Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Q4 FY21 Earnings Presentation
43 slides from Everest Kanto Cylinder's earnings presentation, Jun 29, 2021
Slide 1: Regulation 30 disclosure cover letter
June 29, 2021 To, BSE LIMITED National Stock Exchange of India P.J. Towers, Ltd. Dalal Street, Exchange Plaza, Mumbai – 400 001 Bandra Kurla Complex, Bandra (East), Mumbai – 400051 BSE Scrip Code: 532684 NSE Symbol: EKC NSE Series: EQ Dear Sir(s), Sub: Disclosure under Regulation 30 of SEBI (Listing
Slide 2: Q4 & FY21 Financial Results
Q4 & FY21 Financial Results June 2021
Slide 3: Safe Harbor
Safe Harbor Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those
Slide 4: The 'EKC' Edge
The ‘EKC’ Edge #1 Market Leadership India’s largest player in high pressure gas cylinders with market share of ~50% 43 Years Experienced Management 43 years of focused domain experience in the field of high pressure seamless cylinder manufacturing 200 Diversified Product Range 200+ SKU’s inclu
Slide 5: Table of Contents
Ta b l e o f Contents Q4 & FY21 Financial Performance 5 Company Overview 13 Industry Overview 24 Key Attributes 31 Historical Financials/Corporate Summary 35 4
Slide 6: Q4 & FY21 Financial Performance
Q4 & FY21 Financial Performance
Slide 7: Management Commentary
Management Commentary Comments on Q4 & FY21 performance by Comments on Q4 & FY21 performance by Pushkar Khurana, Chairman, Everest Kanto Puneet Khurana, Managing Director, Everest Cylinder Limited Kanto Cylinder Limited We have delivered a strong operating and financial performance in FY21 on During
Slide 8: Key Developments
Key Developments Sale proceeds With respect to sale/disposal of EKC Industries (Tianjin) Co. Ltd., Everest Kanto Cylinder Limited's subsidiary in China, the remittance equivalent of related to the RMB 85.39 Million post retention of RMB 8.11 Million, has been received by the shareholders i.e. Ever
Slide 9: Key Developments
Key Developments The Company’s Board of Directors has approved a proposal to increase the existing manufacturing capacity in India by 2,00,000 cylinders per annum Greenfield (from the existing capacity 7,17,000 cylinders per annum). A greenfield facility will be set-up at a suitable location in Gu
Slide 10: Key Performance Highlights – Q4 FY21
Key Performance Highlights – Q4 FY21 Revenues EBITDA PBT* PAT ** Consolidated Rs. 284.3Cr Rs. 40.9 Cr Rs. 26.7Cr Rs. 4.4Cr 43% 82.3% 469.7% Standalone Rs. 232.3Cr Rs. 60.1 Cr Rs. 49.5 Cr Rs. 25.1 Cr 59.2% 191.0% 378.3% Growth momentum continued Consolidated EBITDA Business growth has Profit
Slide 11: Key Performance Highlights – FY21
Key Performance Highlights – FY21 Revenues EBITDA PBT* PAT ** Consolidated Rs. 949.1 Cr Rs. 163.7 Cr Rs. 105.6Cr Rs. 91.6 Cr 24.8% 71.6% 362.1% 9.6% Standalone Rs. 750.6 Cr Rs. 181.5 Cr Rs. 144.3 Cr Rs. 102.8 Cr 53.3% 136.7% 340.3% 545.9% *Profit Before Tax is before exceptional items, provision for
Slide 12: Geographical Revenue Breakup – Q4 FY21
Geographical Revenue Breakup – Q4 FY21 Revenues (Rs. Cr) 284 247 199 15% 43% Q3 FY21 Q4 FY21 Q4 FY20 India UAE USA & Hungary Others 232 200 148 29 34 29 19 20 23 4 6 9 Q3 FY21 Q4 FY21 Q4 FY20 Q3 FY21 Q4 FY21 Q4 FY20 Q3 FY21 Q4 FY21 Q4 FY20 Q3 FY21 Q4 FY21 Q4 FY20 16% 57% 19% 18% 5% -12% 62% -29% 11
Slide 13: Abridged Balance Sheet (Consolidated)
Abridged Balance Sheet (Consolidated) Assets (Rs. Cr)* 2020 2021 Liabilities (Rs. Cr)* 2020 2021 Fixed Assets 364.9 358.9 Shareholder Funds 537.7 628.3 Other Non-Current Assets 22.5 51.2 Long - Term Debt 111.5 90.0 Deferred Tax Assets (net) 52.9 22.4 Other Non Current Financial Current Tax Assets (n
Slide 14: Company Overview
Company Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray Solution Company
Slide 15: Key Milestones
Key Milestones Acquired - Received majority stake in payment against Calcutta Set up Sold sales of China Compressions & marketing/produ Gandhidham subsidiary for a Liquefaction ct development unit, assets value of RMB Initiated Engineering subsidiary in transferred to 93.50 million commercial Privat
Slide 16: Board of Directors
Board of Directors Executive Chairman Managing Director Independent Director Joined EKC business in 1994 Joined EKC business in 1996 Finance, Banking and Law professional Commerce graduate from Mumbai University MBA (International Business) from EU Specializes in audit, taxation, financi
Slide 17: Corporate Structure
Corporate Structure Everest Kanto Cylinder Limited (EKC) Calcutta Compressions EKC International FZE EKC Industries & Liquefaction EKC Industries, Dubai Next Gen Cylinder Pvt. (Thailand) Company Engineering Ltd. (Dubai, UAE) Branch Ltd. (India) Ltd. (India) wholly-owned by EKC wholly-owned by EKC wh
Slide 18: Global Footprint
Global Footprint Germany Hungary Delhi Kandla SEZ, USA Gujarat Dubai Mexico Thailand India Tarapur, Mumbai Pittsburgh, PA Colombia Maharashtra Peru Bangalore Jabel Ali Free Manufacturing Locations Jabel Ali Free Zone (North) Zone (South) Sales & Marketing Offices 17
Slide 19: Manufacturing Facilities – India
Manufacturing Facilities – India Tarapur, Maharashtra, India Kandla SEZ, Gujarat, India Manufactures a wide range of high pressure Manufactures small cylinders (1 litre to 21 litres), seamless steel cylinders with storage capacity of Manufacturing Manufacturing gas cylinders (up to 3000 litres), jum
Slide 20: Manufacturing Facilities – Overseas
Manufacturing Facilities – Overseas Plant I – Dubai Plant II – Dubai Pittsburgh, PA, USA Located at the renowned Located at the renowned Manufacturers full carbon Manufacturing Jabel Ali Free Zone (North) Manufacturing Manufacturing Jabel Ali Free Zone (South) type 4 composite cylinders in Dubai in
Slide 21: Extensive Range of Products
Extensive Range of Products CNG Steel Cylinders Industrial Cylinders Wide range of CNG cylinders designed and Wide range of industrial cylinders designed for manufactured to comply with the highest quality industrial gases, medical and food & beverage and safety standards applications Products
Slide 22: Extensive Range of Products
Extensive Range of Products Fire Extinguisher Body Breathing Air Cylinders Cylinders for storage of carbon dioxide – used in fire extinguishers, rubber rafts and aerated water Compressed breathing air cylinders adhering Range covers capacities of 1 litre to 180 litre , with IS 7285 – rated at
Slide 23: Manufacturing Process
Manufacturing Process Seamless Heat Hardness Painting Tubes Treatment Checking Neck Neck Final Tube Cutting Stamping Product Drilling Threading Inside Neck Ultrasonic Int. & Ext. Bottom Forming Testing Shot Blasting Milling Hydro Bottom Bottom Air leakage stretch forming Forming testing testing 22
Slide 24: Global Quality Certifications
Global Quality Certifications India USA UAE ISO 9001:2015 Certificate from Manufacturing License of American Society for Canadian Standards US Department of Bureau Veritas for High Transport Canada Special Equipment Mechanicals Engineers Association Transportation Pressure (China) seamless steel gas
Slide 25: Industry Overview
Industry Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray Solution Company
Slide 26: India's Expanding Gas Ecosystem
I n d i a ’s E x p a n d i n g G a s E c o s y s t e m India targets 15% contribution from natural gas in the primary energy mix by 2030 (PIB 2017) Substantial committed investments towards “One Nation One Gas Grid” chart India’s energy roadmap Gross Fixed Capital Launch of India Gas Exchange intend
Slide 27: CNG Demand Outlook
CNG Demand Outlook CNG Stations CNG Vehicles (Mn) 3.6 2,000 3.1 Currently India’s CNG ecosystem is 1,500 confined to just three states India Maharashtra, Gujarat India Maharashtra, Gujarat and Delhi and Delhi CNG Stations CNG Demand (mmscmd) 11,000 57 City Gas Distribution set to expand significantl
Slide 28: CNG Demand Outlook
CNG Demand Outlook Auto manufacturers planning to stop production BS-VI transition of diesel vehicles based on rising costs Vehicle Scrappage Policy announced, expected to drive Policy new vehicle sales and CNG adoption CNG conversion of Government urging state transportation diesel buses corporatio
Slide 29: Industrial Demand Outlook
Industrial Demand Outlook Demand is driven by expansion in industrial production – Gross Fixed Capital Formation (GFCF) is now expected to rebound after the recent weakness Gross Fixed Capital Formation GVA from Industrial Sector (Current Prices) CAGR: 6% CAGR: 12% CAGR: 10% CAGR: 9% 36.1 36.6 54.9
Slide 30: Industrial Demand Outlook
Industrial Demand Outlook Fire Equipment and Fire Suppression Systems The global fire safety equipment market is estimated at $ 58 billion in 2018 – and expected to expand at CAGR of 8.8% from 2019 to 2025 Demand for advanced fire safety systems is expected to be driven by industries such as man
Slide 31: Industrial Demand Outlook
Industrial Demand Outlook Aerospace and Defense The Global Aerospace and Defence Industry has been growing on the back of rising commercial aircraft production and strong defence spending Aerospace demand is focused on next-generation, fuel-efficient aircraft with order backlog continuing to ris
Slide 32: Key Attributes
Key Attributes €KC EVEREST KANTO CYLINDER LIMITED lean Eneray Solution Company
Slide 33: Strengths
Strengths Sustained Established Large Capacity Wide Range of Leadership in the Production Experienced High Quality and Wide Product Established Indian Market Infrastructure Management Global Presence Products Range Relationships Pioneer in Large, multi- Eminent core Exports to over Complia
Slide 34: Growth Drivers
Growth Drivers Favorable outlook on demand growth driven by expanding infrastructure, Robust Demand environmental concerns and economic benefits Auctions initiated by PNGRB to expand CNG network pan-India, several Government Policy Support other supportive initiatives create strong growth visibility
Slide 35: International Operations
International Operations World leader in innovation, producing large, Continuous growth delivered by developing the Deals in CNG cylinders, industrial cylinders, cascades, seamless pressure vessels European market for visibility of products multiple element gas containers, specialized fire P
Slide 36: Historical Financials/ Corporate Summary
Historical Financials/ Corporate Summary
Slide 37: Revenue Growth
Revenue Growth Revenue* (Rs. Cr) 949.1 702.1 760.5 588.7 542.5 505.8 FY16 FY17 FY18 FY19 FY20 FY21 India UAE USA & Hungary 187.7 180.5 751.0 149.1 136 131.4 132.0 117.9 127.3 501.6 113.1 115.0 462.0 89.0 273.1 333.4 60.2 169.2 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY1
Slide 38: Profit Margin
Profit Margin 53.9% 48.1% 13.4% 48.3% 48.2% 17.2% 10.4% 9.65% 43.6% 44.7% 14.4% 5.0% 13.1% 12.6% 0.9% 11.4% 78.7 27.2 73.0 6.7 91.6 -124.1 2.3% 220.3 284.2 292.7 338.1 340.2 456.3 11.8 64.6 77.8 91.7 96.0 163.7 -24.5% FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY
Slide 39: Abridge Balance Sheet (Consolidated)
Abridge Balance Sheet (Consolidated) Assets (Rs. Cr)* 2017 2018 2019 2020 2021 Liabilities (Rs. Cr)* 2017 2018 2019 2020 2021 Fixed Assets 437.3 48.9 347.6 364.9 358.9 Shareholder Funds 421.9 444.2 517.8 537.7 628.3 Other Non-Current 9.8 17.5 8.5 22.5 51.2 Assets Long - Term Debt 324.0 206.1 155.3 1
Slide 40: Ratios
Ratios Net Debt/Equity Net Debt/EBITDA Interest Coverage 4.5 0.8 4.9 0.6 3.3 0.4 2.1 1.7 1.5 1.3 0.2 0.6 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Assets Turnover 1.6 1.2 1.1 1.1 FY18 FY19 FY20 FY21 39
Slide 41: Corporate Summary
Corporate Summary Auto manufacturers expanding CNG production based on superior buyer economics Strong Macro PNGRB auctions mandate time-bound nationwide expansion of CNG ecosystem Framework Medical oxygen demand expected to drive secular growth as India invests in healthcare Industrial dema
Slide 42: About Us
About Us Everest Kanto Cylinder Limited (EKC) (BSE: 532684, NSE: EKC), established in 1978, is a clean energy solutions company and a leading global manufacturer of seamless steel gas cylinders with over 20 million industrial gas and CNG cylinders currently in service. EKC operates two manufacturing
Slide 43: Thank You
Thank You
Everest Kanto Cylinder — Q4 FY21 Earnings Presentation on 6ix