GAIL (India) Limited · NSE:GAIL
GAIL (India) — Investor Presentation (May 2017)
40 slides from GAIL (India)'s investor presentation, May 23, 2017
Slide 1: Investors & Analysts Meet
GAIL (India) Ltd. India’s Youngest Maharatna Investors & Analysts Meet May 23, 2017, Mumbai 1
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: Agenda
Agenda Introduction Performance Highlights Industry Outlook & Strategy Q&A
Slide 4: Introduction
Introduction 4
Slide 5: Overview: GAIL (India) Ltd.
Overview: GAIL (India) Ltd. • Over 11,000 Km of network (206MMSCMD) • Pursuing for expansion, Participation in RGPPL (5 MMTPA LNG Regasification Facility) • Long-term Import Portfolio: 24 MMTPA • Domestic market share ~ 15% • Petrochemical Plant in Pata( UP) with capacity of 0.81 MMTPA • 6 Gas Proce
Slide 6: GAIL's Sustainability Aspiration 2020
GAIL’s Sustainability Aspiration 2020 Target of 33% reduction in GHG emission intensity from the base of FY2010-11 Target of 5% reduction in specific energy consumption(petrochemical & LHC segment product) Target of 45% reduction in water consumption intensity from the base of FY2010-11 Target of in
Slide 7: GAIL HRIDAY: Corporate Social Responsibility
GAIL HRIDAY: Corporate Social Responsibility SWACHH BHARAT KAUSHAL AROGYA (Skill Dev.) (Health) UJJAWAL UNNATI (Education) (Rural Dev.) Over 8 Lac lives touched by various initiatives taken up in 2016-17 Over 6000 candidates skilled through various Livelihood Generation and Skill Development Ini
Slide 8: Shareholding Structure & Share price movement
Shareholding Structure & Share price movement Others, Paid up Equity: Market Capitalization as on 31st Mar’17: ` 63,669 crore 16.19% 600 3 Mutual ` 1691.30 crore Funds, 500 2.5 Price (in rupees) 5.70% Volume (in mn) 400 2 Insurance 300 1.5 President of Companies, India, 8.56% 200 1 54.43% Foreign 10
Slide 9: Performance Highlights
Performance Highlights 9
Slide 10: Major Highlights of FY 2016-17
Major Highlights of FY 2016-17 GAIL signs swap deal for U.S. LNG to swap ~0.6 MMTPA of LNG Imported 55 LNG cargoes in FY 17 (15 at Dabhol, 39 at Dahej and 1 at Hazira) NG Marketing and Transmission volumes are up by 10% & 9 % to 81.2 & 100.4 MMSCMD respectively Highest ever sale of ~ 577 KTA
Slide 11: Major Highlights of FY 2016-17
Major Highlights of FY 2016-17 IND-AS Implemented successfully GAIL clocked Gross Turnover of ` 48,789 crore and PBT of ` 5,411 crore Partial Impairment of Investment in RGPPL ` 783 crore PNGRB revised Tariff of six pipelines i.e. KG Basin, DBPL, KKMBPL, DBNPL, CJHPL, Cauvery with positive I
Slide 12: Physical Performance
Physical Performance Gas Volume Trend Gas Transmission Mix Gas Marketing Mix (MMSCMD) 3%6% 3% 105 100 10% 15% 96 92 92 81 79 72 74 81 5% 42% 7% FY17 FY17 53% 22% 34% FY13 FY14 FY15 FY16 FY17 Gas Transmission Gas Marketing APM/NAPM RLNG PMT Spot Mid Term RIL (TMT) Petrochemicals Sales Liquid Hydrocar
Slide 13: Gas Sourcing & Sector Wise Supply – FY17
Gas Sourcing & Sector Wise Supply – FY17 (MMSCMD, % share) 32 MMSCMD 40% 60% 49 MMSCMD 34% 29% 16 5 16% 21% 1 10 19 12 11 6 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 domestic ga
Slide 14: Financial Performance (Standalone)
Financial Performance (Standalone) (in ` crore) Turnover (Gross) * Gross Margin* (PBDIT) 7,945 58,012 57292 7,234 7,287 48,005 52,003 48,789 5620 5,172 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Profit Before Tax (PBT)* Profit After Tax (PAT) * 6,058 6,402 5,411 4,375 4,022 4,284 3,503 3,039
Slide 15: Segment wise Share for FY2016-17 in Turnover & PBT
Segment wise Share for FY2016-17 in Turnover & PBT (in ` crore) 5,626 3,138 686 34,630 4,195 515 Turnover ( ` 48,789 crore) 1245 Profit Before Tax 2218 258 216 ( ` 5,411 crore) 1,519 (45) Gas Marketing NG Transmission LPG Trans Petchem LHC Unallocated incl. E&P
Slide 16: Major Variance in Profitability – FY16 vs. FY17
Major Variance in Profitability – FY16 vs. FY17 Decrease in cost of Raw Material & Fuel ~ ` 1600 crore Increase in Petrochemical Sales by 73% - Incremental Margin ~ ` 900 crore Increase in Gas Transmission Quantity by ~ 9% led to incremental income of ~ ` 500 crore Upward revision in Tariff
Slide 17: Balance Sheet – 31.03.2017
Balance Sheet – 31.03.2017 (in ` crore) Assets Equity & Liabilities 56,270 56,270 Non Current Current Equity Liabilities Assets Assets 38,149 18,121 47,125 9,145 Equity Share Non Current Current PPE 27,763 Other Equity Capital Liabilities Liabilities 36,458 CWIP 3,585 1,691 9,746 8,375 Investments 9
Slide 18: Financial Profile
Financial Profile Gross Block (in ` crore) Capital Employed ( in ` crore) Net Worth (in ` crore) 32,349 47,226 47,868 28,888 30,699 43,122 44,498 26,858 41,389 39,907 41,984 24,038 34,056 35,591 31,149 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Loans ( in ` crore) Deb
Slide 19: Financial Performance on Consolidated basis
Financial Performance on Consolidated basis (in ` crore) Turnover (Gross) Gross Margin (PBDIT) 9,235 8,314 7,811 62,599 61,429 6577 51,738 52,355 49,237 5,266 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Profit Before Tax Profit after Tax 4,786 6,922 4,374 6,558 5,757 3160 3,374 4,492 2,949 1,8
Slide 20: Capital Expenditure
Capital Expenditure (in ` crore) FY16-17 FY17-18E FY18-19E ` 2,180 crore ` 4,261 crore ` 7,704 crore 427, 10% 250, 3% 600 , 60, 1% 1451, 28% 932, 19% 22% 209, 3% 1,144 , 2699, 0, 0% 5734, 74% 53% 66, 2% 63% 336 , 15% 41, 1% 53 , 2% 96, 2% 3, 0% 44 , 2% Pipeline Petrochemical BD/PD/Marketing/Process
Slide 21: Capex & Source of Funds
Capex & Source of Funds (in ` crore) 9000 8000 7000 2754 6000 5000 4000 7704 1950 1561 3000 2000 4261 1200 1730 3000 1000 2180 1500 0 450 Capex Source of Fund Capex Source of Fund Capex Source of Fund FY 2016-17 FY 2017-18 FY 2018-19 Capex Borrowings Grant 21
Slide 22: Industry Outlook
Industry Outlook 22
Slide 23: Energy Overview
Energy Overview Natural Gas accounts for approximately 6.5% of total primary energy mix in India against the global average of 24% India: 3rd largest energy consumer in the world after China and USA Fastest growing energy consumer Fuel Consumption India’s Global Rank Coal 2nd Oil 3rd Hydel / N
Slide 24: Primary Energy Consumption
Primary Energy Consumption Natural Nuclear Hydro Region Oil Coal Renewables Gas Energy electric World 32.9% 23.8% 29.2% 4.4% 6.80% 2.8% Asia Pacific 27.3% 11.5% 50.9% 1.7% 6.6% 2.0% China 18.6% 5.9% 63.7% 1.3% 8.5% 2.1% India 27.9% 6.5% 58.1% 1.2% 4.0% 2.2% (Source: BP Statistical World energy Revie
Slide 25: Natural Gas Sales Profile
Natural Gas Sales Profile 180.0 60% in MMSCMD 161.5 160.0 154.6 144.3 50% 50% 139.1 140.0 133.7 128.0 45% 127.5 124.2 120.0 41% 40% 38% 103.6 103.0 98.1 100.0 92.0 30% 30% 29% 28% 80.0 27% 25% 69.9 22% 22% 57.7 60.0 20% 20% 48.6 50.8 42.1 39.6 40.0 32.4 35.3 29.9 28.9 24.7 10% 18.4 20.0 0.0 0% 2005-
Slide 26: Consumption Pattern : India
Consumption Pattern : India Sector-wise Break-up Gas-wise Break-up Fertilizer 30.5% 30.4% Domestic Power 50.31% 49.70% City Gas RLNG 1.7% Sponge Iron+Steel 14.5% 22.9% Others Provisional Gas consumption during FY (2016-17), ~139 MMSCMD Power and Fertiliser - Anchor Markets Industrial and City Gas -
Slide 27: Natural Gas Sales: GAIL
Natural Gas Sales: GAIL Sector-wise Break-up Gas-wise Break-up Fertilisers 16.56% 3.91% 34.20% Power Domestic 40.23% CGD 16.01% 59.77% RLNG Steel+ Sponge Iron 29.32% Others Others includes Refinery, Petrochemicals, LPG, IC and Manufacturing etc.
Slide 28: Natural Gas GRID Network
Natural Gas GRID Network Length & Design including Category Capacity Spurlines (MMSCMD) (Km) Existing ~ 16550 434 Network GoI authorized Pipelines being ~ 4300 32 executed by GAIL PNGRB authorized 9240 485 Pipelines since 2011 Pipelines yet 24 to be 2000 (min.) authorized Total ~ 32000 975
Slide 29: Re-gasification Capacity
Re-gasification Capacity MUNDRA 5 mmtpa DAHEJ I & II 15 mmtpa DHAMRA Chhara Existing LNG Terminal 5 mmtpa 5 mmtpa HAZIRA 5 mmtpa Upcoming LNG Terminal KAKINADA DABHOL 3.5 mmtpa 1.3 mmtpa Capacity Existing Upcoming JAIGARH 4 mmtpa ENNORE In MMTPA 26.3 27.5 5 mmtpa KOCHI In MMSCMD 94.6 99 5 mmtpa
Slide 30: Petrochemical business Outlook
Petrochemical business Outlook India’s per capita consumption of plastics is just 11 kg vs. China per capita consumption of 38 kg. World average of per capita consumption of Plastics is around 28 Kg with US consuming as high as 60-70 Kg per capita Polymer demand growth is estimated to be 8-9%
Slide 31: New Developments
New Developments 31
Slide 32: Eastern India Development – Urja Ganga
Eastern India Development – Urja Ganga 2540 Km Gas pipeline project at the Cost of Rs 12940 Crore. Govt. of India will provide Capital Grant of Rs. 5176 Crore (i.e. 40% of Rs 12940 Crore) to GAIL. 5 States viz. Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal, covering 40 Districts and
Slide 33: Jagdishpur - Haldia & Bokaro - Dhamra Pipeline (JHBDPL)
Jagdishpur - Haldia & Bokaro - Dhamra Pipeline (JHBDPL) Project Cost (Incl. IDC) -:- Rs. 12,940 crore SCHEDULED COMPLETION Section-I (759 Km) By Dec’18 Section-II (341 Km) By Dec’18 Section-III (1520 Km) By Dec’20 Capacity : 16 MMSCMD PIPELINE DETAILS Phulpur-Bokaro-Kolkata 30”X780 Km Bokaro-Ranchi-
Slide 34: CGD Infrastructure for Eastern India
CGD Infrastructure for Eastern India Varanasi CGD CGD at Varanasi with initial investment of Rs. 350 Cr. for first five Years and Overall investment of Rs. 1000 Cr. 50000 PNG and 20000 CNG connection in 5 years. Patna CGD CGD at Patna with initial investment of Rs. 400 Cr. for first five Y
Slide 35: Future Demand Drivers
Future Demand Drivers 35
Slide 36: Future Growth Drivers
Future Growth Drivers Targeted policy framework for increasing the share of natural gas in energy basket to 15% 33%-35% reduction in Emission intensity of GDP by 2030 vis-à-vis 2005 levels – COP 21 NDC. Air Quality Concerns – Focus on replacement of HSD & FO by CNG/NG Tax reforms Gas can pla
Slide 37: E&P: Vertical Integration
E&P: Vertical Integration Portfolio of 12 blocks (2 in Myanmar) Reserves (as on 1st April 2017) Net Sales & PBT (in ` Cr.) FY13 FY14 FY15 FY16 FY17 663 751 Crude Oil, India (‘000 bbl) 797 615 Natural Gas, Myanmar 193 250 150 4.92 (BCM) Natural Gas, India (BCF) 52 Sales PBT Crude Production (in ‘000
Slide 38: Way Forward
Way Forward Developing new markets to increase share of Natural Gas in primary energy mix from current 6.5% to 15% by 2030 Pipeline infrastructure expansion in East, North-East and Southern regions in synchronization with market development Focus on Last Mile Connectivity Advocacy for Natura
Slide 39: Our Touch Points
Our Touch Points For Institutional Investors For Retail Investors & Analysts Shri R C Gupta, 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.
Slide 40: Thank you
Thank you 40