Ladies and gentlemen, good day and welcome to the Gail India Limited Q1 FY 'twenty two Earnings Conference Call hosted by Yes Securities. 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. Please note that this conference is being recorded. I now hand the conference over to Mr.
Nitin Tewari from Yesh Securities. Thank you and over to you as well.
Thank you, Karuna. Good evening, ladies and gentlemen. On behalf of YS Securities, I welcome everyone to Gear India Limited's Q1 FY 'twenty two earnings call. Today, we have the pleasure of having with us the senior management team from Gear India Limited led by Director of Finance,
Sri A. K. Tiwari.
I will now hand over the call to the management for their opening comments, which shall be followed by a question and answer session. Over to you, sir. So good afternoon, my dear friends from investors and analysts community connected through WebEx. A very good afternoon, and welcome to the Cale's earnings call Q1 FY 'twenty two. Thank you all for taking your precious time and showing keen interest in the results and performance outlook of CAEL.
We have declared the results of the Q1 and the year 2021, 2022 earlier today and I'm sure that we must have got the opportunity to go through it.
I
will give you a very brief insight of the company's performance for the quarter ending 30th June 2021. Due to localized restrictions and lockdowns imposed by the various state governments to cut the impact of second wave of COVID-nineteen, the demand in certain pockets were slightly impacted in the quarter as compared to the March quarter. However, the performance is much better as compared to Q1 of the last financial year when we witnessed a nationwide outcome. I will share about the physical performance for the quarter Q1 FY 2022 versus Q4 FY 2021. Gas marketing stood at 95.95 millimeters
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centimeters centimeters centimeters centimeters centimeters 53% in Q4 FY 2021. Polymer production stood at 133 TMT in Q1 FY 2022 as against 224 TMT in Q4 FY 2021, which is decline of 41%. The decline was mainly attributable to the maintenance activities during the quarter. The plant is now running at full capacity, and we are confident to achieve 100 percent production capacity on a full year basis. The polymer cell stood at 138 TMT in Q1 FY 2022.
Similarly, the LSP sales stood at 250 TMT in Q1 FY 2022 and LPG transmission stood at 1023 TMT in Q1 FY 2022. Now I would like to give the financial highlights. GAIL achieved gross turnover of INR 17,352 crores in the current quarter as against INR 15,472 crores in Q4 FY 2021, increase of 12% mainly due to increase in the natural gas marketing volume, higher natural gas prices, higher LHC prices, which is around 2,500 per metric tonne and higher petrochemical prices, which is around 4,500 per metric tonne. However, this was partly set off due to the lower sales quantity and polymer and marginal reduction in the natural gas transmission volume, which I have already explained. The profit reported stood at INR 2,064 crores in Q1 FY 2022 and as against INR 2,612 crores in Q4 FY 2021.
The Gas Marketing segment has shown a robust performance, which increased to 33%. Piviti was INR 1530 crores in Q1 FY 2022 as against INR 1906 crores in Q4 FY 2021. I will talk about the consolidated financial results, Q1 versus Q4 FY 2021. The turnover in Q1 FY 2022 is INR 17,551 crores as against INR 15,677 crores in Q4 FY 2022. The PBT was INR 2,540 crores as against INR 3,219 crores and the PAD INR 2,138 crores as against INR 2,407 7 crores.
During the quarter, Gail received 23 LNG cargo from U. S, 14 from 7 parts and 9 from GCC as per the cargo plant. The total 15 cargoes were sold in the overseas market and the remaining were brought to India either directly or through destination sales. On CGG front, Gate is supplying gas to all 6 CGVs with infrastructure of 80 CNG stations and more than 1,036,000 DPMG connections with a cumulative CapEx of INR 8.32 crores. Gaels gas, which is subsidiary of 100% subsidiary of Gaels, during Q1 FY 2022, the gross turnover stood at INR 12 crores.
If you talk about the CapEx plant, we have as I have already informed number of times that we have in the coming 4 to 5 years, we have around 3,000 kilometers of pipelines, which are there and around including the JVs and subsidiaries, which are associated with KAIM and around INR 40,000 crores of the CapEx, which are there. So these CapEx plans are being achieved mainly on the various pipeline projects. Sefrakulang Angul pipeline, 744 kilometers with an investment of INR 2,700 crores and the completion is July 22 Sahandra Aldia pipeline, 2 40 kilometers, investment of INR 1200 crores, completion is November 22. Mumbai Tasugoda pipeline, INR 1755 kilometers, investment INR 7,800 crores. Gas pipeline infrastructure in the Northeast states INR 1650 kilometers, investment INR 9,300 crores Bijapur Auraria, 174 Kilometres already commissioned And Dhamra Angul, Bokaro Angul, Durga Purhaldia, Baroni Guwahati, all these pipelines which are there are under active execution plan and we are doing.
So far as Pranamantri Urjakanda pipelines are concerned, our total commitment is INR 14,916 crores and our actual CapEx is around INR 11,600 crores. We have been receiving the capital grant from the government on regular basis and till that we have received the capital grant of INR 4,487 crores. As I have already told that Gail along with the JV is executing various pipeline projects of 8,000 kilometers, incurring around INR 38,000 INR 40,000 crores. So far as the CSR plants are concerned, various programs on health and sanitization, education, skill development, so we are doing more than 2% of our profit on the CSR projects. Our plants have run safe, and we have ensured that the safe operation is there.
We have 0 major reportable accidents during the last 4 years, and we are monitoring our HSE performance regularly and all our efforts are being taken. We are also taking various initiatives on the digitization, which has satisfaction to the employees as well as the vendors, customers, contactors, suppliers and all, including our retired employees. So we are having various initiatives for satisfaction or for taking care of the stakeholders through our various initiatives. And we have also taken various measures during this pandemic situation and taking various and various welfare measures to our employees as well as to our retired employees. So that way, 360 degree stakeholder management we are trying to have.
And this was a brief introduction on the financial results and major highlights of the company. I would be happy my team is here. I would be happy for your questions, and we'll be happy to reply for that. Over to you.
So we can take the Q and A now, the question and answer session.
Sure, sure. Yes.
Yes. Thank you. Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. The first question is from the line of Prabhol Sain from Centrum Broking.
Please go ahead.
Thank you very much, sir, for your time. Am I audible, sir? Yes, yes. Please go ahead. Yes.
Sir, on the
petchem, you
mentioned that despite the obviously, the decline that has happened in this quarter, you are confident of achieving full capacity utilization for the full year. Just wanted to understand, does that imply that for the full year, we should still assume overall volumes to touch close to 800,000 tonne despite the shortage in this quarter, sir? Yes, yes. See, every year, there is an annual maintenance plan, which we normally take after close of the account here, April, May or June. So in the month of April, we took the opportunity of this pandemic situation and we also closed our I mean, we had our maintenance also, regular maintenance also.
And that way, we completed our maintenance. That's why the production was less. But we are more than 100% means confident to achieve more than 100% of the plant production. Be assured. Got it, sir.
That's very useful. The second question was with respect to transmission volumes. Obviously, we have seen, as you mentioned in the first comment, that the lockdown did impact demand in certain pockets. And there was a small QoQ decline that we saw in volumes for this quarter. Earlier, if I remember, sir, you had given guidance of around, I think, 5, 6, 7 Mcfe improvement in overall numbers for FY 2022.
Do you think there is a need to revise that guidance, sir, as of now? No. Actually, what happened, our overall volume was up, but SIPAL volume, the volume which are being transported by other entities was there. So that was the reason of the volume. Otherwise, the performance that we the transmission segment was good.
So against 104 odd MMSE in these that we sir did in FY 2021, we still maintain our broad guidance of around 110, 111 average levels for 2020. It will be more than that because our loan volumes are getting increased with the upcoming not only in the transmission segment but also in the trading segment. So that's it. We are confident to achieve more than 100 megawatts. Great.
And sir, one last question, if I may. On the trading front, obviously, the numbers continue to do better given what we have seen of spot LNG prices versus U. S. Prices. So in this quarter, that is Q2, I'm saying, that trend has improved even more.
Is that a fair way to look that profitability should continue to expand even more from the current quarter level for the trading segment? It will be much better. Yes. Hello?
So the participant is current participant is moved out of the queue. We'll move to the
Sir, congratulations for such a strong performance despite a very tough operating environment. My question pertains to any update on the fertilizer plants if you have taken and what is the volume we will do in the Urzhyagangah project in this year and next year?
See, in the Urzhyagangah pipeline projects, our Sindri, Gorakhpur, these fertilizer plants which are coming up, the volume growth will be around 8 to 10
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millimeters millimeters HCM centimeters in a gradual manner.
Okay. And sir, when spot energy prices are touching $14 you think that it hurts our petchem profitability as well because we import lot of natural gas for as a feedstock for the petrochemical business? And do we get any benefit of higher petrochemical higher LNG prices in our trading business right now? Are we like booking more volumes for the next year? Or do we have any cargoes to be sold for this year?
Number one question is your petrochemical pricing are concerned. So we do not we are not dependent on the spot means cargoes or spot prices. We have portfolio mix portfolio and which are better for the petrochemical plants, we supply the rest of that portfolio only. So that way, we have as you know, we have U. S.
Volume, you have Gazprom, we have the spot also. We have so many sources. So that way, we optimize and we also have that portfolio being used for the petrochemical. So that I think with the current prices of petrochemical and with the market condition, we are going to have better realization in the petrochemical.
Okay. And sir, what about the impact of higher LNG prices on our trading portfolio? Do we get any substantial profitability in this year or next year because of higher GKM prices?
Sure, sure. Whatever the portfolio is there on the indexation differences as well as the prices which are there, the volume which are there, the strategy we have including our destination staff as well as anything, certainly it is going to increase.
Okay, sir. Thank you, sir, and wish you all the best, and I wish everyone stay safe. Thank you, sir.
Thank you very much.
Thank you. The next question is from the line of Sudhiratharkinde from ICICI Securities. Please go ahead.
Yes, thank you. Good afternoon to all. My first question is regarding the Q1 trading, gas trading. So just wanted to ask that in Q1, you had stated on your last earnings call that some volumes were tied up when oil prices were lower. So was a higher proportion of volume trading volume in Q1 tied up when oil prices were lower?
And will that proportion reduce as we go from Q2, Q3, Q4?
See, that way I can't answer your point because each cargo has its own strategy, which has which are tied up, which are being sold in the international markets or which are having destination swap as well as so many other things are there. So that way, I can't say
Sir, where I'm coming from is?
Let me finish.
Yes, yes, please.
See, I would like to just inform to the all investors, including you, that we'll be doing better as we have done prior to previous years also. We will be doing better in the gas marketing statement.
Previous years means, sir, when you are saying previous thing, you are better than your best year, which is FY 2019?
FY 20 20 20 20 20 20 20 20 20 20 20 20 20 20.
Yes. So you will
do better than that also, you are saying? Yes. Okay. So
the
What I was trying to understand is that as oil prices were moving up, you must have been more keen to first tie up volumes even when oil prices were somewhat lower for Q1. But you may not have been in so much hurry to tie up volumes for Q2, Q3, Q4 and that is where my question was that was larger proportion of was it tied up when oil prices were, let's say, 54, 55 or something the future? And are smaller proportion of volumes in Q2, Q3 tied up when oil prices were up? That was my question. But if you don't want to answer that, it's fine.
Sir, I am probably one of the most bullish guys for this year and next year,
if you see my reports.
So that is where I'm coming from that the Q1 performance was lower than my expectation. So which is where I was trying to understand.
No, what pandemic or other things might have impacted our strategy could have been hedging, could have been. So mix would have been. But this quarter, Q2 onwards will be better.
And so the spot energy spread for Q2, Q3, Q4 is much better and that's going to help you for sure. Will that be one of the key factors which will help you do much better in the going forward?
Yes.
Lastly, on so basically in your numbers, if you see, you have a gas marketing number 1 in standalone and 1 in console, which in the last two quarters, the console number is higher. So is that what you capture incrementally in console? Is it your Singapore or other entity, marketing entities outside India?
Yes, yes. That console in 2 stack up.
And that is the number one should look at.
Yes. Okay. Thank you.
Thank you. Thank you. The next question is from the line of Tanakian from JPMorgan. Please go ahead.
Yes. Thank you. My first question is, can you give us a sense of what was the blended gas cost in the petchem business and how it will trend over the next 2 to 3 quarters? Because we have a situation where spot LNG prices are surging and could even move higher and crude is also surging. So just to understand the petchem business profitability?
See, with the current prices and with the portfolio we have, we'll optimize the profitability of petchem.
So sir, the profitability of petchem should stay at these levels or come off because gas prices are increasing and headline tea prices are flat. So volumes will increase, but will the profitability per ton improve?
See, we have portfolio a mixed portfolio of different gases, different portfolio of sourcing also that will optimize the sourcing of gas for the petrochemical.
Understood. Profitability will be
at the last year level or more better than that.
Understood, sir.
So my second question And with the prices trend as we have seen this 95,000 also per metric ton, expected to go up.
Understood. So my second question is basically on gas demand in India. Now after
2 to
3 years, spot gas prices are surging and we are still not yet in the peak season of tightness. Food prices are high. Now a substantial part of India's gas demand is met by a spot LNG imports. In that context, should we see some kind of progress in India's overall gas demand? And related to that, sir, when you are talking about the fertilizer plants starting up, what is the gas source for the fertilizer plants?
Will they be buying spot LNG? Or have they already tied up for crude linked contracts?
See, so far as the deal is concerned, we have long term contracts. We will be giving the gases or the supplies to the fertilizer plants to our long term contracts, which is already there as per the agreement. And so far as the spot prices are concerned, the spot market are concerned, that we'll see wherever the optimization is there, wherever the requirement is there, we'll do. We have substantial volume, which has been tied up on the long term basis. So we are not dependent on the spot market.
But certainly, we take advantage of the spot prices, better spot prices for optimization of the profitability or selling in the international market or whatever the situation comes.
Understood. Sir, and overall, do you think that gas demand in India could be softer over the couple of quarters given where spot energy prices are?
Because these fertilizer plants are coming, CCDs are coming, naturally the demand is there. So demand for the gas sector is going to increase. That is obvious.
Understood. Thank you very much, sir.
Thank you.
Thank you. The next question is from the line of Sabri Hazrika from MK Global. Please go ahead.
Yes. Good afternoon, sir. So, sir, basically, what we understand is that your U. S. LNG is actually a part of your portfolio, which is blended in to various kinds of gas and it is sold in India based on certain formula, so under certain long term contracts.
And this formula is largely yielding. So in a way, the large portion of your marketing margin is dependent on the difference between oil linked LNG and Henry Hub linked LNG. Is that the right assessment?
No, not fully because then we have also the portfolio which has contracted volume with the consumers also. That's why it says also. It's not only the difference between the indexation difference between the Handy Hub and the Ventolin. There are other factors also.
Okay. But the formula you are saying will be like different for different customers. So it may not be like a vanilla indexation.
Yes, yes, yes, yes. And from the demand and but we are optimizing in all the wherever is there, we have margins and then we tie up with that.
Right. So considering that, can we have prices have gone up significantly in the last 3, 4 months? I think it is at 4.1, 4.2 now. So is it having any impact on your gas volumes in volume in gas margins in particular because of this increase? Or you are like still protected depending on what kind of context you have?
Indication difference is favorable to us.
So you consider the current increase in global gas prices not to have any adverse impact on your gas marketing socially?
No.
Okay, sir. And secondly, no, that's all. That's all from my side. Thank you. Thank
you. The next question is from the line of Vartarajan Sivasankaran from Antique Limited. Please go ahead.
Thank you for the opportunity. So one on Gale Gas, what you mentioned in terms of the number of CE stations, can you repeat it, sir? And what is the volumes we are doing currently? Gale gas, you are talking about the Gale gas or on phone CGP?
Gale gas as well as the CGP.
So what are the number of stations you have currently paid?
And what kind of volumes are you doing?
Gale gas, how many?
Yes, yes. So in the
Gale Gas, we have more than 6,75,000 GPMG connections and 253 CNG stations. And at present, we are having the total sales more than 5.5 millimeters millimeters millimeters millimeters millimeters millimeters
millimeters millimeters millimeters millimeters millimeters millimeters
millimeters millimeters millimeters millimeters millimeters millimeters HNG. But it is not only the CNG and PNG, there are other bulk customers also.
And year on CNG, you mentioned some numbers.
Yes, please.
You have mentioned something about your own CGDs.
Six CGDs, yes. Six CGDs, we have around 80 CNG stations, 1 lakh 36,000 PTNG connections. And we have invested around 832 crores. But since these are these some of the cities are to be connected through our grid, our GSVD cell grid, Once that is connected, more and more volume will increase. So it will take some time.
This A. G. Stations is what you
mentioned, sir? A. G. 0?
A. R. 0, CNG station.
Okay. Very nice. My second question is on your LNG,
tech contracts with various terminals. If you can show some details as to what is the existing contracts you have?
LNG contracts with the various suppliers you want to say?
With terminals like in India, RIGAS terminals, like in any optical arrangements you have?
RIGAS terminal to Aspen? The HES has got 4 point 5,000,000, Ouchi is 0.43,000,000 and we have one more agreement with Amra and we have Amra is 1,500,000 tonnes. And Dabol is going to be a 5,000,000 tonne terminal that is fully operated by us. Essentially, it is 2,000,000 tonnes. Thank you.
The next question is from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead.
Thank you for the call, sir. Just two questions from my end. One was in terms of your LPG volumes, they have recovered very well now. So is it fair to say that most of the gas supply issues of ONGC are largely behind us now?
Ladies and gentlemen, thank you for being on hold. We have the management reconnected. So over to you and we have Mayank Maheshwari in the question queue from Morgan Stanley.
So should I just repeat my question?
Yes, yes, please. Yes. So I was just checking
on the LPG volumes, they have recovered very well for you this quarter. So are we kind of thinking that most of the issues that we had from supply on from ONGC that's largely behind us now?
Yes, yes. There's no such means you are talking about the LPG or what is the growing ONG C2?
Yes. LPG liquid and hydrocarbon sales have kind of recovered very well
in the first half. Yes, yes, yes, that is sorted out. Okay.
That should now kind of come up at the current run rates now going forward, correct? No major?
Yes, yes, almost there, almost there, near to that.
Okay. And so the second question was more related to your cost on the petchem side because of the maintenance. And can you just kind of help us understand what will be the potential cost that you booked in for this quarter on petchem?
Potential costs related to maintenance?
Yes. Any cost that you have booked in this quarter, which is extraordinary?
No, no. That is routing type of maintenance is there. Annual maintenance, always planned maintenance are there, that is always there. Any major cost is not there. It is routing type of maintenance, oil and other things which are there and many equipments are to be repaired, something like that is there.
Okay. There
is no major one off.
Mr. Maheshwari, you're done with your question?
Yes, I am done.
Thank you. The next question is from the line of Puneet from HSBC. Please go ahead.
Yes. Thanks for the opportunity. So can you give some color on what is the status of the 4 fertilizer plants that are likely to be commissioned and to draw cash for me? So far as the 4 fertilizer plants are there, Yes, yes. So, about the Ramamundam fertilizer, which is already commissioned.
HURL Gorakhpur plant is ready and the volume is 1.87 millimeters
millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters
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millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters HURL Sindri, again, the plant is ready and they will take full by May 2022 and pre commissioning supply will commence in this month only. These are the status of these 4 fertilizer plants. So cumulatively, how much are we taking right now? And what will they take at peak? Total will be heat will be 12 10 to 12.00 millimeters CMD.
Gradually, it will increase. But by May 22, I think full volume will come. And currently, how much should we add up to all these folks? Currently around 2.5. Currently, taken together 2.5, around 2.5.
Okay. This is it. Yes, my second question is if you look at the total gas demand for the country, ex of these new fertilizer plants and the new CCDs, do you foresee a risk of demand going down? Or do you think the demand for gas retailers are decided to take additional gas even with higher prices? So demand will be up certainly 6% to 8% or 8% to 10% growth will be there, I expect, in the coming CGTs which are there in the coming fertilizer that I have already sold.
Yes, including these excluding the new sources of demand. What you are telling is that because LNG prices have gone after demand, could the demand still grow? Yes, yes. Are you seeing any discussion with your customers? Yes.
From the supply side, we've got different type of taxes and some of them are not LNG and they are still at reasonable prices and that is why Director of Finance is telling that the demand will still grow and 5% to 7% is our estimate, the national figure, the macro level figure that we are talking about. Understood. Okay. My last question is if
you can comment a bit on the
other income. The other income was slightly softer. What elements are missing this time? Interest income. Other income comprised merely of the In Q1?
From Q1. From Q1. Asha, sir, we have received the refund from our tax department on in Q4 on account of our interest and other things. We have settled the Bibaakti Bishwaj. So that's what in Q4.
That has come down. Yes, but even compared to Q1 FY 2021, it's
Yes, it was
INR 241 crore, now it's about INR197 crores. Again, it was INR 251, almost same INR212 crores versus INR 195 crores. Maybe INR 20 crores difference is there. It's not so that Q1 FY 2021 versus Q1 FY 2021, not much of the difference is there. Yes, but again, fees be down compared to Q2, Q3, Q4.
All three quarters were extremely good, some RMB 7.20 crores. Because we have received the dividend and other things also. Okay. So that didn't come through. Yes.
Dividend as well as the refund from the income tax department. If you like, I will share the details also. There is no problem. Understood. Thank you, Suraj.
All of it.
Thank you. The next question is from the line of Nasisa Gupta from Bank of America. Please go ahead.
Good afternoon. So my question is on the LPG segment. We see substantially higher revenues in EBITDA. Is that only a count of higher LPG prices in the quarter despite lower sales? Or is there anything else?
Prices are good. Hello?
Yes, sir.
Prices were better.
So that is the only reason?
Prices were there, some volume also.
And sir, the volumes are down here to
Price, only prices. See, for the LSC, for prices have gone around 51%, if you compare with the Q1 FY 2021, which was around INR 28,987,29,000. It has jumped to INR 43,000. That has impacted.
So, sir, if my understanding is correct, for the LPG crisis, we do maintain a lag of 1 month, right, to the international crisis?
Almost. Can you repeat? Almost?
So for the SDG prices, we
have to add up 1 month to the international trends. It's a lag by 1 month as compared to the international prices.
Got And sir, could you I mean, help us, is the current transmission volumes in the pipelines, what would be the current rate if we compare with the Q1 level?
110 The same gas transportation volume is about 115,000,000 per day. It is around 115,000,000, yes, 115,000,000.
Got it, sir. Thank you.
Thank you.
Thank you. The next question is from the line of Mohit Patel from Equis Securities. Please go ahead.
Thanks for the opportunity, sir. So just one question, when is Dabol is getting completed for 5,000,000 tonne? What is the time line there, sir?
December
22, next year we are planning, but I think December 22, mechanically it will be completed and we are expecting that March 23 full operation will be there.
Okay. And sir, in Damra, you mentioned that you have booked about 1,500,000 tonnes, right? Yes. Okay. So when is that is likely to be commissioned?
Next year Q3.
So that will be in by September, December of 2022, right?
Yes. Thank you, sir. Thank you very much.
Thank you. The next question is from the line of Yogesh Patel from Braland Securities. Please go ahead.
Thanks for an opportunity, sir. Sir, I have a couple of questions. As we know the Kochi Mangalore pipeline is commissioned and stabilized. How much volume we transmitted through this pipeline in this quarter and how much ramp up do you expect in next 1 to 2 quarters?
For Kochi Mangalore, I think around So we expect to maintain this or grow by about €500,000 to €1,000,000 in next 2, 3 quarters. The other section, the section connecting Kerala to Bangalore to Tamil Nadu, that is under construction. That is the reason for this.
Okay. Thanks. So second question is related to unified gas pipeline tariffs. Is there any development from the side of PNGRB? And have you heard anything any updates from your side?
No. What was done, it is still with the PNGRB and there is no movement further.
Okay. And the last question from my side, sir, Reliance is now producing switch from the costly LNG to a domestic growing cheap gas, then will you be able to maintain the same kind of a gas transmission volume or that share can be given to someone else like that? So just wanted to figure out how that 18 millimeters SDMD and how much share is flowing through your gas pipelines?
Thank you. Presently, 4,500,000 is flowing through our pipeline, of which about more than 1.25 is our volume, remaining is shipwreck volume.
Okay. Thanks. Thanks a lot, sir.
Thank you. The next question is from the line of Vijay Dhanav Gandhi from ICICI Securities. Please go ahead.
Yes. Thank you.
In the last earnings call, you had mentioned that for FY 'twenty three, 50% of your volumes or this trading volumes here tied up, 30% was tied up, but the positions had been kept open and 20% was not tied up. So is the situation still the same or it has changed?
For this financial year, we are fully tied up now.
Yes, in 2023 that is why I'm asking. Yes.
For FY23 or Rafi?
Yes, yes. You had last call said 50% tied up, 30% tied up, but not So, 21%
for 20 3% we have tied up all cargo. I mean, they are allocated, which means we know that the cargo will go, Which was
not the case last quarter when we did the last call. Is that correct?
You yourself have told the market is looking up, so things have changed.
So you have between the last call and this call tied up the balance also?
Yes. Okay. Thank you.
Thank you. We have the next question from the line of Samesh from Nirbal Bang. Please go ahead.
Good evening and thank you very much. So we would like to get some update on the recovery LNG in terms of any further investments required and what are the kind of expectation on the revenue and profit after tax for this year on the current volumes? And what is the kind of growth you can expect in that business once it is fully operational, say, over the next 2
weeks. Can you repeat what we could not get your question?
Yes. So basically, I'm asking about the residential LNG investment you have. It's pretty much a subsidiary now for the double LNG terminal. So last year, you have turned upon a fair modest profit. So what is the kind of outlook for the revenue and profit this year given the kind of pricing you enjoy in LNG?
And secondly, once the breakwaters commission and you are able to
do the full volume, what
is the kind of growth you can expect in the machinery LNG business?
Yes. So for 5 millimeters to PA, this double terminal is there, so 25% to 30% is being utilized. Last year, we had done around 30 cargoes 32 cargoes. So when the breakwater will be operational as I think we are expecting December 2022 or maybe March 23 or so, so total ATIC cargoes can come up. So on an average, I can say around INR 2,400 crores of the this revenue will be there.
And no further investment required for funding the CapEx?
No, no. Whatever is committed that is there, INR INR 700 crores to INR 800 crores. That was break quarter only.
Okay. And secondly, what is the update on your propane dehydrogen target for polypropylene? Where are you and what is the kind of timeline you're looking at right now in the investment?
This Usha plant, PDP, PDP plant, yes. So that around INR 10,000 INR 9,000 INR 800 or maybe INR 10,000 crores of the investment is there. And then we are expecting it will take 36 months, maybe 3 years from now, you can say.
So in terms of the project timeline, where are you? Have you done the feasibility study? Are you going to appoint exactly?
That is done. Licensure, we have done. We are in the process of awarding major equipment suppliers and everything, even the propane sourcing, everything is under process. So So if I
may ask a couple of questions here. One thing is on propane sourcing, what are the kind of contracts you have in terms of volumes and pricing? And secondly, is the licensing for that process?
I think we will give updates when it is concluded.
Okay. Thank you.
Thank you. The next question is from the line of Manipal Tagouri from Adnan Capital. Please go ahead.
Hi, Tanipal. Just a couple of questions from my side. The first one is you said the Sutlegger plants are currently taking 2.7 MSMB. When did this start, sir? Is it from the Q1 or in Q2?
This
2.5 2.2 to 2.5 is the consumption of Kramagundam plant, which is online and 0.1 is the consumption of Gorakhpur. What Director of Finance had informed is that the Gorakhpur will go to full load, which is about 2,100,000 to 2,200,000 cubic meters per day by December. And Sindri will go to Sindri and Baroni will go to full load by mid of next year, though their commissioning will start this month. That is what Director of Finance has told. And Metix is likely to start off take by next month.
They will start actually this month, but that will be commissioning period since it is already a plan which had run-in the past. So that is how we are expecting the full buildup of fertilizer volumes in coming months.
Understood. So what I'm asking is this when is the first set of volumes started being taken by the Ramakundan plant actually in Q2?
Ramakundan plant started consumption in July 2020, but that is the commissioning phase. And because of COVID, they had some labor problem and all that. Now they have come to full load. This is what I want to inform you. And it's not clear that they have taken Now it is full load.
Now it is
full load. Now it
is full load. Now they have commissioned, they have declared commercial operation in March, 23rd March in fact. So after that, they are now consuming more than 2,000,000 cubic meters per day.
Right, sir. And my last question is when do we expect the next set of pipeline tariff positions? I'm asking in the context of new public consultation documents being hosted at EMDRB. I understand that the quorum is not there. So if you can provide some guidance there?
Which pipeline you're talking about?
I think Dabul Bangalore and Dabol
Bangalore KK NPL tariffs were revised sometime in 'nineteen 'eighteen, 'nineteen. And in terms of tariff order, the tariff will again be revised in 2022 or
2023.
Okay. So there is public consultation documents which are being web hosted now. We are expecting that to come up only in 2023. No.
It's public consultation document as you know. I don't think any public consultation document has been posted. We are not for GAIL tariff, GAIL pipeline tariff. No pipeline tariff. There is no public consultation at present for any of the pipeline tariff.
No, you may be
referring to
the pipeline EUI that we have listing for Swan LNG connectivity to Sahesh. That is one proposal being considered as of now.
Sure, guys. You can come back. Thank you.
Thank you. The next question is from the line of SRMISH from Nirmalbank. Please go ahead.
Thank you very much. So given the gas business, you reported a volume of 5.5 on SMB. So when do you think these volumes will reflect in the margins and profit we see in other severe companies like say, Manavas GAP, Winva Pestagas for the time line and what are the kind of growth you expect in these volumes over the next 2, 3 years?
For GeL Gas you are talking?
Yes.
So as number of PNGs, PNG connections are there, number of GAs they have. We expect that around 10% growth will be there.
So but it's not reflecting in your profit number. So the question I'm asking is, if you compare with other CGT companies, when do you think we'll be able to increase the margins and return? And given the kind of scale you've already been at 5 months KMB, give us a sense in terms of the profitability of the business over scaling?
There are 2 types of sales they are doing. 1 is a bulk sale also that is not for the CNG and PNG connections. So total volume of 5.5 SMT is there. But so far as the ENG and CNG connections are there, that is in the growing stage. And we expect that it will grow in the coming years.
Okay. Thank you,
Vinit. Thank you. Ladies and gentlemen, due to poor security of time, that was the last question. I now hand the conference over to the management for their closing comments. Over to you, sir.
Hello?
Yes, over to you for closing comments, sir.
Yes, thank you very much. Thank you and thank you Nitin and team. I think we have tried to give all the answers, which was in ask, which has been asked. Now I request if some of the questions might not have been answered as well as some of the investors want more detailed answer of any of the queries which they have, they can contact me as well as my team, and we'll be happy to provide the answer to any of the queries which are there. So thank you once again.
Thank you very much to the entire team. Thank you.
Thank you. Thank you, members of the management. Ladies and gentlemen, on behalf of IR Securities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.