Mahanagar Gas Ltd · NSE:MGL
Mahanagar Gas — Investor Presentation (September 2020)
37 slides from Mahanagar Gas's investor presentation, September 2020
Slide 1: Presentation to Investors September 2020
PRESENTATION TO INVESTORS September - 2020 1 www.mahanagargas.com
Slide 2: MGL: An Introduction
MIGL : An Introduction MAHANAGAR GAS LIMITED
Slide 3: One of the largest CGD Companies in India
One of the largest CGD Companies in India Attractive Sole authorized distributor of CNG and PNG in Mumbai, its Adjoining Areas and Market Raigad with more than 25-years consistent growth (1) Low-Cost Gas Cost-effective availability of domestic natural gas with sourcing flexibility Availability Stron
Slide 4: Our Journey: Record of Growth and Excellence
Our Journey : Record of Growth and Excellence Net Worth – INR billion 28.9 Started Commercial operations in 200th CNG Raigad dispensing station New GA Raigad Listing on NSE 110% and BSE As of allocation of September Pipeline domestic gas 30, 2020 PE – 3,800 km & Steel - 380 km 3rd CGS at Taloja & 4t
Slide 5: Areas of Operation
Areas of Operation Mira- Business Operations Bhayander, Navi Mumbai, Thane City, Kalyan, Taloja, Raigad District Areas of Mumbai & Ambernath, (adjacent to Bhiwandi Operation Greater Mumbai Dombivli, existing area of Ulhasnagar, operation) Mira-Bhayander Badlapur, Kalyan Thane Bhiwandi, Dombivily Kha
Slide 6: The MGL Proposition
The MGL Proposition Significant Growth Potential Backed by Favorable ✓ Industry Conditions Underpenetrated Market with Significant Potential for ✓ Expansion Robust Infrastructure in Place to Support Future ✓ Growth ✓ Favorable Regulatory Environment ✓ Cost Effective Sourcing Strategy ✓ Strong Operat
Slide 7: Natural Gas and CGD: Attractive Industry
Market Natural Gas and CGD : Attractive Industry Industry Overview • India was the third-largest energy consumer in the world after China and US in 2019(1) • India’s primary energy consumption has increased by ~ 58% between 2009 and 2019, reaching ~813 MToe(1) • India’s per capita energy consumption
Slide 8: Attractive Fuel Economics
Attractive Fuel Economics CNG Retains its Price Competitiveness vs. Other Fuels Comparison of Alternative Fuel Costs Commercial PNG Favorably Priced vs. Alternate Fuels Particulars INR / kg or INR / L Particulars UoM Differential (2) CNG 47.90 (1) PNG (4) INR/SCM 29.58 Differential (3) 41% Diesel Co
Slide 9: Diversified Sourcing Strategy
Diversified Sourcing Strategy CNG & Domestic PNG Industrial / Commercial PNG APM Non-APM Term Spot Source Western offshore Western Offshore RLNG RLNG MoPNG • BPCL • GAIL • BGIES • GSPCL Suppliers • Hazira LNG • HPCL • PLL • IOCL GAIL • SEMTIPL • TPL • Domestic supply agreement - MoPNG allocates gas
Slide 10: Diversified Sourcing Strategy: Priority Segment Forms Majority
Priority Segment Forms Majority Diversified Sourcing Strategy FY 20 Sales Composition • Allocation Allocation of 110% of consumption in previous 72.6% 6 months for the Domestic PNG & CNG segments • Pricing 13.7% APM price significantly lower than market price of 6.1% 7.6% imported natural gas • Dist
Slide 11: Infrastructure in place: Extensive Supply Network Built Over 25 Years
Infrastructure in place Extensive Supply Network Built Over 25 Years Asset Base CNG Customer Base(3) • Infrastructure Exclusivity Fixed Asset of INR 25.39 Bn(1) ✓ Mumbai: Prevailing ~0.77 Mn Capex for 2020 INR 2.9 Bn(2) ✓ Adjoining Areas: Up to 2030 ✓ Raigad: Up to 2040 Enablers 261 CNG filling stat
Slide 12: Regulatory Environment Creating Strong Barriers to Entry & Incumbent Advantage
Regulatory Environment Creating Strong Barriers to Entry & Incumbent Advantage Description Implication for MGL • Built-in advantage for incumbent Authorization to lay, build, operate or Authorization expand a CGD network • Authorization for Mumbai, its adjoining areas and Raigad Infrastructure exclu
Slide 13: MGL Growth Strategy
MGL Growth Strategy Further develop Increase infrastructure Continue Cost- penetration in Effective and existing markets Reliable Sourcing • Invest in infrastructure Arrangement to cater to MGL’s larger Seek Growth • Increasing population customer base and improve the quality of Opportunities expect
Slide 14: Innovative Modes of Gas Supply
Innovative Modes of Gas Supply Hub & Spoke Method for demand centers located away from pipelines ✓ (Virtual pipeline mode) ✓ Supply of LNG through small cryogenic cylinders Small LNG cylinders ✓ LNG and LCNG fueling stations along Highways ✓ CNG-in-a-box / Pole mounted dispensing to optimize CNG sta
Slide 15: MGL Shareholders
MGL Shareholders GAIL (India) Ltd. Shareholding Pattern as of 30th September 2020 • India’s largest natural gas company with a market share of over 80% • Possesses transmission network of ~11,000 kms of natural gas pipeline transmission network with total FIIs / FPIs, capacity of 206 MMSCMD Promoter
Slide 16: Our Experienced Management Team
Our Experienced Management Team – As on 30th September 2019 …. Mr. Sanjib Datta Mr. Deepak Sawant Managing Director (Nominee of GAIL) Deputy Managing Director (Nominee of GAIL) • Over 33 years of experience • Over 29 years of experience • Heading business development function in GAIL Prior to joinin
Slide 17: Our Experienced Management Team (continued)
…. Our Experienced Management Team – As on 30th September 2019 Mr. Chakrapani Atmakur Mr. Gurvinder Singh, Vice President - Human Resources & Vice President - Projects Corporate Communication • Over 29 years of experience • Over 28 years of experience • Prior experience at SI Group(I) Pvt Ltd, • Pri
Slide 18: Financial and Operational Performance
Financial and Operational Performance 18
Slide 19: Growth backed by increased customer base and coverage area
Growth backed by increased customer base and coverage area CNG Customers (end users) Growth PNG Customers Growth (In ‘000s) (In ‘000s) 1,273 1,287 751 761.2 1,150 692 1,037 609 952 545 865 804 470 421 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21- FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21-H1 H1 CNG Volu
Slide 20: Revenue and Profitability
Revenue and Profitability Revenue (INR Bn) 5 yr. CAGR CNG 8.7% 5 yr. CAGR PNG 4.3% 5 yr. CAGR Total 7.2% 8.9 8.8 6.0 6.8 7.3 5.8 18.8 20.5 13.5 14.7 14.3 15.4 3.5 4.1 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21-H1 Others PNG CNG Gross Profit (INR Bn) 15.9 13.9 12.0 10.2 8.0 8.5 4.9 FY 15 FY 16 FY 17 F
Slide 21: Profitability
Profitability o Cautious pricing in view of EBITDA (INR Bn) forthcoming 110% allocation of domestic gas o In 2nd half of FY 16, lower Brent → lower Industrial & Commercial prices 10.5 7.8 8.9 6.4 4.9 5.1 3.0 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 - H1 PAT (INR Bn) 7.9 5.5 4.8 3.9 3.0 3.1 1.9 FY 1
Slide 22: Capex and Operating Cash Flows
Capex and Operating Cash Flows The Company’s financial position provides it with flexibility to expand its network in existing markets and expand to new markets in India 4.2 In 18-19, OMC trade discount settlement of 9.8 3.6 Rs 0.36 bn & higher direct tax proportion compared to 17-18 2.7 6.8 2.5 6.5
Slide 23: Other Financial Metrics
Other Financial Metrics Particulars FY 15 FY 16 FY17 FY 18 FY 19 FY 20 FY 21-H1 Avg Realization / SCM (INR) 23.8 23.2 21.5 22.4 25.7 27.3 26.1 Gross Margin / SCM (INR) 9.0 9.4 10.7 12.1 12.7 14.5 16.7 Opex / SCM (INR) 3.6 3.8 4.0 4.3 4.7 5.0 6.6 EBITDA / SCM (INR) 5.6 5.7 6.9 7.9 8.2 9.7 10.3 EBITDA
Slide 24: Creating value for shareholders
Creating value for shareholders 40.0 70.0% 60.8% 35.0 58.8% 56.4% 60.0% 30.0 47.3% 50.0% 43.6% 46.0% 25.0 40.0% 20.0 35.0 30.0% 15.0 20.0% 10.0 19.0 19.0 20.0 17.5 17.5 5.0 10.0% - 0.0% FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 DPS (INR) Payout Ratio % 24 Note: 1. Payout Ratio calculated including Dividen
Slide 25: Appendix
Appendix MAHANAGAR GAS LIMITED
Slide 26: Board of Directors – As on 30th September 2020
Board of Directors – As on 30th September 2020 Mr. Manoj Jain, , Chairman • On the Board effective from May 06, 2020 • Chairman and Managing Director, GAIL (India) Limited • Mechanical Engineering Graduate; MBA in Operations Management . Mr. Sanjib Datta, Managing Director (Nominee of GAIL) ▪ Over 3
Slide 27: Board of Directors – As on 30th September 2019
Board of Directors – As on 30th September 2019 Mr. Premesh Kumar Jain, Independent Non-executive Director • On the Board effective from April 09, 2018. • Over 35 years of experience in Oil & Gas sector in areas of FX Risk Mgmt, Budgeting & Corporate Accounts • Former Director (Finance) of GAIL for m
Slide 28: Statement of Financial Results for the six months ended September 30, 2020
Statement of Financial Results for the six months ended September 30, 2020 INR Mn Sr. For the six months ended For the six months ended Particulars No. 30th September 2020 30th September 2019 I Revenue from Contracts with Customers 8,264.14 16,927.44 II Other Income 429.54 433.20 III Total Income (I
Slide 29: Statement of Assets and Liabilities as at September 30, 2020
Statement of Assets and Liabilities as at September 30, 2020 INR Mn As at As at Particulars th 30 September 2020 31st March 2020 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 19,015.88 19,262.19 (b) Capital Work-in-Progress 4,931.76 4,865.33 (c) Intangible Assets 56.14 46.35 (d) Rig
Slide 30: Statement of Assets and Liabilities as at September 30, 2020 (Contd)
Statement of Assets and Liabilities as at September 30, 2020 (Contd….) INR Mn As at As at Particulars th 30 September 2020 31st March 2020 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 (b) Other Equity 27,907.43 28,538.90 Total Equity (I) 28,895.21 29,526.68 II. Liabilities
Slide 31: Statement of Assets and Liabilities
Statement of Assets and Liabilities INR Mn As at As at As at As at As at Particulars 30th Sept, 2020 31st March, 2020 31st March, 2019 31st March, 2018 31st March, 2017 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 19,015.88 19,262.19 17,587.53 15,280.59 13,003.09 (b) Capital Work-i
Slide 32: Statement of Assets and Liabilities (Contd)
Statement of Assets and Liabilities (Contd….) INR Mn As at As at As at As at As at Particulars 30th Sept, 2020 31st March, 2020 31st March, 2019 31st March, 2018 31st March, 2017 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 987.78 987.78 987.78 (b) Other Equity 27,907.43 2
Slide 33: Statement of Profit and Loss
Statement of Profit and Loss INR Mn For the period ended Sr. Particulars 30th September 31st March 31st March 31st March 31st March No. 2020 2020 2019 2018 2017 I Revenue from Contracts with Customers 8,264.14 32,644.86 30,567.93 24,529.17 22,390.71 II Other Income 429.54 989.53 777.13 576.81 526.57
Slide 34: Statement of Cash Flows
Statement of Cash Flows INR Mn For the period ended PARTICULARS 30.09.2020 31.03.2020 31.03.2019 31.03.2018 31.03.2017 I. CASH FLOW FROM OPERATING ACTIVITIES Profit before tax as per Statement of Profit and Loss 2,557.54 9,835.37 8,369.12 7,265.13 6,006.60 Adjustments for: Depreciation and Amortisat
Slide 35: Statement of Cash Flows
Statement of Cash Flows INR Mn For the period ended PARTICULARS 30.09.2020 31.03.2020 31.03.2019 31.03.2018 31.03.2017 II. CASH FLOW FROM INVESTING ACTIVITIES Payments for Property, Plant and Equipment/ (848.06) (4,348.89) (3,627.33) (2,690.29) (2,545.21) Intangibles/ Right to Use Assets Sale of Pro
Slide 36: Safe Harbor
Safe Harbor • This presentation may contain statements which reflect the management’s current views and estimates and could be construed as forward looking statements. • The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views be
Slide 37: Thank You
Thank You……. MGL House, G-33, Bandra Kurla Complex, Bandra (E) Mumbai – 400 051 T +91 22 6678 5000 F +91 22 6540093/1046 https://www.mahanagargas.com CIN : L40200MH1995PLC088133 37
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