GuruFocus -
- Consolidated Normalized EBITDA: INR487 crore for H1 FY25, highest ever half-year performance.
- Profit After Tax: INR310 crore for H1 FY25, a 10% increase year-on-year.
- Earnings Per Share (EPS): INR7.33 for H1 FY25, compared to INR6.92 in H1 FY24.
- Liquids Division EBITDA: INR201 crore for H1 FY25, a 27% increase year-on-year.
- LPG Division EBITDA: INR286 crore for H1 FY25, highest ever for the division.
- Liquids Division Revenue: INR273 crore for H1 FY25, an 18% increase year-on-year.
- LPG Throughput Volume: 2.08 million metric tons for H1 FY25, a 9% increase year-on-year.
- Distribution Volumes: 2.58 lakh metric tons for H1 FY25, compared to 2.9 lakh metric tons in H1 FY24.
- Sourcing Volumes: 318,000 metric tons for Q1 FY25, compared to 400,000 metric tons in the same quarter last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aegis Logistics Ltd (BOM:500003) achieved a record consolidated normalized EBITDA of INR487 crore in the first half of FY25, marking its highest ever half-year performance.
- The company reported a significant increase in profits for the first half, exceeding INR300 crore, with an earnings per share of INR7.33.
- Aegis Logistics Ltd is expanding its capacity in both the liquid and LPG divisions, with ongoing projects expected to increase storage capacity significantly by the end of FY25.
- The company has received a commitment from an anchor customer for its first ammonia terminal, indicating strong future business prospects.
- Aegis Logistics Ltd's financial position remains robust with low debt, strong cash flows, and a solid balance sheet, supporting its growth initiatives.
- The distribution volumes in the auto, commercial, and industrial bulk segment decreased in H1 FY25 compared to H1 FY24.
- Sourcing volumes for the LPG business were lower in Q1 FY25 compared to the same quarter last year, indicating potential challenges in this segment.
- The company faces uncertainties related to the regulatory approval process for its ammonia terminal, which could delay project timelines.
- There is a potential increase in minority interest due to the IPO of Aegis Vopak (AS:VOPA) Terminals Limited, which could affect shareholder value.
- The company's growth guidance of a 25% CAGR over five years is ambitious and may not be achieved consistently each year.
A: It will be standalone. However, the JNPT expansion will be in a JV.
Q: What is the status of the liquid capacity expansion at Kandla, Mangalore, and Kochi?
A: Mangalore is ready and should be commissioned soon. Kandla is in progress and expected to be completed by FY25. Kochi is already completed.
Q: Regarding the DRHP filing, how will the structure affect current shareholders of Aegis Logistics?
A: The equity infusion into the JV will be value accretive to the hold co by eliminating high-interest costs. The hold co will remain unaffected as the debt will be reduced.
Q: Can you provide details on the ammonia business compared to the gas business?
A: The permits are similar, but the infrastructure for ammonia requires additional equipment. The rates for ammonia throughput are 2.5 to 3 times higher than LPG, and it operates more like the liquid business.
Q: What is the outlook on sourcing volumes, given they were below expectations?
A: Sourcing volumes do not significantly impact EBITDA as margins are slim. The business is conducted to provide value to customers when needed, but it is not a major profit contributor.
Q: What is the opportunity size for the ammonia business in the long run?
A: Ammonia is a clean fuel and a hydrogen carrier, which positions it well for growth as energy transitions from dirty to clean fuels. We will develop ammonia terminals as the market matures.
Q: How will the IPO of Aegis Vopak affect the standalone entity and its cash position?
A: The standalone entity will hold cash for future opportunities. As opportunities mature, we will disclose and discuss them with investors.
Q: Is there any update on the Kandla Gorakhpur pipeline?
A: It is progressing well and is expected to be commissioned by mid-next year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.