Ladies and gentlemen, good day and welcome to Aegis Logistics Limited Q1 FY25 earnings conference call. The company would like to give a short disclaimer. This call may contain some of the forward-looking statements, which are completely based on the company's beliefs, opinions, and expectations as of today. These statements are not the guarantee of the company's future performance and involve unforeseen risks and uncertainties.
As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference call is being recorded. I now hand the conference over to Mr. Raj Chandaria, Chairman and Managing Director. Thank you, and over to you, sir.
Thank you very much. Good evening, everybody. I'm joined by our Chief Financial Officer, Mr. Murad Moledina, and Ms. Payal Dave from our Investor Relations team. We will be presenting performance for Q1, ended 30 June 2024. I'm pleased to share that the company began FY 2025 on a strong note, achieving an EBITDA of INR 250 crores. We reported the highest-ever Q1 figures for volume, EBITDA, profit before tax, and profit after tax in both the gas and liquid divisions.
The liquid division's operating EBITDA was INR 108 crores, while the LPG division was INR 142 crores. Our Q1 FY 2025 profits reached INR 158 crores, marking a 19% year-over-year growth. The main drivers for this have been the continued growth of our volumes in our Kandla terminal and continued growth in the liquids through the addition of new capacity and full utilization of newly commissioned tanks.
With the commissioning of new projects currently underway, we are confident that the positive momentum that we observed in this quarter, Q1, will be sustained in the coming quarters. The outstanding Q1 performance strengthens our confidence in meeting our guidance of achieving a 25% CAGR over the next three years, supported by new capacity coming in the form of greenfield and brownfield expansion, leading to higher revenues and profitability.
As I've noted in our previous call, Aegis is dedicated to helping India transition to more sustainable fuels, aligned with our vision and mission. Our core objective is to develop and manage energy infrastructure that supports India's shift from polluting fuels to cleaner alternatives. In line with our vision, we had announced plans for our first ammonia terminal, which will be located in Gujarat.
We expect to commence construction during this fiscal year after receiving all the necessary permits from regulatory authorities, and we expect to build more ammonia terminals as this business matures. Our endeavor in this business will be to become vertically integrated, just like we are in the LPG business. Now, you may recall we announced a capital expenditure program of INR 4,500 crore by FY 2027, and nearly 50% of this is already completed or currently in progress.
We anticipate that the Pipavav and Mangalore LPG terminals will be commissioned on schedule and on budget, with revenue expected to start in Q1 of FY 2026. The pace of capital expenditure is expected to persist beyond FY 2027 as we explore further opportunities in our pipeline. Now, let me just give you a quick update on the progress of expansion at each of our ports.
As far as JNPT is concerned, we established a foothold in this second port of Mumbai with our 110,000 kiloliter terminal, which will be commissioned later this year. It's proceeding well on time and on budget. As far as Pipavav is concerned, we are also expanding our LPG capacity, as you know, at that port by adding two cryogenic LPG tanks with a total capacity of 45,000 metric tons, and we expect this to be commissioned in Q1 of FY 2026. As I mentioned in our previous calls, the Kandla-Gorakhpur pipeline is expected to link up with Pipavav, which will significantly enhance the Pipavav LPG terminal role as a hub for handling this traffic. In Mangalore, we are constructing 71,000 kiloliters of liquid capacity, set to be operational within the next 12-15 months.
And additionally, of course, our cryogenic LPG project with a capacity of 85,000 tons is progressing on schedule and is expected to be completed on time. In Kandla, well, during the recent months, we have aggressively expanded our capacity through both brownfield development and acquisition. Our current capacity has now reached 970,000 kiloliters, just shy of 1 million metric tons, and we are adding 25,000 kiloliters of tank capacity, which is expected to be operational next year. In Kochi, we had acquired the 16,000 kiloliters liquid storage terminal during last year, and the same is doing well. We're also expanding our capacity at this port by another 25,000 kiloliters of liquids. In Haldia, we completed the expansion of the 50,000 kiloliters last year, and the same will reflect in our revenues and profitability in this fiscal year.
In Mumbai, we're excited to announce that we have been allocated land by the port in Mumbai for future expansion, and we plan to build a storage terminal with a capacity of about 150,000 kiloliters on this site, with an estimated project cost of INR 250 crores. This was just approved by the board yesterday. The company is on course to achieve increased revenues and profitability with the completion of its expansion projects, and additional capacities currently under construction are expected to come online in phases by the end of FY 2025 and FY 2026.
Alongside these new capacities, the ramp-up of the Kandla LPG terminal, improved utilization at Mumbai and Pipavav, JNPT, and Kochi offer strong prospects for volume and EBITDA growth. We expect to maintain our earnings growth in line with recent trends and leverage the benefits of our investments in both terminaling and the distribution business. I'd now like to hand over to Mr. Moledina to present the financial performance in detail. Murad, over to you, please.
Yeah, good evening. Let me say that both of our divisions performed exceptionally well for the quarter ended June 30, 2024. We achieved another record-breaking quarter with the highest EBITDA and profitability ever recorded in Q1 FY 2025, supported by highest revenues and EBITDA in our liquid segment and record high volumes in our LPG logistics business for Q1. For the group, EBITDA for Q1 FY 2025 stood at INR 250 crores, an increase of 18% compared to the same quarter last year.
Profits after tax increased by 19% to INR 158 crores in Q1 FY 2025, as against INR 133 crores in Q1 FY 2024. Earnings per share also increased to INR 3.75 in Q1 FY 2025 as compared to INR 3.34 Q1 FY 2024, an increase of 14%. I would now like to provide you with some details on the individual segments. Liquid business. The Q1 FY 2025 revenue from liquid segment stood at INR 143 crores as compared to INR 115 crores in Q1 FY 2024, an increase of 24% year-over-year basis. We delivered the highest-ever Q1 EBITDA at INR 108 crores versus INR 79 crores in previous year's same quarter, which is an increase of 38%.
This improved performance can be attributed to the new capacity coming online, as well as acquisitions at Kandla, Kochi, and Mangalore. LPG business. In Q1 FY 2025, the EBITDA from LPG was INR 142 crores as compared to INR 134 crores in Q1 FY 2024, delivering a growth of 7%. Now, let me give you volume details of each subsegment. Logistics volumes, support volumes. In Q1 FY 2025, the LPG volume handled at our four terminals—Mumbai, Haldia, Kandla, and Pipavav—were INR 10.12 lakh metric tons versus INR 8.8 lakh metric tons in Q1 FY 2024. This is an increase of 15%. Distribution volumes.
The auto, commercial, and industrial bulk segment handled 129,000 metric tons in Q1 FY 2025, as against 159,000 metric tons in Q1 FY 2024. Sourcing volumes. The sales volume of the sourcing business Q1 FY 2025 was 124,000 metric tons versus 226,000 metric tons in the same quarter last year. The financial position of the company remains robust, with low debt, strong cash flows, and a solid balance sheet. With this, I now hand over this line to the moderator to start the question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Chirag Vekariya from Budhrani Finance. Please go ahead.
I have two, three questions, sir. So what is the reason for distribution segment getting impacted?
Well, if you look at, you want to ask all the questions and then answer, or we take one by one?
We take one by one, sir.
Okay. So distribution segment, we have done not bad as compared to Q4. As I've said earlier, that Q1 is always the lowest of all the quarters in the year. We expect these volumes to increase going forward. Also, in this quarter, the natural gas prices were brought down by Gujarat Gas substantially, which now have reversed in the month of July because that obviously would not have held for too long. It was a very kind of suicidal attempt by Gujarat Gas to lower down natural gas prices so low. But now, I think July, again, natural gas prices have risen by INR 2, which is substantial.
Of course, I can tell you this: that in this quarter, even though the volumes were 129,000, the EBITDA realizations were quite strong. So compared to Q1 of last year, where we did around 160,000 metric tons volume, generating around INR 45 crores EBITDA, here in 129,000 metric tons volume, we have generated around INR 42 crores EBITDA. So that way, in terms of EBITDA, it's much better than Q1 of last year.
Two things from that, sir. One is that you mean that industrial volume would have got impacted because of the pricing, and this will reverse, right?
You can say that to some extent. Also, please understand that Q1 of last year is when propane really made inroads into the Morbi sector, and that's how. But after Q1 of last year, you would see there's a stable volume growth. There's a stable volume of distribution quarter-to-quarter. We expect this to become even better once our terminals at Mangalore and Pipavav cryogenic terminals come online because then holding and selling would be much easier.
I think that will come under the logistics side, right? The volumes will come there, correct?
No, no. The distribution division of Aegis is going to use the terminals, right?
Okay. And so second thing on this, the same that you said, you had a better margin. So is this margin one of that looks sustainable, sir?
No, no. It looks sustainable going forward now.
Around 3?
Yes, around 3,250.
This was what number in Q1?
It was less. You can just do the division and get it INR 45 crore over 160,000. So that should be just about 2,750, I believe.
Yes, sir. So second thing is from the division liquid expansion that you mentioned in the slide, so what is yet to come from, say, from this financial year or the next?
A lot of it. Like we said, 110,000 of JNPT, 71,000 of Mangalore, 25,000 in Kandla. So these are already underway. And in the current year, another 75,000, which has already completed in Mangalore, or in about 71,000, which is under construction. So it's already, you can see, around. And of course, we are also doing expansion in Kochi. So it's almost 300,000 underway and more to come.
Okay. Just last thing on the new Mumbai port, you were talking about the new terminal. So can you give some sense what is it and what capacity and what?
It is too early, but we would come up with more details probably next call. We have already said that we intend to put up to 150,000 kiloliters additionally in Mumbai at a cost estimated to be around INR 250 crores. So that's what is available as of now. We will come up with more details in the next call.
Okay. Thank you. All the best, sir.
Thank you.
Thank you. We have our next question from the line of Priyankar Biswas from BNP Paribas. Please go ahead.
Thank you, sir, for the opportunity. So my first question, so far, it is about Mumbai again. So Mumbai, you have highlighted that land has been allocated at the port. So is it just Mumbai, or does it include JNPT as well? So that's number one. And besides the liquid terminal that you mentioned, like 150,000 additional, is there a plan or, let's say, a possibility to expand the LPG as well?
Okay. In Mumbai, as of now, it's liquid expansion of 150,000 kiloliters, and it's only Mumbai. We are not counting JNPT in that. JNPT is separate. I'm sure there will be more to come as far as JNPT is concerned, but as of now, it's Mumbai where we have been allotted land. So we can confirm that up to 150,000 KL of liquid is what we plan at a cost of INR 250 crore as on date.
Answer another question. So you have already provided us with a CapEx plan of around INR 4,500 crores. So that will be probably in cadenced FY 2027. Now, going a little beyond that, because you often highlight that there are a lot of opportunities in India and in several verticals. So can you elaborate on that? What can be the opportunities beyond this INR 4,500 crores? And let's say in a five-year view, let's say what sort of volume targets that you may have, or even capacity targets should be fine as well for, let's say, the gas and the liquids? I mean, gas, I mean both logistics and distribution.
Yes, so Priyankar, Mr. Raj has earlier said in the call that this INR 4,500 crore CapEx plan, which was expected to be completed by FY 2027, 50% is already underway. The balance is also, like we have been saying, in fact, we expected to get over with a little before FY 2027. So instead of five years, maybe four, four and a half years, and we'll be done with around INR 4,500 crore CapEx plan, which we had envisaged when we started the journey.
Mr. Raj also said that going forward, this space probably is going to be more because of the pipeline of projects that we are citing. So you can very well expect, for example, 4,500 over five was a INR 900 crore CapEx per year. But because it is getting completed earlier, probably the pace, which is INR 1,000 crore plus every year, would continue beyond FY 2026 and FY 2027 also in view of the projects that are under pipeline and are being cited by us. I would leave it at that.
Okay. That's what I understood. So if I just may clarify, so essentially, even beyond FY 2027, you have a strong robust pipeline to at least go at an INR 1,000 crore type CapEx rate. So there are a lot of opportunities, essentially.
Yes, and mind you, this 4,500 ammonia is still out of that, has come now as an opportunity. So which is why I say that this space, which is expected, would probably be more going forward.
Is there one more question from my side? Yes, you were saying something.
Murad, if I can just add to this point, and thanks for asking this, Priyankar. So I think the opportunities, as we see the clarity about Indian economic growth, of course, with now political stability and robust economy and so on, we see the opportunities coming rapidly and frequently. We can't obviously talk about everything because not every opportunity materializes into an actual project.
But there are, based on this strong economic backdrop that we see, opportunities are there every day. So I think we are pretty confident that the long-term growth plan that we have talked about in terms of our vision and so on, moving India to a more sustainable energy infrastructure, definitely is there. So we're very confident about the future of the company, even beyond FY 2027.
That's perfectly explained. Just squeezing one more thing. So this is on the liquid. So I remember in the fourth quarter, you had some take-or-pay revenues that actually increased the margin. But in this quarter, just to clarify, there were no take-or-pay, right, in this quarter?
Correct. Correct. Yes, Priyankar, you are right.
Should I take that because the margins have quite come strongly, like significantly north of 70%? Do we expect that to sustain maybe, let's say, on a full-year basis?
Yes, Priyankar. You can expect that.
Okay. That's all from my side for now, in case I will rejoin back.
Thank you. A reminder to all participants, you may press star and one to ask questions. We have our next question from the line of Gautam Rajesh from Everflow Partners. Please go ahead.
Yes. Am I audible, sir?
Yes.
Yep.
Yes.
Good evening. So I had two questions. My first question was for your Pipavav terminal. So which markets do we primarily cater to from this Pipavav terminal currently? And with this expansion, would we be largely using KGPL pipeline, or do we cater to other markets from the Pipavav plant too?
Currently, we are catering to markets up north by rail. And with KGPL coming in, we would also be then serving the market across central India. And yes, I think there are road tanker filling bays also. So in and around the radius of 300-500 kilometers would be the market which we would also be able to serve.
Okay. And my second question was, we are coming with a large expansion capacity in Mangalore. Can you break down how the timeline would be that we can expect? Is there more data that we can get from Q1 FY25? And over there also, which are markets would we primarily cater to from that region?
Again, as we have said, all our terminals are now open-source terminals, and they are used by our distribution division as well as national oil companies as well as other distribution companies which are engaged in serving the LPG market. So we expect this cryogenic terminal to come up and be commissioned by March 25 and be operational in Q1 of FY 2026. As always, these terminals are expected to start off with a throughput capacity utilization of around 20%-25% and then gradually grow and serve the customers over a period timeframe of 7-10 years, gradually increasing the utilization year-on-year. So that's how we expect Mangalore also to behave.
Yes, sir. But regarding the region, it's just open-source. There's no particular region that you would primarily, let's say, supply?
No, no. We are in a position to connect and serve through road, which is again 300-500 km with Mangalore central point. Also, we are expected to have a rail gantry. Rail gantry means we can serve any market across India. And then we expect that along the way, we may also be able to connect into Mangalore, Hassan, Cherlapally LPG pipeline grid, thereby serving all the way up east as well as south of India. So the range is quite big because the evacuation modes are multi. So we cannot say that we'll only serve market down south. When you connect to rail, you can reach any corner because of our extensive rail network that India has.
Okay. So thank you so much.
Thank you. We have our next question from the line of Rajit Agarwal from Atharva Investment Managers. Please go ahead.
A very good evening, sir, and congratulations on a good set of numbers. I have two quick clarifications and a request. So starting with the clarifications, there was a news item in November 2023 which said that the JV had received approval to set up an ammonia terminal in Gopalpur, Odisha. So that is one, if you can clarify or if you can share more details on it. Second is, again, there was a news item at JV. So if you could.
Your voice is breaking. We can't hear you.
I am good, sir. Give me a moment.
Hello. Hello? Hello.
Yes, sir. Yeah. Is it better now?
Yes.
I'm very sorry for the delay. I said there were two clarifications. One is regarding the news item that said that the JV has received an approval to set up an ammonia terminal in Gopalpur, Odisha.
Okay.
Hello. The second one was regarding again a news item about the IPO of the JV. If you can throw some more light on both of them.
Yeah. About the ammonia terminal in Odisha, we are always looking, like Mr. Raj said earlier, at opportunities. As and when we are able to secure land and permits, we will come up and disclose the same. As of now, it's in exploratory stage. Nothing finalized as of now. This is one of the many opportunities which we are always looking to grow and set up facilities. As far as the second news item is concerned, I can tell you we always explore many possibilities of funding our CapEx program, and nothing finalized as of now. As and when it is, we will disclose it formally to the stock exchange. As of now, nothing finalized.
Great. Thank you, sir. A quick request. Is it possible that you can incorporate a chart or a table in the presentation with the capacities as on the quarter end and the projected capacities as of immediate financial year and the next financial year?
I think we have the capacity chart with the expectation coming in, but we cannot go beyond one-year timeframe or considering only the projects which are actually underway. So you cannot.
Fair enough. Yeah. Yeah. Absolutely. I mean, including that one.
Liquid and gas. Yeah. Liquid and gas, both, I think you will find it in our presentation. But point noted, we'll again look into it. Yeah.
Right. Thank you. Thank you. Thanks, sir. That's it from myself.
Thank you. A reminder to all participants, you may press star and one to ask questions. We have our next question from the line of Shivam Dave from Prodigy Investments. Please go ahead.
Yeah. Hi. Am I audible?
Yes, sir.
Am I audible? Yeah. Murad's in the decent set. Most of my questions are answered. I just have one question. How should we expect the distribution volumes kind of shaping up for FY 2025?
We have always said that we expect to grow between 25%-30% year-on-year, and we probably expect a step up more the next year when our two new cryogenic terminals are commissioned. As of now, we are looking towards that. Yeah. So I'll leave it on that.
Okay. Another question I had was that on the KGPL pipeline, has the volume still set up with the Pipavav port already, or when does that start flowing in?
No, no. Kandla-Gorakhpur pipeline is the construction is underway, and the expected date is December 24 as per their guidelines. So the construction is well underway. Once it is completed and commissioned, which we expect in FY 2026, we will see volumes coming in from the Pipavav terminal. Yeah.
That should be about 1.5 million tons per year.
It will grow, and ultimately, it will be 1.5 million tons. Yeah. But we'll see how it starts. FY 2026, you will see the volumes coming in.
Okay. That's it from my side. Thank you. All the best.
Thank you. A reminder to all participants, you may press star and one to ask questions. We have our next question from the line of Jolyon Loo from Amiral Gestion. Please go ahead.
Hello. Hello. Am I audible?
Yes.
Yes.
Yes. Okay. Just two quick questions. First, on the KGPL, are we expecting any delays for the construction?
I think what we see from what is available publicly, almost 95% of welding is done of the pipelines. So they have been delivered, placed, and welded. 95% is a very, very good number. So maybe instead of December, it could be March. But only now the last leg is left. I don't see much possibility of any further delay beyond that.
Okay. Fingers crossed. Okay. My second question is more of the LPG terminal. So as I was looking at the PPAC data, I noted that the national import of LPG grew 21% in the first quarter, whereas our terminal growth is at 15%. So I'm wondering why is there a discrepancy because 6% lower than national import level seems quite drastic. If you could clarify this piece.
Yes. The MoP&G data, I think, does not capture private imports, which is Aegis, Total, SHV, Adani, all of them. So I think you will need to see the fine prints in the MoP&G numbers. As far as our throughput volumes are concerned, I think they will continue to grow at a healthy rate of over 25%, which we have always maintained.
I suppose just to clarify, 21% is just for the national oil marketing companies. But if you were to include the private imports, wouldn't the numbers be higher than 21% and not lower than 21%? Am I thinking about this correctly?
No. I'm sorry. I missed it. So what you are saying is their numbers are 21% and our number is 15%. Why so? I'm sorry. I misread it.
Yeah. Exactly. That's my question.
Yeah. Yeah. So what you have to look at is annual numbers, not quarter numbers. But you will find very low numbers, annual import numbers published by MoP&G. So these numbers quarterly will depend on inventory position on the plan of imports by the national oil companies. They really do not give a correct picture if you try and look at it quarter-to-quarter. And as far as we are concerned, please keep in mind, Mumbai is saturated. It's not expected to grow much because we are already 90% there.
Yes. And therefore, out of our four terminals, one terminal is already at 90% throughput capacity utilization. So these two things you have to keep in mind. But check the yearly numbers. They will be very low as far as MoP&G is concerned, and we would be achieving much more. As I said, we expect 25% increase in throughput for FY 2025, 25% growth over the previous year. Anyways, yeah.
Okay. Thank you so much. That's all.
Thank you.
Thank you. We have our next question from the line of Kunal Ochiramani from Kitara Capital. Please go ahead.
All of my questions have been answered. Thank you.
Thank you. We have our next question from the line of Yash Dedhia from Maximal Capital. Please go ahead.
Hello. Thank you for the opportunity. Am I audible?
Yes.
Yeah.
Yeah. So I just want one thing. That LPG cryogenic terminal, it can handle VLGC fluid directly. That is, they don't need to wait at the port. So does the tank automatically have a higher throughput ratio than the normal tank which is there in Mumbai or, say, Haldia or anywhere else?
Mumbai, Haldia also has got cryogenic. You're talking about cryogenic tank versus VLGC?
Cryogenic tank versus VLGC cryogenic tank, which is what we are doing at Mangalore?
Yeah. So please, I think there is some confusion with you. VLGC ship berthing is dependent on the port jetty capability to berth a VLGC. It has got nothing to do with a cryogenic tank.
No, no. I understand that. No, no. I understand that. I just wanted to know that, say, for example, at Mumbai, a VLGC fleet, if it comes at berth of Mumbai, then obviously our tank does not have enough capacity to unload it once at one go, unlike our Mangalore tank, which will have a much higher capacity?
I think the answer to your question is that VLGCs can do two-port discharges. So for example, if.
Correct. Correct. But in order to do two-port discharges, they will have to stay a little while longer at the berth?
No, you're right. You're right.
I think it will offload and then move to the next drop-off point.
Yeah. But then it will have LPG still in it?
Let me answer that. Let me answer that. You are right that in case VLGC berth, and if you have cryogenic capacity like in Kandla and upcoming in Pipavav and Mangalore to unload a whole VLGC at one go, there is always a possibility of doing much more throughput because when you evacuate the whole lot, when you unload the whole lot and then evacuate, probably, yes, you are right that your strength is more when you have a tankage to unload at one go the whole of VLGC, whereas Mumbai and Haldia may not are still good because they can still berth VLGC. They can do a two-port discharge. But then probably if it would have been more static capacity, then it would have resulted in a lower throughput ratio.
Yes. Yes. You're right.
Currently in Mumbai, what is the throughput ratio between our total static capacity?
Oh, we are doing a turn of around 80+ times.
In a year. Okay.
In a year. So let's say the static capacity is 20,000, so we are berthing more than seven ships in a month. Yeah.
Yeah. So six and seven ships. And so at Mangalore, what will be our ratio at its peak?
Yeah. At its peak, with all evacuation modes in place, it would do similar 8x turnaround.
It would do similarly. Okay. But this could increase more than 80.
No. It is dependent on three things. One is the jetty should be capable of berthing VLGC.
Yeah. So assuming that jetty is capable.
Yeah. Yeah. And to unload the whole VLGC, and then the evacuation mode of all three should be there: rail, road, and pipeline. So when you have all of these things in place, then you have 75x+ turnaround, which is there in case of Mumbai. And also, surprisingly, if you would be able to achieve it in Haldia too, that is possible because we have a higher number of road tanker loading bays, and the consumption center is close by. So therefore, the demand is there. Evacuation is there. So in spite of not having rail and pipeline connection yet in Haldia, we would still be able to achieve that. So it depends on a lot of things.
Okay. Okay. Typically, the contracts that are customized for long tenures or short tenures for a year or so?
No. They are only terminal contract with no MGT and no period kind of lock-in, except for Haldia, where we have a 20-year agreement.
With HPCL. Yeah. That is with HPCL. But in Mumbai, so there is no specific contract where they have to.
There are terminals in contract because they also want to be secure that they should not be turned out. So they would always get into contracts which would get renewed periodically, let's say three years, five years types of contracts, which will keep rolling over.
I'm asking this because there might be a possibility of a larger tank coming up in MPT. In that case, do we see volume shifting from our ports, our tanks, to larger tanks since generators owned by VLGC fleet will not be there?
No. No. We are here in Mumbai connected to Mumbai-Chakan pipeline. The consumption zone is in and around. We are connected to the refineries who are the users. We don't expect any change in and we are already saturated here. So the market is not going. Yeah, let's see. It's still not there. We will see going forward. But we don't expect any difference in our throughput volumes in Mumbai with whatever capacities that are expected to come in.
Great. Great. Thanks. Thank you so much.
Thank you. A reminder to all participants, you may press star and want to ask questions. We have our next question from the line of Anil Sarin from K16 Advisors. Please go ahead.
Good evening. Am I audible?
Yes.
Yes. Great. So I think this question has been partly answered earlier. I'm referring to the news article that came out that you may be seeking to raise capital in the subsidiary, that AVTL. So I think you have clarified that it's not a done deal and you would be evaluating it on merit as and when the opportunity comes up. Am I right so far?
Yes.
Yeah. So I just wanted to convey something from the market side. That as investors, if you pursue that path, I mean, it's good that you need the capital because you are actually seeing an opportunity. But it's not so good from the investor standpoint, minority shareholder standpoint, because then you get confused whether to own AVTL or to own the parent holdco, the holdco.
So I mean, this is just a suggestion from my side, and I speak on behalf of a lot of people who otherwise would not speak up. That it would be so much better if you retained it in the consolidated holdco and raised money in the holdco. There is no shortage of capital for the holdco. And the other partner brings their money from their markets, and the JV is then capitalized. That would be a suggestion and a request from our side. You may please like to consider that.
Noted. But this is too premature a discussion. Only when we have decided we will come out with whatever path we choose, we will come out with our reasoning for the same. But as of now, nothing finalized. It's premature to get into a discussion on this. Thank you.
Great. I had a follow-on on that. We have this understanding that the nature of the relationship between the holdco and the JV is that the holdco, which is the listed company called Aegis, that is the one which does the project work, which is the one which is in charge of completing the project. And for rendering that service and handing over to the AVTL, it gets certain compensation. And that compensation is substantial enough to make up for the equity components of the Aegis side for the JV called AVTL. So as such, if the compensation for the turnkey project work is adequate, then I'm not clear as to why additional capital would be required, at least for the Aegis shareholders. It's a great question for the line of.
Again, noted. Again, a premature discussion because there are so many considerations which one has to take into account when one takes a decision. As and when we decide on the path that we intend to pursue, we will come up with more details and reasoning for the same.
Great. Thank you so much.
Yeah. Thank you.
Thank you. A reminder to all participants, you may press star one if you want to ask questions. The next question is from the line of Hemant Agrawal from Everflow Partners. Please go ahead.
Hi. Thank you for the opportunity. I have a couple of questions based on the competitors, right? There have been talks about a new LPG terminal at JNPT in Mumbai by a competitor. How do you think that it could affect the volumes for us at our Mumbai port? And is there any other of our ports, like Pipavav or Kandla or any other, which could get impacted by these terminals that are supposed to come in JNPT?
Okay. Let me put some points very clear on all of this. First is that LPT demand is growing at 5%-7% CAGR year on year. So effectively, it means 2 million tons are added every year. And therefore, terminaling space is needed. Second, when you set up or when you announce and set up, there is a big, big difference. We have heard of projects in the past, Chhara, etc., which never saw the light of the day. Third is when you set up any infrastructure, there are some skill sets which are a must for you to succeed. Number one is least cost setting up of the infrastructure. Second is operating safely. Third is operating it effectively. That is the turnaround.
All of these skill sets are there with Aegis demonstrated historically, and we see no threat whatsoever with any competition announced or if and when it comes up. We work very hard year on year, not complacent. We keep looking at our infrastructure and ways and means to improve efficiencies and delivering great service to our customers. We work hard on all of those aspects. We are experienced. We have got world-class partners with us. Funds are no constraint. We are not debt-dependent. I can go on for another half an hour. So no worries whatsoever of any projects. Projects have been announced and not come up, and projects have come up in the past. And we remain very competitive to those that have come up, and we continue to maintain so.
Right. Right. Thank you for that very confident answer. Next question I had again was on the line with the competitors itself. So are there any capacity expansions happening for the LPG or cryogenic tanks at other ports by any other competitors? And any activity at the Haldia or any other ports? And as you said, I'm assuming that it's not going to affect the volumes, but do you have any idea of any other capacity expansions happening?
At least not to my knowledge under construction, any. But yeah.
Sure. Thank you. That will be my questions.
Thank you. The next question is from the line of Saurabh Shroff from QRC Investment Advisors. Please go ahead.
Hi, good evening. Thank you for taking my question. First, just a clarification, the new Mumbai liquid storage terminal that we have just got approval for, this will be under Aegis because Mumbai is still part of its core and not under the JV. Is that the right way to think about this?
Yes.
This will remain with the listed co. Secondly, sir, just a request, given that we have sort of one subsidiary, which is the JV, and then a bunch of others which are part of the Mumbai business or step-down subsidiary, which is a holdco for the JV or some other asset. Perhaps you could just, in your presentation, just help us understand the breakup of the financials to the extent possible. Because this quarter, for example, if we see your standalone net profit is actually higher than your consolidated net profit. This sort of just leads to a lot of confusion as to how the assets are doing.
So while you may not, obviously, I appreciate for competitive reasons, want to disclose asset-level information, but at least if you could club it as JV assets versus, let's say, all the assets which are under Aegis, the listed company, I think it would go a long way for us to understand the business better and how things are progressing on the various segments.
Thank you. Thank you for raising this. Very, very good question. I request you to refer to our annual report for all the breakups that are there between the standalones, the subsidiaries, etc. But regarding the standalone Aegis profit being more than the consolidated profit, let me just highlight here one more event which happened in Q1 was that we realized INR 180 crore as envisaged in our JV by selling our compulsorily convertible preference shares in our subsidiary AVTL to Royal Vopak as it was envisaged in the JV.
Now, this INR 180 crore does not come into consolidated profits because of the Indian accounting standard. Therefore, it goes and directly sits into reserves, even though we have realized it in cash. I wish it would have been reflected in P&L to give the correct picture of what we have earned in the quarter. But that's how Indian accounting standards require you to do so. Therefore, you will see it reflected in the standalone, but not so in consolidated.
Okay. Got it. That's helpful. All right.
Thank you. The next question is from the line of Priyankar Biswas from BNP Paribas. Please go ahead.
Thanks for the opportunity again. Since Mangalore is the biggest asset that is currently on the pipeline today, so as I'm aware, there already exist two competitors in that port currently. What is our USP there that we should be able to probably do better than them and gain market share adequately enough to, let's say, quickly ramp up volumes?
Thank you. That's also a very good question. As you are aware, in Mangalore currently, it's the spheres, LPG spheres that are there, and HPCL has got their own terminal. But Indian Oil and BPCL are doing their business through the 8,000, I think around 8,000 metric tons of spheres, which even though the port allows VLGC to berth, they are not able to unload because of constraint of static capacity. And also, these spheres are not cryogenic. Therefore, the VLGC has to berth around five, six times in order to unload its entire cargo, leading to huge inefficiency and very high logistics cost for the National Oil Company.
What we bring on the table here is a cryogenic terminal of 82,000 metric tons, which can unload two VLGCs at a time. And the unloading rate is around 2,000 tons per hour. So we can get the VLGC out in a day or 1.5 days. Whereas, because these are spheres, they have very low unloading rate, even in addition to very low static capacity. Also, this cryogenic terminal will have rail evacuation, will have connections going forward by pipeline. It will be one of its kind. We are so excited and proud for this infrastructure facility, which will be one of its kind, probably in Asia. Yeah.
So if I understand correctly, so you will be able to evacuate a VLGC in, say, 24-36 hours. So how much time does it take today, let's say, the pressurized terminals that are there right now?
Yeah. The pressurized terminal would have a rate under 400 tons, probably if I am not wrong. And that means that you can then calculate.
Four, five days, you are saying?
Several days. It's a cost which would run into probably INR 100 crore on account of inefficiency at Mangalore port on NOC's account. If and when this cryogenic comes up, and hopefully there will be a shift, then it would lead to a lot of savings for our customers, that I can tell you for sure.
Just add some details. I think there is a Total terminal, and there is an HPCL terminal there. I think the Total terminal is 8,000 tons of spheres, and the HPCL is 16,000. So they are both, in today's context, subscale. And really, as compared to an 80,000 cryogenic terminal, we will be much, much more efficient and economical in terms of logistics costs.
Okay. So well understood. If there's also one more thing is we had witnessed a quarter-on-quarter dip in the LPG volumes in the logistics sector. I guess this would be seasonal, probably. So would it be fair to expect when we see any Q2 versus Q1 jump of around, usually that I have observed in your numbers, around 150-280 quarter-on-quarter? Should that be reasonable, let's say, based on the trends that you are already seeing in July?
Yes, possible. Possible, Priyankar.
Okay, sir. That's broadly from my side.
Thank you. In the interest of time, this was the last question of the day. I would now like to hand the conference over to Mr. Raj for closing comments.
Okay. Thanks very much. We appreciate the interesting and engaging questions, and I hope we've been able to answer all of them. I just want to summarize by saying that we are optimistic about the company's future and anticipate further gains in revenue and profitability through improved utilization of our assets and more favorable product mix as we go forward during this year. Thank you again for joining our call, and we will speak again in October. Thank you.
Thank you. Thank you.
Thank you. On behalf of Aegis Logistics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.