Aegis Logistics Q1FY19 Concall Summary

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Financial Performance:

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  • Q1 FY19 was very promising quarter for Aegis Logistics Limited

  • Aegis Logistics recorded excellent Operating Performance in Q1FY19 but slightly higher tax rate compared to FY18 cut the Profit After Tax margin

 Segment wise results

Liquid Terminal Division:

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  • Revenue for Q1FY19 were INR 45.45 crores as compared to INR 42.69 crores Q1 FY18. This is about 6% Y-o-Y increase in revenues

  • EBITDA for Q1FY19 was INR 28.88 crores versus INR 27.85 crores in Q1 FY18. This corresponds to a rise of 4% Y-o-Y.

New Terminal Projects:

  • Kandla liquid terminal, a 100,000 kiloliter project, is operational from Q1, and Aegis Logistics expect revenues to kick in from Q3 onwards.

  • Management expects to complete the Mangalore project, a 25,000 kiloliters, in Q2FY19. This will add to the revenues in Q3.

  • The Haldia 4 liquid terminal project, 35,000 kiloliters, is also expected to be complete in Q2.

  • Aegis Logistics expects a significant boost to the revenues and earnings in Liquid Terminals division in the second half of the FY19

Gas Terminal Division

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  • Revenues for Q1FY19 were INR 971.4 crores as compared to INR 813.3 crores in Q1FY18.

  • The EBITDA for the Q1 for Gas Terminal Division was INR 62.2 crores versus INR 38.9 crores in Q1FY18. This is very strong rise of 60% year-on-year.

Volume analysis
 

LPG Volumes

  • The LPG volumes, throughput volumes, logistics volumes in Aegis Logistics’ three terminals of Bombay, Pipa and Haldia, was 576,468 metric tons in Q1FY19 as compared to that of 301,571 metric tons in Q1FY18.

  • That's a stunning rise of 91% year-on-year in the LPG logistics volumes in those 3 terminals.

  • Reason for this massive rise lies in operational efficiency of Haldia Plant.

  • Haldia Plant was budgeted to run at 125000 Metric tons per Quarter, but plant has already reached run rate of 200000 metric tons per quarter. This is about 60% higher than budget.

 Packed Cylinder Volumes

  • Packed Cylinder volumes for the commercial cylinder market were also good 3,900 metric tons for Q1FY19 as compared to that of 2,946 metric tons in Q1FY18. That's a rise of 32% YoY.

 Industrial bulk LPG volumes:

  • Industrial bulk LPG sales for Q1FY19 was 11,031 metric tons versus that of 8,836 metric tons in Q1FY18, a rise of 25% Y-o-Y.

 Auto-gas Volume

  • Autogas constitutes 6,895 metric tons of volume for Q1FY19 as compared to that of 6,204 metric tons in Q1FY18, a pleasing rise of 11% year-on-year.

  • Sourcing volumes for LPG for AGI in Singapore was 215,849 metric tons versus 285,094 in Q1 FY18. There was a drop of 24% YoY.

  • This is due to BPCL, power petroleum, did not come out with a tender for 2018, although Aegis Logistics did the same in August.

Dividend Announcement:

  • Aegis Logistics declared a final dividend of INR 0.75 per share.

  • Along with the interim dividend earlier in the year, the total dividend for the year, interim plus final dividend, for financial year 2018 was INR 1.25 a share versus INR 1.05 a share in the previous year.

Further expansion in LPG division Road map

  • Aegis is working on 2 deals in the West Coast of India, to different ports in the West Coast

  • First step is to take environmental permissions and explosives permissions, which means that AGI have layouts approved for expansion in West Coast

  • Aegis Logistics is negotiating the commercial deals with the oil companies. And might end up with 3 oil companies being major users of buoy.

  • Management expects to complete all necessary approvals by end of Q1 and Q2 of FY20 and after that 18 months of construction period

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