Aegis Logistics Limited — Q3 FY26

Aegis Logistics Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=at70Mqdso3c Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the earnings call of AG's Logistics Limited Q3 and 9 months FI26 0:09 9 seconds earnings conference call. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your touchtone phone. Please note that this conference is being recorded. 0:32 32 seconds Before we begin the call, I would like to give a short disclaimer. This call may contain some forward-looking statements which are completely based 0:40 40 seconds upon our beliefs and expectations as of today. The statements are not to guarantee a future performance and 0:47 47 seconds involve unforeseen risks and uncertainties. 0:50 50 seconds With this, I would now like to hand the conference over to Mr. Raj Chandara for his opening remarks. Thank you and over to you sir. 1:00 1 minute Thank you very much uh and welcome to our uh Q3 uh FY26 conference call this 1:08 1 minute, 8 seconds evening. I'm joined by our CFO Mr. Murad Maladina and Miss P from our investor relations team 1:15 1 minute, 15 seconds and uh we appreciate you taking the time to join us today to review the company's performance and discuss the our ongoing strategic uh developments. 1:23 1 minute, 23 seconds [clears throat] 1:25 1 minute, 25 seconds We're pleased to share that the company continues to maintain its strong growth uh trajectory uh which is underpinned by 1:33 1 minute, 33 seconds expanding volumes and enhanced operating performance 1:39 1 minute, 39 seconds uh for the 9 months uh uh FY26 we have once again delivered a record performance uh achieving all-time 1:48 1 minute, 48 seconds revenue and high revenue and IBIDA in the liquids division along with record in the gas division which was uh driven 1:58 1 minute, 58 seconds by the highest ever volumes in the log logistics and distribution business. 2:03 2 minutes, 3 seconds In the 9 months ended 31st December 2025, revenue from operations reached 5,739 2:11 2 minutes, 11 seconds crores reflecting a 13% year-on-year growth. Normalized Ebida for the period 2:17 2 minutes, 17 seconds stood at 929 crores making a robust 26% increase over the previous year. Profit 2:26 2 minutes, 26 seconds after tax rose 39% to 652 crores compared to 470 crores in the 9 months uh uh ended FY25. 2:40 2 minutes, 40 seconds In the third quarter of FY26, our consolidated revenues stood at 1,725 2:47 2 minutes, 47 seconds crores with a normalized EBITDA showing a robust 29% increase rising from 252 2:54 2 minutes, 54 seconds crores to 326 crores and profit after tax also grew uh sharply by 25% moving from 160 crores to 233 crores. 3:07 3 minutes, 7 seconds This performance uh highlights the benefits of uh operating leverage and a strong product mix across our terminals 3:16 3 minutes, 16 seconds and at the same time the company remains firmly fixed on optimizing costs and enhancing throughput through our ports 3:24 3 minutes, 24 seconds uh ensuring that our growth momentum continues. 3:29 3 minutes, 29 seconds We've also effectively utilized the IPO proceeds and paid down uh uh outstanding debt during the financial year. 3:39 3 minutes, 39 seconds So I'll now take you through the key operational and project updates port by port to give you a comprehensive overview of the ongoing infrastructure developments at AIS Logistics Limited. 3:50 3 minutes, 50 seconds At Mumbai Fort, we continue to operate at higher utilization levels and leverage our infrastructure and operational capacity. Our liquid storage 3:59 3 minutes, 59 seconds capacity stands at 334,000 kil supported by a static LPG capacity of 21,000 4:07 4 minutes, 7 seconds metric tons. In line with our growth plans, an additional 64,000 kilo of liquids are under liquid capacity is 4:16 4 minutes, 16 seconds under development at a project cost of 125 crores as previously discussed. And I'm pleased to report that work on this 4:23 4 minutes, 23 seconds new capacity is progressing steadily and remains on track with commissioning targeted for first quarter FY27. 4:34 4 minutes, 34 seconds at the JNPT port. Um, our uh operational liquid capacity stands at 101,900 4:42 4 minutes, 42 seconds cubic meters with an average realization improving due to a better product mix. 4:48 4 minutes, 48 seconds Uh, in addition to this, we are developing a 318,100 cubic meter capacity of new liquid 4:56 4 minutes, 56 seconds capacity with 77,286,000 metric tons of LPG capacity. further expanding our footprint. 5:06 5 minutes, 6 seconds An LPG bottling plant with a capacity of 35,000 metric tons is also under construction and this the overall 5:14 5 minutes, 14 seconds project with a CL planned capex of 1,675 crores is progressing well and the first 5:20 5 minutes, 20 seconds phase of the new liquids capacity at TNA is expected to be uh commissioned in the 5:27 5 minutes, 27 seconds first quarter of FY27 and to further strengthen our presence in the on the west coast we're 5:34 5 minutes, 34 seconds evaluating the addition of an additional 36,000 metric ton cryogenic gas tank 5:42 5 minutes, 42 seconds at our Kandla port. At at the Kla port, our liquid capacity stands at 952,276 5:49 5 minutes, 49 seconds cubic meters while gas capacity uh is at 48,000 metric tons. The port is 5:56 5 minutes, 56 seconds operating at uh improved utilization levels reflecting a stronger demand and efficiency. 6:04 6 minutes, 4 seconds Work on the jam leagger lonely pipeline is in full swing and uh LPG pipeline is in full swing and just a month away from 6:12 6 minutes, 12 seconds oper operationalization with the Kandla Gorakur LPG pipeline connection expected uh to be completed 6:20 6 minutes, 20 seconds by uh June now of 2026. This is our latest update. Both of which will drive significant volume. 6:29 6 minutes, 29 seconds The VLGC birth at Kandla became operational in the third quarter and on the final day of uh 2025 the port 6:37 6 minutes, 37 seconds received its first ever VGC vessel uh officially establishing Kandla as a VLGC 6:43 6 minutes, 43 seconds compliant facility. Now this development along with the commissioning of the two pipelines is expected to significantly enhance volumes uh at this port. 6:56 6 minutes, 56 seconds Uh in addition uh an a 94,148 cubic meter liquid terminal is planned 7:03 7 minutes, 3 seconds at the CRL4 plot and is expected to be operational next year. Uh as you're all 7:10 7 minutes, 10 seconds already aware, we had also signed a non-binding memorandum of understanding with Larsson and Tubro to develop an 7:18 7 minutes, 18 seconds ammonia terminal for their upcoming green ammonia project at Kandla further further strengthening our growth pipeline and strategic partnership. 7:29 7 minutes, 29 seconds Uh at Kochi port uh our liquid capacity stands at 82,000 cubic meters operating at high utilization levels as well. And 7:36 7 minutes, 36 seconds in our previous course, we had shared plans for developing an additional 60,000 cubic meters of liquid capacity 7:43 7 minutes, 43 seconds on nuclear lot land. And I'm pleased to announce that this development is now underway. And of course, it will uh 7:51 7 minutes, 51 seconds increase the capacity to meet the future demand that we expect. 7:55 7 minutes, 55 seconds At PayPal, our liquid capacity stands at 116,620 cubic meters, complemented by an LPG 8:03 8 minutes, 3 seconds capacity of 70,800 metric tons and an ammonia capacity of 36,202 8:10 8 minutes, 10 seconds metric tons. The liquid terminal at Pau continues to operate at very high utilization levels catering to demand across western India. 8:20 8 minutes, 20 seconds Uh this port has a very strategic importance in its uh portfolio in the portfolio for us. It has world-class infrastructure to handle LPG via the uh 8:29 8 minutes, 29 seconds VLGC jetty. We have cryogenic tanks. We have a bottling plant. We have an LPG rail gantry and 16 loading base for 8:37 8 minutes, 37 seconds efficient uh road evacuation and central India pipeline connection. The the port 8:44 8 minutes, 44 seconds is also working on establishing a new uh VGC compliant jetty uh which is under construction is underway and is expected to be completed in this calendar year. 8:56 8 minutes, 56 seconds Uh and uh you know we are now in the uh process of developing world-class 9:03 9 minutes, 3 seconds infrastructure in the liquid business as well to uh enter uh to cater to a large Indian and global conglomerates. In that 9:11 9 minutes, 11 seconds context, we have entered into a 15-year long-term take-pay contract with a large conglomerate for handling their 9:20 9 minutes, 20 seconds petroleum products at PEP power. And under this arrangement, uh the uh Aegis BAC terminals, our subsidiary, will 9:29 9 minutes, 29 seconds manage over half a million metric tons annually at the end of this calendar year. uh 9:37 9 minutes, 37 seconds providing strong volume visibility and reinforcing our position as a reliable logistics partner for one of India's largest energy uh conglomerates. 9:49 9 minutes, 49 seconds Uh construction of uh India's first uh independent ammonia terminal with a static capacity of 36,000 metric tons is 9:56 9 minutes, 56 seconds progressing well and is expected to be completed before the first quarter of the next fiscal year. 10:04 10 minutes, 4 seconds At Mangalore Port, the LPG terminal with 82,000 metric tons of static capacity was successfully commissioned in June of 10:11 10 minutes, 11 seconds 25. And the port currently has a liquid capacity of 194,380 10:18 10 minutes, 18 seconds m. And looking looking ahead, plans are on the way to add a further 60,000 cubic 10:25 10 minutes, 25 seconds meters of liquids on on the some newly a lot of land as part of the next phase of development 10:33 10 minutes, 33 seconds uh in HIV. Uh one of the key strategic developments uh in this fiscal year has been the completion of ADTL's 10:39 10 minutes, 39 seconds acquisition of uh 75% stake in Hindustan Ages LPG Limited from 10:46 10 minutes, 46 seconds Ages Gas uh private LPG private limited uh and uh and from Bopac India uh 10:55 10 minutes, 55 seconds resulting in Hindustan Ages LPG Limited becoming a subsidiary of ABTL. 11:01 11 minutes, 1 second this uh this uh acquisition uh sort of transfers uh 25,000 metric tons of LPG 11:09 11 minutes, 9 seconds storage capacity at Helvia to ABTL uh sort of cementing ABTL's uh position in the uh East Coast market. 11:20 11 minutes, 20 seconds Uh our liquid capacity uh uh at this port stands at 226,890 11:28 11 minutes, 28 seconds cubic meters alongside a gas capacity of 35,000 and operations continue at a high utilization level reflecting consistent 11:37 11 minutes, 37 seconds demand and uh we have acquired recently acquired an additional 3 acres of land in Alia to support the expansion of 11:44 11 minutes, 44 seconds liquids at at this port. The LPG terminal is performing well and um uh the utilization continuing to increase 11:53 11 minutes, 53 seconds steadily. In the month of December, we achieved the highest throughput ever at this port. 11:59 11 minutes, 59 seconds Uh as far as new ports uh are concerned, we are actively pursuing expansion uh at two new locations. Um we have entered 12:08 12 minutes, 8 seconds into a non-binding uh memor memorandum of understanding for potential investment of around 20,000 crores in 12:15 12 minutes, 15 seconds the proposed Badawan port. We await land aotment and uh formal approvals. Once 12:22 12 minutes, 22 seconds these are in place, we plan to initiate the development of a new gas and liquid complex at these sites. 12:30 12 minutes, 30 seconds Now um with that uh overall uh uh perspective we will I will now hand over 12:37 12 minutes, 37 seconds to our CFO Mr. Murad Madina to present the detailed financial highlights. Right. Thank you. Thank you Mr. 12:45 12 minutes, 45 seconds So Aegis Logistics Limited together with AIS WPAC terminals is expected to reach an aggregate capital expenditure outlay 12:52 12 minutes, 52 seconds of USD 1.2 billion by next year. Looking further ahead, we have laid out a long-term capex road map of USD 5 12:59 12 minutes, 59 seconds billion by 2030. All investments will continue to be funded through a balanced mix of internal approvals, 13:08 13 minutes, 8 seconds prudent debt, ensuring financial discipline. We remain committed to maintaining a conservative debt carrying 13:14 13 minutes, 14 seconds ratio of 0.6x with an overall re uh leverage capped at 3.5x. 13:22 13 minutes, 22 seconds Coming to the operational dynamics of the business, profitability of both the segments LPG and liquid performed uh 13:30 13 minutes, 30 seconds demonstrated uh strong growth in 9 month FY26. 13:34 13 minutes, 34 seconds For the 9 months ended 31st December 2025, revenue from operations reached 5,739 13:41 13 minutes, 41 seconds crores reflecting a 30% year-on-year growth. Normalized the beta for 9 months 13:47 13 minutes, 47 seconds stood at 929 cr registering a strong 26% increase compared to the pri previous 13:55 13 minutes, 55 seconds year. Profit after tax rose handsomely by 39% to 652 crores up from 470 crores 14:05 14 minutes, 5 seconds in 9 months of the previous year. For the quarter revenue from operations is 1,725 14:12 14 minutes, 12 seconds crores. Normalized debita for Q3 FI26 stood at 326 crores making a strong 29% growth 14:21 14 minutes, 21 seconds compared to the last year. Profit after tax for the third quarter stood at 233 crores reflecting a 45% year-on-year 14:30 14 minutes, 30 seconds increase. Now coming on to the individual segments for the 9 months ended 31st December 2025 liquid revenue 14:39 14 minutes, 39 seconds reached 460 crores uh 13% increase from 408 crores in 9 months of last year. 14:46 14 minutes, 46 seconds Liquida stood at 346 cringing a 17% year-on-year growth. LPG business 14:53 14 minutes, 53 seconds revenue rose 15% to 500 5,279 crores and gas impeta grew by 31% to 582 15:02 15 minutes, 2 seconds crores once again propelled by record logistics and distribution volumes looking at the 9 months performance LPG 15:09 15 minutes, 9 seconds volumes handled across terminals uh total 3.93 million tons up 19% from 3.3 million 15:19 15 minutes, 19 seconds tons in the 9 months period of the previous year distribution volumes expanded by 35% reaching 5.2 lakh metric 15:27 15 minutes, 27 seconds tons compared to 3.85 85 lakh metric tons last year. Sourcing sales volume stood at 4.78 lakh metric ton reflecting 15:36 15 minutes, 36 seconds a 4% increase over the previous 9 months period. In Q3 FY26, liquid revenue stood 15:43 15 minutes, 43 seconds at 161 cr up 19% from 135 cr in Q3 FY25. 15:50 15 minutes, 50 seconds Liquid Zipa came in at 124 crores reflecting a 31% year-on-year growth. 15:57 15 minutes, 57 seconds Segmented bita margin expanded by 674 bits to 77%. 16:03 16 minutes, 3 seconds Supported by favor favorable mix towards higher realization products. LPG business reported a revenue of 1564 cr 16:13 16 minutes, 13 seconds while gaseta surged 30% to 202 crores the highest ever for the third quarter driven by record volumes in logistics 16:21 16 minutes, 21 seconds and distribution. In the third quarter of FI26, we have delivered an all-time Q3 through portut volumes, marking the second highest in our operating history. 16:30 16 minutes, 30 seconds LPG volumes handled across terminal stood at 1.36 million tons compared to 1.22 million tons in Q3 FI25, 16:38 16 minutes, 38 seconds an increase of 11%. Our distribution volumes in auto, commercial, and industrial bulk grew sharply by 44% 16:46 16 minutes, 46 seconds reaching record Q3 levels of 1.83 83 lakh metric tons versus 1.27 lakh metric 16:53 16 minutes, 53 seconds tons last year. Sourcing sales also sourcing sales volume also registered 16:59 16 minutes, 59 seconds growth rising 7% to 1.51 lakh 51 lakh metric t compared to 1.4 lakh metric ts in the same quarter of FI25. 17:10 17 minutes, 10 seconds Overall the company's financial position remains robust supported by low debt, strong cash flow and a solid balance 17:17 17 minutes, 17 seconds sheet. With this, I hand over this line to the moderator to start the question and answer session. Thank you so much. 17:27 17 minutes, 27 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 17:34 17 minutes, 34 seconds star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 17:44 17 minutes, 44 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 18:00 18 minutes The first question comes from the line of Vibha Zachi from JP Morgan. Please go ahead. 18:08 18 minutes, 8 seconds Yes. Hi, thanks for the opportunity and congratulations on the strong quarter. 18:13 18 minutes, 13 seconds Uh first question is on the KGPA pipeline timeline. Uh sir, what is the confident that you know this will get 18:21 18 minutes, 21 seconds commissioned by June because you know there have been some news flow about some challenges with respect to land compensation. 18:29 18 minutes, 29 seconds So yeah I mean we were expecting uh it to get commissioned by March and now the timeline is June. So just some thoughts on on your confidence level. Thank you. 18:40 18 minutes, 40 seconds Uh so we have been given to understand that most of the 3,900 km pipeline is done except for the last 8 to 12 18:49 18 minutes, 49 seconds kilometers which is underway. Work is currently on. So we expect and uh there's reasonable confidence that by June uh it should get operationalized. 18:59 18 minutes, 59 seconds Uh we believe in some uh stages uh even gas uh fill has happened. uh namely I 19:09 19 minutes, 9 seconds think Kanda Ahmedabad uh so to say so uh it's it's it's there uh almost the last 19:16 19 minutes, 16 seconds bit is left which is why we said June and not April or March because uh just 19:23 19 minutes, 23 seconds keeping in mind some contingency uh June appears to be fairly realistic as of now. 19:32 19 minutes, 32 seconds Okay, got it. Uh and just a followup question on the LPG import. So if I look at the ministry data now uh it looks 19:40 19 minutes, 40 seconds like October to December was down. Uh this could be largely led by days of 19:47 19 minutes, 47 seconds last year. Uh because December is now seeing again a pick up. But but in general if I look at the YT number it looks like NPG imports have slowed a 19:56 19 minutes, 56 seconds little bit to just around 8%. So any thoughts on why you know this November data was a bit slow and how you were you 20:04 20 minutes, 4 seconds know generally expecting the next few months uh going forward. 20:09 20 minutes, 9 seconds No I think it's it's quite uh robust and uh 8 8% is what you are saying is a growth right year to date. 20:18 20 minutes, 18 seconds Yeah. So that's that's pretty decent. uh we expect around 8 to 10% import growth and if you look at H1 it's already uh up 20:27 20 minutes, 27 seconds than last year's H1 and uh yeah uh of course month on month it's it's it's not spread evenly so there's inventory 20:36 20 minutes, 36 seconds management and it all depends on uh uh stock management etc by the uh oil companies but if you look at 20:44 20 minutes, 44 seconds year-to-year data uh yeah it's quite good we don't see any downside uh as far as impossible is concerned even for the current year. 20:53 20 minutes, 53 seconds Okay, we that's on top of that or sorry on top of that uh it all it all then boils down to what 21:00 21 minutes about our terminals. So like you can see uh we are we are we are growing uh our 21:07 21 minutes, 7 seconds logistics uh volume quarter on quarter if you compare year on year. So we we are we are fairly good in a in a good space. 21:16 21 minutes, 16 seconds Sure. Sure. That's very comforting. And just uh second question if you can just highlight you know broadly guide to 21:22 21 minutes, 22 seconds capex for you know FI26 and FI27 maybe just out of ballpark. 21:28 21 minutes, 28 seconds Uh we have said on record that by FI27 we should reach 10,000 cr uh gross capex 21:35 21 minutes, 35 seconds uh we are already at 5,000 currently around 3,500 cr sort of projects are underway. Uh so we should we should 21:44 21 minutes, 44 seconds reach by FI27 uh somewhere close to 10,000 cr which is what we have been saying $1.2 billion. 21:53 21 minutes, 53 seconds Okay. Sure. Thank you so much. I'll come back in the queue. Thank you. 22:02 22 minutes, 2 seconds Our next question comes from the line of Nilotpal Sahu from JM Financial. Please go ahead. 22:10 22 minutes, 10 seconds Uh hi sir. Good evening. Thank you for the opportunity. uh I wanted to understand uh can you give us some color 22:16 22 minutes, 16 seconds on how is the LPG versus uh PNG price differential going on currently and what's the near what does the near-term 22:25 22 minutes, 25 seconds outlook look like in terms of uh distribution margins so nodpar we remain we remain uh uh with 22:33 22 minutes, 33 seconds the cost advantage versus NG and I can tell you uh January volumes were also 22:40 22 minutes, 40 seconds very healthy and we don't expect any any uh difference than what uh we have been doing uh in previous quarters. The 22:48 22 minutes, 48 seconds advantage remains uh you see uh month-on-month pricing is not so important uh because it all depends on 22:56 22 minutes, 56 seconds when the cargo has been brought in. Uh it is assumed that all cargo will be from Middle East. It is assumed that all 23:04 23 minutes, 4 seconds the cargo would be of priced at M minus one. However, because we are vertically integrated, we have got lot of 23:11 23 minutes, 11 seconds flexibility about when to import, when to where from to import. We have already 23:18 23 minutes, 18 seconds started importing from USA. Lots of ships have already come. So, it's it's becoming a uh now uh a balance uh 23:27 23 minutes, 27 seconds between uh LPG coming from America and LPG coming from Middle East. whether we want to import hold sell next month or 23:37 23 minutes, 37 seconds we import and sell in the same month. So there are there is a huge amount of flexibility uh that we have versus uh 23:46 23 minutes, 46 seconds else you know uh so we we are we remain confident on the volumes uh growing uh 23:54 23 minutes, 54 seconds quarter every quarter as well as on our margins there is nothing uh as on date uh different. 24:06 24 minutes, 6 seconds Got it. So how much is now US contributing to say our uh volume share and uh like what is the price discount 24:14 24 minutes, 14 seconds that we get if we import like from the US? 24:17 24 minutes, 17 seconds It's not the question of discount it's question of pricing. So the pricing of American LTG cargo is different. It doesn't follow Saudi CB. So we get some discount uh probably than the Saudi CB. 24:29 24 minutes, 29 seconds It's 10 $15 or more cheaper at the end if you look at the net price. 24:40 24 minutes, 40 seconds Oh, got it. Thank you. 24:47 24 minutes, 47 seconds Thank you. Our next question comes from the line of Tunidi Jooshi, NM Capital Advisor. 24:58 24 minutes, 58 seconds Before we move ahead with the question, a reminder for all the participants, please press star and one for more questions. 25:06 25 minutes, 6 seconds Please go ahead. Sunniti. Hello. Am I audible? Yep. 25:11 25 minutes, 11 seconds Uh so AGIS WAC terminals and AGis log logistics together will achieve a capital expenditure outlay of $1.2 25:20 25 minutes, 20 seconds billion with a long-term plan to reach reach around $5 billion by 2030. Uh so can you share the path to 1.2 two 25:28 25 minutes, 28 seconds billion first and where do incremental capeex potential in existing uh and new ports products etc. 25:38 25 minutes, 38 seconds So if you look at my uh asset the gross asset stands at around 6,000 cr. I've already we have already uh uh doing 25:46 25 minutes, 46 seconds executing projects uh of 1,675 cr at jmpa and we are doing another 200 25:53 25 minutes, 53 seconds cr odd at kandla. We have just announced uh uh additional liquid capacity at 26:00 26 minutes Mangalore Pipawa Kochi. We are also doing a 525 cr project at ammonia uh of ammonia at p powera. So all of this uh 26:09 26 minutes, 9 seconds gives a signal that we are on course to reach 10,000 cr capex by 27 uh which is $1.2 billion. 26:20 26 minutes, 20 seconds Okay, understood. And at that scale just wanted to understand how will our revenue and eida look like? So it 26:27 26 minutes, 27 seconds depends on how how soon uh the assets mature uh uh uh in terms of utilization 26:34 26 minutes, 34 seconds that is gas liquids are of course from day one uh 100%. So depending on how 26:41 26 minutes, 41 seconds quickly the assets mature uh let's say uh uh let's say after 6 months or so we 26:48 26 minutes, 48 seconds expect to earn 25% kind of an IITA uh out of the uh uh assets that we put up. 26:55 26 minutes, 55 seconds That's the general thumb rule that we expect. 27:00 27 minutes Okay. And also if you can provide some color on the India's deal with US for LPG import. How do you see the benefits 27:07 27 minutes, 7 seconds to ages? What are the costing variance and uh where uh shipping from Middle East which is our main market versus say 27:15 27 minutes, 15 seconds US or Canada because that they would require VGC I assume. 27:20 27 minutes, 20 seconds So we are based in all our terminals based in uh ports uh are now VGC compliant. That's number one. So we can 27:29 27 minutes, 29 seconds take the ships coming from US. Number two, the deal with US by government is a commercial. It's not a countryto- 27:37 27 minutes, 37 seconds country deal. Uh it's that they they would purchase they have started purchasing uh uh LPG from America just 27:44 27 minutes, 44 seconds like we have we are doing. So we al also have uh uh opportunity to buy LPG and we 27:51 27 minutes, 51 seconds have been doing it uh month on month last maybe last four months or 6 months but getting cargos from America also 28:00 28 minutes getting cargos from Middle East also depending on the value proposition that it brings to us. 28:09 28 minutes, 9 seconds Understood. Can you help me with our gas and liquid realizations for this particular quarter and 9 months? 28:17 28 minutes, 17 seconds Uh so we on a consolidated uh basis have 2 million CBM liquid space. So you 28:25 28 minutes, 25 seconds divide the quarter revenue by 2 million and multiply by four that will give you the yearly realizations. 28:32 28 minutes, 32 seconds Similarly uh if you look at uh you know logistics through portut so that gives 28:39 28 minutes, 39 seconds you somewhere around uh 1100 uh as revenue. So you have the volumes of uh 28:46 28 minutes, 46 seconds logistics you can multiply by 1100 and then if you want the ieta we have always said distribution I beta are three 28:54 28 minutes, 54 seconds between 3,500 to 4,000. So that will give you give you the math. 29:02 29 minutes, 2 seconds Got it. And lastly, liquid margins expanded this quarter like you highlighted in the speech. Want to check what is the sustainable margins for this 29:10 29 minutes, 10 seconds segment and is there further scope of margin expansion due to the product mix. 29:16 29 minutes, 16 seconds Uh yes uh it is it is there and these are this is sustainable margin. Uh the increase is sustainable because of the 29:23 29 minutes, 23 seconds product mix as well as the location. So as we will build uh liquid uh capacities in locations which have higher 29:32 29 minutes, 32 seconds realization because they are in huge consumption zone like Mumbai or JNPA. Uh it will it will give higher uh revenues 29:41 29 minutes, 41 seconds which will pull up the average realization uh on a consolidated basis also uh uh when we keep changing 29:49 29 minutes, 49 seconds products uh that will also provide the increase in average uh realization. So both are happening 29:57 29 minutes, 57 seconds but the locations where capacities are coming up are high realization uh locations and also the new capacities 30:07 30 minutes, 7 seconds that are coming up are also for more complex uh products. So those also give you higher realizations. I think going 30:15 30 minutes, 15 seconds forward uh the realizations uh will will see only uh a way up in that sense. It 30:23 30 minutes, 23 seconds will keep improving hopefully for the culture. 30:28 30 minutes, 28 seconds Understood sir. Thank you so much. All the best. Thank you. 30:33 30 minutes, 33 seconds Thank you. Our next question comes from the line of Vishal Mahita from IFL Capital. Please go ahead. 30:42 30 minutes, 42 seconds Uh hi. uh thanks thanks for uh giving me the opportunity and uh congratulations on continued uh strong set of uh uh 30:51 30 minutes, 51 seconds numbers from your end especially on the liquid storage and the distribution front. Um my my question first uh would 30:58 30 minutes, 58 seconds be on uh you know this 15-year take or pay u uh you know uh contract which you've signed with this large 31:06 31 minutes, 6 seconds conglomerate for storing petroleum products at Pipahu uh for this u you know will we have to build more capacity 31:13 31 minutes, 13 seconds or we replace some of our existing uh you know low realization volumes with uh this customer because this I guess will 31:21 31 minutes, 21 seconds block probably around 50k CBM uh uh of our our capacity which is 31:29 31 minutes, 29 seconds around 40 50% of our existing capacity at the port. Uh so yeah just wanted to check on that. 31:36 31 minutes, 36 seconds Yes, you are right. We will be replacing and there will be no immediate addition to the liquid storage capacity. You are 31:43 31 minutes, 43 seconds aware that Pawa was the uh in case of liquid only not LPG but in liquid paw lagged behind in terms of realizations. 31:52 31 minutes, 52 seconds So now this will change completely. We are also building uh for for this purpose a liquid rail gantry so that in 32:01 32 minutes, 1 second addition to whatever we have already agreed upon we'll also open doors for more such uh products which we will move 32:10 32 minutes, 10 seconds in in case of liquid. So at that time if if there if there is a demand rush maybe we may have to uh build more capacity 32:18 32 minutes, 18 seconds for which of course land is there with us and it can be done very quickly. So yes, this is the turning point as far as liquid business is concerned in Pipawa. 32:28 32 minutes, 28 seconds We're very excited, very happy that this has finally happened. 32:33 32 minutes, 33 seconds So realization for petroleum would be in the range of 300 400 per month. Absolutely. Yep. 32:40 32 minutes, 40 seconds Okay. And um uh sir uh on our J&P we said that first phase we'll commission by 1Q FI27. How much of that would be of that 300 320? maybe 25 30%. 32:54 32 minutes, 54 seconds Okay. And lastly sir uh distribution uh growth you know we have been uh clocking spectacular growth there uh last two 33:03 33 minutes, 3 seconds three quarters. Um you know what has so so I understand that we now have a lot of holding capacity in our kitty. Uh but 33:11 33 minutes, 11 seconds on the demand side uh you know is there any change? What is if if you can elaborate you know what is really 33:18 33 minutes, 18 seconds driving this growth and you know uh we still think we still we still are uh uh of of of a belief that this is tip 33:28 33 minutes, 28 seconds of the iceberg. So we still have a long way to go as far as industrial demand is concerned and in spite of that we are 33:35 33 minutes, 35 seconds making so much headway and we are very confident very uh excited for this distribution business as now we have 33:43 33 minutes, 43 seconds like you said holding capacity we have capacity at many locations so the the uh 33:51 33 minutes, 51 seconds uh you know most of this is riding on industrial demand okay so that's that's what is very important to note and uh uh 33:59 33 minutes, 59 seconds I think there is a lot more to go. So we need to also do a lot of work uh on this and we we believe this this is going to 34:08 34 minutes, 8 seconds last a while the growth so safe to say that we are penetrating into newer industrial clusters uh across regions in India. 34:18 34 minutes, 18 seconds Yes. Or replacing uh uh it's it's not we can't call it new industrial clusters. 34:23 34 minutes, 23 seconds we say that we are shifting the use to LPG from maybe dirty fuel, maybe natural gas, maybe uh anything else, you know. 34:33 34 minutes, 33 seconds So yeah, it's it's it's a fuel uh it's becoming a fuel of choice because of its 34:40 34 minutes, 40 seconds unique advantages, portability, less investment needed, availability, 34:46 34 minutes, 46 seconds price stability, many many many uh benefits that come for the gas called propane. Yeah. Service levels. 34:55 34 minutes, 55 seconds Service levels. Yeah. 34:58 34 minutes, 58 seconds Sure. Okay. Thank you. Thanks a lot and all the best. Thank you. Thank you. 35:06 35 minutes, 6 seconds Ladies and gentlemen, if you wish to ask questions, please press star and one at this time. 35:14 35 minutes, 14 seconds Our next question comes from the line of Dr. Amit Vora from the homeopathic clinic. Please go ahead. 35:22 35 minutes, 22 seconds Yeah, good evening everyone. Good evening. 35:26 35 minutes, 26 seconds Yeah. So my question was uh about uh the business of Aegis Logistics minus AVTL AGIS Wuk. So what my question was is 35:34 35 minutes, 34 seconds apart from Agis Vox business what would be the businesses of Agis logistics one is Mumbai port one is distribution what else do you have or something future? 35:46 35 minutes, 46 seconds So we have Mumbai liquid, we have Mumbai LPG, we have uh distribution, we have uh uh infrastructure development, we have 35:55 35 minutes, 55 seconds uh sourcing and we have uh treasury and uh this distribution of 36:04 36 minutes, 4 seconds and of course just to just to add here in addition to distribution of LPG now we are on verge of starting distribution 36:12 36 minutes, 12 seconds of ammonia which we expect to grow part in coming times. 36:19 36 minutes, 19 seconds That's it. Thank you so much, sir. Thank you. Thank you. 36:27 36 minutes, 27 seconds Our next question comes from the line of Chira Vakaria from Budrani Finance. Please go ahead. 36:35 36 minutes, 35 seconds Good evening, sir. Uh sir, wanted to understand this throughut volume is roughly around 13 14 lakh tons. uh where do you see this volume moving in FI2728? 36:46 36 minutes, 46 seconds Any guess or ballpark number where you think you know you aspire to be? 36:52 36 minutes, 52 seconds You know we don't give uh guidance uh of uh any kind of projections but we have already said in past that these uh 37:01 37 minutes, 1 second capacities uh will keep gradually uh uh growing in utilization starting for from 25 30% 37:10 37 minutes, 10 seconds when we put up uh in in five seven years they reach 100%. So this is how uh one 37:18 37 minutes, 18 seconds can take uh a guess uh about uh the kind of terminals that we have and the kind 37:25 37 minutes, 25 seconds of utilization level they already are and how they would progress in in in coming times. 37:32 37 minutes, 32 seconds Okay sir. Okay. Thank you. Thank you. 37:40 37 minutes, 40 seconds Participants who wish to ask questions may press star and one. 37:48 37 minutes, 48 seconds Our next question comes from the line of Nandan, an individual investor. Please go ahead. 37:55 37 minutes, 55 seconds Hello sir, am I audible? Yeah. Yes. 37:59 37 minutes, 59 seconds Uh sir, my question is uh as you have already said that we will have $1.2 billion of capex by the end of FI27. 38:08 38 minutes, 8 seconds So can you give us an idea of the capacity that we will have including AGS pop uh in in LPG in ammonia and in 38:19 38 minutes, 19 seconds liquid uh after that 10,000 K of capex I mean as of now we have 200,000 tons of 38:25 38 minutes, 25 seconds LPG capacity so so any ballpark number so we have 225,000 38:33 38 minutes, 33 seconds tons of uh LPG capacity currently including haldy which we have recently acquired and we are building 77,000 at 38:42 38 minutes, 42 seconds J&PA mode. So that makes it around 300,000 tons of LPG. We have around 1.7 38:49 38 minutes, 49 seconds million CVM of liquid which we expect to grow to 2.5 to between 2.5 to 3 million. 38:57 38 minutes, 57 seconds And then ammonia the first terminal that we are setting up is capable to do 1 million. 39:04 39 minutes, 4 seconds So this is the kind of spread. In addition, we have pipeline hookups. We have rail gantries, liquid and LPG that 39:12 39 minutes, 12 seconds we are putting up. We are putting up bottling plants. So that these are all additional uh assets which enable uh 39:20 39 minutes, 20 seconds more uh utilization of our terminal, more revenue, more effective. 39:26 39 minutes, 26 seconds Uh thank you sir. And sir, one more question. So, so as you said uh by 2030 the uh the capex plan is about5 billion 39:35 39 minutes, 35 seconds US. So where do you see the company in terms of the market share for the LPG uh 39:42 39 minutes, 42 seconds and for the liquid I mean as of so today uh yeah today we are close to uh around 30% of capacity of India. So 39:51 39 minutes, 51 seconds we are today one/ird almost one/ird of liquid as well as LPG capacity and uh in 39:58 39 minutes, 58 seconds in LPG we we have JNPA coming up additionally as well as we may have one 40:05 40 minutes, 5 seconds more or two more expansions uh as far as LPG is concerned. So I think in LPG we may remain somewhere 40:13 40 minutes, 13 seconds around 40%. But as far as liquid is concerned we will keep growing. So we we have a vision to reach uh uh 5 to 6 40:22 40 minutes, 22 seconds million CBM uh in 2930. However, it is difficult to guess what will be the total capacity at that point of time and what will be our percentage of share. 40:33 40 minutes, 33 seconds But you can expect it should definitely be uh what we are today at least 30% plus. So that's what would be liquid as 40:41 40 minutes, 41 seconds far as ammonia is concerned. The first terminal that we are putting up is the first third party uh storage terminal in 40:47 40 minutes, 47 seconds India. So we don't have any anyone else uh providing uh a third party uh storage 40:55 40 minutes, 55 seconds terminal for ammonia as yet other than us. We may probably go for more ammonia terminals going forward depending on the 41:03 41 minutes, 3 seconds demand that we assess and the opportunity that we see. Then green ammonia is another uh opportunity that we may look at. I'll leave it at this. 41:15 41 minutes, 15 seconds Thank you very much. Thank you. Thank you. 41:21 41 minutes, 21 seconds Our next question comes from the line of Rajes Agraal from Manor. Please go ahead. 41:28 41 minutes, 28 seconds Sir my question is the capex which you said 1.2 billion it is including Agis Wak and AGis logistics. 41:35 41 minutes, 35 seconds Absolutely. and aggregate gross aggregate gross and sorry and you sir when the you said when the assets are matured it may take 41:43 41 minutes, 43 seconds two three years time whatever uh and so we can do do 2,500 cr ea 41:51 41 minutes, 51 seconds if it is 25% and the asset is has matured in utilization yes that's what I said yeah so the asset will get matured in how 41:59 41 minutes, 59 seconds many years 2 three years I said 6 months you can take two years I'm happy Answer below what will only 42:07 42 minutes, 7 seconds the interest cost and depreciation everyone knows what comes below but 42:14 42 minutes, 14 seconds how much depreciation 10,000 will require how much debt I have to calculate the interest only 42:23 42 minutes, 23 seconds how much debt for 10,000 capex how much debt will be used so that that's a very tricky question because I have a second phase equity 42:30 42 minutes, 30 seconds infusion which is going to happen so if there is a debt it will get again paid So at what point at what point of time you will look at may give a different 42:39 42 minutes, 39 seconds picture might be zero or not depends on the time you look at. Okay. Okay. Okay sir. Okay. Thank you. 42:48 42 minutes, 48 seconds That was my question. Thank you. Thank you. 43:01 43 minutes, 1 second Due to time constraints. That was the last question for today. I would now like to hand the conference over to management for closing comments. 43:11 43 minutes, 11 seconds Okay. Thank you very much. That was a a very interesting goal and uh thanks for the questions. I think uh we are coming 43:19 43 minutes, 19 seconds to the uh end of the fiscal year one more quarter to go which we are very optimistic of the of the performance. So 43:28 43 minutes, 28 seconds um uh we will I think uh speak again at when we have our final uh at in May of 2020 six uh to review the entire year. 43:39 43 minutes, 39 seconds So we look forward to speaking at that time. Thank you. 43:44 43 minutes, 44 seconds Thank you on behalf of EG's Logistics Limited. That concludes this conference. 43:49 43 minutes, 49 seconds Thank you for joining us and you may now disconnect your lines.