Gail (india) Limited · NSE:GAIL
Gail (india) — FY2020 Earnings Presentation
39 slides from Gail (india)'s earnings presentation, Jun 25, 2020
Slide 1: Investors' & Analysts' Meet 2020
GAIL (India) Limited Investors’ & Analysts’ Meet 2020 New Delhi, June 25th, 2020
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: About Us
About Us Mission Vision Be the leader in natural gas value-chain Enhancing quality of life and beyond, with global presence, through clean energy and creating value for stakeholders with beyond environmental responsibility
Slide 4: Agenda
1 Company Overview 2 Performance Highlights Agenda 3 Industry Outlook & Strategy 4 Questions & Answers
Slide 5: Company Overview
Company Overview 5
Slide 6: Major Business Portfolio
Major Business Portfolio Petrochemicals E&P ~17.5% domestic Participation in 12 market share Blocks Capacity of 810 KTA Liquid Presence in US & Gas Transmission & Renewables at Pata & 280 KTA at Hydrocarbons Myanmar Marketing BCPL 118 MW of Wind Over 12,400 KM of Five LHC Processing Po
Slide 7: Global Presence
Global Presence GGUI (Eagle Ford Basin) USA GGULL (Dominion Cove) CHINA China Gas 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: Sustainable Development
Sustainable Development In FY 19-20, GAIL has embarked upon journey of adoption of Green Co Rating. This rating helps in making products, services and operations greener. GAIL has published externally assured 10 Annual Sustainability Reports based on the GRI Sustainability Reporting Standards
Slide 9: Shareholding Pattern
Shareholding Pattern Others, 5.56 Market Capitalization as on 31st Mar’20 : ` 34,525 crore 400 4.5 Central Govt. Entities 8.27 4 President of India , 350 51.76 Share volume (in Millions) Insurance 3.5 Companies, 6.14 300 Financial Institutions/ Banks, 3 0.76 250 Price (in Rs/Share) Paid up Equity 2.
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility MAJOR HIGHLIGHTS 1. GAIL UJJAWAL (Education Centric Initiatives): 200 meritorious & marginalized students received residential coaching at GAIL Utkarsh centres for admission into IITs/NITs and other Engineering colleges. 2. GAIL KAUSHAL (Skill Initiatives): 432 ca
Slide 11: Performance Highlights
Performance Highlights 11
Slide 12: Major Highlights for FY 2019-20
Major Highlights for FY 2019-20 1 2 3 4 5 6 GAIL’s Registered GAIL opted for KLL has become Settlement of 44 Received Capital Received NIL Turnover of new corporate subsidiary of income tax cases Grant of ` 1,552 Comments from ` 71,730 crore income tax rate GAIL, with 69.06 involving 21 years crore
Slide 13: Major Highlights for FY 2019-20
Major Highlights for FY 2019-20 7 8 9 10 11 12 Part of KKMBPL–II; All the Six CGD’s Loan taken during GAIL, Pata received Digitization Credit Rating – Gorakhpur & Patna awarded to GAIL the year ` 4,350 16th National Awards Initiatives: Domestic “AAA”, under JHBDPL crore (Loan for Excellence in Cost
Slide 14: Physical Performance
Physical Performance Gas Volume Trend (MMSCMD) Gas Marketing Mix Gas Transmission Mix 105 107 108 100 97 96 92 1% 81 85 12% 6% 74 7% 7% 3% 40% 8% FY20 48% FY20 3% 22% 43% FY16 FY17 FY18 FY19 FY20 Gas Transmission Gas Marketing APM/NAPM RLNG PMT Spot Mid Term Overseas Sales Petrochemicals Sales Liqui
Slide 15: Gas Sourcing & Sector Wise Supply
Gas Sourcing & Sector Wise Supply FY 2019‐20 FY 2018‐19 (MMSCMD, % share) 33 , 38% 35 , 42% 49 , 58% 53 , 62% 35% 38% 26% 21% 21 23% 19 4 19% 20% 17% 4 2 8 2 8 18 13 15 14 12 10 11 9 Fertilisers Power CGD for CNG & PNG Others* Fertilisers Power CGD for CNG & PNG Others* Domestic RLNG %age Share Im
Slide 16: Financial Performance (Standalone)
Financial Performance (Standalone) (in Rs. crore) Turnover (Gross) Gross Margin (PBDIT) 74,808 71,730 10,774 9,888 8,649 52,003 53,690 48,789 7,287 5,172 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Profit Before Tax (PBT) Profit After Tax (PAT) 9,085 7,943 6,958 6,621 6,026 5,411 4,618 3,503 3
Slide 17: Balance Sheet as on 31st March 2020
Balance Sheet as on 31st March 2020 (` in crore) Assets Equity & Liabilities 68,534 68,534 Non Current Current Equity Liabilities Assets Assets 43,971 24,563 57,420 11,114 Equity Share Non Current Current PPE 31,393 Other Equity Capital Liabilities Liabilities 39,461 CWIP 10,582 4,510 13,125 11,438
Slide 18: Financial Ratios
Return on Equity: 16% A measure of the profitability of a business in relation to the equity, also known as net assets or assets minus liabilities. Return on Assets: 20% Shows the percentage of how profitable a company's assets are in generating revenue. Return on Capital Employed:15% A ratio betwee
Slide 19: Financial Performance (Consolidated Basis)
Financial Performance (Consolidated Basis) (in ` crore) Turnover (Gross) Gross Margin (PBDIT) 75,912 12,818 72,414 11,657 52,355 54,556 49,237 8,758 7,237 5283 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Profit Before Tax Profit after Tax 9,422 10,429 9,831 6,546 6,936 4,799 5,183 3,368 2,966
Slide 20: Turnover (Gross) Reconciliation
Turnover (Gross) Reconciliation (Consolidated Basis) (in ` crore) FY 20 Consolidated Particulars Turnover Eliminations Turnover (Gross) (Gross) Standalone 71,876 9,681 62,195 GAIL Gas 5,144 5,144 GGSPL 5,365 377 4,988 GGUI 5,408 5,286 122 BGCL ‐ ‐ ‐ KLL 485 485 ‐ TNGCL 118 118 Less : Other Operating
Slide 21: PAT Reconciliation (Consolidated Basis)
PAT Reconciliation (Consolidated Basis) (in ` crore) % Share holding as Investment (Net) Particulars FY’20 on 31st March 20 as on 31st March 20 GAIL NA NA 6,621 Subsidiaries ‐ 2,069 342 GAIL GAS 100% 1,286 157 GGSPL 100% 42 5 GGUI 100% 11 (16) Bengal Gas Company Limited 50% 25 (1) Konkan LNG Limited
Slide 22: Capital Expenditure Profile
Capital Expenditure Profile (in ` crore) FY 2019‐20 FY 2020‐21E ~ 6,100 crore ~ 4,800 crore 700 , 12% 450, 10% 650 , 11% 1150, 24% 150 , 2% 0% 200 , 3% 2550, 53% 4,400 , 72% 150, 3% 300, 6% 200, 4% Pipeline City Gas Distribution Petrochemical E&P Equity Investments Operational Capex * capital expend
Slide 23: Industry Outlook & Strategy
Industry Outlook & Strategy 23
Slide 24: On-going Transition in Energy Mix
On-going Transition in Energy Mix Renewables Renewables with new technologies 1850 1900 1950 2020 2050 2100 Source: Shell past data and Shell Scenarios – Sky
Slide 25: Gas to peak last among fossil fuels
Gas to peak last among fossil fuels Oil McKinsey GEP Coal - 2020 Oil - 2032 Gas - 2035 • Varied estimates on oil, (Ref. Case) 3880 Mtoe 108 Mb/d 4050 BCM though oil usage for transport will peak by 2025-2030 Shell Scenario - Coal - 2020 Oil - 2025 Gas - 2032 • Gas is the last fossil Sky 3800 Mtoe 10
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: Region-wise primary energy consumption - growing demand from India
Region-wise primary energy consumption - growing demand from India 20,000 All figures are in MToE 1 MToE: 3.04 MMSCMD 1.05% p.a. 18,000 1.2% p.a. 17,866 1.7% p.a. 16,095 16,000 Tons of oil Equv (MToE) 14,304 14,000 1,019 2.6% p.a. 12,119 700 1,681 12,000 492 1,347 1.4% p.a. 1,035 10,000 9,356 387 75
Slide 28: Global future energy requirement - Gas and RE
Global future energy requirement - Gas and RE 2019 1 MToE: 3.04 MMSCMD 1.2% p.a. 2040 692, 5% 900,7% 2748, 16% 4860, 27% 595,4% 4610, 33% 1266, 7% 750, 4% 13,946 MToE 17,866 MToE 3770, 27% 3920 MToE 3625, 20% 4617, 26% 3379, 24% Oil Gas Coal Nuclear Hydro Renewables Oil Gas Coal Nuclear Hydro Renewa
Slide 29: India's Energy Outlook 2040
India’s Energy Outlook 2040 +156% 11% +207% India's demand growth of 156% outpaces each of the BRIC countries: China (+28%), Brazil Growth in India’s energy Share of Global energy Growth in India’s power Consumption consumption in 2040 generation (+65%), and Russia (+7%) Demand of gas increased
Slide 30: Global Primary Energy Mix
Global Primary Energy Mix Nuclear Hydro Region Oil Natural Gas Coal Renewables TPE (MTOE) Energy electric World 33.1% 24.2% 27.0% 4.3% 6.5% 5.0% 13,946 OECD 38.4% 27.8% 13.8% 7.6% 5.3% 7.2% 5,575 Non‐ OECD 29.5% 21.9% 35.9% 2.0% 7.2% 3.5% 8,371 Asia Pacific 27.8% 12.2% 47.5% 2.2% 6.2% 4.2% 6,152 Chi
Slide 31: Historical production & consumption pattern
Historical production & consumption pattern All fig. in MMSCMD 180 162 160 155 154 149 144 143 139 140 134 126 128 128 124 120 112 113 104 103 100 94 79 84 80 74 74 73 75 69 68 71 74 70 72 68 60 59 48 51 47 47 40 32 35 30 29 20 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Net A
Slide 32: Natural Gas consumption pattern – India (2019-20)
Natural Gas consumption pattern – India (2019-20) Gas consumption during FY (2019‐20), ~154 MMSCMD Sector‐wise Break‐up Gas‐wise Break‐up Volume in MMSCMD Volume in MMSCMD Fertilizer, 43.39, Others, 50.4, 33% 28% Domestic, 70.49, 46% RLNG, 83.68, 54% Power, 31.64, 20% CGD, 28.74, 19% Power and Ferti
Slide 33: India Gas Infrastructure – One Nation One Grid
India Gas Infrastructure – One Nation One Grid Pipeline Under Constn. & Existing Length (kms) Approved All India P/L Length ~ 17,500 ~ 17000 GAIL P/L length ~ 12,400 ~ 6700 Planned by PNGRB ~ 600 Total investment being made in gas pipelines: ~ INR 92,000 Cr for creation of gas grid Transmission Syst
Slide 34: Petrochemical Business Outlook
Petrochemical Business Outlook 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 consumption of Plastics is ~28 Kg with US consuming as high as 109 Kg
Slide 35: Petrochemical Business Outlook
Petrochemical Business Outlook Indian HDPE&LLDPE HDPE+LLDPE Actual Projections Demand v/s Capacity (in KTA) 2018-19 2019-20 2020-21 Demand HDPE (1) 2,440 2,500 2,650 LLDPE (2) 2,105 2,227 2,360 Indian HDPE & LLDPE HDPE + LLDPE 4,545 4,727 5,010 Demand to Surpass Capacity* Capacity HDPE + LLDPE 5,000
Slide 36: New Growth Areas from Gas & Govt. Thrust
New Growth Areas from Gas & Govt. Thrust Enhancing domestic gas Production Developing gas infrastructure Improved market access Market penetration National Seismic Completion of National Gas Gas Trading Exchange Gas supply to LNG-run Programme Grid trucks (GTE) Building a network of HELP
Slide 37: On-going COVID Related Impact in FY 20-21
On-going COVID Related Impact in FY 20-21 Lockdown & other COVID related disruptions, did have a significant impact during first 2 months of Q1. Gas Marketing within Gas Transmission Particulars India (MMSCMD) (MMSCMD) Pre – Disruption 86.00 108.7 Post – Disruption ( Max impact) on 01.04.2020 58.59
Slide 38: Our Touch Points
Our Touch Points For Institutional Investors For Retail Investors & Analysts Shri A Rai, Shri A K Jha, Executive Director (Finance & Accounts) Company Secretary E-mail ID: arai@gail.co.in E-mail ID: ak.jha2@gail.co.in GAIL (India) Ltd. 16, Bhikaiji Cama Place, R.K. Puram, New Delhi-110066 www.gailon
Slide 39: Questions & Answers
Questions & Answers