Aegis Logistic Q1 FY22 Result & Conference Call Highlights

Q1FY22 Performance

Gas Division

• Provide integrated logistics services from sourcing, storing, moving and distributing products.

• Volumes handled by LPG terminals in Q1FY22 is 568000 MT as against 700000 MT in Q1FY21.          

• According to Aegis logistics analysis, Q1FY22 volumes were impacted due to Cyclone Tauktae at Pipavav, Cyclone Yaas at Haldia and Covid-19 Second wave.

• Performance in gas division was aided by Increasing throughput by continuous capacity expansion, increase in wallet share & Addition in new customers, Increasing Retail & Distribution business of LPG as of Aegis logistics results.

• EBITDA of Aegis logistics share price Contributes  57% by liquid division.

• According to Aegis logistics share price balance sheet , it reported an EBITDA of 65 crore in Q1FY22 against an EBITDA of 78 crores in Q1FY21. A decrease of 16% YoY as of Aegis logistics share price history.

Liquid Division

• Provides import, export, storage, and logistics services, handling Class A, B, and C products as well as all types of chemicals, POL Products and Vegetable Oils as of Aegis logistics annual report.

• EBITDA  Contribution of 43% by liquid division.

• According to Aegis logistics research report, it reported an EBITDA of 49 crore in Q1FY22 against an EBITDA of 40 crores in Q1FY21. An increase of 23% YoY.

• According to Aegis logistics financial analysis, It reported revenue of 66 crore in Q1FY22 against revenue of 55 crores in Q1FY21. An increase of 19% YoY.

• Performance in the Liquid division was aided by fully operational new capacities and significant improvement in margins of Aegis logistics chart.

Formation of JV – Aegis Vopak Terminals Ltd

• Aegis and Vopak propose to form a JV to take advantage of the numerous growth opportunities in the field of oil, gas and chemical logistics in India.

• The JV company to be named Aegis Vopak Terminals Ltd (AVTL) will be 51% owned by Aegis and 49% by Vopak.

• According to Aegis logistics reviews , Aegis is India’s leading liquid and LPG tank terminal owner and operator.

• Aegis brings superb execution capabilities and a portfolio of profitable assets.

• Vopak is the world’s leading independent tank storage company, storing oil, chemicals, gases, biofuels and edible oils.

• Vopak brings global expertise and standards, new product capabilities and global customers.

Benefits from the Deal

• Scale up its Liquid and LPG Terminals business on an accelerated basis.

• Pool financial, management and technical resources for diversification into other types of gas and other products storage by combining with the global leader Vopak.

• Explore new growth opportunities in Renewable and Sustainable Energy.

Valuation

Management Highlights

• LPG volumes were negatively impacted by the second wave of Covid-19, cyclone Tauke at Pipavav, and cyclone Yaas at Haldia.

• LPG throughput volumes were down 19% YoY. Orders from PSUs remained muted over Apr-May’21, which consequently recovered in Jun’21.

• Autogas volumes are recovering well, and management expects volumes to return to pre-Covid run rate in H2FY22.

• Commercial orders are improving as restaurants and hotels are showing signs of recovery in the current quarter.

• Overall, management expects better LPG throughput volumes as Q2 ordering is looking positive.

• Commissioning of Kandla terminal remains on track – mechanical work is expected to be completed by end-Q2FY22 and commissioning by Q3FY22.

• AGIS is looking to start work on some of the capex plans under the Vopak JV, even before deal completion.

• According to Aegis logistics quarterly results, management margins have remained stable in both logistics and distribution businesses.

• Management expects the strong trend to continue throughout the year in the Liquids division.

• Additional capacities at Mangalore (50,000KL) and Haldia (12,000KL) have started contributing to AGIS’ topline.

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