Gail (india) Limited · NSE:GAIL
Gail (india) — Investor Presentation (May 2018)
42 slides from Gail (india)'s investor presentation, May 25, 2018
Slide 1: Investors' & Analysts' Meet
GAIL (India) Ltd. India’s Youngest Maharatna Investors’ & Analysts’ Meet May 25, 2018, Mumbai 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by GAIL (India) Ltd (Company or GAIL) solely for providing information about the Company. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historic
Slide 3: Agenda
Agenda Introduction Performance Highlights Industry Outlook & Strategy Q&A
Slide 4: Introduction
Introduction 4
Slide 5: Overview: GAIL (India) Ltd.
Overview: GAIL (India) Ltd. • Over 11,000 Km of network (206MMSCMD) • Pursuing for expansion, Participation in 5 MMTPA LNG Regasification Facility at Dabhol • Long-term Import Portfolio: 24 MMTPA • Domestic market share ~ 15% • Petrochemical Plant in Pata( UP) with capacity of 0.81 MMTPA + 0.28 MMTP
Slide 6: GAIL's Commitment to Sustainable Development
GAIL’s Commitment to Sustainable Development In FY 17-18 GAIL installed India’s second largest solar PV rooftop of 5.76MW at the country’s largest natural gas based petrochemical complex at Pata. This led to total renewable portfolio of GAIL to over 128 MW GAIL is now the a part of ‘FTSE4 Good
Slide 7: Global Presence
Global Presence China Gas USA CHINA GGUI (Eagle Ford Basin) GGULL (Dominion Cove) GAIL-Sabine Pass MYANMAR EGYPT Myanmar-China Gas Pipeline A1, A3 E&P Blocks Equity in 2 Retail Gas Companies SINGAPORE GAIL Global (Singapore) Pte. Limited
Slide 8: Shareholding Structure & Share price movement
Shareholding Structure & Share price movement Central/State Market Capitalization as on 31st Mar’18: ` 74,102 crore Government(s), 7.38% 600 2.5 Mutual Funds, 12.16% Others, 9.58% 500 2 Foreign Portfolio Price (in rupees) Volume (in mn) 400 Investors, 17.29% 1.5 Paid up Equity 300 ` 2255.07 crore 1
Slide 9: GAIL Hriday – CSR Initiative of GAIL
GAIL Hriday – CSR Initiative of GAIL SWACHH BHARAT AROGYA KAUSHAL (Health) (Skill Dev.) UJJWAL UNNATI (Education) HRIDAY (Rural Dev.) SASHAKT SAKSHAM (Care for elderly & differently abled) (Women empowerment) HARIT (Environment projects) GAIL has incurred 2.63% of the average Profit of the preceding
Slide 10: Performance Highlights
Performance Highlights 10
Slide 11: Major Highlights of FY 2017-18
Major Highlights of FY 2017-18 GAIL’s Registered Highest ever Profit in FY 2017-18 Rs. 4,618 crore and clocked Turnover of Rs. 53,690 crore GAIL’s First LT-LNG cargo from USA to India - ‘Meridian Spirit’ received at Dabhol on 30th March 2018 & Overseas LNG Sales ~ 1 MMSCMD GAIL favourably renegotiat
Slide 12: Physical Performance - FY 2017-18
Physical Performance - FY 2017-18 Gas Volume Trend Gas Transmission Mix Gas Marketing Mix (MMSCMD) 4% 7%2% 9%3% 96 100 105 4% 6% 92 92 81 85 79 72 74 42% FY18 FY18 55% 27% 41% FY14 FY15 FY16 FY17 FY18 Gas Transmission Gas Marketing APM/NAPM RLNG PMT Spot Mid Term RIL (TMT) Petrochemicals Sales Liqui
Slide 13: Gas Sourcing & Sector Wise Supply –FY18
Gas Sourcing & Sector Wise Supply –FY18 (MMSCMD, % share) 33 MMSCMD 39% 61% 52 MMSCMD 34% 28% 21% 17 4 17% 1 9 19 12 13 1% 9 1 Fertilisers Power CGD for CNG & PNG Others* Overseas Sales Domestic RLNG %age Share Imported Gas primarily consists of Long Term RLNG, Mid Term RLNG and Spot Major sourc
Slide 14: Financial Performance (Standalone)
Financial Performance (Standalone) (in Rs crore) Turnover (Gross) * Gross Margin* (PBDIT) 58,012 57,292 8,649 7,945 53,690 7,287 52003 5,620 5172 48,789 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Profit Before Tax (PBT)* Profit After Tax (PAT) * 6,958 6,402 5,411 4,284 4,375 4,618 3,062 3,503
Slide 15: Segment Wise Financial Performance
Segment Wise Financial Performance (` in crore) Particulars FY 2017-18 FY 2016-17 SALES TURNOVER (GROSS) Natural Gas Transmission 4,446 4,195 LPG Transmission 558 515 Gas Marketing 38,021 34,630 Petrochemicals 5,788 5,626 LPG & Other Liquid Hydro Carbons 4,179 3,138 Unallocated 698 686 Total Turnove
Slide 16: Balance Sheet as on 31st March 2018
Balance Sheet as on 31st March 2018 (` in crore) Assets Equity & Liabilities 58,082 58,082 Non Current Current Equity Liabilities Assets Assets 40,328 17,754 47,969 10,113 Equity Share Non Current Current PPE 27,739 Other Equity Capital Liabilities Liabilities 38,073 CWIP 5,374 2,255 7,852 9,902 Inv
Slide 17: Financial Profile
Financial Profile Gross Block (in Rs. crore) Capital Employed ( in Rs. crore) Net Worth (in Rs. crore) 47,226 46,934 47,039 35,142 41,389 43,122 44,504 46,115 28,888 30,699 32,350 34,056 26,858 41,984 39,907 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Loans ( in Rs. cr
Slide 18: Financial Performance on Consolidated basis
Financial Performance on Consolidated basis (in ` crore) Turnover (Gross) Gross Margin (PBDIT) 9,255 8,758 7,237 62,599 61,429 6,577 52,355 49,237 54,556 5,283 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Profit Before Tax Profit after Tax 4,786 4,799 6,922 6,936 5,183 3,160 3,368 4,492 2,966 1
Slide 19: Turnover (Gross) Reconciliation on Consolidated basis
Turnover (Gross) Reconciliation on Consolidated basis (in ` crore) FY 18 Consolidated Particulars Turnover Eliminations Turnover (Gross) (Gross) Standalone 53,825 - 53,825 GAIL Gas 4,602 3,902 700 GGSPL 5,388 5,388 - GGUI 116 - 116 TNGCL 76 23 53 Less : Other Operating 138 Income and discontinued op
Slide 20: PAT Reconciliation on Consolidated basis
PAT Reconciliation on Consolidated basis (in ` crore) % Share holding in Investment Particulars FY18 FY18 (Net) GAIL NA NA 4,618 Subsidiaries 1100 49 GAIL GAS 100% 877 74 GGSPL 100% 42 2 GGUI 100% 179 (33) TNGCL (less Non- controlling interest) 48.98% 2 6 Associates 2252 86 MGL 32.50% 32 144 PLL 12.
Slide 21: Capital Expenditure Profile
Capital Expenditure Profile (in ` crore) FY17-18 FY18-19E FY19-20E ` 4,100 crore ` 6,600 crore ` 8,500 crore 10, 0% 50, 1% 190, 3% 300, 4% 920, 11% 140, 2% 10 , 0% 530 , 13% 100, 1% 30 , 1% 250, 4% 0, 0% 640, 7% 530 , 13% 3,000 , 5800, 88% 6700, 79% 73% Pipeline City Gas Distribution (Equity) Petroc
Slide 22: Capex & Source of Funds
Capex & Source of Funds (in Rs. crore) 9000 8500 8500 8000 7000 6600 6600 2650 6000 1926 5000 4100 4100 1600 4000 1674 3000 2000 3700 4250 3000 1000 0 400 Capex Source of Fund Capex Source of Fund Capex Source of Fund FY 2017-18 FY 2018-19 FY 2019-20 Capex Borrowings Grant Internal Generation 22
Slide 23: Actual Capex & Capital Commitment in Major Projects
Actual Capex & Capital Commitment in Major Projects (in Rs./crore) Lengths Actual capex of Approved Capital Name of Projects Expected Completion Date up to Pipelines Cost commitment 31.03.2018 (Km) JHBDPL 2,655 12,940 Progressively upto Dec’2020 6,597 2,310 December’2018 Section I 753 3,397 ( 110 Km
Slide 24: Industry Outlook
Industry Outlook 24
Slide 25: India's Energy Outlook 2040
India’s Energy Outlook 2040 India's demand growth of 165%, nearly three times the overall non-OECD growth of 61%, also +165% 11% +184% outpaces each of the BRIC countries: China (+41%), Brazil (+60%), and Russia (+6%) Growth in India’s energy Share of Global energy Growth in India’s energy Consump
Slide 26: Energy Consumption Trend: World
Energy Consumption Trend: World World economy is expected to almost double over the next 20 years, with growth averaging 3.4% p.a. largely driven by increases in productivity (i.e. GDP per person) The world’s population is projected to increase to reach nearly 9 billion people by 2035 Expected
Slide 27: Global Primary Energy Basket – A Comparison
Global Primary Energy Basket – A Comparison Nuclear Hydro Region Oil Natural Gas Coal Renewables TPE (MTOE) Energy electric World 33.3% 24.2% 28.0% 4.5% 6.8% 3.2% 13376 OECD 37.7% 27.0% 16.5% 8.1% 5.7% 4.9% 5529 Non- OECD 30.1% 22.1% 36.4% 1.9% 7.7% 1.9% 7747 Asia Pacific 27.9% 11.7% 49.4% 1.9% 6.6%
Slide 28: India's Primary Energy
India’s Primary Energy 800 724 Natural Gas Share in India’s Figures are in MTOE 685 primary energy mix has gone 700 638 down from 11% in 2010 to 596 6.2% in 2016. 600 563 524 535 480 500 412 397 400 360 298 324 271 Renewables 278 251 Hydro electric 300 Nuclear Energy 45 200 46 41 55 49 46 Coal 46 56
Slide 29: Gas Developments: Support to Major Initiatives of GoI
Gas Developments: Support to Major Initiatives of GoI Increased PNG penetration in cities to facilitate LPG availability in remote areas Through gas based CHP / cogen / trigen technologies Gas based power for PaHaL peaking load Energy Efficiency Power 24x7 Creation of new jobs across upstream & Acce
Slide 30: Historical Production & Consumption Pattern
Historical Production & Consumption Pattern 180 162 155 160 144 139 143 140 134 126 128 124 128 120 112 113 104 103 100 94 Declining 80 74 74 79 73 69 68 71 domestic 60 production is a major concern 40 for Indian gas 20 market 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Net Available fo
Slide 31: LNG imports have consistently increased over the years
LNG imports have consistently increased over the years 180 100% 161.5 160 154.6 90% 144.3 144.1 139.1 80% 140 133.7 128 127.5 124.2 70% 120 103.9 103 60% 100 50% 51% 41% 45% 50% 80 38% 73.1 69.9 40% 30% 57.9 60 29% 28% 27% 50.8 48.6 30% 22% 22% 42.1 39.6 40 32.4 35.5 29.9 28.9 20% 20 10% 0 0% 2007-0
Slide 32: Natural Gas Consumption Pattern - India (2017-18)
Natural Gas Consumption Pattern - India (2017-18) Sector-wise Break-up Gas-wise Break-up Volume in MMSCMD 47.63, 33% 39.76, 28% Fertilizer Power Domestic 73.06, 51% 71.06, 49% CGD RLNG Others 33.49, 23% 23.24, 16% Gas consumption during FY (2017-18), ~144 MMSCMD Power and Fertiliser - Anchor Markets
Slide 33: India Gas Sectoral Demand Projections till 2021-22
India Gas Sectoral Demand Projections till 2021-22 All fig. in MMSCMD Fertilizers Power CGD Sector Steel & Sponge iron Others 200 180 160 140 120 100 80 60 40 20 0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Actuals Projection Sector 2015-16 2016-17 2017-18 3 year CAGR 2018-19 2019-20 20
Slide 34: Gas pipeline infrastructure in India
Gas pipeline infrastructure in India Pipeline Upcoming Existing Length (kms) & Auth. All India P/L 16667 13060 Length GAIL P/L length 11167 4878 Thin lines Existing Bold lines Upcoming/Ongoing
Slide 35: Regasification Terminals in India
Regasification Terminals in India DAHEJ I & II 10 + 5 mmtpa 2.5 (under Exp) Existing LNG Terminal (30 MMTPA) MUNDRA 5 mmtpa Chhara Kolkata Under Construction 5 mmtpa 2.5 mmtpa (12.5 MMTPA) Jafrabad(FSRU) DHAMRA 5 mmtpa 5 mmtpa Planned/Upcoming HAZIRA LNG Terminal (30 MMTPA) KAKINADA 5 mmtpa 3-5 mmtp
Slide 36: Petrochemical Business Outlook
Petrochemical Business Outlook CAGR (2013-17) growth in Indian Petrochemicals industry ~ 14 % Indian Petrochemicals industry likely to reach $100 billion by 2020 India’s per capita consumption of plastics is just 11 kg vs. China per capita consumption of 45 kg. World average per capita consu
Slide 37: Petrochemical Business Outlook
Petrochemical Business Outlook Indian HDPE&LLDPE HDPE+LLDPE Actual Projections Demand v/s Capacity- (in KTA) 2017-18 2018-19 2019-20 2020-21 Demand HDPE (1) 2,338 2,525 2,727 2,945 LLDPE (2) 1,820 1,966 2,123 2,293 Indian HDPE & LLDPE HD+LLD 4,158 4,491 4,850 5,238 Demand to Surpass Capacity Capacit
Slide 38: Opportunities
Opportunities 38
Slide 39: Opportunities
Opportunities Share of Natural Gas in Indian energy mix declined from 10.23% in 2010 to 6.2% in 2015 GoI has targeted increasing the gas share from 6.2% to 15% in the Primary Energy mix Gas consumption of ~300 MMSCMD is needed to reach 15% of PE mix at 2016 level Huge investments are being m
Slide 40: New Growth Areas for Gas & Government Thrust
New Growth Areas for Gas & Government Thrust Smart Cities NITI Aayog's 3 year agenda suggests extension of CGD to 100 smart cities NITI Aayog advocates to use gas for PNG and CNG Gas is ideal solution for assured and quality power with clean environment Essential to ban petcoke, diesel based
Slide 41: Our Touch Points
Our Touch Points For Institutional Investors For Retail Investors & Analysts Shri A K Tiwari, Shri A K Jha, Executive Director (Finance & Accounts) Company Secretary E-mail ID: a_k_tiwari@gail.co.in E-mail ID: ak.jha2@gail.co.in GAIL (India) Ltd. India’s Youngest Maharatna 16, Bhikaiji Cama Place, R
Slide 42: Thank you
Thank you 42