Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Q1 FY22 Earnings Presentation
39 slides from Everest Kanto Cylinder's earnings presentation, Aug 25, 2021
Slide 1: Regulation 30 Disclosure Letter to Stock Exchanges
August 25, 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 (Listi
Slide 2: Q1 FY22 Financial Results
Q1 FY22 Financial Results August 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 SKU’s Diversified Product Range 200+ SKU’s
Slide 5: Table of Contents
Ta b l e o f Contents Q1 FY22 Financial Performance 5 Company Overview 09 Industry Overview 20 Key Attributes 27 Historical Financials/Corporate Summary 31 4
Slide 6: Q1 FY22 Financial Performance
Q1 FY22 Financial Performance
Slide 7: Management Commentary
Management Commentary Comments on Q1 FY22 performance by Pushkar Comments on Q1 FY22 performance by Puneet Khurana, Chairman, Everest Kanto Cylinder Khurana, Managing Director, Everest Kanto Limited Cylinder Limited We have moved into FY22 on a strong note, delivering exceptional financial During Q1
Slide 8: Key Performance Highlights – Q1 FY22
Key Performance Highlights – Q1 FY22 Revenues EBITDA PBT* PAT ** Consolidated Rs. 335.0 Cr Rs. 88.4 Cr Rs. 79.8 Cr Rs. 69.2 Cr 95.0% 182.2% 425.0% 961.8% Standalone Rs. 245.2 Cr Rs. 82.9 Cr Rs. 79.1 Cr Rs. 51.8 Cr 94.4% 158.2% 250.0% 243.9% Growth momentum continued Consolidated EBITDA Busines
Slide 9: Geographical Revenue Breakup – Q1 FY22
Geographical Revenue Breakup – Q1 FY22 Revenues (Rs. Cr) 335 284 172 18% 95% Q4 FY21 Q1 FY22 Q1 FY21 India UAE USA & Hungary Others 232 245 127 52 42 34 24 22 20 6 1 4 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 6% 94% 52% 132% 109% 75% -84% -76% 8
Slide 10: Company Overview
Company Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray Solution Company
Slide 11: Key Milestones
Key Milestones - Received RMB 93.50 million against sale of China subsidiary - Announced 200,000-cylinder Acquired majority greenfield stake in Calcutta Set up expansion Compressions & marketing/product Sold Gandhidham - EKC International Liquefaction development unit, assets FZE, Dubai entered Init
Slide 12: 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 13: 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 14: 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 13
Slide 15: 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 16: 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 Jabel Ali Free Zone (South) Manufacturing type 4 composite cylinders in Dubai in
Slide 17: 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 18: 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 19: 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 18
Slide 20: 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 21: Industry Overview
Industry Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray Solution Company
Slide 22: 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 committed investments towards “One Nation One Gas Grid” chart India’s energy roadmap India targets 15% contribution from natural gas in the primary energy mix by 2030 (PIB 2017) India's natural gas consumption is targeted to rise mor
Slide 23: CNG Demand Outlook
CNG Demand Outlook CNG Stations CNG Vehicles (Mn) 3.6 2,000 3.1 India’s CNG ecosystem is largely 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 significantly
Slide 24: 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 25: 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: 12% CAGR: 9% 54.9 36.1 36.6 54.7 33.3 48.0 30.2
Slide 26: 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 27: 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 28: Key Attributes
Key Attributes €KC EVEREST KANTO CYLINDER LIMITED lean Eneray Solution Company
Slide 29: 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 30: 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 31: International Operations
International Operations World leader in innovation, producing large, Signed JV with Rev Gas Industries Ltd, Hungary Deals in CNG cylinders, industrial cylinders, cascades, seamless pressure vessels to set up a state-of-the-art manufacturing plant in Hungary for seamless high pressure multiple
Slide 32: Historical Financials/Corporate Summary
Historical Financials/ Corporate Summary
Slide 33: 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 34: Profit Margin
Profit Margin 53.9% 17.2% 13.4% 48.3% 48.2% 48.1% 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 35: 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 36: 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 35
Slide 37: 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 38: 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 39: Thank You
Thank You
Everest Kanto Cylinder — Q1 FY22 Earnings Presentation on 6ix