Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Q2 FY24 Earnings Presentation
31 slides from Everest Kanto Cylinder's earnings presentation, November 2023
Slide 1: Investor Presentation Q2 FY24 Results Presentation
Investor Presentation Q2 FY24 Results Presentation November 2023
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 Q2 FY24 Financial Performance 4 Company Overview 6 Industry Overview 17 Historical Financials/Corporate Summary 24 3
Slide 4: Q2 FY24 Financial Performance
Q2 FY24 Financial Performance
Slide 5: Quarterly Overview – Q2 FY24 vs Q2 FY23 (Y-o-Y)
Quarterly Overview – Q2 FY24 vs Q2 FY23 (Y-o-Y) Consolidated Standalone Revenues Rs. 299.3 Cr Rs. 182.3 Cr ✷ Q-o-Q consolidated revenues showcased a growth of 12% in Q2 FY24, owing to an uptick in sales performance across CNG and Industrial segments ✷ Steady demand in international markets further a
Slide 6: Company Overview
Company Overview EKC EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: International Operations Target Widespread Global Gas Usage Expansion
International Operations Target Widespread Global Gas Usage Expansion USA Europe UAE ✷ Leader in innovation, producing large, seamless pressure ✷ Signed JV with Rev Gas Industries Ltd, Hungary to set up ✷ Deals in CNG cylinders, industrial cylinders, cascades, multiple vessels a state-of-the-art man
Slide 17: Industry Overview
Industry Overview EKC EVEREST KANTO INDER LIMITED Clean Energy Solution Company
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: Historical Financials/ Corporate Summary
Historical Financials/ Corporate Summary
Slide 25: 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 26: 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% 26
Slide 27: 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 28: 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 29: 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 30: 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 31: Thank You
EVEREST KANTO CYLINDER LIMITED Clean Energy Solution Company
Everest Kanto Cylinder — Q2 FY24 Earnings Presentation on 6ix