GAIL (India) Limited · NSE:GAIL
GAIL (India) — Investor Day (May 2023)
37 slides from GAIL (India)'s investor day presentation, May 19, 2023
Slide 1: Investors' & Analysts' Meet 2023
GAIL (India) Ltd. Investors’ & Analysts’ Meet 2023 May 19, 2023, 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: Company Mission & Vision
Company Mission & Vision Be the leader in Enhancing quality of natural gas value- life through clean chain and beyond, Mission Vision energy and beyond with global presence, creating value for stakeholders with environmental responsibility
Slide 4: Table of Contents
Table of Contents 1 Company Overview 2 Performance Highlights 3 Industry Outlook & Strategy
Slide 5: Company Overview
Company Overview 5
Slide 6: Major Business Portfolio
0 0 0 0 0 000 1 2 3 4 4 444 Major Business Portfolio Gas Transmission LPG & Liquid Petrochemicals E&P Renewables City Gas & Marketing Hydrocarbons ~ 15,400 KM Capacity of 5 Processing Participation 118 MW of 67 GAs out of Gas 810 KTA at Plants in 13 Blocks Wind Power of total 295 Network
Slide 7: Global Presence
Global Presence RUSSIA •Bharat Energy Office 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 8: Sustainable Development
Sustainable Development GAIL has set a target to achieve Net-Zero (scope 1 and scope 2) status by 2040 while reducing scope 1 and Scope 2 emissions by 100% and Scope 3 emissions by 35% (from the baseline year of 2020-2021) by 2040. GAIL was accorded 'Green Ribbon Champions' by CNBC, Network18 Me
Slide 9: Shareholding Pattern and Share Price
Shareholding Pattern Market Capitalization as on 31st Mar’23 : 69,203 crore 120.00 5 Share volume (in Millions) 100.00 4 Price (in Rs/Share) 80.00 Paid up Equity 3 6,575.10 crore 60.00 2 40.00 20.00 1 0.00 0 Volume Share Price GAIL completed buyback of ~ 5.70 crore shares at price of Rs. 190/share
Slide 10: GAIL Hriday – CSR Initiatives
GAIL Hriday – CSR Initiatives UNNATI Rs. 1.83 crore SAKSHAM HARIT Rs. 4.03 crore Rs. 7.57 crore AROGYA KAUSHAL Rs. 27.61 crore Rs. 5.98 crore UJJWAL SASHAKT Rs. 12.47 crore Rs. 31.79 crore GAIL’s CSR Philosophy Others Rs. 7.82 crore GAIL spends 2.10% i.e. ~ Rs. 174 crore (including set off) under CS
Slide 11: Performance Highlights
Performance Highlights 11
Slide 12: Major Highlights for FY 2022-23
Major Highlights for FY 2022-23 GAIL turnover surpassed Rs. 1 Trillion first time in history of the company Implementation of “SPARSH”– a new digital solution for Vendor Invoice Management (VIM) Received “NIL” Comments from CAG for the Accounts of FY 2021-22 (13th year in a row) GAIL Awarded Bronze
Slide 13: Major Highlights for FY 2022-23
Major Highlights for FY 2022-23 Hon'ble Supreme Court dismissed SLP filed by Gujarat Sales Tax Dept. against demand of sales tax & interest thereon ~ Rs. 5,000 crore for treating NG transfer as inter-state instead of branch transfer Signing of Unilateral Advance Pricing Agreement @ 8.5% with CBDT fo
Slide 14: Physical Performance
Physical Performance Gas Volume Trend Gas Marketing Mix Gas Transmission Mix (MMSCMD) 107 108 104 111 107 97 96 96 95 2% 89 2% 12% 17% 35% 42% 5% 19% FY23 FY23 6% 19% 41% FY19 FY20 FY21 FY22 FY23 APM/NAPM RLNG Spot Mid Term Overseas Sales RIL & BP MDP Gas Transmission Gas Marketing Petrochemicals Sa
Slide 15: Natural Gas Sector Wise Supply – FY22 Vs. FY23
Natural Gas Sector Wise Supply – FY22 Vs. FY23 (Total 96.24 MMSCMD, % share) (Total 94.91 MMSCMD, % share) 44.70 MMSCMD 9.69 MMSCMD 41.56 MMSCMD 11.88 MMSCMD 10% 12% 43% 44% 46% 41.85 MMSCMD 44% 41.47 MMSCMD 36% 38% 25% 15% 20% 19% 10% 15% 10% 4.66 27.06 28.79 12% 3.34 4.17 10.13 19.35 6.32 16.04 1.
Slide 16: Financial Performance (Standalone)
Financial Performance (Standalone) (in Rs. crore) Turnover (Gross) Gross Margin (PBDIT) 15,876 1,43,976 10,774 9,887 91,426 8,450 9,384 74,808 71,730 56,529 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Profit Before Tax (PBT) Profit After Tax (PAT) 13,590 10,364 9,085 7,943 6,386 6,584 6,026 6,
Slide 17: One Off Transactions - FY 22-23
One Off Transactions - FY 22-23 Particular Amount ( Rs. in crores) Gas Transmission Segment Deallocation of Domestic Gas for Compressor Fuel 800 Refund of Transmission Charges to M/s IPCL 70 Gas Handling Loss & Maintenance Usage Gas 150 Provision for KKMBPL 110 Total Impact in Gas Transmis
Slide 18: Balance Sheet as on 31st March 2023
Balance Sheet as on 31st March 2023 in crore) Assets Equity & Liabilities 96,132 96,132 Non Current Current Equity Liabilities Assets Assets 55,654 40,478 77,378 18,754 Equity Share Non Current Current PPE 39,414 Other Equity Capital Liabilities Liabilities 49,079 CWIP 13,662 6,575 20,108 20,370 Inv
Slide 19: Key Financial Ratios
Key Financial Ratios PAT to Net Worth (in %) Return on Capital Employed (in %) Debt to Equity Ratio 0.22 21 18 20 16 15 0.14 0.15 15 11 10 11 10 0.09 0.03 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Share Price (in Rs./Share)$ Earning Per Share$ (in Rs./Share) Market C
Slide 20: Financial Performance (Consolidated Basis)
Financial Performance (Consolidated Basis) (in crore) Turnover (Gross) Gross Margin (PBDIT) 18,086 1,45,531 12,818 11,657 10,079 10,325 92,636 75,912 72,414 57,208 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Profit Before Tax Profit after Tax 15,464 12,256 9,422 9,831 10,429 6,546 6,136 7,725
Slide 21: Revenue Reconciliation on Consolidated Basis - FY23
Revenue Reconciliation on Consolidated Basis - FY23 (in crore) Revenue Consolidated Entity Elimination (Gross) Revenue GAIL 1,44,302 (14,535) 1,29,767 GGSPL 13,568 (8,356) 5,212 GGUI 9,809 (9,711) 98 TNGCL 264 264 GAIL GAS 10,524 10,524 BGCL 11 11 KLL 401 (401) - Consolidated Revenue 1,78,878 (33,00
Slide 22: PAT Reconciliation on Consolidated Basis - FY23
PAT Reconciliation on Consolidated Basis - FY23 (in crore) % Share holding as on Investment (Net) Particulars FY23 31st Mar 23 on 31st Mar 23 GAIL 5302 Subsidiaries 3,605 (128) GAIL GAS 100% 2,034 283 GGSPL 100% 45 3 GGUI 100% 186 5 Bengal Gas Company Limited 88% 439 (11) Konkan LNG Limited 93% 886
Slide 23: Capital Expenditure Profile
Capital Expenditure Profile FY 2022-23 FY 2023-24E (in crore) ~ 9,100 Cr. ~ 10,200 Cr. 900, 9% 1,361 , 15% 3,250 , 32% 4,100, 40% 1065, 12% 307, 3% 4785, 53% 1366, 15% 90, 1% 100, 1% 1800, 17% 215, 2% Pipeline City Gas Distribution (Equity) Petrochemical E&P Equity Investments # Operational Capex &
Slide 24: Actual Capex & Capital Commitment in Major Projects
Actual Capex & Capital Commitment in Major Projects(in Rs./crore) Lengths of Actual Capex Commissioned Expected Completion Capital Name of Projects Pipelines Approved Cost up to length (Km) Date Commitment (Km)/Capacity 31.03.2023 Phulpur Dobhi P/L (JHBDPL 1) 750 750 Commissioned 3,306 3,207 3,109 D
Slide 25: Industry Outlook
Industry Outlook Natural Gas Segment 25
Slide 26: Global Energy Scenario – Evolving Narrative
Global Energy Scenario – Evolving Narrative • Global energy scenario during 2022-2023 was shaped by several factors: • COVID-19 pandemic & Geopolitical tensions • Looming threat of recession • Supply chain challenges • Continuing shift towards renewable energy sources • The energy transition has con
Slide 27: Global Energy Scenario – Demand Growth
Global Energy Scenario – Demand Growth • Though developed countries will become more efficient, developing countries, which represent 80% of the world’s population, will use more energy as they pursue better living standards • Brazil, China, India, Indonesia, Mexico and South Africa together consume
Slide 28: Global Energy Consumption - Comparison
Global Energy Consumption - Comparison Figures rounded off Region Oil Natural Gas Coal Nuclear Energy Hydro electric Renewables World 30.95% 24.42% 26.90% 4.25% 6.76% 6.71% Asia Pacific 25.93% 12.13% 46.85% 2.37% 6.40% 6.32% China 19.41% 8.65% 54.66% 2.33% 7.77% 7.18% India 26.56% 6.32% 56.70% 1.13%
Slide 29: Indian Energy Scenario
Indian Energy Scenario Import Dependency in FY 23* • Energy demand in India is growing rapidly with major implications for the global energy market • India has seen its energy demand increasing rapidly • the country continues to urbanize • development of manufacturing sector • India has made remarka
Slide 30: India is among the top 14 gas consuming countries globally
India is among the top 14 gas consuming countries globally 1 BCM = 2.74 MMSCMD Gas Consumption Share of gas in Primary Energy Top 15 Gas consuming countries globally in 2021 (in BCM) 2021 (%) 2021 1 US 826.7 32.01% 2 Russian Federation 474.6 54.60% 3 China 378.7 8.65% 4 Iran 241.1 71.21% 5 Canada 11
Slide 31: Natural Gas Consumption – Historical
Natural Gas Consumption – Historical Natural Gas Consumption in India (in MMSCMD) Others – 200 175 178 162 167 166 165 36.31 Fertilizers – 53.15 153 23% 143 141 143 33% 150 79 93 88 73 49 51 68 75 90 58 Petrochemical – Sectoral Break-up 100 FY 2022-23 5.37 3% (in MMSCMD) 50 95 90 85 85 87 88 83 91 9
Slide 32: Natural Gas Consumption – Outlook
Natural Gas Consumption – Outlook • Indian GDP is estimated to reach ~USD 7 Trillion by 2030 Natural gas has potential • Govt. of India targets to take natural gas to 15% of the PE mix to grow at CAGR of ~25% • India’s current policies focus on fuel switching through promotion of Natural Gas • Imple
Slide 33: Gas infrastructure in India - One Nation-One Grid
Gas infrastructure in India - “One Nation-One Grid” DBNPL BJSPL BGPL JHBDPL Authorized pipelines MBPL Operational pipelines HVJ Int IGGL Mundra Chhara Dahej Fig: PNGRB |Natural Gas Pipelines Network in India - as on 31st December, 2022 DHPL Jafrabad Dhamra Hazira DVPL SAGL Dabhol MBBPL JMPL Jaigarh
Slide 34: City Gas Distribution – Making gas accessible to public
City Gas Distribution – Making gas accessible to public CNG Stations 5,283 10,000 1,07,56,514 DPNG 500,00,000 2021 *Till Feb 2023 2030 CGD Growth: Potential to cover ~ 88% of country’s area , ~98% of country’s population, more than 600+ districts countrywide With increased focus of Govt on CGD s
Slide 35: Petrochemical Business Outlook
Petrochemical Business Outlook India’s per capita consumption of plastics is just 12 kg vs. China per capita consumption of 82 kg. World average per capita consumption of Plastics is ~38 Kg with US consuming as high as 93 Kg per capita India’s per capita consumption is one of the lowest in Asia
Slide 36: Net Zero, CBG, Hydrogen and Acquisition
Net Zero • GAIL - Net Zero by 2040 - 3 GW RE by 2030 • 100% reduction of Scope 1 and Scope 2 by 2040 • 35% emission reduction of Scope 3 by 2040 Compressed Bio Gas (CBG) • GAIL to support 400 CBG plants • 334 LOIs for 1835 TPD of CBG issued • GAIL's pilot 5 TPD CBG plant in Ranchi is under construct
Slide 37: Our Touch Points
Our Touch Points For Institutional Investors For Retail Investors & Analysts Shri Sashi Menon, Shri Mahesh Kumar Agarwal, Executive Director (Finance & Accounts) Company Secretary E-mail ID: [email protected] E-mail ID: [email protected] GAIL (India) Ltd. 16, Bhikaiji Cama Place, R.K. Pu