Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Q4 FY23 Earnings Presentation
34 slides from Everest Kanto Cylinder's earnings presentation, May 30, 2023
Slide 1: Disclosure under Regulation 30 cover letter
May 31, 2023 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra-Kurla Complex Mumbai 400 001 Bandra (East), Mumbai 400 051 Scrip Code: 532684 NSE Symbol: EKC NSE Series: EQ Dear Sir(s),
Slide 2: Investor Presentation Q4 & FY23 Results Presentation
Investor Presentation Q4 & FY23 Results Presentation May 30, 2023
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 several risks, uncertainties and other factors that could cause actual results to differ materially from those sugg
Slide 4: Table of Contents
Table of Contents Company Overview 4 Industry Overview 15 Historical Financials/Corporate Summary 22 Q4 & FY23 Financial Performance 28 3
Slide 5: Company Overview
Company Overview EKC EVEREST KANTO CYLINDER LIMITED Cle ny Clean Energy Solution Compa
Slide 6: India's Largest Manufacturer of High-pressure Gas Cylinders Since 1978
EKC is India’s Largest Manufacturer of High-pressure Gas 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, City Gas Distribution, Industrials, indu
Slide 7: Over Four Decades of Focused Domain Experience
Over Four Decades of Focused Domain Experience - Received RMB 93.50 million against sale of Set up China subsidiary marketing/product Sold Gandhidham - Announced 400,000- development unit, assets cylinder brownfield subsidiary in transferred to Kandla expansion Initiated commercial Commissioned Comm
Slide 8: Board of Directors
Board of Directors Pushkar Khurana Puneet Khurana Ghanshyam Karkera 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)
Slide 9: 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 and industrial gases, medical and food & beverage safety standards applications ✷ Products
Slide 10: Products with a Wide Range of Applications
Products with a Wide Range of Applications 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 of 1 litre to 180 litre , h
Slide 11: High Value Addition in the Manufacturing Process
High Value Addition in the Manufacturing Process 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 Hydro stretch Air leakage forming F
Slide 12: Quality is Key in a Highly Regulated, Safety-focused Industry
Quality is Key in a Highly Regulated, Safety-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 cascades etc American Society for
Slide 13: Global-size Manufacturing Plants with Fungible Capacities
Global-size Manufacturing Plants with Fungible 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 tubes/skids, cylinders with storage
Slide 14: Manufacturing Facilities – Overseas
Manufacturing Facilities – Overseas 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 composite cylinders Plant
Slide 15: International Operations Target Widespread Global Gas Usage
International Operations Target Widespread Global Gas Usage Expansion USA Europe UAE ✷ Leader in innovation, producing large, seamless pressure ✷ Key markets: Italy, Germany, France, Hungary ✷ Deals in CNG cylinders, industrial cylinders, cascades, multiple vessels element gas containers, specialize
Slide 16: Industry Overview
Industry Overview
Slide 17: India's Expanding Gas Economy
India’s Expanding Gas Economy 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 63.91 516.97 46.25 37.00 242.6
Slide 18: CNG Ecosystem Continues to Proliferate
CNG Ecosystem Continues to Proliferate 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 – Round 10 auctions (Nov’1
Slide 19: CNG Demand has Multiple Drivers
CNG Demand has Multiple Drivers 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 fleets to CNG buses
Slide 20: Hydrogen – Key Pillar for Global Energy Transition
Hydrogen– Key Pillar for Global Energy Transition ✷ Global shift towards decarbonization: over 30 countries have Hydrogen demand in India released Hydrogen roadmaps, committed more than USD 70 expected to increase 5-fold by 2050 30 billion in public funding, and total investments expected to exceed
Slide 21: Industrial Demand Drivers
Industrial Demand Drivers 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 22: Industrial Demand Drivers
Industrial Demand Drivers 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 23: Historical Financials/Corporate Summary
Historical Financials/ Corporate Summary EKC EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 24: Financial Summary
Financial Summary Revenue* (Rs. Crore) 1698.8 1274.5 949.1 760.5 FY20 FY21 FY22 FY23 India UAE USA & Hungary 284.4 1,267.8 240.6 199.4 193.5 751.0 789.7 136 115.0 127.3 501.6 89.0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 44.7% 807.1 23.0% 15.6% 48.1% 47.5% 18.2% 543.7 12.6% 9.6% 4
Slide 25: Product Wise Breakup
Product Wise Breakup (Rs. In Crore) (Rs. In Crore) 959.79 57.0% CNG 619.9 48.4% 448.59 26.6% Industrial 336.8 26.7% FY 197.27 11.7% Jumbo 249.9 19.8% FY 2022 2023 78.92 4.7% Trading Sales 64 5.1% 1,684.57 100% Total 1260.5 100% 24
Slide 26: Abridged Balance Sheet (Consolidated)
Abridged Balance Sheet (Consolidated) Assets (Rs. Crore)* 2019 2020 2021 2022 2023 Liabilities (Rs. Crore)* 2019 2020 2021 2022 2023 Fixed Assets 347.6 364.9 358.9 371.8 456.6 Shareholder Funds 517.8 537.7 628.3 902.9 999.5 Other Non-Current Assets 8.5 22.5 51.2 76.1 29.4 Long - Term Debt 155.3 111.
Slide 27: Ratio
Ratio Debt/Equity Debt/EBITDA ROCE (%) 37.4 0.6 3.3 0.5 2.7 18.0 0.2 11.6 0.8 7.5 6.6 0.1 0.1 0.1 0.2 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Interest Coverage Assets Turnover 33.6 1.4 1.4 1.1 1.0 10.9 0.8 6.3 2.4 2.0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY
Slide 28: Market leader in a sector with multiple, long-term growth drivers
Market leader in a sector with multiple, long-term growth drivers 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 population coverage in India by 2030 Expanding
Slide 29: Q4 & FY23 Financial Performance
Q4 & FY23 Financial Performance EKC EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 30: Key Performance Highlights – Q4 & FY23
Key Performance Highlights – Q4 & FY23 (YoY comparisons) EBITDA stood at Consolidated Profit Before Tax India business UAE business Q4 FY23 Rs. 50 crore & Revenues stood at stood at Rs. 37.9 stood at Rs. 180 improves to Rs. margins stood at Rs. 298 crore crore crore 51 crore 16.8% Consolidated Reven
Slide 31: Quarterly Overview – Q4 FY23 vs Q4 FY22
Quarterly Overview – Q4 FY23 vs Q4 FY22 Consolidated Standalone ✷ On a YoY basis, results were affected by a decline in the CNG segment compared to the previous year. However, there was a significant improvement in performance when compared on a QoQ basis Revenues Rs. 297.9 Cr Rs. 180.3 Cr ✷ Steady
Slide 32: Quarterly Overview – FY23 vs FY22
Quarterly Overview – FY23 vs FY22 Consolidated Standalone ✷ FY23 was a challenging year with subdued demand witnessed in the CNG cylinder industry Revenues Rs. 1,274.5 Cr Rs. 789.7 Cr ✷ Over the course of the entire year, consistent contribution from the industrial sector helped mitigate the YoY dec
Slide 33: 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 34: Thank You
Thank You EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
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