Confidence Petroleum India Limited · NSE:CONFIPET
Confidence Petroleum India — Investor Presentation (February 2019)
32 slides from Confidence Petroleum India's investor presentation, February 2019
Slide 1: Investor Presentation February 2019
INVESTOR PRESENTATION February 2019
Slide 2: Discussion Summary
01 02 03 COMPANY LPG BOTTLING & OVERVIEW CYLINDER MARKETING DISCUSSION 04 05 AUTO LPG FINANCIAL SUMMARY DISPENSING RESULTS STATIONS
Slide 3: Company Overview
LPG Retailing Auto LPG Dispensing Stations LPG Bottling LPG Cylinder Manufacturing 01 COMPANY OVERVIEW 3
Slide 4: Our Business Segments
Our business Segments… Cylinder LPG LPG Manufacturing Bottling Retailing Packed Cylinder Auto LPG stations 4
Slide 5: Our Vision
Our Vision 101 58 Bottling plants Bottling plants 500+ Auto LPG 178+ Dispensing Station VISION Auto LPG Dispensing Station 25k MT Packed cylinder volume sales per month 5.6k MT Packed cylinder volume sales per month No. 1 Maintain leadership position in each of our industries 5
Slide 6: Journey So Far
Journey So Far… Pre 2000 2000-05 2006-11 2012-18 Started cylinder Grew cylinder Forayed into Auto LPG ALDS stations expanded to manufacturing business by manufacturing business, business; set up the first 163 in December 2018, acquiring manufacturing organically & inorganically, ALDS in Maha
Slide 7: Confidence Group – At A Glance
Confidence Group – At A Glance Leading player in Auto LPG segment with over 163 LPG dispensing stations with presence in high consumption states like Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra Composite LPG Cylinders under the brand “Go Gas Elite” in November in Maharashtra, West Bengal, Raj
Slide 8: Leadership Team
Leadership Team Nitin Khara, Chairman and Managing Director • Commerce Graduate and an industrialist with vast experience of 30+ years in the field of LPG and CNG • Expert in Cylinder Manufacturing, LPG Bottling, Blending and Marketing • Received “Rashtriya Udyog Ratan Award” by IOBRD in the year 20
Slide 9: LPG Cylinder Manufacturing
02 LPG CYLINDER MANUFACTURING 9
Slide 10: Strong Client Base And Own Brand Demand For LPG Cylinder
Strong Client Base And Own Brand Demand For LPG Cylinder PSU And Private Go Gas Oil Companies Domestic And Commercial 10
Slide 11: Sustainable Demand For LPG In Future
Sustainable Demand For LPG In Future Bringing All House Under Ujwalla Min 2 Cylinder Per Houses For Refilling Cycle • Under the current scheme government has promised to bring • Minimum two cylinder are needed every household in BPL to use cleaner to regularly refill and an additional fuel of LPG 0.
Slide 12: Confidence LPG Cylinder Business: Key Stats
Confidence LPG Cylinder Business : Key Stats Revenue & Growth YoY • 2019 -20 Interim Union budget proposes to extend the 31% Ujjwala scheme to 8 crore new connections by 2021 10% • Confidence set to gain operational leverage with higher -7% -8% 266 265 capacity utilization 246 • Incremental demand w
Slide 13: Bottling & Marketing
03 BOTTLING & MARKETING 13
Slide 14: Confidence Bottling Business
4A. Confidence Bottling Business Pan India Presence For Bottling Facilities • Out of 58 bottling plant, 28 catered to PSU oil companies while remaining are used to cater industrial and commercial requirement • Four new plants will come onstream at Ahmedabad, Confidence presence Kanpur, Jaipur and Be
Slide 15: Composite Cylinder: Leap Into The Future
4B. Composite Cylinder: Leap Into The Future Packaged Cylinder Market Residential (5% GST) Commercial (18% GST) Private PSU Private PSU 2 Kg 5 Kg 10 Kg 14.2 Kg 15 Kg 17 Kg 21 Kg 33 Kg 20 Kg 19 Kg 47.5 Kg 15
Slide 16: Bottling Plant & Composite Cylinder: Key Stats
Bottling Plant & Composite Cylinder: Key Stats Bottling Revenue (Rs Cr) 39 31 25 12 13 FY15 FY16 FY17 FY18 9M FY18 Packed (Go Gas) LPG Cylinder Revenue and Growth YoY • Bottling plant demand driver is availability of facility near demand centres 52% 127% 17% 44% • Stable margin business with increas
Slide 17: Composite Cylinder Demand Looks Strong
Composite Cylinder Demand Looks Strong • Currently the composite cylinder is sold though our dealer network in seven states • Launching to other states as the enquiry from other states are increasing for composite cylinder • Industrial and Commercial cylinder, being non subsidized compete on a level
Slide 18: Auto LPG Dispensing Stations
04 AUTO LPG DISPENSING STATIONS 18
Slide 19: Slide 19
Slide 20: Fight For Cleaner Fuel: LPG Vs Petrol
Fight For Cleaner Fuel : LPG Vs Petrol Benefits For Autorickshaw Owners Benefits Of Car Owners* Price Per Litre Fuel Cost Per Kms Price Per Litre Fuel Cost Per Kms 41.03 73.62 41.03 73.62 Bangalore Prices (Jan ‘19) Bangalore Prices (Jan ‘19) Operational Cost Per 200 Operational Cost Per Kms 200 Kms
Slide 21: Push Towards Cleaner Fuel
Push Towards Cleaner Fuel Government And Regulatory Push Towards Cleaner Fuel Automakers Launching Factory Fitted LPG Automobile • ~30% of the city pollution is due to vehicle, dedicated • Factory fitted LPG vehicles provide extra safety to the focussed needed to reduce the vehicle emissions vehicle
Slide 22: Confidence Key Strength In The Segment
Confidence Key Strength In The Segment No Middle Men And Efficient Supply Chain Profitability 4 Blending Plants, 58 LPG Bottling Plants And 178 Auto LPG Stations To Support The Growth High Growth Hub And Spoke Model For Distribution Customer Centred Focused Approach Towards Auto LPG Ability To Captu
Slide 23: Efficient Supply Chain
Efficient Supply Chain 40 % savings on transportation cost ‘Liter per LPG Terminal Km’ due to economy of scale on usage of Mumbai Auto LPG 18/21 MT tankers Mumbai 18/21 tons tank 18/21 MT tankers are ample in market – resulting in no stock outages 980 Kms 7 tons Auto LPG City limits: 7 MT tankers LP
Slide 24: Semi Urban Conversion Program
Semi Urban Conversion Program Installation Flow Installment Flow Go Gas Marketing the benefits of Auto LPG Go Gas collects the installment sum and pays the financer Sells LPG kit Pays Rs 50 per day for Rs 6,500 for 130 days as financing installment Finance Installs kit at a pre-agreed sum Autoricksh
Slide 25: Semi Urban Conversion Program
Semi Urban Conversion Program 2,700 - Total Autorickshaw Population 500 Auto Rickshaws Converted To LPG Since there are no existing LPG pumps, a premium of 5 litre Average Fuel Refill Per Day Per Vehicle Rs 3 to Rs 4 can be charged Rs 50 Average Fuel Price Per Liter Confidence Group Autorickshaw Own
Slide 26: Confidence Increasing Dominance in LPG Market
Confidence Increasing Dominance in LPG Market Gas Stations And Total Auto LPG Volume Revenue and Growth YoY 124% 53.0 52.5 64.8 90% 36.1 53% 6.6 11.5 178 26% 244 163 127 178 110 74 141 86 93 81 33 FY14 FY15 FY16 FY17* FY18 9M FY19 FY15 FY16 FY17 FY18 9M FY19 ALDS Volume (mn ltr) Revenue (Rs Cr) Reve
Slide 27: Financial Result
05 FINANCIAL RESULT
Slide 28: Results: Key Highlights
Results : Key Highlights Q3 FY19 YoY ANALYSIS In Rs Cr Revenue EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 283 12.5% 12.5% 4.8% 6.6% 19 35 148 19 7 91% 91% 164% Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 EBITDA EBITDA Margin % PAT PAT Margin % 9M FY19 YoY ANALYSIS 12.9% 4.1% 6.6% 718 12.0%
Slide 29: Results: Key Highlights
Results : Key Highlights Revenue for Q3FY19 stands at Rs 283cr, 91% higher than corresponding previous quarter, this was on account of increase in volume across the business verticals. Cylinder Manufacturing and LPG business contributed the 36% and 64% to Q3FY19 consolidated revenue. Q3FY19 EBIT
Slide 30: Consolidated Income Statement
Consolidated Income Statement Particulars (Rs. in Cr) Q3 FY19 Q3 FY18 YoY% 9M FY19 9M FY18 YoY% Revenue from Operations 283.0 148.0 91.3% 718.5 422.0 70.2% COGS 219.6 106.3 106.6% 544.4 301.7 80.5% Gross Profit 63.5 41.7 52.2% 174.0 120.4 44.6% Gross Margin % 22.4% 28.2% -575 bps 24.2% 28.5% -429 bp
Slide 31: Financial Summary
Financial Summary Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 25% CAGR: 30% 28.0% 28.7% 27.6% 6.6% 26.8% 12.9% 4.4% 24.2% 11.7% 10.5% 9.8% 93 1.0% 718 8.3% 0.3% 27 607 71 47 497 5 307 355 41 -7.5% 1 32 35 -23 FY15 FY16 FY17 FY18 9M FY19 FY15 FY16 FY17 FY18 9M FY19 FY15 FY16
Slide 32: Thank You!
THANK YOU! Nirali Sanghvi Ravindra Bhandari/Mitul Bhagat Email : niralisanghvi@confidencegroup.co IR Consultant Contact No : +91 74474 26379 Email : Ravindra.bhandari@dickensonir.com Mitul.Bhagat@dickensonir.com Contact No : +91 92836 14197/88982 14083
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