GAIL (India) Limited · NSE:GAIL
GAIL (India) — FY2016 Earnings Presentation
30 slides from GAIL (India)'s earnings presentation, May 26, 2016
Slide 1: Investors' & Analysts' Meet
Investors’ & Analysts’ Meet May 26, 2016, Mumbai GAIL (India) Ltd. India’s Youngest Maharatna 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 3
Slide 4: Introduction
Introduction 4
Slide 5: Overview: GAIL (India) Ltd.
Overview: GAIL (India) Ltd. • Over 11,000 Km of • Domestic market share • 6 Gas Processing Plants • A part of vertical • 118 MW Wind Power network(206MMSCMD) ~ 15% producing LPG, integration Plant and 5 MW Solar • Sophisticated Gas • Commissioned Propane, Pentane, • Participation in 15 Power Plant m
Slide 6: GAIL's Sustainability Aspiration 2020
GAIL’s Sustainability Aspiration 2020 Target of 33% reduction in Target of 5% reduction in Target of 45% reduction in Target of increasing waste Target of imparting GHG emission intensity from specific energy water consumption intensity water recycling by 5% of sustainability awareness the base of F
Slide 7: GAIL HRIDAY: Corporate Social Responsibility
GAIL HRIDAY: Corporate Social Responsibility SWACHH BHARAT KAUSHAL AROGYA (Skill Dev.) (Health) UJJAWAL UNNATI (Education) HRIDAY (Rural Dev.) SASHAKT SAKSHAM (Women empowerment) (Care for elderly & More than 8 Lac lives touched through various initiatives taken up in 2015-16. differently abled)
Slide 8: Shareholding Structure & Share price movement
Shareholding Structure & Share price movement Others, GDRs, 8.91% 0.94% 500 1.2 FIIs, 16.35% 400 1 Price ( in rupees) Volume ( in mn) 0.8 300 0.6 President 200 IOC, 2.41% 0.4 of India, ONGC, LIC, 100 0.2 56.11% 4.83% 10.46% 0 0 Price-Volume chart for the period of 1-4-2015 to 31-3-2016 Dividend Hist
Slide 9: Performance Highlights
Performance Highlights 9
Slide 10: Major Highlights of FY 2015-16
Major Highlights of FY 2015-16 Sales Turnover of ` 51,614 Cr & PBT of ` 3,173 Cr Renegotiated Long Term RLNG contract with PLL ; Contracted additional volume of 0.3 MMPTA Implemented Gas Pooling scheme for stranded power plants. Marketed 5.87 MMSCMD in FY 2015-16 Imported 55 LNG cargoes in FY16 ( 22
Slide 11: Physical Performance
Physical Performance Gas Volume Trend Gas Transmission Mix Gas Marketing Mix (MMSCMD) 3% 118 105 3%8% 19% 84 96 92 92 11% 81 79 72 74 5% FY16 44% FY16 8% 56% 14% 29% FY12 FY13 FY14 FY15 FY16 Gas Transmission Gas Marketing APM/NAPM RLNG PMT Spot Mid Term RIL (TMT) Petrochemicals Sales Liquid Hydrocar
Slide 12: Gas Sourcing & Sector Wise Supply – FY16
Gas Sourcing & Sector Wise Supply – FY16 (MMSCMD, % share) 25 MMSCMD 34% 66% 49 MMSCMD 34% 33% 11 7 17% 16% 18 15 2 6 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 gas
Slide 13: Financial Performance (Standalone)
Financial Performance (Standalone) Sales (net of ED, in ` Cr.) Gross Margin* (PBDIT, in ` Cr.) 7,945 57,245 56569 7,234 47,333 51,614 6,247 40,281 5620 5,126 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 PBT* ( in ` Cr.) PAT ( in ` Cr.) 6,058 6,402 4,375 5,340 4,022 3,654 4284 3039 3,173 2,299 F
Slide 14: Segment-Wise Breakup – FY16
Segment-Wise Breakup – FY16 (` in Cr.) (%) 4 Turnover (Net of Unallocated 804 2 3246 3041 3701 486 24 ED) 40337 LHC 6 ` 51614 Cr Petrochemicals -35 6 8 LPG Transmission 760 141 Profit before Tax 268 1 1642 1468 52 NG Transmission 7 1105 46 ` 3173 Cr Gas Marketing 78 Gas NG Liquid Unallocated Marketi
Slide 15: Major Variance in Profitability – FY15 vs. FY16
Major Variance in Profitability – FY15 vs. FY16 Increase in Profitability of Gas Marketing Segment by ~ ` 800 Cr Increase in Gas Transmission Income due to Power Pooling by ~ ` 120 Cr No retrospective tariff reversal in FY2015-16 vis-à-vis FY2014-15. Impact ` 409 cr. Decrease in Petchem sale
Slide 16: Balance Sheet – 31.03.2016
Balance Sheet – 31.03.2016 (` in Cr.) Share Capital Reserves & Surplus Borrowings* Deferred Tax Liab. 1268 29316 8118 4047 Capital Employed 42,749 Intangible Equity Tangible Assets CWIP Others Assets Investments 28015 3403 6054 731 4547 NG Pipelines incl. Comp. 25263 Line pipes & related 2832 Workin
Slide 17: Financial Profile
Financial Profile Gross Block (in ` Cr.) Capital Employed ( in ` Cr.) Net Worth (in ` Cr.) 30,314 41,389 43,377 39,907 41,984 42,749 26,858 28,888 35,591 24,038 31,149 34,056 28,741 21,449 26,307 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Loans ( in ` Cr.) Debt to Equ
Slide 18: Financial Performance on Consolidated basis
Financial Performance on Consolidated basis (` in Cr.) Sales(net of ED) Gross Margin (PBDIT) 9,235 7,762 8,314 61,644 60,515 6577 54572 5,924 50,893 44,058 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Profit before Tax Profit after Tax 4,786 6,922 4,444 4,374 6,355 6,558 3160 4,492 2,252 3,092
Slide 19: Capex & Borrowings
Capex & Borrowings FY15-16 FY16-17E (` in Cr.) ` 1512 Cr ` 1650 Cr 78, 5% 53, 3% 69, 4% 104, 6% 430 , 28% 858 , 57% 72 , 5% 1350, 82% 16 , 1% 136 , 9% Pipeline CGD BD/INT SOURCES/PROJECT DEVELOPMENT E&P Petrochemical Borrowings- Actual for FY 2015-16 is ‘NIL’; Estimated for FY 2016-17 is ‘NIL’ 19
Slide 20: Industry Outlook & Strategy
Industry Outlook & Strategy 20
Slide 21: Projected Energy Demand: Role of Natural Gas
Projected Energy Demand: Role of Natural Gas Source: World Energy Outlook 2015/IEA, 2015 Mtoe Change in Energy Demand, 2014-2040 BCM Projected Natural Gas Production in India 1200 180 1000 150 800 600 120 400 90 200 60 0 30 -200 0 -400 2000 2005 2013 2020 2025 2030 2035 2040 European United Japan La
Slide 22: Energy Outlook 2035: India & World
Energy Outlook 2035 : India & World (MTOE) Incremental Energy Demand Outlook India shows the fastest energy consumption growth among all major 12111 12928 13081 14431 15542 16479 17307 economies and remains import dependent. 20000 By year 2035,in India, demand for gas 15000 +136% expands by 155%,
Slide 23: Demand Potential of Natural Gas in India
Demand Potential of Natural Gas in India All India Natural Gas Demand Potential (MMSCMD) 445 463 500 411 427 366 380 395 345 352 359 400 299 325 252 258 261 269 300 1 200 100 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 400 All India Natural Gas Open Demand (MMSC
Slide 24: LNG Share in Gas Sales
LNG Share in Gas Sales in MMSCMD 180.00 50% 161.46 160.00 154.60 45% 144.26 133.68 40% 140.00 127.98 127.46 124.15 35% 120.00 103.56 103.03 30% 98.07 100.00 91.95 25% 80.00 20% 57.68 60.00 50.78 48.57 15% 42.11 39.57 40.00 32.39 35.32 29.86 28.89 10% 24.73 18.37 20.00 5% 0.00 0% 2005-06 2006-07 2007
Slide 25: Rising Petrochemical business
Rising Petrochemical business CAGR of growth in $40 billion 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 38 kg. World average of per capit
Slide 26: Major Projects (On-going & Upcoming)
Major Projects (On-going & Upcoming) Vijaipur Auriya P/L** (VAPPL) Length-:- 672 Km, PHULPUR-DHAMRA-HALDIA-PIPELINE** Cost-:-Over `4500 Cr. Length-:- 2539 Km, Cap-:- 8.9 MMSCMD Cost-:-Over `12190 Cr. Cap-:- 16 MMSCMD JAGDISHPUR DAHEJ & GANDHAR GAYA Phenol-Acetone-Project* HALDIA Cost-:-Over ` 2000 C
Slide 27: E&P: Vertical Integration
E&P: Vertical Integration Portfolio of 15 blocks(2 in Myanmar) Reserves Net Sales & PBT (in ` Cr.) Crude Oil, India (‘000 bbl) 930 FY12 FY13 FY14 FY15 751 FY16 663 Natural Gas, Myanmar 250 5.34 244 193 (BCM) 81 78 Natural Gas, India (BCF) 52 -21 -203 -137 Sales PBT Crude Production (in ‘000 bbl.) 33
Slide 28: Way Forward
Way Forward JVs / subsidiaries for CGD expansion to 40-60 cities Sourcing through transnational pipelines Domestic tie-ups with operators of NELP-blocks Continues pipeline expansion Set up LNG regasification terminals & book re-gas capacities Unlock demand across customer segments Focu
Slide 29: Thank You
Thank You 29
Slide 30: 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.