Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Q2 FY22 Earnings Presentation
36 slides from Everest Kanto Cylinder's earnings presentation, Nov 20, 2021
Slide 1: Regulation 30 Disclosure Cover Letter
November 20, 2021 To, BSE LIMITED National Stock Exchange of India P.J. Towers, Ltd. Dalal Street, Exchange Plaza, EVEREST Mumbai - 400 001 Bandra Kurla Complex, Bandra (East), Mumbai - 400051 KANTO BSE Scrip Code: 532684 NSE Symbol: EKC CYLINDER NSE Series: EQ LIMITED Manufacturers Dear Sir(s), of
Slide 2: Q2 FY22 Financial Results
Q2 FY22 Financial Results November 2021
Slide 3: Safe Harbor
(EKC EVEREST KANTO CYLINDER LIMITED Cleon Energy Solution Company 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 several risks, uncertainties and other factors th
Slide 4: The 'EKC' Edge
The ‘EKC’ Edge India’s largest manufacturer of high-pressure gas cylinders 43 years of focused domain experience Global scale plants in India, UAE and USA Manufacturing capacity of ~1 million cylinders annually Fungible production lines with a range of 200+ SKU’s from 1 liter to 3,000 liters CNG, in
Slide 5: Table of Contents
Ta b l e o f Contents Q2 FY22 Financial Performance 5 Company Overview 11 Industry Overview 21 Historical Financials/Corporate Summary 29 4
Slide 6: Q2 FY22 Financial Performance
Q2 F Y 2 2 Financial Performance EVEREST MANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 7: Key Performance Highlights – Q2 FY22
Key Performance Highlights – Q2 FY22 ( Yo Y c o m p a r i s o n s ) Consolidated Revenues EBITDA Margin up Profit Before Tax up EPS up from Rs. 2.58 up 71.3% from 19.2% to 26.5% 209.2% to Rs. 6.33 India business up UAE business up USA business up Significant increase in 57.6% to Rs. 302.6 133.0% to
Slide 8: Management Commentary
Management Commentary Comments on Q2 FY22 performance by Comments on Q2 FY22 performance by Pushkar Khurana, Chairman, Puneet Khurana, Managing Director, Everest Kanto Cylinder Limited Everest Kanto Cylinder Limited Globally, the mainstreaming of gas as a prime mover of economic development During Q
Slide 9: Quarterly Overview – Q2 FY22 vs Q2 FY21
Quarterly Overview – Q2 FY22 vs Q2 FY21 Revenues EBITDA PBT* PAT ** Consolidated Rs. 421.3 Cr Rs. 111.6 Cr Rs. 102.7 Cr Rs. 70.9 Cr 71.3% 135.9% 209.2% 145.0% Standalone Rs. 302.6 Cr Rs. 95.3 Cr Rs. 90.9 Cr Rs. 60.4 Cr 57.7% 130.6% 178.5% 88.7% Accelerated growth Consolidated EBITDA Continued
Slide 10: Geographical Revenue/Margins Breakup – Q2 FY22
Geographical Revenue/Margins Breakup – Q2 FY22 India UAE USA & Hungary 70 49 303 42 245 52 192 26 30 Revenue Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 23% 58% 36% 133% 17% 84% 92 14 81 16 50 2 EBIT 4 4 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Q2 F
Slide 11: Corporate Developments
Corporate Developments Capital Expenditure Plan • Brownfield expansion at existing plants – Tarapur and Kandla • Production capacity in India to rise by 400,000 cylinders* • Execution timeline – eight months • Capex requirement – Rs. 35 crore *Greenfield capacity expansion plan of 200,000 cylinders
Slide 12: Company Overview
Company Overview
Slide 13: Key Milestones
Key Milestones - Received RMB 93.50 million against sale of China subsidiary - Announced 200,000- cylinder greenfield expansion - EKC International FZE, Dubai entered Set up JV to set up a gas marketing/product Sold Gandhidham cylinder development unit, assets manufacturing plant Initiated subsidiar
Slide 14: 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 15: Global Footprint
(EKC Global Footprint EVEREST KANTD CYLINDER LIMITED Clean Energy Solution Company W Germany fa) Delhi Q Hungary * 9b Kandla SEZ, usA Gujarat o Mexico** Dubai O Pittsburgh, PA Colombia » • India Tarapur, Mumbai Maharashtra Peru M Bangalore W Jabel Ali Free Manufacturing Locations Jabel All Free Zone
Slide 16: Manufacturing Facilities – India
Manufacturing Facilities – India Tarapur, Maharashtra, India Kandla SEZ, Gujarat, India Wide range of high-pressure seamless Small cylinders (1 litre to 21 litres), gas Manufacturing steel cylinders with storage capacity up to Manufacturing cylinders (up to 280 liters), jumbo 280 litres tubes/skids,
Slide 17: Manufacturing Facilities – Overseas
Manufacturing Facilities – Overseas Plant I – Dubai Plant II – Dubai Pittsburgh, PA, USA Jumbo tubes/skids as per DOT, ASME, Focus on global emerging markets from two Manufacturing Manufacturing international standards, full carbon type 4 facilities located in Jabel Ali FTZ composite cylinders Plant
Slide 18: 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 19: 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 20: 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 High
Slide 21: 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 Pressure Transport Canada Special Equipment Mechanicals Engineers Association Transportation seamless steel gas cylinde
Slide 22: Industry Overview
Industry Overview EVEREST KANTO IDER LIMITED Clean Energy Solution Company
Slide 23: 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 Substantial investments in “One Nation One Gas Grid” chart India’s energy roadmap India's natural gas consumption is targeted to rise over the next decade, from 170 mmscmd to 600 mmscmd Key gas demand drivers – infrastructure development, econom
Slide 24: CNG Demand Outlook
CNG Demand Outlook CNG Stations CNG Vehicles (Mn) 3.6 Maharashtra, Gujarat and NCR have 2,000 3.1 previously accounted for 1,500 most of India’s CNG network India Maharashtra, Gujarat India Maharashtra, Gujarat and Delhi and Delhi CNG Stations CNG Demand (mmscmd) 11,000 57 City Gas Distribution netw
Slide 25: CNG Demand Outlook
CNG Demand Outlook Auto OEMs have significantly reduced diesel vehicle BS-VI transition production due to rising costs/lower demand Vehicle Scrappage Expected to drive new vehicle sales and CNG adoption Policy Conversion of STCs continue to convert diesel bus fleets to CNG diesel buses to CNG CNG pr
Slide 26: Industrial Demand Outlook
Industrial Demand Outlook Industrial Demand is driven by capex activity, expected to accelerate resume growth after the recent weakness Gross Fixed Capital Formation GVA from Industrial Sector (Current Prices) CAGR: 11.6% CAGR: -1.5% CAGR: 9.3% CAGR: -3.8% 58.5 36.3 55.1 53.5 35.5 33.3 33.6 48.2 30.
Slide 27: 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 28: 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 29: International Operations
International Operations USA Europe UAE World leader in innovation, producing large, Signed JV with Rev Gas Industries Ltd, Hungary to Deals in CNG cylinders, industrial cylinders, cascades, seamless pressure vessels set up a state-of-the-art manufacturing plant in multiple element gas contain
Slide 30: Historical Financials/ Corporate Summary
Historical Financials/ Corporate Summary (EKC EVEREST MANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 31: Financial Summary
Financial Summary Revenue* (Rs. Cr) 949.1 702.1 760.5 756.3 542.5 FY18 FY19 FY20 FY21 H1 FY22 India UAE USA & Hungary 751.0 149.1 136 115.0 121.9 132.0 117.9 127.3 462.0 501.6 547.9 89.0 90.2 333.4 60.2 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 53.9% 48.2% 4
Slide 32: Abridged Balance Sheet (Consolidated)
Abridged Balance Sheet (Consolidated) Assets (Rs. Cr)* 2018 2019 2020 2021 H1 FY22 Liabilities (Rs. Cr)* 2018 2019 2020 2021 H1 FY22 Fixed Assets 48.9 347.6 364.9 358.9 357.6 Shareholder Funds 444.2 517.8 537.7 628.3 769.1 Other Non-Current 17.5 8.5 22.5 51.2 50.4 Assets Long - Term Debt 206.1 155.3
Slide 33: Ratio
Ratio Net Debt/Equity Net Debt/EBITDA 4.5 0.8 3.3 0.6 0.4 2.1 0.2 0.6 0.1 0.2 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 Interest Coverage Assets Turnover 38.7 1.6 1.5 1.2 1.1 1.1 4.9 1.3 1.7 1.5 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 32
Slide 34: Investment Summary
Investment Summary 5X expansion of CNG pumps infrastructure 100% population coverage by 2030 underway Expanding Auto OEM’s expanding CNG vehicle production Availability now extends across many more models Opportunity volumes Sustained demand across multiple industrial Medical Oxygen, Hydrogen applic
Slide 35: 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 36: Thank You
v • • ... ................ Thank You EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company AC P' n .< k> ■J ■ ^a- - s— fl •. ‘' ‘ " wL Ml
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