GAIL (India) Limited · NSE:GAIL
GAIL (India) — Investor Day (May 2019)
42 slides from GAIL (India)'s investor day presentation, May 28, 2019
Slide 1: Investors' & Analysts' Meet
GAIL (India) Ltd. India’s Youngest Maharatna Investors’ & Analysts’ Meet May 28, 2019, Mumbai
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: Table of Contents
Table of Contents 1 Company Overview 2 Performance Highlights 3 Industry Outlook & Strategy 4 Questions & Answers
Slide 4: Table of Contents: Company Overview
Table of Contents 1 Company Overview 2 Performance Highlights 3 Industry Outlook & Strategy 4 Questions & Answers
Slide 5: Company Mission & Vision
Company Mission & Vision To accelerate and optimise the effective Be the leading and economic use of company in natural Natural Gas and its gas and beyond with Mission Vision fractions to the benefit global focus, of the national committed to economy customer care, value creation for all stakeholder
Slide 6: Major Business Portfolio
Major Business Portfolio Petrochemicals E&P ~15% domestic Participation in 10 market share Blocks Capacity of 810 Liquid Presence in US & Gas Transmission Renewables KTA at Pata & 280 Hydrocarbons Myanmar & Marketing KTA at BCPL 118 MW of Wind Over 11000 KM of Six LHC Processing Power
Slide 7: Commitment to Sustainable Development
Commitment to Sustainable Development In FY 18-19 GAIL has undertaken 100 Sustainability Projects registered across sites totalling INR 40 Crores. GAIL has published externally assured 8 Annual Sustainability Reports based on the GRI Sustainability Reporting Standards Total renewable Energy po
Slide 8: Global Presence
Global Presence USA CHINA • GGUI • China Gas • GGULL • GAIL-Sabine Pass MYANMAR • A1 & A3 E&P Blocks • Myanmar – China Gas EGYPT Pipeline • Equity in 2 Retail Gas Companies SINGAPORE • GAIL Global Singapore Pte Ltd
Slide 9: Shareholding Pattern
Shareholding Pattern Others, 5.18% Insurance Companies, Market Capitalization as on 31st Mar’19 : ` 78,319 crore 5.63% President of India, 52.19% 450 2.5 Mutual Funds/UTI, 8.26% 400 Share volume (in Millions) 350 2 Price (in Rs/Share) 300 Central Govt./State 1.5 Govt./PSU, 8.06% Paid up Equity 250 `
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility ‘GAIL accorded “4 Good Rating’ in The Hindustan Ratna Awards 2018 for Economic Times 2Good 4Good CSR rating scheme for Corporate Social Responsibility. Excellence in CSR Most credible platform for CSR recognition developed by ET and KPMG in India. GAIL is the only PSE
Slide 11: Table of Contents: Performance Highlights
Table of Contents 1 Company Overview 2 Performance Highlights 3 Industry Outlook & Strategy 4 Brainstorming & Questions
Slide 12: Major Highlights for FY 2018-19
Major Highlights for FY 2018-19 GAIL’s Registered Highest ever Turnover & Profit of Rs. 74,808 crore & Rs. 6,026 crore in FY 2018-19 GAIL Imported First LT-LNG cargo from Gazprom on 4th June 2018 at PLL Dahej Upward Revision in Tariff of NG Pipelines for DUPL/DPPL, Gujarat N/w & Agartala N/w – Impac
Slide 13: Major Highlights for FY 2018-19 Cont..
Major Highlights for FY 2018-19 Cont.. Dividend for FY 2018-19 is 80.02% (including final dividend) of equity share capital (pre bonus). GAIL Board also recommends issue of Bonus share in the ratio of 1:1 Total Loan Repayment in FY 2018-19 is to the tune of ~ Rs. 1,135 crore; Loan O/s – 1,000 crore
Slide 14: Physical Performance – FY 2018-19
Physical Performance – FY 2018-19 Gas Volume Trend Gas Transmission Mix Gas Marketing Mix (MMSCMD) 100 105 107 2% 92 92 97 5% 81 85 5% 6%6% 72 74 4% 4% 43% FY19 FY19 50% 34% 41% FY15 FY16 FY17 FY18 FY19 Gas Transmission Gas Marketing APM/NAPM RLNG PMT Spot Mid Term RIL (TMT) Petrochemicals Sales Liq
Slide 15: Gas Sourcing & Sector Wise Supply – FY 18-19
Gas Sourcing & Sector Wise Supply – FY 18-19 (MMSCMD, % share) 33 MMSCMD 38% 62% 53 MMSCMD 35% 26% 21% 19 4 17% 2 8 18 12 13 10 Fertilisers Power CGD for CNG & PNG Others* Domestic RLNG %age Share Imported Gas primarily consists of Long Term RLNG, Mid Term RLNG and Spot Major sources for domesti
Slide 16: Financial Performance (Standalone)
Financial Performance (Standalone) (in Rs. crore) Turnover (Gross) * Gross Margin* (PBDIT) 74,808 10,774 57,292 52003 53,690 8,649 48,789 7,287 5,620 5172 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Profit Before Tax (PBT)* Profit After Tax (PAT) * 9,085 6,958 5,411 6,026 4,284 4,618 3,062 3,0
Slide 17: Balance Sheet as on 31st March 2019
Balance Sheet as on 31st March 2019 (` in crore) Assets Equity & Liabilities 64,379 64,379 Non Current Current Equity Liabilities Assets Assets 44,093 20, 286 54,071 10,308 Equity Share Non Current Current PPE 29,683 Other Equity Capital Liabilities Liabilities 41,838 CWIP 9,202 2,255 10,951 9,335 I
Slide 18: Financial Profile
Financial Profile PAT to Net Worth (in %age) Capital Employed ( in Rs. crore) Net Worth (in Rs. crore) 15 13 47,226 46,934 47,039 51,041 35,142 39,062 11 11 41,984 30,699 32,350 28,888 7 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Loans ( in Rs. crore) Debt to Equity R
Slide 19: Financial Performance on Consolidated Basis
Financial Performance on Consolidated Basis (in ` crore) Turnover (Gross) Gross Margin (PBDIT) 75,912 11,657 61,429 8,758 52,355 49,215 54,556 7,233 6,577 5266 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Profit Before Tax Profit after Tax 9,831 6,546 6,936 4,799 4,492 5,183 3,160 3,368 2,949 1
Slide 20: Turnover (Gross) Reconciliation on Consolidated Basis
Turnover (Gross) Reconciliation on Consolidated Basis (in ` crore) FY 19 Consolidated Particulars Turnover Eliminations Turnover (Gross) (Gross) Standalone 75,127 8,509 66,617 GAIL Gas 5,367 - 5,367 GGSPL 5,423 1,439 3,984 GGUI 3510 3,340 170 TNGCL 96 - 96 Less : Other Operating 322 Income and disco
Slide 21: PAT Reconciliation on Consolidated Basis
PAT Reconciliation on Consolidated Basis (in ` crore) % Share holding in Investment Particulars FY19 FY19 (Net) GAIL NA NA 6,026 Subsidiaries 1,176.41 (148) GAIL GAS 100% 1,127.00 81 GGSPL 100% 41.94 4 GGUI 100% 5.55 (240) TNGCL (less Non- controlling interest) 48.98% 1.92 7 Associates 2405.21 789 M
Slide 22: Capital Expenditure Profile
Capital Expenditure Profile (in ` crore) FY18-19 FY19-20E FY20-21E ~ ` 8,300 crore ` 6,850 crore ` 9,600 crore 565 , 7% 700 , 8% 422, 6% 400, 4% 661, 9% 1290, 14% 121, 2% 5 , 0% 137, 2% 210, 2% 330 , 4% 460, 7% 1163, 12% 5588, 58% 5050, 74% 6,700 , 81% 950, 10% Pipeline City Gas Distribution Petroch
Slide 23: Table of Contents: Industry Outlook & Strategy
Table of Contents 1 Company Overview 2 Performance Highlights 3 Industry Outlook & Strategy 4 Questions & Answers
Slide 24: Transition in energy mix over two and half centuries
Transition in energy mix over two and half centuries 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 • Varied estimates on McKinsey GEP Coal - 2020 Oil - 2032 Gas - 2035 oil, though oil usage (Ref. Case) 3880 Mtoe 108 Mb/d 4050 BCM for transport will peak by 2025-2030 • Gas is the last fossil fuel to peak and Shell Scenario - Coal - 2020 Oil - 2025 Gas - 2032
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 shows growing demand
Region-wise primary energy consumption shows growing demand from Africa and India 20000 All figures are in MToE 1.05% p.a. 1 MToE: 3.04 MMSCMD 17866 18000 1.2% p.a. 16095 1.7% p.a. 16000 Tons of oil Equv (MToE) 14304 14000 2.6% p.a. 12119 12000 1.4% p.a. 9356 10000 8112 5719 8000 5803 5842 6000 5756
Slide 28: Global future energy requirement to be met by Gas and RE
Global future energy requirement is expected to be meet by Gas and RE 1 MToE: 3.04 MMSCMD 2017 1.2% p.a. 2040 571, 4% 7% 2748, 16% 4% 4860, 27% 4538, 34% 7% 4% 13,511 MToE 17,866 MToE 3731, 28% 4355 MToE 3625, 20% 4617, 26% 3156, 23% Oil Gas Coal Nuclear Hydro Renewables Oil Gas Coal Nuclear Hydro R
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 (+65%), Growth in India’s energy Share of Global energy Growth in India’s power Consumption consumption in 2040 generation and Russia (+7%) Demand of gas increased
Slide 30: Global Primary Energy Basket – A Comparison
Global Primary Energy Basket – A Comparison Nuclear Hydro Region Oil Natural Gas Coal Renewables TPE (MTOE) Energy electric World 34.2% 23.4% 25.4% 4.4% 6.8% 3.6% 13511.2 OECD 39.4% 25.7% 15.9% 7.9% 5.6% 5.4% 5605 Non- OECD 30.5% 21.7% 35.9% 1.9% 7.6% 2.3% 7906.1 Asia Pacific 28.6% 11.5% 48.4% 1.9%
Slide 31: Gas pipeline infrastructure in India
Gas pipeline infrastructure in India Pipelines KM Timeline GAIL existing 11400 Operational Pipelines Others existing 5500 Operational Pipelines Total Existing 16900 Operational Pipeline Under Construction 5681 2021-22 by GAIL & JV Under Const. - Indradhanush (NE 1656 2022-23 grid) Bid out Pipeline a
Slide 32: Regasification Terminals in India
Regasification Terminals in India DAHEJ I & II 10 + 5 mmtpa 2.5 (under Exp) Existing LNG Terminal (35 MMTPA) MUNDRA 5 MMTPA Chhara Kolkata Under Construction 5 MMTPA (5 MMTPA) 2.5 MMTPA Jafrabad(FSRU) DHAMRA Planned/Upcoming 5 MMTPA 5 MMTPA LNG Terminal (30 MMTPA) HAZIRA KAKINADA 5 MMTPA 3-5 MMTPA D
Slide 33: Historical production & consumption pattern
Historical production & consumption pattern All fig. in MMSCMD 180 162 155 149 160 144 143 134 139 140 126 128 124 128 120 112 113 104 103 94 100 74 74 79 73 75 80 69 68 71 72 74 68 60 59 48 47 47 51 40 35 30 29 32 20 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Net Availability of
Slide 34: Natural Gas consumption pattern – India (2018-19)
Natural Gas consumption pattern – India (2018-19) Sector-wise Break-up Gas-wise Break-up Volume in MMSCMD Volume in MMSCMD This 49, 33% Fertilizer 41, 28% 74.00, Power 50% 75.00, CGD 50% Domestic 33, 22% 26, 17% Others RLNG Gas consumption during FY (2018-19), ~149 MMSCMD Power and Fertiliser - Anch
Slide 35: Gas in India has considerable potential…
Gas in India has considerable potential… District-wise latent gas demand Gas potential and actual, 2018, mmscmd 400+ Fertilizer 44 Power 140 CGD 80 144 Ranking of districts based 41 on latent gas demand1 Refining 80 33 Top 10% districts 23 Top 10.1 to 35% districts Industrials 65 24 Top 35.1 to 60%
Slide 36: Petrochemical Business Outlook
Petrochemical Business Outlook CAGR (2013-19) growth in Indian Petrochemicals industry ~ 14 % 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 consu
Slide 37: Petrochemical Business Outlook
Petrochemical Business Outlook HDPE+LLDPE Actual Projections Indian HDPE&LLDPE (in KTA) 2018-19 2019-20 2020-21 Demand v/s Capacity- Demand HDPE (1) 2,440 2,590 2,945 LLDPE (2) 2,105 2,380 2,293 Indian HDPE & LLDPE Demand HDPE + LLDPE 4,545 4,970 5,238 to Surpass Capacity Capacity* HDPE + LLDPE 5,00
Slide 38: Opportunities
Opportunities Share of Natural Gas in Indian energy mix declined from 11% in 2010 to 6.2% in 2017 GoI has targeted increasing the gas share from 6.2% to 15% in the Primary Energy mix Gas consumption of ~300 MMSCMD is needed to reach 15% of PE mix Huge investments are being made across the Natural
Slide 39: New Growth Areas from Gas & Govt. Thrust
New Growth Areas from Gas & Govt. Thrust Smart Cities NITI Aayog's 3 year agenda suggests extension of CGD to 100 smart cities NITI Aayog advocates to use gas for PNG and CNG Gas is ideal solution for assured and quality power with clean environment Essential to ban petcoke, diesel based pow
Slide 40: 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: [email protected] E-mail ID: [email protected] GAIL (India) Ltd. India’s Youngest Maharatna 16, Bhikaiji Cama Place, R.K. Puram,
Slide 41: Table of Contents: Questions & Answers
Table of Contents 1 Company Overview 2 Performance Highlights 3 Industry Outlook & Strategy 4 Questions & Answers
Slide 42: Questions & Answers
Questions & Answers