Aegis Logistics Limited — Q4 FY26

Aegis Logistics Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8D4VQ2flICI Published: 6 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 and FYI26 earnings conference call of Aegis Logistics 0:08 8 seconds Limited hosted by MUFG End Time. As a reminder, all participant lines will be in the listenon mode and there will be 0:16 16 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by 0:25 25 seconds pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:32 32 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 0:41 41 seconds These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 0:49 49 seconds I now hand the conference over to Mr. 0:52 52 seconds Raj Chandara, chairman and managing director of Aegis Logistics Limited. Thank you and over to you sir. 1:00 1 minute Thank you very much. Uh good evening everybody and um you know I'm joined tonight by our CFO Mr. Murad Moladina uh 1:08 1 minute, 8 seconds and Miss Pel D from our industrial relations team. 1:13 1 minute, 13 seconds Uh let me begin uh by with with uh highlighting the numbers uh for FY26 1:20 1 minute, 20 seconds that really define the the year. It was an uh outstanding year, a breakout year for us. 1:26 1 minute, 26 seconds Um so the revenues uh grew 23% yearonear to 8,333 1:34 1 minute, 34 seconds crores. Normalized IBITDA rose 36% to 1,599 crores. 1:42 1 minute, 42 seconds Uh profit after tax grew 41% to 1,17 crores. 1:49 1 minute, 49 seconds uh crossing the uh uh symbolic 1,00 cr profit after tax milestone for the first time. 1:57 1 minute, 57 seconds Uh cash in investments on the balance sheet reached approximately 6,000 crores and just to put things in perspective 2:06 2 minutes, 6 seconds over the last five years we have delivered an earnings per share uh cumulative uh average growth rate of 32% with a consistent dividend track record. 2:18 2 minutes, 18 seconds Our fourth quarter was uh particularly strong with revenue uh up 52%. 2:27 2 minutes, 27 seconds Uh Evida uh up by 54% and profit after tax up uh 43% yearonear. 2:40 2 minutes, 40 seconds These results reflect the compounding power of our diversified operations and the discipline with which we are executing. 2:50 2 minutes, 50 seconds In line with our commitment to shareholder uh returns, the board has recommended a final dividend of 6 rupees 2:58 2 minutes, 58 seconds 70 per share for FY26 bringing the aggregate dividend for the year to 87 uh rupees per share. 3:10 3 minutes, 10 seconds I'm going to just run through the uh uh port by port operational update. Uh so 3:16 3 minutes, 16 seconds Mumbai continues to operate at a very high utilization rate. Our facility 3:23 3 minutes, 23 seconds comprises 334,000 kil of liquid storage and 21,000 metric tons of static LPG capacity. 3:33 3 minutes, 33 seconds uh we are developing an additional 64,000 kil of liquid storage at a project cost of uh 125 crores which is 3:42 3 minutes, 42 seconds progressing on schedule with a commissioning targeted for the first half of FY27 this year. 3:51 3 minutes, 51 seconds uh at JNPT uh the current liquid storage stands at 106,900 cubic meters 3:59 3 minutes, 59 seconds uh and we are executing a major expansion uh approximately 318,100 cubic meters of additional liquid 4:06 4 minutes, 6 seconds storage, 77,236 metric tons of LPG capacity and an LPG 4:13 4 minutes, 13 seconds bottling plant uh with 35,000 metric tons of annual capacity with a total capital outlay of approximately ly 1,675 4:24 4 minutes, 24 seconds crores and the first phase of the liquid capacity is expected to be commissioned in of the first half of this year uh 4:32 4 minutes, 32 seconds FY27 uh and uh we are evaluating a further cryogenic gas tank of between 36 to 4:40 4 minutes, 40 seconds 50,000 metric ton capacity static capacity to further strengthen our west coast gas handling capabilities 4:49 4 minutes, 49 seconds uh at uh the healthy airport. Uh switching to the other coast, uh we completed a the acquisition of a 75% 4:57 4 minutes, 57 seconds stake in Hindustan Aegis uh LPG Limited uh during the year uh adding approximately 25,000 metric tons of LPG 5:06 5 minutes, 6 seconds storage and uh marking our uh entry into the east coast uh market. Of course, this was uh basically acquired through 5:14 5 minutes, 14 seconds uh by uh our subsidiary ASPAC terminals Limited. Uh the uh the asset uh is 5:22 5 minutes, 22 seconds anchored by an exclusive terminating agreement with uh Hindustan Petroleum uh through uh 2038 providing strong 5:31 5 minutes, 31 seconds long-term revenue visibility and we operate uh 226,890 5:38 5 minutes, 38 seconds cubic meters of liquid storage here and we have acquired an additional 3 acres of land uh to support uh future expansion. 5:48 5 minutes, 48 seconds Uh moving on to uh to Kangla. Uh this remains one of our largest and most important uh uh strategically most 5:56 5 minutes, 56 seconds important hubs. Approximately 952,000 cubic meters of liquid storage and 48,000 metric tons of LPG capacity. 6:07 6 minutes, 7 seconds Uh several milestones were achieved this year in this port. In December, uh the 6:14 6 minutes, 14 seconds group successfully handled a VLGC uh vessel uh making Kandla a VLGC compliant 6:21 6 minutes, 21 seconds terminal and the Jamnagger looney pipeline LPG pipeline is complete and the Kandla Gorpur uh LPG pipeline is 6:30 6 minutes, 30 seconds expected to be connected uh in H1 uh FY27 uh further improving evacuation efficiency. 6:40 6 minutes, 40 seconds the construction of the the CRL 4 liquid terminal uh which will add uh an additional 6:49 6 minutes, 49 seconds 94,148 cubic meters uh is progressing well with commissioning targeted for next year. 7:00 7 minutes uh we have signed a uh non-binding uh memorandum of understanding with Lance and Intergo for potential joint 7:08 7 minutes, 8 seconds development of ammonia terminals uh which position us well in the energy transition opportunity at at Kangla. 7:19 7 minutes, 19 seconds Uh moving on to Piparal. Uh this has been one of our most active locations this year. Uh we commissioned a 48,000 7:26 7 minutes, 26 seconds metric ton cryogenic LPG terminal in June of 2025 taking the total LPG capacity to 70,800 7:36 7 minutes, 36 seconds metric tons at this site and the ramp up is progressing well. A new VGC compliant 7:43 7 minutes, 43 seconds jetty is expected to be completed within this calendar year with the KGPL uh 7:50 7 minutes, 50 seconds pipeline connection uh following in Q2 of FY27. 7:56 7 minutes, 56 seconds Uh when complete, SIPAW uh will offer a fully integrated LPG logistics ecosystem. uh VLGC handling uh cryogenic 8:06 8 minutes, 6 seconds storage bottling plant uh an LPG rail gantry 16 truck loading bays and pipeline connectivity to central India. 8:17 8 minutes, 17 seconds On the liquid side uh we are building an additional uh rail gantry and have secured a 15-year takeover pay agreement 8:25 8 minutes, 25 seconds with a leading conglomerate for uh petroleum products. 8:30 8 minutes, 30 seconds uh committed volumes uh uh exceed 0.5 million metric tons per year annually 8:37 8 minutes, 37 seconds with operations expected to commence by year end. 8:42 8 minutes, 42 seconds Now we are also advancing uh India's first independent uh ammonia terminal at Pipawa uh which is a 36,000 metric ton 8:51 8 minutes, 51 seconds static capacity terminal uh backed by a 15-year takeay agreement with Hindustan Inc. 8:58 8 minutes, 58 seconds uh for their upcoming uh DAP diammonium phosphate plant uh with u commissioning 9:05 9 minutes, 5 seconds targeted for H1 of this fiscal year and it corporation has acquired a 10% stake 9:12 9 minutes, 12 seconds in AGis terminal P power limited uh coming in as a strategic partner with an intention to raise that to 25% stake at 9:22 9 minutes, 22 seconds 25% stake over the next three years uh as far As Kochi is concerned, uh we 9:29 9 minutes, 29 seconds operate uh 82,545 cubic meter uh uh uh cubic meters of liquid storage 9:38 9 minutes, 38 seconds uh at this site. Uh we continue to evaluate um the addition of an additional 60,000 cubic meters on this 9:46 9 minutes, 46 seconds um on this newly allotted land and we'll provide further updates once once this is finalized. 9:55 9 minutes, 55 seconds uh at Mangalore uh we commissioned uh an 82,000 metric ton uh cryogenic LPG 10:02 10 minutes, 2 seconds terminal in June uh and our uh June of 2025 and are progressing on the 10:09 10 minutes, 9 seconds construction of an LPG rail tree there uh very important step the 75,000 cubic 10:16 10 minutes, 16 seconds meters of liquid capacity that was added last year is now fully operational bringing the total liquid storage to 193 cubic meters uh uh of capacity. 10:29 10 minutes, 29 seconds We have secured additional land and are evaluating um a further 60,000 cubic meters of liquid storage at this site. 10:40 10 minutes, 40 seconds Uh just to update on the Vadan port. Um we are looking uh to we have signed 10:46 10 minutes, 46 seconds sorry a a a non-binding um memorandum of understanding to participate in the development of this port with a 10:54 10 minutes, 54 seconds potential investment of approximately 20,000 crores subject to approvals and land allocation of course and this will 11:03 11 minutes, 3 seconds enable us to develop uh further worldclass liquid and gas and infrastructure and significantly 11:10 11 minutes, 10 seconds expanding the scale and geographic reach of of our network. 11:16 11 minutes, 16 seconds So uh with that sort of uh overall uh view u I'll hand over to uh Murad Maladina to take us through the financial details. Uh Murad over to you. 11:28 11 minutes, 28 seconds Thank you. Thank you very much. And uh now let me take you through the financials and then our capital allocation framework for the full year. 11:36 11 minutes, 36 seconds uh FI26 was a year of significant financial progress across both segments. 11:43 11 minutes, 43 seconds At the group level, uh revenue from operations grew 23% year on year to 8,333 11:52 11 minutes, 52 seconds crores. Normalized EITA rose 36% to 1,599 11:58 11 minutes, 58 seconds crores and profit after tax increased 41% to 1,17 12:05 12 minutes, 5 seconds crores from 77 788 crores in FY25 by segment LPG business recorded its 12:14 12 minutes, 14 seconds highest ever revenue of 7,689 crores up 26% yearonear. 12:23 12 minutes, 23 seconds with the PITA growing 68% to 1,131 crores driven by record logistics and distribution volumes. 12:34 12 minutes, 34 seconds LPG terminal port volumes reached 5.15 million tons up 14%. Distribution volume 12:43 12 minutes, 43 seconds surged 45% to 7.54 lakh metric tons and 12:49 12 minutes, 49 seconds sourcing sales grew 2% to 6.07 lakh metric tons. Liquid business 12:58 12 minutes, 58 seconds delivered revenue of 644 crores brought the stable year on year with the beta of 472 crores 13:08 13 minutes, 8 seconds down 5% reflecting phasing of capacity additions and also during the year unlike last 13:17 13 minutes, 17 seconds year it was all normalized operations with no major take of 13:24 13 minutes, 24 seconds now let's run through Q4 F5 26. The fourth quarter was our strongest ever. 13:31 13 minutes, 31 seconds Revenue from operations reached 2594 crores, up 52% yearonear. 13:39 13 minutes, 39 seconds Normalized liquida grew 54% to 670 crores. Profit after tax rose 43% to 455 13:48 13 minutes, 48 seconds crores. by segment in Q4 LPG segment generated a revenue of 2410 crores up 13:57 13 minutes, 57 seconds 65% yearonear with a pita more than doubling to 549 crores or 136% increase 14:05 14 minutes, 5 seconds this is the highest ever revenue and a bit for the gas division not just for Q but across any quarter distribution 14:13 14 minutes, 13 seconds volumes reached a record 2.34 lakh metric ton up 71% even report of 1.23 million tons held 14:22 14 minutes, 22 seconds steady despite repraises from the West Asia situation. 14:27 14 minutes, 27 seconds The equip segment reported revenue of 184 crores and a beta of 126 crores in the quarter. 14:36 14 minutes, 36 seconds Our balance sheet is a key strategic asset. Cash and investments have grown 14:42 14 minutes, 42 seconds from 150 crores in FY22 just four years back to 5,939 crores in FY26. 14:53 14 minutes, 53 seconds A transformation that positions us to fund growth at pace without compromising financial discipline. 15:01 15 minutes, 1 second Cumulative capex is expected to reach approximately 1.2 2 billion by next year reflexing reflecting the pace of expansion across our port network. 15:13 15 minutes, 13 seconds Looking further ahead, we have identified a capex pipeline of approximately 5 billion through 2030 15:21 15 minutes, 21 seconds investments aligned with both traditional energy infrastructure and in uh emerging energy transitions 15:30 15 minutes, 30 seconds value chains. We'll pursue this growth with discipline funding through balanced mix of equity internal acres and debt 15:39 15 minutes, 39 seconds targeting a gearing ratio of approximately 0.6x low leverage strong cash generation and 15:47 15 minutes, 47 seconds a resilient balance sheet gives us the financial flexibility to move quickly on opportunities. 15:56 15 minutes, 56 seconds With that, I'll hand the line to the moderator to open for Q&A. 16:02 16 minutes, 2 seconds Thank you very much. We will now begin the question and answer session. 16:07 16 minutes, 7 seconds Anyone who wishes to ask a question may press star and one on their touchdown telephone. If you wish to remove yourself from the question queue, you 16:15 16 minutes, 15 seconds may press star and two. Participants are requested to please use handsets while asking a question. 16:22 16 minutes, 22 seconds Ladies and gentlemen, we will now wait for a moment while the question queue assembles. 16:30 16 minutes, 30 seconds Our first question comes from the line of Vivuchi with JP Morgan. Please go ahead. 16:37 16 minutes, 37 seconds Yes, thanks for the opportunity and congratulations on the strong results. 16:41 16 minutes, 41 seconds Uh first question is on the gas segment profitability which has seen a very sharp increase Q on Q on perm basis. So 16:49 16 minutes, 49 seconds can you provide some color how much was driven by the distribution segment? Uh is there any oneoff and going forward what could be the normalized level? 16:59 16 minutes, 59 seconds Uh yes please. So if you can if you will uh look at our numbers uh the volumes have surged in distribution business. So 17:07 17 minutes, 7 seconds that has also contributed uh on the surge of uh revenue as well as the return. Second is of course the 17:15 17 minutes, 15 seconds margin that we have earned during the year has uh uh been around 7,000 rupees against 4,000 odd in the previous year. 17:27 17 minutes, 27 seconds Going forward the next year also we expect the same uh as the energy prices 17:33 17 minutes, 33 seconds have risen and so also uh the margins because of the uncertainty involved 17:41 17 minutes, 41 seconds going forward we feel the 7,000 odd margin should be sustainable as uh you 17:48 17 minutes, 48 seconds know beyond 26 27 we would see our distribution volumes really uh of a 17:55 17 minutes, 55 seconds scale that brings things procurement efficiencies which will uh when the prices of energy uh stabilize or come 18:05 18 minutes, 5 seconds down or will will compensate uh in terms of margins. Uh so yes uh going ahead we 18:13 18 minutes, 13 seconds we we feel confident uh that uh these are sustainable margins and of course uh 18:21 18 minutes, 21 seconds there is a huge upside as far as uh volume is concerned. Throughut of course also uh will will be good in the current 18:31 18 minutes, 31 seconds year uh as you will see lot of uh uh multimodal evacuation kicking in uh 18:38 18 minutes, 38 seconds especially the Jagalomi pipeline in Kanda Kanda Gurapur pipeline in Kanda as well as Pawa then the rail gantries that 18:46 18 minutes, 46 seconds we are uh building and uh please keep in mind uh some of our terminals like Pawa 18:54 18 minutes, 54 seconds cryogenic as well as Mangalore gradually they're operational for part of the year in 2526. So you will see a full year uh 19:03 19 minutes, 3 seconds effect of that as such overall uh gas effect of course uh will continue to grow uh really well uh going forward. 19:15 19 minutes, 15 seconds Got it. Uh thanks for the comprehensive answer. Uh just a followup here on the LPG situation. So it looks like for you 19:24 19 minutes, 24 seconds the volumes kind of have completely normalized in June. So is this understanding correct and for the country overall like when do you expect 19:32 19 minutes, 32 seconds full normalization because I think we are still down 30 to 50% year over year things are improving but that's your your thoughts over here. or we cannot do 19:41 19 minutes, 41 seconds any processing but yes I can tell you for sure that things are improving month on month like uh in in in May uh the the 19:50 19 minutes, 50 seconds shortfall is down to 30% uh when it was 50% in uh April in May it has it has 19:57 19 minutes, 57 seconds been better and we expect this uh improvement to continue probably in Q2 sometime in Q2 we should see normaly 20:05 20 minutes, 5 seconds return uh return back and uh mind you LPG uh supply source Middle East is not the 20:13 20 minutes, 13 seconds only source. It's the source of convenience. Uh there are multiple supply source and uh of course the 20:21 20 minutes, 21 seconds journey time would be a little more uh but I think going forward uh this this this situation has has a few lessons uh 20:31 20 minutes, 31 seconds for for everyone uh to have alternative supply sources uh which which is always 20:38 20 minutes, 38 seconds uh uh there. Uh so I think uh this this this will scatter light soon uh maybe uh 20:45 20 minutes, 45 seconds beginning sometime uh uh in in in Q2 onwards and uh you will see many alternative supply sources going forward 20:54 20 minutes, 54 seconds because the dependency on middle list will of course uh reduce uh as alternative supply source will kick in. 21:03 21 minutes, 3 seconds Got it. Got it. And the second question is on capex. So can you provide the guidance for FI27 and FI28 if possible? 21:11 21 minutes, 11 seconds I think this year was somewhere around 800 cr. So it looks like we'll see a very big big jump now. But if you can just quantify what to 21:20 21 minutes, 20 seconds we will see a$1.2 2 billion dollar aggregate capex by March 27 that we have 21:26 21 minutes, 26 seconds already said uh ma march 28 we would be uh we would again see a capex up to 21:33 21 minutes, 33 seconds 5,000 crores uh coming in uh this is both organic inorganic uh as such 21:42 21 minutes, 42 seconds got it thank you and all the thank you thank you our next question is from the line of Anil Sarin with K16 advisor. 21:53 21 minutes, 53 seconds Please go ahead. 21:55 21 minutes, 55 seconds Um hello again. Um part of my question has already been answered. Just wanted to check I mean some for further clarity 22:02 22 minutes, 2 seconds what was the exact capeex in fiscal 26 and what is the exact capeex uh planned for fiscal 27. 22:10 22 minutes, 10 seconds Furthermore uh this 1.2 I I I suppose it will add up to 1.2 billion. Does that 22:17 22 minutes, 17 seconds mean that the residual that is fiscal 209 and fiscal 30 would have 38 billion of capex? 22:30 22 minutes, 30 seconds We have said uh that capex is 2030 not FY30 please. Uh so keep in mind this is still 2030 uh December. 22:40 22 minutes, 40 seconds uh so we will have uh FY uh 31 uh to reach uh 5 billion uh please keep that 22:47 22 minutes, 47 seconds in mind. So you have uh you will see uh lot of capex on the later half of this 22:54 22 minutes, 54 seconds 5year period. So you will see heavy capex uh in 29 30 and 31 and you will 23:02 23 minutes, 2 seconds have up to 28 we have already said we will be 1.2 billion and then again 5,000 crores. So you add up that uh to the 1.2 23:12 23 minutes, 12 seconds billion and thereafter you can spread it out in the next 3 years to reach $5 billion. 23:19 23 minutes, 19 seconds One clarification is Vadwan port uh thatou included in this uh capeex to the extent we are able to execute out 23:29 23 minutes, 29 seconds there because it all depends on how quickly the port comes up and the allotment of land uh and the permits 23:36 23 minutes, 36 seconds happen. But yes, I I suspect that part of it will definitely be uh included in that 5 billion but not all of it. I'm 23:44 23 minutes, 44 seconds sure. Okay, great. Uh just one follow on uh this distribution uh margin I mean if 23:52 23 minutes, 52 seconds I sort of separate out the 9 month and the uh sorry um yeah the first three quarters and focus only on the fourth 24:00 24 minutes quarter there was an unusually sharp jump. um you have already answered that uh this has taken the average up to 24:08 24 minutes, 8 seconds 7,000 and that 7,000 would sustain but u I had a related question that you know now the southern operations of Mangalore 24:17 24 minutes, 17 seconds and Kochi Kochi are also expanding uh are sort of coming into play and with those uh uh with those uh railway 24:26 24 minutes, 26 seconds gantries and hopefully the chlapali uh pipeline also coming into uh operation uh south is structurally starved of gas. 24:35 24 minutes, 35 seconds Uh does uh what what what is that both Mangalore and Kochi and their respective 24:44 24 minutes, 44 seconds expansions due to the distribution volume uh in South India as well as for the full part of India. U taking the uh 24:53 24 minutes, 53 seconds total distribution to what level in fiscal 27 and if you can hazard a guess what level in tonnage terms for fiscal 28. We Yes. Exactly. 25:04 25 minutes, 4 seconds Yeah. Sorry. 25:04 25 minutes, 4 seconds Yeah. So you you have said it right. Uh earlier we we we were doing distribution from Mumbai and Kandla. Now we are doing 25:13 25 minutes, 13 seconds it from all over the place. So it includes Mangalore, the newly commissioned Cryo, Alia, uh Pipawa, 25:21 25 minutes, 21 seconds Kangla, Mumbai. Uh so that's that's been what uh is is is uh leading to uh the 25:29 25 minutes, 29 seconds volume increase. We always had a target of 2 million tons. So we expect that to reach by 28. And mind you, we are also 25:38 25 minutes, 38 seconds commissioning ammonia. So then that means uh that ammonia distribution would form part of this uh 2 million gas 25:46 25 minutes, 46 seconds distribution that we intend to do. So uh yes uh I think uh that that is what it 25:53 25 minutes, 53 seconds is. South also uh east also and west also we will be distributing gas all over the place because we have now 26:00 26 minutes terminals uh spread out uh you know uh and cryogenic in nature which enables us 26:07 26 minutes, 7 seconds uh to do more of uh we have more of a and we can do more of distribution stock and uh then sell great one one 26:16 26 minutes, 16 seconds clarification isn't the ammonia capacity already spoken for uh you know it's it's already assigned to Hindustan zinc. So 26:25 26 minutes, 25 seconds where where from does the uh scope come for distribution of ammonia? 26:31 26 minutes, 31 seconds Onethird of the capacity is uh take or pay 23 is available with us as open source. 26:37 26 minutes, 37 seconds Okay, great. Great. Thank you very much. Yeah, thank you. 26:42 26 minutes, 42 seconds Thank you. Our next question comes from the line of Chir Vicaria with Budrani Finance. Please go ahead. 26:50 26 minutes, 50 seconds Yeah, good evening sir. uh just wanted to get a sense even if we uh you know take the realization at around 7 7,000 26:57 26 minutes, 57 seconds rupees per ton for distribution segment yet you know the profitability in their segment is way of optimal 27:05 27 minutes, 5 seconds sorry can you repeat the question I did not get it in the distribution segment you said the realizations have gone up right for the 27:12 27 minutes, 12 seconds margins have gone up correct yeah so s even if you take that I mean the number that you posted are uh you know very strong So what explains that? 27:24 27 minutes, 24 seconds No, the margins are from the results that have been posted, right? Yeah. And volumes and volumes of course. Correct. 27:33 27 minutes, 33 seconds Volumes and margins have gone up. 27:36 27 minutes, 36 seconds Okay. Okay. And sir, is this sustainable or so long as you know the energy prices are there? You know, this will be at 7,000 and then it will revert back to 27:44 27 minutes, 44 seconds 3,500 also. This is what I just explained in my previous uh answer that this is expected to sustain on account 27:52 27 minutes, 52 seconds of volume increase that is going to happen which will bring procurement efficiency. Yeah. Okay. 28:00 28 minutes We were already doing 4,000 we are at 7,000 this year also 7,000 because uh Q1 28:07 28 minutes, 7 seconds has also done well. So therefore it is a question of 2028. 28:13 28 minutes, 13 seconds So that will be supported by procurement efficiencies because the volumes would have grown substantially by FY28. 28:24 28 minutes, 24 seconds So we expect 7,000 to sustain from year on. 28:29 28 minutes, 29 seconds Okay. Look at this uh uh emoji that you're talking with LP or ammonia terminal. What capex are we looking 28:35 28 minutes, 35 seconds there with? It depends. We uh we have just commissioned one terminal at a cost of 525 cr. So if it's one terminal then 28:46 28 minutes, 46 seconds the same if there are multiple terminals they will be in the multiple of 525. 28:51 28 minutes, 51 seconds This is this is the similar capacity or this is this will be a higher capacity. 28:56 28 minutes, 56 seconds One terminal would be of a similar capacity but it then depends on what the customer wants. 29:04 29 minutes, 4 seconds Okay. Thank you. 29:07 29 minutes, 7 seconds Thank you. Our next question comes from the line of Milot Pul Sahu with JM Financial. Please go ahead. 29:15 29 minutes, 15 seconds Hi sir, good evening. Thank you for the opportunity and congratulations for a very good set of numbers. U you have mentioned about ammonia logistics 29:24 29 minutes, 24 seconds commencing and ammonia distribution as well. Uh can you throw some light on the economics of both of these streams in terms of expected utilization levels and margins? 29:35 29 minutes, 35 seconds Yes, in the current year we expect around uh as we do in uh in in LPG we expect around 25% utilization in in the 29:45 29 minutes, 45 seconds first year and thereafter growing at the rate of 30 40% year one year. uh distribution. Uh similarly uh we expect 29:54 29 minutes, 54 seconds uh somewhere around uh uh 200,000 tons uh to begin with and then uh growing uh 30:03 30 minutes, 3 seconds 20 20 30% year on year. The margins are for it ranges from around 2,500 to 30:11 30 minutes, 11 seconds 3,000. In distribution it could go up to 5,000 rupees depending on how the market 30:18 30 minutes, 18 seconds behaves. We will see uh what it delivers and then from there on we can find we 30:25 30 minutes, 25 seconds can uh do our projections but this is what we expect also ammonia distribution margin should 30:34 30 minutes, 34 seconds also be like on a per turn basis 5,000 that's what I said 5,000 rupees a ton up 30:40 30 minutes, 40 seconds to 5,000 rupees a ton is what we expect got it got it thank you that was my Thank you. 30:51 30 minutes, 51 seconds Thank you. Our next question comes from the line of Kunal Meta with Incred Equities. Please go ahead. 30:59 30 minutes, 59 seconds Hi sir, a very good evening. I'm coming on a good set of numbers. Uh my first question is sir, how much of the uh 31:06 31 minutes, 6 seconds improvement in gas distribution is uh from operating leverage that is you know optimization of ARPAR versus the price 31:15 31 minutes, 15 seconds increase uh to the market. So if you can give some flavor on the revenue versus the dupa on gas. 31:24 31 minutes, 24 seconds Yes. So we have already uh so it's like uh energy prices uh rising uh and 31:31 31 minutes, 31 seconds uncertainty element uh being uh built into so the margins have improved uh 31:37 31 minutes, 37 seconds during Q4 expected the same in Q1 of the current year. Uh however uh as the 31:45 31 minutes, 45 seconds volumes also have jumped from around 520,000 to 750,000 uh that has also brought uh procurement 31:54 31 minutes, 54 seconds efficiencies. So what was 4,000 and what has become 7,000 currently comprises 32:01 32 minutes, 1 second probably you can uh uh say part of it on account of volumes and part of it on 32:07 32 minutes, 7 seconds account of margin improvement going forward. have said uh that when the crisis is gone, war is no more and the 32:18 32 minutes, 18 seconds prices stabilize and come down uh by that time our volumes would have grown 32:25 32 minutes, 25 seconds uh uh enough uh to to get more procurement efficiencies and therefore 32:31 32 minutes, 31 seconds we expect these uh 7,000 rupees a year average margin to continue going forward. also you don't have to see it 32:40 32 minutes, 40 seconds quarter to quarter uh you have to see on an annual basis Q1 is already good so I 32:47 32 minutes, 47 seconds think somewhat for 26 27 you are already assured of a 7,000 average margin 32:53 32 minutes, 53 seconds realization 26 2728 it will ride more on volumes 33:01 33 minutes, 1 second do you think this will uh show one elevated uh top line as well I mean uh just because of you know increase in in 33:09 33 minutes, 9 seconds the price. So, uh any idea on how much revenue do we do from the gas dissolution? Can you give some? 33:17 33 minutes, 17 seconds So, it is always volume. Yeah, volume and uh price. It's a it's a it's a product of uh volume and uh price. So 33:26 33 minutes, 26 seconds again repeating the same thing uh volumes are expected to grow uh really significantly over uh this year and the 33:34 33 minutes, 34 seconds next and uh prices even though they sterilize uh uh going forward uh you 33:41 33 minutes, 41 seconds know volumes will uh take care so we expect the revenue also to grow year on year 33:48 33 minutes, 48 seconds okay sir and my second question is on the cape so uh uh so we will be doing uh 33:56 33 minutes, 56 seconds capeex at the agis level uh agis and then after creating the asset will we then transfer it to ages for pack am I 34:04 34 minutes, 4 seconds right yes so so you mentioned in your opening comment that there are about 5,900 crores of uh uh cash on the console 34:14 34 minutes, 14 seconds balance sheet but I think on the standalone ages standalone level there is uh like I think almost half of that 34:22 34 minutes, 22 seconds so uh I mean how much would AL be able to utilize for uh building the asset 34:30 34 minutes, 30 seconds and the uh yeah so when you look at cash don't look 34:36 34 minutes, 36 seconds at all standalone alone you also have to look at cash holding in its 100% 34:43 34 minutes, 43 seconds subsidiaries so all put together will come to 5,930 crores 34:50 34 minutes, 50 seconds 100% also you will have to consider the cash held under those subsidiaries. 35:00 35 minutes Okay. So this doesn't include the cash in AVTL. 35:04 35 minutes, 4 seconds Consolidation includes AVTL. A sorry consolidation includes all the cash. AVTL cash is not significant. 35:14 35 minutes, 14 seconds Okay. And uh sir uh the ETC is done by ALLL stand or one subsidiary of uh ALL. 35:22 35 minutes, 22 seconds will be done either by ages standalone or any of its 100% subsidy. 35:29 35 minutes, 29 seconds So in the console do we cap like capitalize uh at the value at which alllacks at which all builds. 35:41 35 minutes, 41 seconds Okay. Okay. Thank you. Thank you so much. I'll call back and thank you. Uh thank you. Our next question comes from 35:49 35 minutes, 49 seconds the line of Amit Kumar with Determined Investment. Please go ahead. Thank you so much for the opportunity. 35:57 35 minutes, 57 seconds Can you hear me? Yeah. 36:01 36 minutes, 1 second Yeah. Just one question. You know, uh could you sort of quantify any sort of uh you know, inventory gains that you had, you know, in this particular quarter? 36:12 36 minutes, 12 seconds No. What do you mean by that? 36:22 36 minutes, 22 seconds you know there's nothing like inventory gain which we book in PML. Yeah. 36:28 36 minutes, 28 seconds So I I'm saying that see mostly as a you know storage you know solutions company you're basically principally working for your clients but as far as your you know 36:36 36 minutes, 36 seconds distribution is concerned you would have some inventory right and uh you know post the war or you know during the quarter you know itself we have seen you 36:44 36 minutes, 44 seconds know crude oil prices LPG LNG prices basically go up the value of that inventory uh you know during the quarter 36:52 36 minutes, 52 seconds uh uh you know because of the pricing no no it is at cost 37:01 37 minutes, 1 second So I I understand that you know inventory is at cost. Basically what I'm saying is that because of the spike in selling prices versus uh you know uh uh 37:09 37 minutes, 9 seconds relatively lower cost inventory. I don't know how many months of you know in I mean how many months of inventory do you keep uh you know we we keep very low inventory. We are 37:18 37 minutes, 18 seconds not here to keep uh more than a month inventory. So inventories are not long. 37:25 37 minutes, 25 seconds So you're right uh there is no such inventory gain in the month of in the month of March the inventory that you would have sold you would have bought it in you know February right and you know 37:34 37 minutes, 34 seconds at a lower cost and then obviously in March you know because of the Iran war because of the prices basically piked up 37:41 37 minutes, 41 seconds not necessarily February it could be February as well as March March cargo coming in 37:49 37 minutes, 49 seconds okay so there is no I mean you know that inventory gain you know like you know you you know some of these OMC's 37:56 37 minutes, 56 seconds basically which are also you know kind of refinery and distribution. 38:00 38 minutes No this is this is this is distribution business. So how we do it is that we book orders and then we procure the 38:08 38 minutes, 8 seconds margins are higher when there are times of uncertainty because energy prices are higher. So as a percentage obviously you 38:17 38 minutes, 17 seconds will realize more margin because there is an uncertainty uh element involved. 38:21 38 minutes, 21 seconds you have to get the product in times of uncertainty that is even more it is difficult. So therefore in bi terms your 38:29 38 minutes, 29 seconds margin improves uh because your energy prices are also very high. 38:36 38 minutes, 36 seconds I I understand that point. Okay. Let me let me sort of ask you differently. you know pre-war versus postwar what is the kind of price differential uh you know that you saw basically uh and what is 38:46 38 minutes, 46 seconds the kind kind of price jump that you saw you know as the uh you know basically war you know started in late February basically 38:53 38 minutes, 53 seconds oh prices have gone up uh of all the energy products from 64,000 to all the 38:59 38 minutes, 59 seconds way to 150,000 back to 80,000 90,000 39:06 39 minutes, 6 seconds energy prices have very fluid they have gone up from 54,000 rupees or 60,000 39:13 39 minutes, 13 seconds rupees per metric t all the way to 150,000 rupees per metric t down to 80 39:20 39 minutes, 20 seconds 90,000 rupees per metric t so it is it varies okay okay understood thank you that's it 39:30 39 minutes, 30 seconds for mine thank you our next question comes from the line of Rajes Shagarwal from Manior 39:38 39 minutes, 38 seconds please go ahead So my just question uh basic question now government has said today the uh subsidized LPG cylinders will be reduced 39:46 39 minutes, 46 seconds from 9 to four then government is taking a step for increasing PNG and all will it affect our logistical uh business 39:55 39 minutes, 55 seconds and what gives you confidence of volumes of distribution business increasing what can be the particular reason the two questions sir 40:03 40 minutes, 3 seconds energy in India per capita is among the lowest in the world uh We are we are comparable to Philippines. Okay. 40:11 40 minutes, 11 seconds Second is the it is a developing country so there is a lot of dependency on dirty fuel, coal, furnace oil, diesel, 40:21 40 minutes, 21 seconds uh wood and bricks uh you know so many so many products which as we develop we have to transit out. The volumes in such 40:30 40 minutes, 30 seconds dirty fuel is very large around 2,000 million tons in coal alone. What are we 40:36 40 minutes, 36 seconds talking about gas? 50 60 million tons of natural gas, 30 35 million tons of LPG. 40:44 40 minutes, 44 seconds So there is enough for growth whatever uh one may say you need to have multiple 40:52 40 minutes, 52 seconds energy sources. So yes, PNG, natural gas, ammonia, LPG, coal, everything will 41:00 41 minutes be needed in such a large country as ours. So we are a very large we are a very large country with large 41:07 41 minutes, 7 seconds populations with energy needs that are going to grow. So we need lot of products uh as far as energy basket is 41:16 41 minutes, 16 seconds concerned and depending on what is the kind of outlook going forward as far as 41:22 41 minutes, 22 seconds environment is concerned the tilt should definitely be towards the cleaner fuel 41:28 41 minutes, 28 seconds which are in nature of gas namely you know like I just said natural gas uh LPG 41:35 41 minutes, 35 seconds ammonia and what are the what are the numbers that we are talking of still the internet in very very small numbers 41:43 41 minutes, 43 seconds compared to dirty fuel which are liquid and solid in nature. 41:49 41 minutes, 49 seconds One last question happens with the question suppose almost doesn't open for next 3 months still we'll able to recover all our old volumes and grow 41:57 41 minutes, 57 seconds grow we can yeah exactly supply source has to change is not supply the LPD is not only 42:06 42 minutes, 6 seconds available from middle east it's a supply source of convenience but LPG is available from all over the world now it 42:14 42 minutes, 14 seconds is coming from Canada America Argentina Nigeria all over the So you will keep getting 42:22 42 minutes, 22 seconds in this crisis we have seen a change substantial changes for us for sourcing there had to be yes there has to be going forward we will have multiple 42:31 42 minutes, 31 seconds supply source understood now just because can I just uh can I can I just add one 42:38 42 minutes, 38 seconds comment here Murat the uh one of the advantages of having uh high quality uh joint venture partners 42:46 42 minutes, 46 seconds like we have with vitu Itchu and with VPAC and and so on. It really has given us a a tremendous edge in terms of 42:54 42 minutes, 54 seconds sourcing uh alternative sources of of gas. 42:59 42 minutes, 59 seconds Understood. So thank thank you. Thanks a lot sir. Thanks a lot. 43:04 43 minutes, 4 seconds Thank you. Our next question comes from the line of Nandan and investor. Please go ahead. Hello sir. Am I audible? 43:14 43 minutes, 14 seconds Yes sir you are. 43:16 43 minutes, 16 seconds Okay. Uh sir first of all congratulations on a very very strong fact. Um I think uh uh I can see from 43:23 43 minutes, 23 seconds last three quarters companies delivering around 50% growth uh on you know year on year basis. So my question is sir since 43:34 43 minutes, 34 seconds I mean we have a 5 billion US tax plan by 2030 December or 2030 531 and and 43:41 43 minutes, 41 seconds assume that majority of the infrastructure will be built by Agis logistics or 100% subsidiaries plus we 43:49 43 minutes, 49 seconds have a distribution I mean segment that is growing well with the margins and the ammonia growth and there will be growth in the subsidiary I mean vak as well. 43:58 43 minutes, 58 seconds So, so, so my question is that I think given the guidance, I think we are giving 25% guidance, I feel it is very 44:06 44 minutes, 6 seconds very conservative. I mean in FY26 also we have grown 43% at a level. 44:13 44 minutes, 13 seconds So I don't know we are we are why don't you increase the guidance sir? 44:22 44 minutes, 22 seconds [laughter] 44:23 44 minutes, 23 seconds No, we are a very conservative company and I think 25% tag growth is not small. 44:28 44 minutes, 28 seconds We have achieved 32% last 5 years. Uh we definitely again reiterate. Now remember 44:35 44 minutes, 35 seconds the base is getting bigger and bigger, larger and larger. When we had first given our guidance we were at an EPS of 44:42 44 minutes, 42 seconds six. Now we are at an EPS of 26. In spite of that the Kagger growth has not 44:49 44 minutes, 49 seconds changed. The guidance to the Kagger growth is not changed. So that itself is big in that sense. 44:59 44 minutes, 59 seconds Yeah, that's correct. 45:01 45 minutes, 1 second And my second question is uh what's our uh goal for the ammonia distribution say by 2030? 45:10 45 minutes, 10 seconds I mean uh FI28 by FI 28 you already said that the gas distribution should be at 2 million uh u volumes uh including the 45:19 45 minutes, 19 seconds LPG and ammonia probably LPG will be much higher as ammonia is is at a new 45:25 45 minutes, 25 seconds stage. So by FY30 what is our target for if you can provide LTG as well that 45:31 45 minutes, 31 seconds would be very helpful as well. No so if you look at the DRP crystal as an independent agency in the case of AGOPA 45:39 45 minutes, 39 seconds I had already said by 29 India will have a supply demand gap is in ammonia of around 3 million tons. So we will try 45:48 45 minutes, 48 seconds our best to to see what best uh uh you know volume uh achievement we can do by 45:56 45 minutes, 56 seconds 2930. This will depend on how many terminals we are able to construct and commission, how many locations we get 46:04 46 minutes, 4 seconds ourselves positioned. So we we are very bullish. Uh we have our partner along with us. uh they are already uh now 46:12 46 minutes, 12 seconds participated in the hard assets also taking a 10% stake in the P power terminal. So we are working very hard 46:21 46 minutes, 21 seconds but difficult to today project this is the new uh product that we have stepped into uh but looking at the macros and uh 46:30 46 minutes, 30 seconds looking at uh what lies ahead uh we are very bullish. 46:36 46 minutes, 36 seconds Thank you very much uh for the answer sir. All the very best. Thank you. 46:42 46 minutes, 42 seconds Thank you ladies and gentlemen. Due to time constraints we will take that as a last question for today. I would now like to hand the conference over to the 46:50 46 minutes, 50 seconds management for closing comments. Over to you sir. 46:54 46 minutes, 54 seconds Uh thank you very much. Uh you know it's been a very uh exciting year for us in terms of uh the the FY 26. Um as Mr. 47:06 47 minutes, 6 seconds Moladina has indicated we are confident uh to maintain for FY27 the same momentum 47:14 47 minutes, 14 seconds uh and uh uh you know in answer just to the last comment about our guidance and so on. I think our our uh sort of 47:22 47 minutes, 22 seconds philosophy here at AIS is really to um not to overpromise uh always to underpromise and hopefully overd 47:31 47 minutes, 31 seconds deliver. So that's our conservative management philosophy. But I'm confident that u you know FY27 will uh continue 47:39 47 minutes, 39 seconds the strong momentum that we have and the longerterm perspective in terms of uh 28 uh onwards uh again with the strong 47:48 47 minutes, 48 seconds foundations that we have laid and are continuing to lay and the opportunities that the uh uncertainty has of the war 47:56 47 minutes, 56 seconds and and so on that actually that has given rise to many more opportunities. 48:00 48 minutes So um we look forward to informing uh you uh as those uh come to fruition. So 48:08 48 minutes, 8 seconds uh uh you know the record profitability uh strong transformed balance sheet and 48:15 48 minutes, 15 seconds a clear road map for the next phase of growth. Uh that's it. Uh thank you very much. Have a good evening and we will speak again uh next quarter. Thank you. 48:26 48 minutes, 26 seconds Thank you. Thank you. Bye. 48:31 48 minutes, 31 seconds On behalf of Aegis Logistics Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.