Confidence Petroleum India Limited · NSE:CONFIPET
Confidence Petroleum India — Investor Presentation (November 2018)
33 slides from Confidence Petroleum India's investor presentation, November 2018
Slide 1: Investor Presentation November 2018
INVESTOR PRESENTATION November 2018
Slide 2: Discussion Summary
01 02 03 COMPANY AUTO LPG LPG OVERVIEW DISPENSING CYLINDER STATIONS DISCUSSION 04 05 SUMMARY BOTTLING & FINANCIAL MARKETING RESULTS
Slide 3: Company Overview
LPG Marketing LPG Cylinder Manufacturing Auto LPG Dispensing Stations LPG Bottling 01 COMPANY OVERVIEW 3
Slide 4: Journey So Far…
Journey So Far… Pre 2000 2000-05 2006-11 2012-18 Started cylinder Grew cylinder Forayed into Auto LPG ALDS stations expanded to manufacturing business by manufacturing business, business; set up the first 144 in September 2018, acquiring manufacturing organically & inorganically, ALDS in Mah
Slide 5: Confidence Group – At A Glance
Confidence Group – At A Glance Leading player in Auto LPG segment with over 140 LPG dispensing stations with presence in high consumption states like Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra Composite LPG Cylinders under the brand “Go Gas Elite” in November in Maharashtra, West Bengal, Raj
Slide 6: Leadership Team
Leadership Team Nitin Khara, Chairman and Managing Director • Industrialist with vast experience of 30+ years in the field of LPG and CNG • Expert in Cylinder Manufacturing, LPG Bottling, Blending and Marketing • Received “Rashtriya Udyog Ratan Award” by IOBRD in the year 2006 and Certificate of Exc
Slide 7: Auto LPG Dispensing Stations
02 AUTO LPG DISPENSING STATIONS 7
Slide 8: Auto LPG Dispensing Stations In India
Auto LPG Dispensing Stations In India State Wise Presence Of LPG Stations In India1 Growth In ALDS In India 1,118 1,087 1,072 1,045 1,056 FY15 FY16 FY17 FY18* 21-Nov-18 Source: *ALDS in India as provided by Indian Auto LPG association as on Dec 2017. FY18 include 15 ALDS opened by Confidence Petrole
Slide 9: Fight For Cleaner Fuel: Auto LPG Vs Petrol
Fight For Cleaner Fuel : Auto LPG Vs Petrol Benefits For Autorickshaw Owners Benefits Of Car Owners* Price Per Litre Fuel Cost Per Kms Price Per Litre Fuel Cost Per Kms 45.36 79.74 45.36 79.74 Bangalore Prices (21-August) Nagpur Prices (July) Operational Cost Per 150 Operational Cost Per Kms 150 Kms
Slide 10: Push Towards Cleaner Fuel
Push Towards Cleaner Fuel Government And Regulatory Push Towards Cleaner Fuel Automakers Launching Factory Fitted LPG Automobile • ~30% of the city pollution is due to vehicle, dedicated • Factory fitted LPG vehicles provide extra safety to the focussed needed to reduce the vehicle emissions vehicle
Slide 11: Confidence Key Strength In The Segment
Confidence Key Strength In The Segment No Middle Men And Efficient Supply Chain Profitability 4 Blending Plants, 58 LPG Bottling Plants And 140 Auto LPG Stations To Support The Growth High Growth Hub And Spoke Model For Distribution Customer Centred Focused Approach Towards Auto LPG Ability To Captu
Slide 12: Efficient Supply Chain
Efficient Supply Chain 40 % savings on transportation cost ‘Liter per LPG Terminal Km’ due to economy of scale on usage of Mumbai Auto LPG 18/21 MT tankers Mumbai 18/21 tons tank 18/21 MT tankers are ample in market – resulting in no stock outages 980 Kms 7 tons Auto LPG City limits: 7 MT tankers LP
Slide 13: Confidence Increasing Dominance in LPG Market
Confidence Increasing Dominance in LPG Market Auto LPG Stations State Wise LPG Stations And Confidence Share ALDS 45 38 28 11 8 14 0 144 -50 127 -100 110 447 93 -150 81 86 -200 86 -250 210 36 -300 169 170 -350 FY14 FY15 FY16 FY17* FY18 H1 FY19 -400 Tamil Nadu Karnataka Maharashtra Andhra Telengana R
Slide 14: Confidence Increasing Dominance In LPG Market
Confidence Increasing Dominance In LPG Market Recent Highlights • ALDS moved from low catchment locations to newer locations with higher fuel demand • With Better location of ALDS, volume sales have gone up significantly. • Consistently adding new stations, added 17 new stations since end of FY2018
Slide 15: LPG Cylinder Manufacturing
03 LPG CYLINDER MANUFECTURING 15
Slide 16: Strong Client Base And Own Brand Demand For LPG Cylinder
Strong Client Base And Own Brand Demand For LPG Cylinder PSU And Private Go Gas Oil Companies Domestic And Commercial 16
Slide 17: Steel Cylinder Market In India
Steel Cylinder Market In India Key Cylinder Supplier In India • Gas cylinder demand is increasing as more BPL families are Bhiwadi Cylinders moving away from Bio Fuel, adopting LPG as cooking fuel • 2018-19 Union budget proposes to increase Ujjwala scheme from 5cr cylinder to 8cr Bharat Tank and Vas
Slide 18: Government Push Towards LPG
Government Push Towards LPG Budget 2018-19 proposal to increase free LPG from 5cr to 8cr cylinders to the BPL household, to be implemented by FY2019 Government providing free first LPG; also giving lucrative schemes for buying gas stoves and refilling Providing cleaner fuel to women; working towards
Slide 19: Sustainable Demand For LPG In Future
Sustainable Demand For LPG In Future Bringing All BPL House Under Ujwalla Min 2 Cylinder Per Houses For Refilling Cycle • Under the current scheme government has promised to bring • Minimum two cylinder are needed every household in BPL to use cleaner to regularly refill and replace empty fuel of LP
Slide 20: Well Positioned To Service Growing Cylinder Demand
Well Positioned To Service Growing Cylinder Demand Presence Across 7 States In India At 15 Locations Confidence LPG Cylinder Sales In India 73% 59% 61% 45% 32% 1.4 20.0 16.3 16.0 12.3 10.8 FY15 FY16 FY17 FY18 H1 FY19 Volume (lk units) Capacity Utilization (%) 5.0 3.0 2.9 3.0 • Confidence set to gain
Slide 21: Bottling & Marketing
04 BOTTLING & MARKETING 21
Slide 22: Confidence Bottling Business
4A. Confidence Bottling Business Pan India Presence For Bottling Facilities • Out of 58 bottling plant, 28 catered to PSU oil companies while remaining are used to cater industrial and commercial requirement • The Company has plans of 15 new LPG bottling plants over the coming years, of which four n
Slide 23: Composite Cylinder: Leap Into The Future
4B. Composite Cylinder: Leap Into The Future • Trendy looks: Composite cylinder has • Light weight: Corresponding weight of been given a trendy looks with attractive composite will be 50% lighter than colour combination of red and green normal cylinder • Blast Proof: Heavy duty polyethylene • Compos
Slide 24: Composite Cylinder: Packaged Cylinder Market
4B. Composite Cylinder: Leap Into The Future Packaged Cylinder Market Residential (5% GST) Commercial (18% GST) Private PSU Private PSU 2 Kg 5 Kg 10 Kg 14.2 Kg 15 Kg 17 Kg 21 Kg 33 Kg 20 Kg 19 Kg 47.5 Kg 24
Slide 25: Composite Cylinder Demand Looks Strong
4B. Composite Cylinder Demand Looks Strong • Currently the composite cylinder is sold though the dealer network in seven states • Launching to other states as the enquiry from other states are increasing for composite cylinder • Industrial and Commercial cylinder, being non subsidized compete on a l
Slide 26: Financial Result
04 FINANCIAL RESULT
Slide 27: Results: Key Highlights (Segmental Revenue)
Results : Key Highlights (Segmental Revenue) LPG distribution Division Revenue Cylinder manufacturing Revenue 360 263 271 266 219 246 179 203 165 113 FY15 FY16 FY17 FY18 H1 FY19 FY15 FY16 FY17 FY18 H1 FY19 Revenue (Rs. Cr) Revenue (Rs. Cr) • The LPG distribution division, contributed 63.36% to the r
Slide 28: Results: Key Highlights
Results : Key Highlights Q2 FY19 YoY ANALYSIS In Rs Cr Revenue EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 13.0% 12.4% 4.5% 6.5% 245 16 30 131 17 6 87% 78% 170% Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 EBITDA EBITDA Margin % PAT PAT Margin % H1 FY19 YoY ANALYSIS 435 13.2% 3.8% 6.6% 11.7%
Slide 29: Results: Key Highlights
Results : Key Highlights Revenue for Q2FY19 stands at Rs 245cr, 87% higher than corresponding previous quarter. Cylinder Manufacturing and LPG business contributed the 36% and 64% to Q2FY19 consolidated revenue. Q2FY19 EBITDA increased by 79% YoY to Rs 27cr, with a margin of 12.4%. The company h
Slide 30: Consolidated Income Statement
Consolidated Income Statement Particulars (Rs. in Cr) Q2 FY19 Q2 FY18 YoY% H1 FY19 H1 FY18 YoY% Revenue from Operations 245.4 131.0 87.3% 435.4 274.1 58.9% COGS 187.6 90.5 107.3% 324.9 195.4 66.2% Gross Profit 57.8 40.5 42.7% 110.6 78.7 40.6% Gross Margin % 23.5% 30.9% -736 bps 25.4% 28.7% -331 bps
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. in Cr.) Sep-18 Mar-18 Particulars (Rs. in Cr) Sep-18 Mar-18 Equity & Liabilities Assets Shareholder's Funds 360.4 253.0 Non-Current Assets 364.5 311.6 Share Capital 27.4 25.9 Fixed Assets 296.1 243.1 Reserves & Surplus 333.0 227.1 Capital WIP 20.7 23.4 Non
Slide 32: Financial Summary
Financial Summary Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 25% CAGR: 30% 6.6% 28.0% 28.7% 27.6% 13.2% 4.4% 26.8% 25.4% 11.7% 10.5% 9.8% 1.0% 29 8.3% 0.3% 27 607 71 497 435 57 5 307 355 41 -7.5% 1 32 35 -23 FY15 FY16 FY17 FY18 H1FY19 FY15 FY16 FY17 FY18 H1FY19 FY15 FY16 F
Slide 33: Thank You!
THANK YOU! Nirali Sanghvi Ravindra Bhandari/Mitul Bhagat Email : niralisanghvi@confidencegroup.co IR Consultant Contact No : +91 74474 26379 Email : Ravindra.bhandari@dickensonir.com Mitul.Bhagat@dickensonir.com Contact No : +91 92836 14197/88982 14083
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