Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Q4 FY22 Earnings Presentation
36 slides from Everest Kanto Cylinder's earnings presentation, May 30, 2022
Slide 1: Regulation 30 disclosure covering letter
May 30,2022 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 High P
Slide 2: Investor Presentation May 2022
Investor Presentation May 2022
Slide 3: Safe Harbor
EVEREST KANTO CYLINDER LIMITED Clean 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 that co
Slide 4: Table of Contents
Ta b l e o f C o n te n t s Company Overview 4 Industry Overview 16 Historical Financials/Corporate Summary 24 Q4 & FY22 Financial Performance 29 3
Slide 5: Company Overview
Company Overview EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 6: India's Largest Manufacturer of High-pressure Gas Cylinders Since 1978
E KC i s I n d i a ’s L a r g e s t M a n u f a c t u r e r o f H i g h - p r e s s u r e G a s Cylinders Since 1978 Established Market Position 200+ SKU’s 25+ Countries 150+ Clients Fungible production lines with diverse CNG and Cater to gas ecosystems across India, Europe, USA, South Auto OEM’s, C
Slide 7: Over Four Decades of Focused Domain Experience
Over Four Decades of Focused Domain Experience - Received RMB 93.50 million against sale of China subsidiary - Announced 400,000- cylinder brownfield expansion Set up - EKC Intl FZE, Dubai marketing/product Sold Gandhidham entered JV for development unit, assets Production unit in subsidiary in tran
Slide 8: Board of Directors
B o a rd o f D i r e c t o rs 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 Business Specializes in audi
Slide 9: Extensive Range of Products
E x te n s i v e R a n g e o f P ro d u c t s 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 and industrial gases, medical and food & beverage safety standards appli
Slide 10: Products with a Wide Range of Applications
P ro d u c t s w i t h a W i d e R a n g e o f A p p l i c a t i o n s 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 with IS Range covers capacities
Slide 11: High Value Addition in the Manufacturing Process
H i g h Va l u e A d d i t i o n i n t h e M a n u f a c t u r i n g P r o c e s s Seamless Heat Hardness Painting Tubes Treatment Checking Neck Final Tube Cutting Neck Drilling Stamping Product Threading Inside Bottom Ultrasonic Int. & Ext. Neck Forming Milling Testing Shot Blasting Bottom Bottom H
Slide 12: Quality is Key in a Highly Regulated, Safety-focused Industry
Q u a l i t y i s Ke y i n a H i g h l y Re g u l a te d , S a fe t y - focused Industry India USA UAE ISO 9001:2015 Certificate from Bureau Veritas for High Pressure seamless steel gas cylinders of 20 to 300 litres water capacity for Industrial and CNG on-board vehicle application, cylinder cascade
Slide 13: Global-size Manufacturing Plants with Fungible Capacities
G l o b a l - s i ze M a n u f a c t u r i n g P l a n t s w i t h F u n g i b l e Capacities Tarapur, Maharashtra, India Kandla SEZ, Gujarat, India Small cylinders (1 litre to 21 litres), gas Wide range of high-pressure seamless steel Manufacturing Manufacturing cylinders (up to 280 liters), jumbo
Slide 14: Manufacturing Facilities – Overseas
M a n u f a c t u r i n g Fa c i l i t i e s – O v e rs e a s Plant I – Dubai Plant II – Dubai Pittsburgh, PA, USA Focus on global emerging markets from two Jumbo tubes/skids as per DOT, ASME, international Manufacturing Manufacturing facilities located in Jabel Ali FTZ standards, full carbon type 4
Slide 15: Planned Capacity Expansions
Planned Capacity Expansions Revenue Location Capacity Addition Capex Funding Sources Completion Timeline Additional Details Potential Brownfield expansion – De-bottlenecking and expansion initiatives have already Tarapur, Maharashtra / 400,000 cylinders annually Phase I: Completed improved output
Slide 16: International Operations Target Widespread Global Gas Usage Expansion
I n te r n a t i o n a l O p e ra t i o n s Ta rg e t W i d e s p r e a d G l o b a l Gas Usage Expansion USA Europe UAE Leader in innovation, producing large, seamless pressure Signed JV with Rev Gas Industries Ltd, Hungary to set up Deals in CNG cylinders, industrial cylinders, cascades, mul
Slide 17: Industry Overview
Industry Overview EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 18: India's Expanding Gas Economy
I n d i a ’s E x p a n d i n g G a s E c o n o my Gas contribution to India’s primary energy mix to increase from 11% in 2010 to Driven by an expanding city gas distribution network 20% in 2030 Natural Gas Demand Outlook (mmscmd) CGD Demand (mmscmd) Industrial Demand (mmscmd) 85.61 746.03 63.91 516.
Slide 19: CNG Ecosystem Continues to Proliferate
C N G E c o s y s te m C o n t i n u e s t o P ro l i fe ra te Visibility of country-wide coverage Geographical Areas Population Coverage Area Coverage Previous expansions 92 20% 11% 430 bids received for 65 GA’s in Round 11 Round 9 auctions (Apr’18) 86 26% 24% Aggregate investments committed –
Slide 20: Increasing Gas Adoption is Clearly Visible
Increasing Gas Adoption is Clearly Visible Domestic International India Committed To Achieve 15% Share Of PNGRB receives 430 bids in 11th city gas Natural Gas In Primary Energy Mix By 2030 distribution round Minister for Petroleum & Natural Gas and Steel Dharmendra Pradhan stated today that This rou
Slide 21: CNG Demand has Multiple Drivers
C N G D e m a n d h a s M u l t i p l e D r i v e rs Auto OEMs have significantly reduced diesel vehicle production due BS-VI transition to rising costs/lower demand Vehicle Scrappage Expected to drive new vehicle sales and CNG adoption Policy Conversion of diesel STCs continue to convert diesel bus
Slide 22: Hydrogen – Key Pillar for Global Energy Transition
H y d ro g e n – Ke y P i l l a r f o r G l o b a l E n e r g y Tra n s i t i o n Global shift towards decarbonization: over 30 countries have Hydrogen demand in India expected to released Hydrogen roadmaps, committed more than USD 70 increase 5-fold by 2050 billion in public funding, and total in
Slide 23: Industrial Demand Drivers
I n d u s t r i a l D e m a n d D r i v e rs 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 ind
Slide 24: Industrial Demand Drivers
I n d u s t r i a l D e m a n d D r i v e rs 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 backlo
Slide 25: Historical Financials/Corporate Summary
Historical Financials/ Corporate Summary
Slide 26: Financial Summary
Financial Summary Revenue* (Rs. Cr) 1698.8 949.1 702.1 760.5 FY19 FY20 FY21 FY22 India UAE USA & Hungary 1,267.8 240.6 193.5 751.0 149.1 136 127.3 501.6 115.0 117.9 462.0 89.0 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 48.2% 48.1% 23.0% 15.6% 47.5% 18.2% 10.4% 9.6% 13.1% 12.6% 44.7%
Slide 27: Abridged Balance Sheet (Consolidated)
A b r i d g e d B a l a n c e S h e e t ( C o n s o l i d a te d ) Assets (Rs. Cr)* 2018 2019 2020 2021 FY22 Liabilities (Rs. Cr)* 2018 2019 2020 2021 FY22 Fixed Assets 48.9 347.6 364.9 358.9 371.8 Shareholder Funds 444.2 517.8 537.7 628.3 902.9 Other Non-Current Assets 17.5 8.5 22.5 51.2 76.1 Long
Slide 28: Ratio
Ratio Debt/Equity Debt/EBITDA ROCE (%) 4.5 37.4 0.8 3.3 0.6 2.7 0.5 18.0 0.2 0.8 7.5 5.8 6.6 0.1 0.1 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Interest Coverage Assets Turnover 33.6 1.7 1.4 1.4 1.1 0.8 6.3 1.7 2.4 2.0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Slide 29: Market leader in a sector with multiple, long-term growth drivers
M a r ke t l e a d e r i n a s e c t o r w i t h m u l t i p l e , l o n g - te r m g ro w t h d r i v e r s Green Hydrogen Policy – Positive step towards India’s Hydrogen demand expected to increase 5-fold by 2050 energy security 5X expansion of CNG pumps infrastructure underway Almost complete pop
Slide 30: Q4 & FY22 Financial Performance
Q4 & FY22 Financial Performance EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 31: Quarterly Overview – Q4 FY22 vs Q4 FY21
Q u a r te r l y O v e r v i e w – Q 4 F Y 2 2 v s Q 4 F Y 2 1 Revenues EBITDA PBT* PAT ** Consolidated Rs. 478.7 Cr Rs. 94.5 Cr Rs. 89.7 Cr Rs. 64.8 Cr 68.4% 111.0% 193.8% 1360.4% Standalone Rs. 371.8 Cr Rs. 93.1 Cr Rs. 89.8 Cr Rs. 66.8 Cr 60.1% 54.9% 81.5% 166.4% Robust revenue growth EBITDA m
Slide 32: Geographical Revenue/Margins Break-up – Q4 FY22
G e o g ra p h i c a l R e v e n u e / M a rg i n s B r e a k u p – Q 4 F Y 2 2 India UAE USA & Hungary 372 53 52 232 34 Revenue 20 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 60% 57% 160% 89 7 47 -7 EBIT -24 Q4 FY22 Q4 FY21 Q4 FY22 Q4 0FY21 Q4 FY22 Q4 FY21 89% N.A. N.A. 31
Slide 33: Yearly Overview – FY22 vs FY21
Ye a r l y O v e r v i e w – F Y 2 2 v s F Y 2 1 Revenues EBITDA PBT* PAT ** Consolidated Rs. 1,698.8 Cr Rs. 392.0 Cr Rs. 359.9 Cr Rs. 264.5 Cr 79.0% 126.9% 214.1% 189.0% Standalone Rs. 1,267.8 Cr Rs. 350.9 Cr Rs. 333.8 Cr Rs. 228.2 Cr 68.9% 93.4% 127.3% 122.0% *Profit Before Tax is before exception
Slide 34: Geographical Revenue/Margins Break-up – FY22
G e o g ra p h i c a l R e v e n u e / M a rg i n s B r e a k u p – F Y 2 2 India UAE USA & Hungary 1,268 241 194 751 Revenue 115 89 FY22 FY21 FY22 FY21 FY22 FY21 69% 109% 117% 11 336 39 187 16 EBIT -41 FY22 FY21 FY22 FY21 FY22 FY21 79% 146% N.A. 33
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
Thank You EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company r***,<*,,,*^v»
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