Indraprastha Gas Limited · NSE:IGL
Indraprastha Gas — Investor Presentation (November 2016)
26 slides from Indraprastha Gas's investor presentation, Nov 17, 2016
Slide 1: Indraprastha Gas Limited - Disclosure of presentation to stock exchanges
r ! 4 INDRAPRASTHA GAS LIMITED (A Joint Venture of GAIL (India) Ltd., BPCL & Govt. of NCT of Delhi) Ref. No.: IGL/CS/2016 November 17, 2016 The Manager Dept. of Corporate Services Bombay Stock Exchange Ltd. Rotunda Building, 1% Floor Dalal Street Mumbai — 400 001 Listing Department National Stock Ex
Slide 2: Indraprastha Gas Limited: An Overview
INDRAPRASTHA GAS LIMITED An Overview 1 16.11.2016 1
Slide 3: Background
Background Incorporated in 1998, IGL is a Joint Venture of GAIL and BPCL. Govt. of NCT of Delhi is also holding 5% equity IGL started its operations in NCT of Delhi in 1999 with only 9 CNG stations and 1000 PNG consumers Today IGL has its operations in NCT of Delhi, Noida, Greater Noida and Ghaziaba
Slide 4: Shareholding Pattern
Shareholding Pattern % HOLDING Promoters - 45% (GAIL-22.5% & BPCL- 22.5%) Government of NCT of Delhi - 5% Foreign Institution Investors - 21% Mutual Funds - 10% Indian Financial Institutions & Banks - 1% Insurance Companies - 4% Public / Others - 14% 1% 4% 14% 45% 10% 21% 5% 1 3
Slide 5: Management
Management IGL Board is fairly well diversified with ten members including two each from GAIL and BPCL, one from Govt. of Delhi and five independent directors. The company is beneficiary of its strong parentage and gets significant support from GAIL and BPCL relating to operations and management. By
Slide 6: Area of Operation
Area of Operation Delhi: National capital of India has huge demand potential: where all public transport vehicles have to be necessarily run on CNG in view of the directions of the Hon. Supreme Court of India. has the highest number of private cars compared to any other city of India thickly populat
Slide 7: New Geographical Area
New Geographical Area n IGL has been authorised for Rewari geographical area in the recent 6th round of bidding by PNGRB . n We propose to start 1st CNG station in Rewari by the end of this financial year i.e. 2016-17. 1 6
Slide 8: Segment & Current Sales Volume Mix
Segment & Current Sales Volume Mix Comm./ Ind. 10% Sale to other CGD Cos. 9% Residential 5% CNG 76% 1 7
Slide 9: Sales Volumes
Sales Volumes Figures in MMSCM C A GR la s t Apr/ FY13 FY14 FY15 FY16 f iv e Sep'16 ye a rs CNG 1,005 1,028 1,073 1,123 7% 621 PNG 333 356 330 342 14% 194 Total 1,338 1,384 1,403 1,465 8% 815 Sale Daily Average 3.67 3.79 3.84 4.00 8% 4.46 Sale 1 8
Slide 10: Gas Sourcing
Gas Sourcing n Firm allocation from Govt. of India of domestic gas for the entire consumption of CNG and PNG Domestic segment. Lower prices of domestic gas makes the economics of switching to gas more attractive driving growth in CNG & PNG- Domestic segments which constitute around 82% of the total
Slide 11: Current Gas Mix
Current Gas Mix PMT 22% RLNG 11% APM 67% MMSCMD % Mix APM 2.90 67% PMT 0.97 22% RLNG 0.49 11% Total 4.35 100% 1 10
Slide 12: Growth in CNG
Growth in CNG March' March' March' March' PARAMETER UNIT Sep' 16 13 14 15 16 No of CNG Nos 324 325 326 340 418 Stations Compression (Lakh 63.83 66.17 68.49 68.59 72.17 Capacity kg/day) Average CNG (Lakh 20.72 21.20 22.07 22.79 25.54 Sale kg/day) 1 11
Slide 13: CNG Station Network
CNG Station Network Figures in numbers DTC/ STATION IGL OMC TOTAL UPSRTC Online 131 54 187 372 Daughter Booster 0 0 42 42 Daughter 0 0 4 4 Total 131 54 233 418 1 12
Slide 14: CNG Vehicles
CNG Vehicles Figures in numbers C A GR M a rc h' M a rc h' M a rc h' M a rc h' la s t f iv e S e p' 16 13 14 15 16 ye a rs B us e s 18 8 2 6 19 5 6 6 19 4 2 1 19 2 7 2 3% 19 16 0 A ut o / LG V / 2 0 7 9 14 2 2 0 3 9 1 2 4 15 4 0 259500 16 % 262071 RTV C a rs / T a xi 460926 5 14 8 0 1 5 5 6 15 6 589
Slide 15: PNG Users
PNG Users Figures in numbers CATEGORY March' 13 March' 14 March' 15 March' 16 Sep' 16 Domestic 386696 459467 560752 636318 675480 Commercial/ Industrial 1382 1876 2292 2580 2753 Total 388078 461343 563044 638898 678233 1 14
Slide 16: PNG Network
PNG Network Figures in kilometers CAGR March March March' March' last CATEGORY Sep'16 '13 '14 15 16 five years Steel Pipeline 631 658 681 707 11% 746 MDPE 7783 8438 8966 9444 16% 9573 Pipeline Total 8414 9096 9647 10151 16% 10319 1 15
Slide 17: Standalone Financial Data
Standalone Financial Data Rs./Crores Apr/ FY13 FY14 FY15 FY16 CAGR Sep' 16 GROSS TURNOVER 3724 4319 4049 4052 16% 2062 PAT 354 360 438 416 10% 292 EPS (Rs./share) 25 26 31 30 10% 21 Book Value 107 126 150 172 19% 193 (Rs./Share) 1 16
Slide 18: Cumulative Capex (Rs. in crores)
Cumulative Capex (Rs. in crores) 4000 3654 3755 3430 3500 3236 3010 3000 2642 2500 2000 1500 1000 500 0 FY' 12 FY' 13 FY'14 FY' 15 FY' 16 Sep.' 16 1 17
Slide 19: Dividend
Dividend Dividend Policy provides liberal payout Track record of last five years Year % of equity FY12 50 FY 13 55 FY 14 55 FY 15 60 FY 16 60 1 18
Slide 20: Acquisition of Equity in Other CGDs
Acquisition of Equity in Other CGDs • IGL has acquired 50% equity share capital of Central UP Gas Limited (CUGL) for Rs. 69 crores. CUGL is engaged in the CGD in the cities of Kanpur and Bareilly, Unnao & Jhansi in Uttar Pradesh. • IGL has acquired 50% equity share capital of Maharashtra Natural Gas
Slide 21: Consolidated Results
Consolidated Results n First time consolidation of financial results has been done during FY 2015-16 with the Associates i.e. CUGL & MNGL on equity method considering 50% share in profit. The standalone and consolidated results are as under. Parameter Unit Standalone Consolidated PAT Rs. In 416.20 4
Slide 22: Growth-Strategy
Growth-Strategy Improve/Augment CNG infrastructure/Stations in Delhi & NCR to meet the additional demand in view of conversion of private cars and improvement in public transport system Improve penetration of PNG business : Ø Penetration of network in all charge areas Ø Target Industrial/Commercial
Slide 23: Credit Strength
Credit Strength • Healthy profitability with strong cash generations from operations. • Regained the status of zero debt company. • Comfortable working capital position. • ICRA Limited (An associate of Moody’s Investors Service) has reaffirmed highest credit ratings of AAA (Stable) for term loan and
Slide 24: Risks & Mitigations
Risks & Mitigations n Gas price Ø CNG & PNG-Residential prices remains competitive vis-à-vis petrol and subsidised LPG in view of allocation of domestic gas Ø Spot/short term gas is purchased to reduce the weighted average cost of gas for I/C segment. n Sourcing of gas Ø Firm allocation from Govt. o
Slide 25: Safe Harbor Statement
Safe Harbor Statement n This presentation has been prepared by Indraprastha Gas Limited solely for providing information about the company. n The information contained in this presentation is for general information purposes only, without regard to specific objectives, financial situations and needs
Slide 26: Thank You
THANK YOU 1 25
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