GAIL (India) Limited · NSE:GAIL
GAIL (India) — FY2007-08 Earnings Presentation
24 slides from GAIL (India)'s earnings presentation, May 2008
Slide 1: Press Conference on Financial Results FY 2007-08
GAIL (India) Limited PRESS CONFERENCE ON FINANCIAL RESULTS FY 2007-08 NG/LPG Transmission NG Trading LPG & OLHC Petrochemicals E&P City Gas Power GAIL Tel
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by GAIL (India) Ltd (Company or GAIL) solely for providing information about the Company. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historic
Slide 3: Management
GAIL ¦ Management The Management Team that will deliver the Strategy Dr. U D Choubey Chairman & Management Director Functional Directors Sh M R Hingnikar Sh R K Goel Sh Santosh Kumar Sh A K Purwaha Sh B C Tripathi Director (HR) Director (Fin) Director (Projects) Director (BD) Director (Mktg) Indepen
Slide 4: Overview
GAIL ¦ Overview India’s Numero Uno Gas Company Integrated Natural Gas Company 24 Years of History, Rich Experience & Expertise Consistent Dividend Payer Moody’s Intl. Rating – Baa2 (Foreign) & A3 (Local) Government of India – Majority Stakeholder (57%) Listed in BSE, NSE & London Stock E
Slide 5: Overview – Now & Then: Lines of Business
GAIL ¦ Overview – Now & Then Emerged as a Truly Integrated Company 1998 2008 WAS IS Branded as Gas Authority of GAIL (India) Ltd India Ltd Lines of Business NG Trans 55 MMSCMD 82 MMSCMD NG Trading 55 MMSCMD 69 MMSCMD LHC Prod 659 TMT 1347 TMT Polymer Prod - 386 TMT GAIL Tel - 13000 KM OFC E&P Blocks
Slide 6: Overview – Now & Then: Financial Performance
GAIL ¦ Overview – Now & Then Strong Financial Performance Delivered (Rs in Crores) 1998 2008 WAS IS Share Capital 845 845 Reserves & Surplus 2568 12159 Loans 1478 1265 Gross Block 5183 16958 Turnover 5397 18008 Gross Margin 1706 4506 PBT 1390 3855 PAT 1020 2601 6 GAIL (India) Limited
Slide 7: Business Overview
GAIL ¦ Business Overview Business Portfolio Transmission Trading Petrochemicals LHC Core Business Gas Marketing Significant 7 Plant across NG Trans Cap No. 1 company Player India ~ 150 in terms of Only Polymer Significant MMSCMD Market Share Plant in North Player (7000 KM) India Pr
Slide 8: Business Overview
GAIL ¦ Business Overview Business Portfolio E&P GAILTel Retail Diversification Securing Gas Leveraging OFC High Growth PLL LNG Supply Countrywide Area terminal (6.5 24 Domestic Presence 8 JVs (IGL, MMTPA) 3 Overseas (2- Carriers Carrier BGL, MGL, RGPPL – Power Myanmar & 1 Service
Slide 9: Wealth Creation
GAIL ¦ Wealth Creation Creating Value : More than 5 times since 2003 450 400 es 5ti m 350 t han e mor wn Rs/Share 300 o G r 250 200 150 100 50 2003 2004 2005 2006 2007 2008 Year Share Price Movement on BSE 9 GAIL (India) Limited
Slide 10: Segmental Physical Highlights – FY08
GAIL ¦ Segmental Physical Highlights – FY08 Significant Growth in Core Segments Gas Transmission Gas Trading LPG Transmission MMSCMD 82.10 MMSCMD 69.10 ‘000 MT 2,754 6% 2% 11% 77.29 67.84 2,491 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 Petrochemicals Liquid HC GAILTel ‘000 MT 391 ‘000 MT 1,351
Slide 11: Financial Performance – FY08
GAIL ¦ Financial Performance – FY08 Top to Bottom Growth (Rs in Crores) Sales (Net of ED) Gross Margin (EBITDA) 18,008 4,306 18,500 4,500 18,000 4,000 3,543 27% 17,500 % 12 3,500 17,000 16,047 3,000 16,500 2,500 16,000 15,500 2,000 15,000 1,500 2006-07 2007-08 2006-07 2007-08 PBT PAT 3,855 4,000 3,0
Slide 12: Financial Performance – FY08
GAIL ¦ Financial Performance – FY08 Bottom Growth Excluding Abnormal Item (Rs in Crores) 2601 2551 2387 9% 3000 3000 2047 25% 2500 2500 2000 2000 1500 1500 1000 1000 500 500 0 0 Actual 06-07 Actual 07-08 Actual 06-07 Actual 07-08 Excluding abnormal items PAT grew by 25% 12 GAIL (India) Limited
Slide 13: Pipeline Projects – Recently Completed
GAIL ¦ Pipeline Projects – Recently Completed Pipeline Projects – Strengthened the Core Business Vijaipur-Kota Kelaras-Malanpur LNTH – 192 Kms. LNTH – 85 Kms. Cost – Rs. 141 Cr. Cost – Rs. 60 Cr. Cap. – 3.5MMSCMD Cap. – 2MMSCMD Completed on – Jan 07 Completed on – July 06 THULENDI Jagoti-Pitampur KE
Slide 14: Segmental Financial Highlights
GAIL ¦ Segmental Financial Highlights Growth in each Segment (Rs in Crores) Gas Transmission Gas Trading LPG Transmission 2,026 10,332 382 (Net of ED) 1,949 4% 8% 12% Sales 9,552 341 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 11% contributor in Sale No. 1 by Mkt share Only company in this
Slide 15: Segmental Financial Highlights
GAIL ¦ Segmental Financial Highlights Growth in core Segments (Rs in Crores) Petrochemicals Liquid HC GAILTel & Others 2,569 2,641 58 (Net of ED) 18% 33% 2,185 75% Sales 33 1,987 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 14% contributor in Sale 15% contributor in Sale Inline with Corporat
Slide 16: Breakup of Turnover
GAIL ¦ Breakup of Turnover Balanced Mix of Business Segment Turnover Turnover (FY 07-08) – Rs.18008 Cr 15% 11% 2% NG Trans 14% LPG Trans Gas Trade Petchem LHC GAILTel 58% * % share excluding unallocated segment 16 GAIL (India) Limited
Slide 17: Breakup of Gross Margin
GAIL ¦ Breakup of Gross Margin Business Mix – Significant Gross Margin from Core Business Actives Gross Margin (FY 07-08) – Rs.4506 Cr 21% 39% NG Trans LPG Trans Gas Trade Petchem LHC GAILTel 30% 6% 4% * % share excluding unallocated segment 17 GAIL (India) Limited
Slide 18: Key Financial Ratios
GAIL ¦ Key Financial Ratios Ratios Depicts Consistent Performer PAT TO NET WORTH(%) ROCE (%) DEBT EQUITY RATIO 31 36 0.4 25.2 32 0.29 27 33 0.3 22.8 23.4 0.23 30 30 0.19 23 21 20 30 28 28 0.2 0.12 0.1 19 27 0.1 15 24 0 03-04 04-05 05-06 06-07 07-08 03-04 04-05 05-06 06-07 07-08 03-04 04-05 05-06 06-
Slide 19: Financial Performance - Q4
GAIL ¦ Financial Performance - Q4 Sustained Quarter on Quarter Performance Growth in Q4 of FY 2007-08 over Q4 of FY 2006-07 Financial Parameters (Rs. in Crs.) 4935 1260 1098 722 Turnover Gross (Net of ED) Margin PBT PAT (EBITDA) 27% 76% 101% 6% 3883 716 546 681 LPG Subsidy - Rs.387 Crs (Rs.502 Crs.
Slide 20: Upcoming Pipelines
GAIL ¦ Upcoming Pipelines Pipeline Projects – Strengthen the Core Business CHAINSA-JHAJJHAR-HISSAR Phases DADRI-BAWANA-NANGAL LNTH – 450 Kms. # LNTH – 640 Kms. # NANGAL Cost – Rs. 1000 Cr. Cost – Rs. 2500 Cr. Add. Cap. – 35MMSCMD Phase I by 2011 Add. Cap. – 31MMSCMD BAWANA DADRI HISSAR JHAJJAR CHAIN
Slide 21: E&P Initiatives
GAIL ¦ E&P Initiatives E&P Activities – To Secure Future Gas Supplies Total Blocks - 30 Onshore Blocks - 9 Offshore Blocks - Deep Water 13 & Shallow - 5 CBM Blocks - 3 Major Operators - ONGC, GSPC, OIL, Gazprom, Daweoo, Pertogas, Hardy, ENI, Jubilent, Arrow Energy Net investment - Rs.115
Slide 22: International Rating
GAIL ¦ International Rating GAIL has been given Corporate Issuer Rating by Moody’s Foreign currency – Baa2 (One notch above sovereign rating of Baa3) Local Currency - A3 (Five notch above sovereign rating of Ba2) Positive impact on debt raising capability 22 GAIL (India) Limited
Slide 23: Conclusion
Conclusion Wrapping up with confidence Strong Financials Strong GoI Support Relatively New Asset Strong Gas Demand Dominant Position - Transmission Large Capex Plans in Place 23 GAIL (India) Limited
Slide 24: Thank You
GAIL (India) Limited THANK YOU