My notes from the past few calls.

FY23Q4 concall

• LPG: Have taken approvals for raising 300 cr. but wont execute project unless they have a signed contract with customers. Generally, LPG facilities are first constructed and then you get contracts with the PSUs. Don’t want to go that route
• Also considering other high value products like ammonia or expanding more in set of chemical tanks if LPG business doesn’t pan out
• Signed up an exclusive arrangement with JM Baxi to use their jetty to handle liquid cargo operations at JNPT. Access to exclusive jetty will reduce wait times and lead to better stickiness with customers since customers will save substantial cost in terms of berthings and in terms of cargo handling
• For existing tanks, expect to get 5-10% annual increment in rentals
• New tanks will commercialize around June 2023
• Cochin utilization: 95%. Has fallen by 5-10% because of change over in tanks to a different product
• Goa utilization: 30-40%. Goa terminal stored fuel and used to be a bunkering terminal for refueling ships
• EPC: GBL Infra and GBL LPG handle all EPC related projects. Currently doing expansion work for the parent company. Have 2-3 customers and looking to add another 2-3 customers over next six months
• EPC division is more of customer service rather than profit center, make 5-10% profits
• Chemicals: 70-75% utilization which will increase to 75-80% in FY24

FY24Q1

• 19 chemical tanks of ~18,000 kl are operational (capex was 50 cr.). No contribution in Q1FY24. Annual rental contribution will be 11-12 cr. with 70-75% EBITDA margin (vs existing tanks generating 50-55% EBITDA margin). Earlier used to say 15-18 cr.
• At full utilization at JNPT, Cochin and Goa terminals (excluding current tank addition), can expect 138-140 cr. annual revenues + 10-12 cr. from new tanks. So ~ 150 cr. annual rental revenue at full utilization
• Large jump in consolidated revenues in last 2-quarters was due to consolidation of EPC revenues for building the tanks. EPC division generated 70 cr. revenues, very low margin
• LPG: In advanced stage of signing contract with one customer. 48’000 MTPA static capacity; looking for a 15 year contract for 12x turns of static capacity. Planning to reach 36x asset turns which will generate 180-200 cr. of revenues and 130-140 cr. EBITDA. Most LPG terminals run at 70-75x fixed asset turns
• They can handle one entire VLGC at JNPT
• LPG: Project will cost 500 cr. and will be 30% funded by equity (~90 cr.) and 70% by debt. Will look to raise QIP of upto 100 cr. Will likely commercialize project by end of 2025 (and start work in September or October)
• LPG project will use up most of their land at JNPT
• Deepak Fertilizer is a customer for ammonia. Deepak themselves have their own tank in JNPT for ammonia and have recently put up a plant to manufacture ammonia
• Chemical: One plant was shut for 12 days in June quarter due to maintenance activity; prices of finished goods have fallen by 20-25% but raw material has not fallen. This has reduced profits by 1 cr. in Q1
• Gross debt in August: 8-9 cr. (40 cr. in fixed deposit)

Disclosure: Not invested (no transactions in last-30 days)