestic
Large Commercial
Small Commercial
Total
Sales (scmd)
No of Consumers
0.65
29,361
1,500
37
30
161
29,559
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CNG sales in Delhi can expand significantly
• At present, 94,246 vehicles consume 0.90 mn kg/day of
CNG in Delhi.
• Consumption growth from existing fleet of vehicles can be
pegged to economic growth.
• Leading passenger car manufacturers likely to introduce
CNG variants.
• Use of CNG for Locomotives also possible.
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Untapped PNG market
• Due to regulatory compliance, preference was given to
CNG business over PNG.
• With successful roll out of CNG infrastructure, management
is now committed to grow PNG business.
• Present PNG penetration in Delhi is <1% on base of 3.5 mn
users.
• LPG user base in new geographies is equivalent to Delhi.
• Could create market equivalent to Delhi over 10 years.
If PNG substitutes electricity in home appliances, sales to go in new orbit.
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Strong Financials
Q1 - 2006
FY - 2005
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Increase in Sales
 CNG sales volume increased by 6.3% from Q1 FY’05 to Q1 FY’06
 PNG sales volume increased by 95.2% from Q1 FY’05 to Q1 FY’06
 Overall sales value increased by 9.0% from Q1 FY’05 to Q1 FY’06
Particulars
CNG
F.Y. 2004-05
Q1
Rs. (Lakhs)
Qty. (Lak h Kgs.)
PNG
Rs. (Lakhs)
Qty. (Lak h SCM)
Total
F.Y. 2005-06
Q1
Increase
%
11,535.74
12,269.31
6.4%
696.20
740.05
6.3%
538.13
888.59
65.1%
35.31
68.94
95.2%
12,073.87
13,157.90
9.0%
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Comparative Profit & Loss Account
(Rs. Lakhs)
S.No. Par ticular s
Financial Ye ar
2005-06
Q1
Unaudite d
%
Am ount
Financial Ye ar
2004-05
Q1
Unaudite d
Am ount
of Sale s
%
Financial Ye ar
2004-05
Audite d
Am ount
of Sale s
%
of Sale s
Sale s Quantity
740.05
-
696.2
-
2,977.29
-
68.94
-
35.31
-
152.01
-
CNG( In Lakhs Kgs.)
8.13
-
7.65
-
8.16
-
PNG (In Lakhs Scm)
0.76
-
0.39
-
0.42
-
CNG (Qty In La k hs Kgs.)
P NG (Qty In La k hs Scm.)
Ave r age Sale s Pe r Day
Sale s V alue
1
CNG
12,269.31
2
PNG
888.59
3
Total Tur nove r (1+2)
4
Other Income
5
Total Incom e (3+4)
B
M anufactur ing Expe ns e s
6
Cost Of Gas
5,210.06
39.6%
7
Excise Duty
1,754.33
13.3%
8
(Increase)/Decrease In Stock
9
13,157.90
81.35
13,239.25
93.2%
6.8%
0.6%
-
11,535.74
538.13
12,073.87
41.63
95.5%
4.5%
0.3%
49,418.38
2,603.48
52,021.86
779.39
95.0%
5.0%
1.5%
-
52,801.25
-
4,351.94
36.0%
18,936.69
36.4%
1,616.17
13.4%
7,017.70
13.5%
12,115.50
(1.57)
-
(0.04)
-
(7.88)
Total( 6+7+8)
6,962.82
-
5,968.07
-
25,946.51
-
10
Gr os s Pr ofit (5-4-9)
6,195.08
47.1%
6,105.80
50.6%
26,075.35
50.1%
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1,821.95
13.8%
1,800.94
14.9%
7,629.46
14.7%
12
Ope r ating Expe ns e s
Pr ofit Be for e De p., Intt. & Taxe s
EBDITDA (10-11+4)
4,454.48
33.9%
4,346.49
36.0%
19,225.28
37.0%
13
Depreciation
1,335.52
10.1%
1,138.96
9.4%
4,803.30
14
Interest
82.62
0.7%
308.90
66.68
Pr ofit Be for e Tax (PBT)
3,052.28
0.5%
23.2%
3,124.91
25.9%
14,113.08
-
9.2%
0.6%
27.1%
15
(12-13-14)
16
Taxe s
1,028.06
7.8%
1,145.55
9.5%
4,844.57
9.3%
Ne t Pr ofit Afte r Tax (PAT)
2,024.22
15.4%
1,979.36
16.4%
9,268.51
17.8%
17
(15-16)
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Physical Achievements
As on
1/4/2004
Pa rticula rs
Grow th In Ve hicle s (Numbe rs)
Buses
Cars
Taxis
Autos
Mini Bus
Total
10,199
10,607
5,411
59,027
5,267
90,511
As on
31/3/2005
As on
30/6/2005
10,480
10,895
5,354
62,048
5,469
94,246
10,694
10,895
5,352
62,105
5,229
94,275
12,910
25,103
29,361
Small Commercials
93
140
161
Large Commercials
17
34
37
PNG Custome rs (Numbe rs Conne cte d)
Domestic
Compre ssion Ca pa city (La kh
Kgs./da y)
Ste e l Pipe -line
MDPE Pipe -line
16.48
16.88
Le ngth (Km.)
12"
8"
6"
4"
3"
2"
Tota l
Le ngth (Km.)
CNG for Clean & Green Environment
17.29
26.40
3.53
22.94
94.68
0.80
1.58
149.93
526.17
17
CNG Stations (Numbers)
no. of stn.
(31/3/2004)
no. of stn.
(31/3/2005)
no. of stn.
(30/6/2005)
Mother
Mother
Online
Online
Daughter Booster
37
19
10
18
12
37
22
12
21
10
38
22
12
22
9
OMC - Daughter Booster
OMC - Daughter
Total
20
5
121
28
4
134
28
4
135
STATION TYPE
IGL DTC IGL OMC IGL -
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Snapshot of Profit & Loss A/C
Rs mn
Net Sales
% Growth
EBIDTA
% Growth
PBT
% Growth
Tax
PAT
% Growth
FY02
1187.7
297.7
120.2
59.0
65.4
FY03
3051.4
157
1191.9
300
870.2
624
320.6
539.8
725
FY04
4194.4
37
1695.5
42
1286.0
48
464.1
821.9
52
CNG for Clean & Green Environment
FY05
4500.4
7
1844.7
9
1411.3
10
485.1
926.8
13
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Snapshot of Balance Sheet
Rs mn
Equity
Reserves
Networth
Debt
Capital Employed
Net Fixed Assets
Working Capital
Capital Deployed
FY02
1400
71.7
1471.7
570
2041.7
2282.3
(169.7)
2114.3
FY03
1400
532.6
1932.6
798.8
2731.4
3445.7
(488.0)
2957.7
FY04
1400
1117.6
2517.6
600
3117.6
3769.4
(260.9)
3508.5
CNG for Clean & Green Environment
FY05
1400
2043.9
3443.9
480
3923.9
3746.6
(333.4)
3413.27
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DISCLAIMER: This presentation contains forward-looking statements which may be
identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,”
“intends,” “projects,” “estimates” or other words of similar meaning. All statements that
address expectations or projections about the future, including, but not limited to,
statements about the strategy for growth, product development, market position,
expenditures, and financial results, are forward-looking statements. Forward-looking
statements are based on certain assumptions and expectations of future events. The
companies referred to in this presentation cannot guarantee that these assumptions and
expectations are accurate or will be realised. The actual results, performance or
achievements, could thus differ materially from those projected in any such forwardlooking statements. These companies assume no responsibility to publicly amend,
modify or revise any forward looking statements, on the basis of any subsequent
developments, information or events, or otherwise.
Thank You!
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