Everest Kanto Cylinder Limited · NSE:EKC
Everest Kanto Cylinder — Investor Presentation (August 2022)
34 slides from Everest Kanto Cylinder's investor presentation, August 2022
Slide 1: Investor Presentation
Investor Presentation August 2022
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 Company Overview 4 Industry Overview 16 Historical Financials/Corporate Summary 24 Q1 FY23 Financial Performance 29 3
Slide 4: Company Overview
Company Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray 5: Company
Slide 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: Planned Capacity Expansions
Planned Capacity Expansions Revenue Location Capacity Addition Capex Funding Sources Completion Timeline Additional Details Potential Brownfield expansion – ✷ De-bottlenecking and expansion initiatives have already Tarapur, Maharashtra / 400,000 cylinders annually Phase I: Completed improved output
Slide 15: 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 16: Industry Overview
Industry Overview €KC EVEREST KANTO CYLINDER LIMITED Clean Eneray Solution Company
Slide 17: 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 18: 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 19: Increasing Gas Adoption is Clearly Visible
Increasing Gas Adoption is Clearly Visible Domestic International India Committed To Achieve 15% Share Of PNGRB receives 430 bids in 11th city gas Natural Gas In Primary Energy Mix By 2030 distribution round Minister for Petroleum & Natural Gas and Steel Dharmendra Pradhan stated today that This rou
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. Cr) 1698.8 949.1 702.1 760.5 FY19 FY20 FY21 FY22 India UAE USA & Hungary 1,267.8 240.6 193.5 751.0 149.1 136 127.3 501.6 115.0 117.9 462.0 89.0 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 48.2% 48.1% 23.0% 15.6% 47.5% 18.2% 10.4% 9.6% 13.1% 12.6% 44.7%
Slide 26: Abridged Balance Sheet (Consolidated)
Abridged Balance Sheet (Consolidated) Assets (Rs. Cr)* 2018 2019 2020 2021 2022 Liabilities (Rs. Cr)* 2018 2019 2020 2021 2022 Fixed Assets 48.9 347.6 364.9 358.9 371.8 Shareholder Funds 444.2 517.8 537.7 628.3 902.9 Other Non-Current Assets 17.5 8.5 22.5 51.2 76.1 Long - Term Debt 206.1 155.3 111.5
Slide 27: Ratio
Ratio Debt/Equity Debt/EBITDA ROCE (%) 4.5 37.4 0.8 3.3 0.6 2.7 0.5 18.0 0.2 7.5 0.8 5.8 6.6 0.1 0.1 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Interest Coverage Assets Turnover 33.6 1.7 1.4 1.4 1.1 0.8 6.3 1.7 2.4 2.0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Slide 28: 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 29: Q1 FY23 Financial Performance
Q1 FY23 Financial Performance
Slide 30: Key Performance Highlights – Q1 FY23 (YoY comparisons)
Key Performance Highlights – Q1 FY23 (YoY comparisons) Consolidated Revenues EBITDA Margin stood Profit Before Tax stood EPS up stood at Rs. up 13.6% at 15.9% at Rs. 38.7 crore 3.45 Debt reduced from India business up USA business up Rs. 90.0 crore UAE business up 0.4% 10.3% to Rs. 270 38.9% to Rs.
Slide 31: Quarterly Overview – Q1 FY23 vs Q1 FY22
Quarterly Overview – Q1 FY23 vs Q1 FY22 Revenues EBITDA PBT* PAT ** Consolidated Rs. 380.5 Cr Rs. 60.5Cr Rs. 50.0 Cr Rs. 38.7 Cr Standalone Rs. 270.4 Cr Rs. 49.6 Cr Rs. 43.9 Cr Rs. 35.0 Cr ✷ Reported subdued performance ✷ EBITDA margin stood at 15.9% ✷ PBT margin stood at 16.2% in ✷ While the demand
Slide 32: Geographical Revenue/Margins Breakup – Q1 FY23
Geographical Revenue/Margins Breakup – Q1 FY23 India UAE USA & Hungary 270 52 58 42 Revenue 245 52 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 10.3% 0.4% 38.9% 9 14 81 45 4 EBIT 3 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 -44.4% 132.5% -79.2%. 32
Slide 33: 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 34: Thank You
Thank You
Everest Kanto Cylinder — Investor Presentation (August 2022) on 6ix