Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Q4 FY2024 Earnings Presentation
35 slides from Everest Kanto Cylinder's earnings presentation, May 27, 2024
Slide 1: Investor Presentation: Q4 & FY24 Results Presentation
Investor Presentation Q4 & FY24 Results Presentation 27th May, 2024
Slide 2: 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 3: Table of Contents
Table of Contents Q4 & FY24 Financial Performance 4 Company Overview 10 Industry Overview 21 Historical Financials/Corporate Summary 28 3
Slide 4: Q4 & FY24 Financial Performance
Q4 & FY24 Financial Performance
Slide 5: Key Performance Highlights – Q4 & FY24
Key Performance Highlights – Q4 & FY24 (YoY comparisons) Consolidated Revenues EBITDA Margin stood at Profit Before Tax stood at Profit After Tax stood at FY24 stood at Rs. 1,223.0 13.1% Rs. 120.3 crore Rs. 97.6 crore crore Consolidated EBITDA Margin stood Profit Before Tax India business stood US b
Slide 6: Yearly Overview – FY24 vs FY23
Yearly Overview – FY24 vs FY23 (Y-o-Y) Consolidated Standalone ✷ Consolidated revenues remained steady, driven by a sustained increase in demand Revenues Rs. 1,223.0 Cr Rs. 771.5 Cr across both our domestic and international markets ✷ Key CNG segment sales contributed to more than 50% of total sales
Slide 7: Quarterly Overview – Q4 FY24 vs Q4 FY23
Quarterly Overview – Q4 FY24 vs Q4 FY23 (Y-o-Y) Consolidated Standalone ✷ Consolidated revenues increased by 9.4% Y-o-Y in Q4 FY24, driven by a steady increase in demand across both our domestic and international markets Revenues Rs. 325.8 Cr Rs. 217 Cr ✷ CNG segment sales volume reported a YoY and
Slide 8: News & Updates
News & Updates Contributing towards the Future of Sustainable EGYPES – Egypt Energy Show Transportation May 2024 February 2024 ✷ EKC International FZE has recently supplied a buffer vessel for UAE’s first high-speed green hydrogen refueling pilot station, 'H2GO,' launched by Abu Dhabi National Oil C
Slide 9: News & Updates
News & Updates GAS WORLD CONFERENCE- KUALA ADNOC Hydrogen Summit Hydrogen Egypt Summit LUMPUR 2023 2023 December 2023 November 2023 November 2023 ✷ EKC successfully participated in the prestigious Gas ✷ As the world shifts towards a more sustainable and ✷ The Hydrogen Egypt Summit 2023 served as a W
Slide 10: Company Overview
Company Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray 5: Company
Slide 11: 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 industrial Cater to gas ecosystems across India, Europe, USA, South Auto OEM’s, City Gas Distribution, Indust
Slide 12: Over Four Decades of Focused Domain Experience
Over Four Decades of Focused Domain Experience - Received RMB 93.50 million against sale of China subsidiary - Announced 400,000- cylinder brownfield expansion Set up - EKC Intl FZE, Dubai marketing/product Sold Gandhidham entered JV for development unit, assets Production unit in subsidiary in tran
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: International Operations Target Widespread Global Gas Usage Expansion
International Operations Target Widespread Global Gas Usage Expansion USA Egypt UAE ✷ Leader in innovation, producing large, seamless pressure ✷ Signed JV with a local Egyptian partner with majority ✷ Deals in CNG cylinders, industrial cylinders, cascades, multiple vessels holding to set up a state-
Slide 21: Industry Overview
Industry Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray Solution Company
Slide 22: 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) 746.0 85.6 63.9 800 700 90 242.7 600 80 15.
Slide 23: CNG Ecosystem Continues to Proliferate
CNG Ecosystem Continues to Proliferate Healthy CGD coverage Leading to proliferation of CNG fuelled vehicles on Indian roads CGD coverage – population wise% CGD coverage – area wise%: 10.5* 98.0% 88.0% 3.5* 2.5* 13.3% 5.6% 2014 2023 2014 2023 2015 2020 2030E Source: Ministry of Petroleum and Natural
Slide 24: 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 25: 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 expected to released Hydrogen roadmaps, committed more than USD 70 increase 5-fold by 2050 billion in public funding, and total investments expected to 30 exceed
Slide 26: 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 27: 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 28: Historical Financials / Corporate Summary
Historical Financials/ Corporate Summary
Slide 29: Financial Summary
Financial Summary Revenue* (Rs. Crore) 1,698.8 1,274.5 1,222.9 949.1 760.5 FY20 FY21 FY22 FY23 FY24 India UAE USA & Hungary 284.4 263.3 1,267.8 240.6 193.5 751.0 789.7 771.5 199.4 192.3 127.3 501.6 136 115.0 89.0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 44.7% 48.1%
Slide 30: Product Wise Breakup
Product Wise Breakup (Rs. In Crore) (Rs. In Crore) 619.9 48.4% CNG 613.6 51.1% 336.8 26.7% Industrial 344.0 28.6% FY 249.9 19.8% Jumbo 188.1 15.7% FY 2023 2024 64 5.1% Trading Sales 55.8 4.6% 1,260.5 100% Total 1,201.5 100% 30
Slide 31: Abridged Balance Sheet (Consolidated)
Abridged Balance Sheet (Consolidated) Assets (Rs. Crore)* 2020 2021 2022 2023 2024 Liabilities (Rs. Crore)* 2020 2021 2022 2023 2024 Fixed Assets 364.9 358.9 371.8 456.6 493.0 Shareholder Funds 537.7 628.3 902.9 999.5 1,100.2 Other Non-Current Assets 22.5 51.2 76.1 19.2 17.5 Long - Term Debt 111.5 9
Slide 32: Ratio
Ratio Debt/Equity Debt/EBITDA ROCE (%) 0.5 2.7 37.4 0.2 18.0 0.8 11.3 11.3 0.1 0.1 0.5 6.6 0 0.1 0.0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Interest Coverage Assets Turnover 33.6 1.4 1.2 1.1 1.0 15.9 0.8 10.9 6.3 2.0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY
Slide 33: 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 34: 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 35: Thank You
Thank You
Everest Kanto Cylinder — Q4 FY2024 Earnings Presentation on 6ix