1 natural gas for clean & green environment 1 1 welcome to the presentation on performance of...

11NATURAL GAS FOR CLEAN & GREEN ENVIRONMENTNATURAL GAS FOR CLEAN & GREEN ENVIRONMENT 1

WELCOME TO THE PRESENTATION WELCOME TO THE PRESENTATION

ON PERFORMANCE OF ON PERFORMANCE OF

INDRAPRASTHA GAS LIMITEDINDRAPRASTHA GAS LIMITED


Increase in Sales in Q3Increase in Sales in Q3 CNG sales volume increased by 7.1% from Q3 FY’05 to Q3 FY’06CNG sales volume increased by 7.1% from Q3 FY’05 to Q3 FY’06

PNG sales volume increased by 95.1% from Q3 FY’05 to Q3 FY’06PNG sales volume increased by 95.1% from Q3 FY’05 to Q3 FY’06

Overall sales value increased by 17.5% from Q3 FY’05 to Q3 FY’06Overall sales value increased by 17.5% from Q3 FY’05 to Q3 FY’06

Particulars F.Y. 2004-05 F.Y. 2005-06Q3 Q3

CNG Rs. (Lakhs) 12,798.30 14,610.87 14.2%Qty. (Lakh Kgs.) 769.78 824.81 7.1%

PNG Rs. (Lakhs) 633.11 1,176.84 85.9%Qty. (Lakh SCM) 34.79 67.87 95.1%

Total 13,431.41 15,787.71 17.5%

Increase % (y on y)


Increase in MarginIncrease in Margin Gross Profit increased by 18.8% from Q3 FY’05 to Q3 FY’06Gross Profit increased by 18.8% from Q3 FY’05 to Q3 FY’06

Operating Profit increased by 24.7% from Q3 FY’05 to Q3 FY’06Operating Profit increased by 24.7% from Q3 FY’05 to Q3 FY’06

Net Profit After Tax (PAT) increased by 32.5% from Q3 FY’05 to Q3 FY’06Net Profit After Tax (PAT) increased by 32.5% from Q3 FY’05 to Q3 FY’06

Particulars F.Y. 2005-06 F.Y. 2004-05Q3 Q3

Rs. (lakhs) Rs. (lakhs)

Gross Profit 7,918.17 6,664.97 18.8%

Net Profit before Depreciation Interest & Taxes (EBDITDA)

5,889.70 4,723.21 24.7%

Net Profit after Tax (PAT) 2,932.77 2,213.69 32.5%

Increase % (y on y)


Comparative Profit & Loss Comparative Profit & Loss

AccountAccount Rs. In Lakhs

S.No. Particulars

% Amount % Amount %

of Sales of Sales of Sales

Sales Quantity

CNG (Qty In Lakhs Kgs.) 825.36 - 824.81 - 769.78 2,977.29 -

PNG (Qty In Lakhs Scm.) 70.16 - 67.87 - 34.79 152.01 -

Average Sales Per Day

CNG( In Lakhs Kgs.) 8.97 - 8.97 - 8.37 8.16 -

PNG (In Lakhs Scm) 0.76 - 0.74 - 0.38 0.42 -

Sales Value

1 CNG 14,608.85 92.5% 14610.87 92.5% 12798.30 95.3% 49,418.38 95.0%

2 PNG (net of VAT) 1,192.54 7.5% 1176.84 7.5% 633.11 4.7% 2,603.48 5.0%

3 Total Turnover (1+2) 15,801.39 - 15787.72 13431.42 0.0% 52,021.86

4 Other Income 85.00 0.5% 73.12 0.5% 158.15 1.2% 779.39 1.5%

5 Total Income (3+4) 15,886.39 - 15860.84 13589.56 0.0% 52,801.25

B Manufacturing Expenses

6 Cost Of Gas 6,107.36 38.7% 5788.88 36.7% 4943.10 36.8% 18,936.69 36.4%

7 Excise Duty 2,049.66 13.0% 2083.27 13.2% 1823.53 13.6% 7,017.70 13.5%

8 (Increase)/Decrease In Stock - - (2.60) - (0.19) 0.0% -7.88 -

9 Total( 6+7+8) 8,157.02 - 7869.55 49.8% 6766.44 50.4% 25946.51 -

10 Gross Profit (5-4-9) 7,644.37 48.4% 7918.17 50.2% 6664.97 49.6% 26075.35 50.1%

11 Operating Expenses 2,512.64 15.9% 2101.59 13.3% 2099.91 15.6% 7,629.47 14.6%

12 EBDITDA (10-11+4) 5,216.74 33.0% 5889.70 37.3% 4723.21 35.2% 19225.27 37.0%

13 Depreciation 1,427.70 9.0% 1428.81 9.1% 1217.33 9.1% 4,803.30 9.2%

14 Interest 58.70 0.4% 58.65 0.4% 75.79 0.6% 308.89 0.7%

15 PBT(12-13-14) 3,730.34 23.6% 4402.24 27.9% 3430.09 25.5% 14113.08 27.1%

16 Taxes 1,255.63 7.9% 1469.46 9.3% 1216.39 9.1% 4,844.57 9.3%

17 Net Profit After Tax (PAT) 2,474.71 15.7% 2932.77 18.6% 2213.69 16.5% 9268.51 17.8%(15-16)

Financial Year 2004-05

Unaudited- Q3-FY05


RE - Q3 -FY06

Amount


Unaudited- Q3-FY06



RatiosRatios

1 Gross Profit Ratio (%) 50.2 49.6 50.1

2 Operating Profit Ratio (%) 36.8 34.0 35.5(EBITDA)

3 Net Profit Ratio (%) 18.5 16.3 17.6

4 Earning Per Share(In Rs.) 2.1 1.6 6.6

5 Book Value Per Share (In Rs.) 27.8 22.5 22.3

F.Y. 2004-05 S.No. Ratios F.Y. 2005-06 Q3

F.Y. 2004-05 Q3


GROWTH IN CNG SALESGROWTH IN CNG SALESPARAMETER AS ON UNIT

1999 - 2000

2000 - 2001

2001 - 2002

2002 - 2003

2003 - 2004

2004-2005

2005-2006

CNG SaleDaily Average

(Lakh kgs / day)

0.08 0.48 2.67 5.66 7.72 8.16 8.63 **

Compression Capacity

As on Year End

(Lakh kgs / day)

0.20 1.92 5.82 11.99 16.13 16.88 18.33**

No of CNG Stations

As on Year End

Nos 30 68 94 107 120 134 141**

No of CNG Vehicles

As on Year End

Nos 5,200 26,350 57,240 79,123 90,591 94,246 105949*

Nos of compressors

As on Year End

Nos4 24 52 87 116 123 140**

** Avg.upto Dec' 2005 (Avg. for the month = 9.08 lacs kgs)


CNG Sales GrowthCNG Sales GrowthLakhs Kgs per day

•As on 1st January 2006

2.67

5.66

7.72 8.16 8.63

0.00

2.00

4.00

6.00

8.00

10.00

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006


Growth in CNG vehicle Growth in CNG vehicle populationpopulation

Figures in Numbers

* As on 1st January 2006

57240

79123 90591 94246105949*

020000400006000080000

100000120000

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006


Growth in Compression Installed Growth in Compression Installed CapacityCapacity

Lakhs Kgs per day


5.82

11.99

16.13 16.8818.33

0

5

10

15

20

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006


CNG Stations’ GrowthCNG Stations’ GrowthFigures in Numbers


94 107 120 134 141

0

50

100

150

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006


Growth of CNG & PNG Growth of CNG & PNG SaleSale

1999 - 2000

2000 - 2001

2001 - 2002

2002 - 2003

2003 - 2004

2004 - 2005

2005 - 2006 *

30.11 173.99 974.47 2,066.80 2,825.41 2,977.29 1,280.99 TOTAL CNG SALE(MMSCM)

3.76 21.75 121.81 266.41 367.30 387.05 311.02

TOTAL PNG SALE (MMSCM)

3.25 5.35 5.93 7.17 10.88 16.14 18.75

TOTAL SALE (MMSCM)

7.01 27.10 127.74 273.58 378.18 403.19 329.77

TOTAL DAILY AVERAGE SALE (MMSCM)

0.02 0.07 0.35 0.75 1.03 1.10 1.20

* Upto 31st Dec 2005

Figures in MMSCM


Growth of CNG VehiclesGrowth of CNG Vehicles

1st April 2000

1st April 2001

1st April 2002

1st April 2003

1st April 2004

1st April 2005

1st Jan 2006

Buses 18 400 4231 8874 10199 10480 10829

Auto 0 14000 35678 49810 59027 62048 64936

RTV 0 250 2165 4934 5267 5469 5276

Others 5182 11700 15166 15505 16098 16249 24908

Total 5200 26350 57240 79123 90591 94246 105949

GROWTH OF CNG VEHICLESFigures in numbers


Growth of CNG VehicleGrowth of CNG Vehicle

0

20000

40000

60000

80000

Buses Auto RTV Others

1st April 2000

1st April 20011st April 2002

1st April 2003

1st April 2004

1st April 20051st J an 2006

Figures in numbers


CNG Station NetworkCNG Station Network

STATION IGL DTC BPCL IOCL HPCL IBP RAIL TOTAL

MOTHER 39 23 0 0 0 0 0 62

ONLINE 14 0 8 9 5 5 1 42

DAUGHTER 0 0 1 2 1 0 0 4

DAUGHTER BOOSTER

6 0 12 5 7 3 0 33

TOTAL 59 23 21 16 13 8 1 141

As on 1st January 2006

Figures in numbers


Reduction in Measurement lossesReduction in Measurement losses

10.4%

4.0% 4.3% 4.5% 3.5%2.3%*

0%

5%

10%

15%

FY'-01 FY'02 FY'03 FY'04 FY'05 FY'06

* As on 1st January, 2006


Growth of PNG usersGrowth of PNG users

CATEGORY April-01 April-02 April-03 April-04 April-051st Jan

2006

Domestic 2821 4111 7719 15245 23307 39375

Small Commercial

15 37 72 100 140 186

Large Commercial

5 5 11 18 30 40

Total 2841 4153 7802 15363 23477 39601

Figures in numbers


CapexCapex

1454.942467.76

3883.084627.20

5705.405084.75

0

2000

4000

6000

FY

'06*

FY

'05

FY

'04

FY

'03

FY

'02

FY

'01

Rupees in Million

* As on 1st Jan’06


ROCE & RONWROCE & RONW

28 30 31 33

26 28

6 4 3 1

0

10

20

30

40

FY'05 FY'04 FY'03 FY'02 FY'01

ROCE RONW

Value in %


Payouts :Dividend Policy

Dividend Policy provides liberal payout

Track record

Year % of equity payout as % of NP

FY03 5 13.0

FY04 15 25.5

FY05 20 30.2


ShareholdingShareholding patternpattern

45

22

11

5

3 14

Promoters

Foreign Institution Investors

Mutual Funds

Government of NCT of Delhi

Indian Financial Institutions &Banks

Public / Others

As on 31/12/05


Revenue Mix of IGLRevenue Mix of IGL

93%

5%

1%

1%

CNG

LargecommercialSmall commercial

Household


Cost of CNG Vs Petrol & Cost of CNG Vs Petrol & Diesel Diesel

Operating Cost Rs. /KMOperating Cost Rs. /KM

0.86

1.9

2.9

0

0.5

1

1.5

2

2.5

3

CNG

Diesel

Petrol

CNG PetrolDiesel

Rs


New Markets - growthNew Markets - growth

IGL has been given the final NOC to IGL has been given the final NOC to participate in the development of participate in the development of infrastructure for marketing of CNG infrastructure for marketing of CNG and PNG in the markets of Greater and PNG in the markets of Greater Noida and Ghaziabad.Noida and Ghaziabad.

We have also been invited to We have also been invited to participate in Sonipat and Panipat participate in Sonipat and Panipat markets. We have yet to do the DFR markets. We have yet to do the DFR study.study.


Growth Strategy of IGLGrowth Strategy of IGL

Capitalize on the future regulatory initiatives for Capitalize on the future regulatory initiatives for CNG businessCNG business

Improve penetration of PNG business :Improve penetration of PNG business : Focus on area surrounding existing CNG Focus on area surrounding existing CNG

infrastructureinfrastructure

Target large consumers (Residential complex, Target large consumers (Residential complex,

industrial estate)industrial estate)

Penetration of network at marginal capital outlayPenetration of network at marginal capital outlay

Tap industrial demand by supply of R-LNG at Tap industrial demand by supply of R-LNG at

market driven price to industrial customersmarket driven price to industrial customers


Growth Strategy of IGLGrowth Strategy of IGL

Recently We have signed MOU with BPCL Recently We have signed MOU with BPCL for supply of R-LNG for our industrial for supply of R-LNG for our industrial customerscustomers..

Supply of CNG to Railways : Pilot project Supply of CNG to Railways : Pilot project successfulsuccessful

Created a platform wherein LCV can get Created a platform wherein LCV can get financed from bankers on CNG kits financed from bankers on CNG kits


Risks & MitigationsRisks & Mitigations

Gas Price IncreaseGas Price Increase Recent increase already passed on to customers Recent increase already passed on to customers CNG price still remains competitive vis-à-vis petrol and CNG price still remains competitive vis-à-vis petrol and

dieseldiesel Any future increase can also be dealt with in the same wayAny future increase can also be dealt with in the same way

Adverse Regulatory InterventionAdverse Regulatory Intervention Unlikely in near futureUnlikely in near future May result in legal monopolyMay result in legal monopoly May also be advantageous for expansion in neighbouring May also be advantageous for expansion in neighbouring

townstowns

Availability of GasAvailability of Gas Firm allocation from Govt. of IndiaFirm allocation from Govt. of India New discoveries, LNG and Pipe Gas from Myanmar and Iran New discoveries, LNG and Pipe Gas from Myanmar and Iran


DISCLAIMER: This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” “discussions” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.


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1 natural gas for clean & green environment 1 1 welcome to the presentation on performance of...

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