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Aegis Logistics Ltd
NSE:AEGISCHEM
Aegis Logistics Ltd
NSE:AEGISCHEM
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Ladies and gentlemen, good day, and welcome to the Aegis Logistics Limited Q1 FY '26 Earnings Conference Call hosted by MUFG Intime Private Limited. [Operator Instructions] Please note that this conference is being recorded.
Before we begin with the main call, I would like to give a short disclaimer. This call may contain some forward-looking statements which are completely based upon our beliefs and expectations as of today. These statements are not to guarantee a future performance and involve unforeseen risks and uncertainties.
With this, I would now like to hand over the conference over to Mr. Raj Chandaria for his opening remarks. Over to you, sir.
Okay. Thank you very much, and welcome to our Q1 FY '26 conference call. This evening, I'm joined by our CFO, Mr. Murad Moledina; and Ms. Payal Dave from our Investor Relations team. We will be presenting the performance for the first quarter ended June '25.
So I'm sure most of you would have attended the Aegis Vopak Terminals Limited, AVTL made an earnings call this afternoon -- earlier this afternoon. We are pleased to share that our subsidiary AVTL, was successfully listed in June 2025. Aegis Logistics continues to hold 44.71% equity in AVTL, and it's important to note that given Aegis Logistics management control over the company, AVTL financials continue to be consolidated into Aegis Logistics financial statement.
So before we dive into the business overview, I'm just pleased to announce that our ESG rating from MSCI has been upgraded from A to AA in this calendar year. Now there are several developments underway at Aegis that we'd like to explain in greater detail. Perhaps I can go port by port. As far as Mumbai port is concerned, which -- and Aegis continues to own and operate our assets in Mumbai Port, the liquid storage capacity at Mumbai port is 275,000 kiloliters and the LPG static capacity is 21,000 metric tons.
Now we also have an upcoming liquid capacity of 125,000 kiloliters, 50% of which is expected to be operational in the ensuing quarter and the balance by the end of this fiscal year. The project cost -- this project of roughly INR 250 crores was announced in the last fiscal year.
In the JNPT port, during the past year, we added a terminal with a total storage capacity of approximately 102,000 kiloliters for liquid products. And we have been allotted an additional 30 acres of land at this port, on which a capital expenditure project of INR 1,675 crores is being set up for liquids LPG as well as an LPG bottling plant, this project is now officially underway.
As far as Kandla Port is concerned, the existing facilities at Kandla are operating with an improved utilization, and this asset will see a jump in the volumes with the operationalization of the KGPL and JLPL pipeline, which is expected in the second quarter of this year, financial year, to which -- and both, we are connected to both of these pipelines.
Another positive initiative at this port is that finally, VLGC will start working at Kandla Port, which will also benefit the operations and as we shall be able to unload larger-sized cargoes. In Kandla, we have acquired an additional plot of land, which we are calling CRL-4, where liquid terminal capacity with a capacity of about 94,148 cubic meters will be set up, and this is expected to come into operation next year.
As we had announced earlier, we are expanding our footprint in the ammonia terminaling business, in addition to the terminal at Pipavav, which we have already announced, but I'm pleased to state that a nonbinding memorandum of understanding with Larsen & Toubro, L&T has been signed up to set up ammonia terminals at Kandla for their upcoming green ammonia manufacturing facility at Kandla.
As far as Kochi is concerned, the liquid capacity at Kochi is operating at a higher utilization and further capacity will come up in the near future at the additional land that we have been allotted at this port. At Pipavav, the LPG capacity with 48,000 metric tons of static cryogenic capacity has been added last month. And with this expansion, the total LPG terminal static capacity at Pipavav has reached 70,800 metric tons.
The Liquid terminal at Pipavav is progressing well with a high utilization. And in future, it is our intention to set up a rail gantry for evacuation of liquid products as well, similar to the ones that we have for gas. India's first independent ammonia terminal Pipavav, of course, as I mentioned, is being set up with a static capacity of 36,000 metric tons. And this project is expected to be completed before the first quarter of the next fiscal year. And this ammonia terminal has a take-or-pay contract for 15 years to service the upcoming VAP plant of Hindustan Zinc in Kandla.
At Mangalore port, we added the cryogenic LPG storage terminal with an 82,000 metric ton static capacity last month. and the first vessel was welcomed last month with the inauguration of the LPG loading arm, which means its first pilot discharge. This was a flawless operation. And further capacity in the liquids side will be set up in the near future in this port as we have been allotted some additional land.
At Haldia, the liquids capacity is operating at a higher utilization. We participated in various tenders to get additional land at Haldia to expand our capacity. And the Haldia LPG terminal continues to do well and increase its utilization slowly and steadily. And we are looking to extend our presence to a seventh port. And once we are allotted some land, at this moment were not able to disclose where we are bidding. But once we are allotted some land, we will, of course, be able to set up some additional capacity in liquid side there soon, and we will be informing everybody about that.
So in summary, Aegis possesses really strong, which we have demonstrated, in-house expertise in identifying opportunities and executing infrastructure projects that are cost-effective, fast and flexible while at the same time, maintaining the highest quality standards that ensure the long-term durability of these assets. And we've also constructed them at the lowest cost for a designated number of cubic tons.
All these projects are housed and operated under Aegis Vopak Terminals Limited, and we will already reach a CapEx of USD 1.2 billion by the end of next year. And our -- we expect to reach USD 5 billion aggregate CapEx by 2030, which would be funded by a mix of internal accruals and utilization of debt. With the debt gearing ratio -- prudent debt gearing ratio of 0.6x, capped to a 3.5x of EBITDA.
With the recently concluded Phase 1 equity infusion by way of the IPO, the -- and as you know, we have -- we are legally obliged to have a Phase 2 equity infusion within the next 3 years under the SEBI regulations. The CapEx, therefore, will be largely funded.
Coming to the distribution side. This is, of course, a key focus for us as we utilize our existing terminaling facilities and infrastructure to reach the end customers. In the case of LPG, we manage the entire value chain from sourcing, storage to distribution across India. And since distribution is a B2C segment, which offers a significantly higher earnings per ton compared to our other segments, while requiring relatively little investments.
We distribute LPG directly to industrial customers and also through our partners to serve both existing and new customers in the retail segment, especially with auto gas -- auto LPG stations, where we can cross-sell other products. I'm really pleased to announce that we have just signed a [Technical Difficulty]
Ladies and gentlemen, the line for the management is disconnected. Please hold while we reconnect them again. Ladies and gentlemen, thank you for being on hold. The line for the management is now reconnected. Thank you, and over to you, sir.
Thank you. Sorry about that. Yes. So I'm pleased -- in case you missed it, I'm really pleased to announce that we have just signed a cross-selling or fuel agreement with [ GOBP ], which I think really could be a very interesting development for our distribution business.
So I just provided you a detailed port by port update on each of the terminals. And really, just to summarize, before I hand over, there are numerous investment opportunities across our businesses and with related segments. Aegis has very strong cash reserves, robust balance sheet, which is positioning us well for future growth. And our team -- management team is actively evaluating multiple projects that align with our internal IRR benchmarks. And we've now -- AVTL now being listed, we recognize our responsibility to shareholders has doubled and we are committed to delivering long-term value to all stakeholders.
So with that, I'll conclude and hand over to our Chief Financial Officer, Mr. Murad Moledina, to present the quarterly financial highlights. Murad?
Yes. Thank you. Now before we get into the financials, I'd like to briefly explain the rationale behind the AVTL IPO. The primary objective was to reduce debt and strengthen the balance sheet, enabling us to seize future growth opportunities and continue our Gati strategy. For Aegis Logistics, the IPO has been EPS accretive, where now a portion of the profit will be shared with minority shareholders. However, the returns generated from reinvesting the proceeds will more than compensate for this.
Coming to the operational parameters of the business. Both the Aegis segments LP gas and liquids performed as per our expectations in the first quarter of FY '26. Q1 FY '26 normalized EBITDA stood at INR 256 crores, an increase of 2% year-on-year. Profit after tax increased by 11% to INR 175 crores for the first quarter this year versus INR 158 crores in Q1 of FY '25.
Now coming on to the individual segments. Liquid Q1 FY '26. Revenue from liquids segment stood at INR 144 crores compared to INR 143 crores a year earlier, increase of 1%. We delivered a stable Q1 EBITDA of INR 106 crores in liquid. LPG business, Q1 FY '26 EBITDA was INR 150 crores as compared to INR 142 crores in Q1 FY '25, an increase of 6% Y-o-Y. Revenue from LPG business stood at INR 1,575 crores, achieving an 8% Y-o-Y growth.
Now volume details. Throughput revenue in Q1 FY '26, the LPG volume handled at all our terminals was 1.16 million tons versus 1.01 million metric tons in Q1 FY '25, an increase of 15%. The distribution volumes of auto, commercial and industrial bulk handled was 1.45 lakh metric tons in Q1 FY '26 against 1.28 lakh metric tons in Q1 FY '25. The sales volume of sourcing was 1.19 lakh metric tons versus 1.24 lakh metric tons in the same quarter last year.
The financial position of the company remained robust with low debt, strong cash flow and a solid balance sheet. We achieved the highest liquid revenue in Q1 ever. We also achieved highest gas EBITDA in Q1 ever. And we also achieved highest throughput in Q1 LPG throughput volume ever. So we have -- we continue to do many first all the time.
And with this, I hand over the line to the moderator to start the question-and-answer session. Thank you.
[Operator Instructions] The first question is from the line of Jolyon from Amiral Investment.
I have a few questions. Maybe first, could you just talk about your liquid revenue and margin maybe on a sequential basis because it did come down quite significant maybe from fourth quarter of last year to first quarter this year...
Mr. Jolyon, your voice is not very clear.
Just about the liquid segment from fourth quarter to first quarter this year, why did the revenue decline so much and also the margins?
Sorry, Jolyon, we can't hear you properly.
Mr. Jolyon, we can't hear you properly.
No, no, I was just asking about liquids. Maybe on a sequential basis from fourth quarter to first quarter, why is the revenue and margin declined so much?
In liquids. Jol, every time, Q1 is always a little softer. And like I said, we have achieved the highest ever liquid revenue lifetime, what we have done in Q1. So we are okay as far as liquid is concerned. And from ensuing quarters, you will see as the product mix improves, in the newly commissioned liquid terminals, we would be doing better as the year progresses.
So maybe for this year's fourth quarter, should we also expect like a seasonal increase in decreased revenue and margins?
We -- historically, Q1 and Q2 is softer than Q3 and Q4. And of course, capacity is added also makes a difference and a change of product mix. So if you look at all together, then you will be able to gauge correctly what happens in the ensuing quarters.
Okay. Maybe the same question pertains to the margins for gas distribution. I mean if I would just do like a back calculate estimate of the margins on EBITDA per ton, gas distribution actually declined on a Q-over-Q basis? Any color on that?
Yes, yes. So distribution margins, please look at on a yearly basis, they are generally around INR 3,000. Last year, we clocked INR 3,500, this year also, we expect to be around the same. So on an average, we will always end at around INR 3,000 to INR 3,500 per ton. Currently in Q1, we have done around INR 2,500. You will see there has been a push on volumes because we have entered new geography on account of our upcoming Mangalore Terminal, we are now pushing, and that has averaged out the margins a bit, but we are confident that we will again end between INR 3,000 to INR 3,500 per metric ton.
On a yearly basis, you will, of course, see a better volume growth as compared to the last year, which we have always said in the previous year that in the current year on account of 2 cryogenic terminals coming up and a new geography, we will see better volumes, margins, like I said, we should be able to achieve what we did last year on an average. So we should be better off in distribution business this year back on track.
Okay. Maybe just one last question. On JNPT, I understand, actually, one of our competition has announced a LPG terminal, and I think they have further construction in February this year. So with that in mind, do we anticipate like a overcapacity situation over there, are there any assumptions on their capacity build. But after all, I think if you were to combine the 2 capacities that we are now than the corporate peer has announced, then you don't really -- there seems to be a lot of capacity in JNPT. I don't know, any color from that.
Yes. So JNPA please keep in mind that there are 2 partners involved in the JNPA infrastructure, which we are setting up, Aegis and Vopak, both are very experienced infrastructure players in storage business one, a leader in India and one world over. We have examined all the macro market conditions, competition, everything. And after having confidence in all the -- on all the parameters, we have decided to go ahead.
Another thing which you can note is that the so-called LPG infrastructure that you referred to, there are news items saying that BW has, of course withdrawn from -- so we don't know the fate of that particular infrastructure. In spite of that, like I said, we do our own calculations, and we are confident of what we are doing at JNPA. We expect good and solid utilization going forward as far as JNPA is concerned, it's in Western India and near to the high consumption north of India.
The next question is from the line of Abhishek Jain from Alfaccurate Advisors.
Congrats for decent set of numbers, sir. Sir, you have added 2 capacity. One is in Mangalore and another is Pipavav ports. So after adding these 2 capacity, what would be the total throughput capacity right now versus in FY '25, it was [ 9% ]...
So we don't give outlook on the throughput that we are going to achieve. But please keep in mind that what we have always said and the only guidance that we have given is that we strive for a 25% CAGR growth in our EPS year-on-year. That's the bare minimum that we try. I think from the last 3 years, probably we have been done around 23% of CAGR growth.
And what would be the increase in static capacity, sir?
Static capacity put up in Mangalore is 82,000 metric tons, equivalent to around 6 million tons of throughput capacity and Pipavav is 48,000 metric tons, which would be -- where we would be able to do a 4 million kind of throughput.
So that means that your total static capacity will increase at 1.1x, and the same line growth can be possible in the throughput capacity?
In the throughput utilization, your pro rating it, yes. So how it happens is that every new terminal. So you are combining a matured terminal, which is operating for years along with the new terminals, you cannot do that. Every new terminal, we have always said, a gas terminal takes usually -- is built with a capacity that should last the customer for 5, 7 years. So it starts with a 25%, 30% utilization then scales up. And in 5, 7 years, you then see almost close to 100% utilization, the life of the asset, both of liquid and gas is 40 years, very long life and the utilization, I have just explained how it happens.
So that means we can assume that 25% kind of the volume growth, CAGR growth in an gas segment, sir?
Yes, typically, that's how it happens.
And what was the throughput capacity utilization in the first quarter sir, in LPG segment?
Throughput we did 1.16 million tons, right?
1.16 million.
Yes.
And your utilization, sir?
Sorry?
Utilization?
Utilization, we don't do like that. So okay, before we did -- before these 2 cryogenic terminals in Aegis, we had a capacity of 9.6 million tons. So you can do the -- and this is quarterly 1.16, mind you.
Okay. And this quarter, we did not get any benefit of this incremental capacity. We gained the benefit from the quarter second only.
Yes. You are right.
And one bookkeeping question was that if you see the average realization in the liquid division and EBITDA per ton in the gas sector that was very high in the Q4 versus in this quarter. Was there any one-offs in fourth quarter, sir?
So sometimes you get take-or-pay contracts and you earn money. So those -- I cannot say they are one-off. They could repeat, but they do come once in a while.
So these are -- because of that, you have completed 2 terminal in the last quarter, Mangalore and Pipavav got the revenue?
No, yes. So last quarter, the revenues at -- per CBM rate might be higher because we get sometimes contracts which are contracted but not utilized. So you get those revenues. They -- like I said, we cannot say it's one-off, but it's once in a while does come.
So can you give that number, sir how much it was?
No, I don't have it. We don't keep a track of all of that. So you have to take it together. But if you look at the yearly realization in liquid, they are always around INR 3,000 per CBM. That is how it comes on an average.
Okay, sir.
So given realizations rather than go quarter-to-quarter, they even out balance out. .
The next question is from the line of Yash Nandwani from IIFL Capital.
Sir, my first question is on the distribution segment. So one of the City Gas distribution company, has recently announced its entry into the propane and LPG marketing. And they -- in the more as well as other industrial clusters and they are targeting 25% market share. So how do you see this impacting our distribution business?
Yes. So you should be happy that finally, what we have been saying over a number of years, is happening. You will find a City Gas natural gas players wanting to get into LPG business. The more the merrier that's what I always believe. And probably, they would come -- they don't have their own terminals. So probably, they would be coming to store at our terminals only because you need terminals to be able to trade. And at the end of the day, they are going to trade. And mind you, we have partners, which -- who are a global leader like Itochu with us.
And so let's see, and there are so many other companies who do trade in LPG, all the NOCs are as such we don't have confidence there are so many of them. We compete and we sell. And we have the advantage of being vertically integrated in LPG business. We source, store, distribute all ourselves. So we capture the entire value chain as such, which may not be there with others.
Sure, sir. Sir, secondly, apart from the expansions already announced in AVTL, do you plan to enter any new terminals have any product or service in this company in near future?
Yes, please understand, Aegis Logistics Limited is a consolidated financial statement that we are talking about. It's inclusive of AVTL. It does not exclude AVTL. So all of the CapEx of AVTL are included line by line into this company. So it's inclusive of whatever Aegis Vopak will house. So it's like we have Mumbai terminal #2 housed in C-lot. We have our pack cylinder business, housed in Aegis Gas. We have liquid and LPG terminal housed in Aegis Vopak. So all of these get combined and consolidated. So Aegis Logistics is a whole, is what includes everything.
And like we have said, in addition to INR 2,500 crores projects that we are doing, which will be housed in Aegis Vopak, another INR 250 crores of Mumbai expansion in liquid will be housed in our parent individual stand-alone company. But we will be inclusive of all of it.
Sure sir, that means if you enter any new product let's say, hydrogen, that will be housed in Aegis Vopak only...
Hydrogen.
Or any other sort of products, sir?
I'm sorry, there's some problem with the system. There is an echo. Let me say it this way, that as and when the opportunity comes in any new energy, any new port or any other infrastructure, the company will decide whether it falls within our benchmark returns that we expect.
And secondly, then we'll decide where housed it will bring the maximum value. It also depends on whether there are partners in those opportunities. So it will be done as the opportunity will call for. So it depends. But yes, most of the standard port terminals will be housed under the strategy Gati in Aegis Vopak for sure.
If I can just add here. I think the classic example is ammonia, right? That would be an example, just like 18 months ago, when we first announced it, we were getting into the ammonia business. So today, that is a reality, the first ammonia terminal is under construction, the second ammonia terminal. I just announced in the call with -- in Kandla with LNG and so on. So new opportunities like ammonia will come. And when they do come, we will assess where to house them correctly.
The next question is from the line of [ Neil Utpal Sahu ] from JM Financial.
So few questions from my end. First of all, is the Haldia LPG terminal going to be included in AVTL?
Yes. I wish I knew the answer. So it all depends on -- we continuously keep reviewing all our assets and like Mr. Raj just said, where house would bring maximum value. So it depends, as of today, there's nothing more to speak about on this. But yes, never say no to anything. We are always assessing, reviewing and looking at what brings maximum value to the group assets.
Okay, sir. And second question, can you give us some ballpark differential of what is the price differential between propane and natural gas for the industrial customers in Morbi?
I think as of today, it stands at around 16%. If you look at electricity, it is 53%, if you look at -- it depends on each fuel. But NG, Morbi, I think it's 16% in favor of propane. So generally, it's always 15% or so.
That's what it is.
[Operator Instructions] The next question is from the line of Harsh Shah from Dalal & Broacha.
A few questions from my side. So firstly, on the announcement that the company made on 19th of June with respect to the various business transfer agreements, which the company has kind of signed between the subsidiaries, right? So just wanted to check here. I mean, how is the accounting treatment then in terms of, say, when you say are doing a slump sale from Sea Lord Containers to AVTL, right? So I mean how is it accounted in the books of the [indiscernible] holding, like you said the AVTL gain on the transfer assets is recorded in other comprehensive income, right? So I mean -- I mean is it going to impact...
Harsh, we will need a session, hold a session to completely talk about consolidation, it's a complex subject. But to say in a very simple manner, when you consolidate all of this, the profits are eliminated. So in the profit and loss account, the profit will not appear. That's what the accounting standard requires. But if you look at the individual companies, you will see those profits. For example, the Mangalore Terminal, which we transferred will be reflected in the Sea Lord Containers Limited, which is a 100% subsidiary of Aegis Logistics Limited stand-alone. And there, in Sea Lord, you will see the profit reflecting on sale of the whole asset to AVTL.
Now when we consolidate, that profit is going to get eliminated on consolidated basis. It is not that when the subsidiary earns something, the stand-alone holding company will also reflect that. It cannot be so, because that's how accounting is done. It is only aggregated on a consolidated basis, but there the requirement of law is that you don't need to reflect or actually show the profit because they have come from the companies you control or those that are your subsidiaries, so they get eliminated.
Correct. I get the point of consolidation. I just wanted to check. So if for example, Sea Lord is transferring, so when you are accounting for Sea Lord, so is it the profit is reflected within other income? Is it that case or how is it?
Yes, only when it is sold income minus expense, that's the profit.
No, in other income from where I'm coming is that if I look at the quarter, right, the stand-alone operation of Aegis Logistics, there is an other income of INR 153-odd crores, right? So that is where I'm trying to understand how the other income in the base quarter is so high.
You're talking about standalone, we discussed here only consolidated. Stand-alone would be interest income. Other income will include even interest received, it's because of interest received. You have a very large cash balance of around INR 4,130 crores as of 30th June. So you can look at 7% per annum is INR 290 crores divided by 4 would be somewhere around INR 80 crores, INR 90 crores would be interest received only.
No, no. So I get that point, my calculation.
Mr. Harsh, your voice is not really clear. Can you please check?
Is it better now?
Yes, please continue.
Yes. Yes. Basically, what I was trying to understand is in the base quarter, INR 153 crores of other income. So is there any portion wherein any asset which may have been created or bidded by Aegis Logistics has been transferred that is getting reflected in other income? Or is it just the -- as you said the interest on the...
In the quarter, Aegis Logistics has not transferred any asset. It is Sea Lord that has done so.
Yes. Okay. And also I mean -- yes, I mean we have to take it post the call for the accounting time for now, that's it from my side.
The next question is from the line of Abhishek Jain from Alfaccurate Advisors.
So while the [indiscernible] license for [indiscernible] used to be higher in the fourth quarter in liquid division. And you mentioned that it is -- average around INR 300 CBM per month. But if we see the number in first quarter FY '26 is actually around INR 230 to INR 224, and earlier quarter also except fourth quarter, it used to be INR 224 to INR 230 per month basis, so just wanted to understand the math, sir.
So what I said was INR 3,000 per year, not INR 300 per month. So if you translate INR 3,000, it comes to INR 250. If we have done INR 225 in Q1, I'm sure the average by year-end would again come back to INR 250, which is generally the standard benchmark we look at.
So last quarter, INR 398 includes also a lot of...
Correct, correct. You have to look at yearly average.
Okay. Got it. And sir, on the gas EBITDA, it is usually around INR 1,560, it is going to be a INR 1,280 to INR 1,300 per ton basis. What will be the average EBITDA per ton guidance going ahead, sir?
So it is generally INR 1,000 per ton EBITDA margin in case of LPG.
INR 1,000?
Yes.
But this year at least -- this time it is around INR 1,290 and earlier also it was in the range of INR 1,270 to INR 1,280.
It is like this that in case of, for example, in some of the ports, we get a higher revenue rate and also the EBITDA is higher. So if the throughput increases in that particular port, the average. But again, over the whole year, it will balance out, and you will see generally INR 1,000 to INR 1,100 max is what will be the EBITDA per ton in case of throughput of LPG.
Okay, sir. And as you mentioned that around 20% volume growth obtained in the gas division. So just wanted to understand what is your outlook for the liquids division, sir? How the revenue trajectory will improve because of this addition of JNPT capacity?
No, we do not -- for example, I have never said 20% growth in throughput, which is we don't give outlook both in gas and liquid. How you have to generally look at it again, I repeat, the CBM, the capacity in liquid that we have INR 3,000 is what would be generally the revenue rate. And then you have to take INR 2,000 per CBM in liquid as the EBITDA margin, and you can work for yourself looking at the capacity growth that the liquid will have during the year.
If you achieve something more than that, we are doing good. And in case of LPG, as we have said that the revenue rate, like you have said, is INR 1,250 per ton and the EBITDA rate is INR 1,100 per ton -- INR 1,000 to INR 1,100 EBITDA margin rate. And in case there is a new capacity coming up, it generally starts with a 25% utilization and then scales up. The terminals which are 5, 7 years old, probably 7 years old, then you will find those terminals being utilized almost 75% to 100%. So accordingly, then you have to work out your maths.
[Operator Instructions] The next question is from the line of Vishal Mehta from IIFL Capital.
I think going forward, probably we can look at combining the calls for both the entities. But just taking forward the discussion on that accounting treatment, just one clarification that I needed. In the books of AVTL, the CapEx that will be recorded would be cost to the group plus margin. And in the consolidated group, it will all get eliminated and the CapEx that will be recorded would be just the cost to the group, right? So...
Perfect. But I would just like to reword it, in AVTL, it will be accounted. The cost will be accounted what it has paid for which is what you have described differently, but it amounts to the same thing. And in consolidated, whatever margin the holding company charges will be eliminated, and it will be shown net of that margin.
The next question is from the line of Amit Vora from The Homeopathic Clinic.
My question is again accounting related only this INR 48 crores June '25 net profit, the company's net profit is reflected in Aegis Logistics also or the cash flow or some other component?
I'm sorry, I was not able to clearly hear you.
Sir, we can't hear you properly.
Yes. So my question was, again, accounting related. Is Aegis Vopak had made a profit of INR 48 crores in this last -- this current quarter June '25. The complete INR 48 crores is reflected in Aegis Logistics or the cash flow component or some other component?
No. The complete profit is reflected except intercompany transactions are eliminated. So the complete -- but it won't affect the profit as such. So it's line by line consolidation and all the profits will get embedded, then whatever is the minority interest in the consolidation of Aegis will be shown as a deduction after PAT. So it will come before EPS. That's minority interest, which...
The next question is from the line of Vinit Jain from [indiscernible] Capital.
My question is regarding the distribution volumes, which we have seen traction after let's say, 5 to 6 quarters. So how do you see the growth trajectory here going ahead? And will you be able to give us some kind of a color -- how much has the volume come from Mangalore in the recent quarter? And how is the execution shaping up at Morbi?
I may not be able to give you a territory-wise breakup, including Mangalore. But I can tell you for sure that we will see an upside in this year as compared to the previous year. Previous year was a showdown between NG and propane now the dust has settled. And we are also moving into a new geography, new capacities have come we will see a good healthy growth in the current year, which is well reflected in the Q1, which is generally soft, where we have seen a 13%, 14% increase in the distribution volume already. So we expect to end the year good as far as distribution volumes are concerned. And like I've said earlier, I'll try and retain the margins.
So -- but do you concur that this quarter has some volumes from Mangalore, right?
It's not Mangalore terminal has not started. So -- but we are pushing into that market.
And then we are sitting on a large pile of cash. So what are the other growth opportunities we are seeing apart from -- so already, you have mentioned that major projects are going to be packed into the JV. So ex JV, what are the other growth prospects the company has?
There is nothing like major projects housing JV or not. Like we have said, every opportunity is to be seen in isolation and then decisions have to be taken based on a lot of factors, that could be multiple, multiple scenarios. There could be a scenario where Aegis standalone and AVTL together is investing in an asset, there could be a scenario where we are investing both of us together along with a partner. There could be a scenario where Aegis Vopak is doing on its own. There could be a scenario where Aegis Logistics is doing it on its own.
So there are multiple, multiple variables and multiple ways in which infrastructure can be structured. The opportunities are coming thick and fast. They are becoming bigger and bigger. And I think whatever cash we may have will not suffice for the kind of growth that we are looking at USD 5 billion by '29, '30 is a tall order, and we will need every cash that we can lay our hands on, whether in a holding company or whether in subsidiaries, or whether through a partner or whether equity infusion or debt, whatever, we will need it all to be able to carry on our strategy of Gati, which is becoming a gateway access to India for all liquid and gas products and including imports, exports, poster movement, all of it.
If I can just add that our -- having a strong cash balance and a very strong balance sheet has been a basic philosophy of the company for the last 15 years, and it gives us the flexibility to move fast on acquisitions, to move fast on projects, whether it's acquisition of land or even executing projects, which is, I think, why you're seeing such an amazingly fast rollout of all our terminals. So it is actually having that cash balance that really gives us that strength. So we intend to continue with that policy.
Okay. Sir, one final question on the logistics part. We're seeing the volumes have been largely in the same range for the last 4, 5 quarters. That has been an upset of 10% and above, but with the new 2 facilities coming, should the traction be much higher in the next few quarters? Or how do you see that? Or do you think it is only going to move much when the KGPL pipeline is commissioned?
I think both, even without the hook up and -- but the commissioning of new capacities, you will see an upside. We have already said that every quarter, we are clocking a lifetime high on several fronts. So this quarter also, we did the highest throughput ever that we have done in any Q1 historically. And yes, 10% -- we have done 15% higher in the Y-o-Y, right? That's a very healthy upside. And with the increased capacity, we will see further increase in the ensuing quarters. And when the hookup happens and when those pipelines, central India pipelines, those get operational, we'll see even more. So this year is going to be good and very healthy upside as far as throughput is concerned.
I think if I can just add that, as I had mentioned in the earlier in my comments, the other assets that we are adding strategic assets like, for example, the railway gantries and so on. Some of you who have been following this company for some time may recall that at Pipavav, the moment we added the railway gantry, the business really accelerated, the volumes and so on.
So in my remarks, I mentioned that we are going to be adding a railway gantry at Bangalore, right, which would be coming up in the next subs. We can't look every quarter necessarily at the -- but if you see the direction of travel, it's very clear that the throughputs are going to be going up quite a bit.
On the pipeline -- KGPL pipeline, it was slated -- some news items said it was slated to start by June and that's again a delay, as well there's another news item which says that Mundra Port wants to join into the pipeline. So what was the delay? And if you understand anything on that, please throw some color?
You can look at that at the IHB website, and it says that they expect the commissioning of KGPL in Q2 of FY '26. So probably by September is what they are aiming for. We have heard that the gasing up has already started. And Mundra hooking up into KGPL, it's a common user pipeline. We have also -- we are also looking up. Mundra will also look up. IOC will also look up. The pipeline throughput capacity is huge, 8.25 million in case of KGPL. And we have heard that JLPL also PNGRB has now approved step-by-step increase in capacity from 3.5 million to 6.25 million. So then -- these pipelines are -- will be the heart -- for distribution -- for reaching these energy products to all corners of this country, which has got diverse geography, it's so important to reach energy to every corner of the country.
And in your LPG distribution network, you show most of the states, except the most of the northern states, even the larger state of Uttar Pradesh is not marked on any map. So do you plan anything for UP? Or how do you see it?
It's all -- it's within our framework and benchmark, we do investments. And mind you, this distribution business is a franchise model. So what is important is to get franchise, to invest into this business, we are currently focusing on wherever we are to improve volumes out there. And then, of course, those states which have been left out will also follow when the time is right.
Due to time constraints, we will take this as the last question for today. I now hand the conference over to the management for their closing comments.
Okay. Great. Thank you so much. I just want to conclude by saying that I see that our company, Aegis has an unparalleled array of assets now in place in the liquids business and in the gas business, and we are adding more assets, super high-quality assets. And really, I think the FY -- this current financial year, FY '26 is going to be a really excellent year for us, and really looking forward to sharing some of these developments as we progress through the year. So thank you very much for your attention. .
Thank you so much.
Okay. Thanks.
Thank you. On behalf of MUFG Intime Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.