If only the management does as many concalls as the number of times they appear on business channels to explain what happened they just might get better valuations.
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Any particular new news on Confidence Petro? ATTACHED AR 2021-22
ANNUAL REPORT CPIL FY21-22.pdf (6.0 MB)
Confidence Petro --CNBC-- CMD-Nitin Khara interview --6th Oct2022 :–
–No Impact in Volumes have been noticed.
–People are prefering this Green fuel & our growth is on-going in Bangalore wherein we are installing 100 CNG stations.
–Volumes --CNG growth --40% growth in our stations installed till date. LPG packed Cylinder divsion 7500 Metric Tonns per month
has gone up to 9000 Metric/tonns per month.
–In Auto -LPG dispensing stations --209 Auto LPG stations are running currently , we are getting the volume 2.9 L to 3 L Litres per day
–CNG which we are developing 100 stations --there the growth is around 40%
– Bottling plant capacity ? --we intend to put 100/102 Cr as we have currently 58 Bottling plants and we will take to 75 Bottling plant with 1 plant being 6 Cr in coming 2 to 3 yrs.
–Total capex will be 700 Cr by coming March 2025-- In CNG / Auto LPG / Packaged cylinder business in B2C mkt for which we have already started mkting.
–700Cr Capex --funding ? --Internal accurals & EBITDA is good. Also we are raising 2 Cr Warrants which is all inclusive + we dont have any debt so we can take that also.
–700 Cr --Agreement with GAIL to develop 100 CNG stations in Bangalore , there we need 250 Cr.
In Auto LPG --we have 209 Stations which we will develop to 125 Stations ,hence we require 125 Cr.
–In B2C mkting --we have started in Pune / Nagpur / Ahemdabad --there we require 75Cr for cylinders + Working capital also
–Other CDG players approaching us to develop these stations in their areas ,so there we will sign 100 stations in the coming period , there also we require 150 Cr.
Overall we will need 700Cr capex in coming 3 yrs.
–Revenue turn-over from this capex --we May touch 40/50% in the coming 3 yrs , Y-n-Y.
–Margins --in Auto LPG business we are getting 15/18% EBITDA Margin , in CNG–18% & in B2C business the margins are good 20/22%. In other business like Bottling capacity --there will be 8 to 10%.
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would you have the link for the interview?
Promoters pledged 24.3% of shares last quarter - any view on this? Now the total pledge % stands at 30.55%. How much will CAPEX be funded in the next 3 years with internal accruals and how much by debt? Need some clarity on that part
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Results - https://www.bseindia.com/xml-data/corpfiling/AttachLive/fd9c5192-b62e-4e7d-8658-b14908e756e0.pdf
Excellent set of results.
If not for the quantum jump in the purchase of stock-in trade, the bottom-line would have been much better. Is this a proactive step to shore up the cheap Russian gas they have been procuring?
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Yes, I believe so, what’s interesting is that CP is available at a Price to Sales of less than 1 (considering they will do the same amount of revenue in the last quarter).
LPG Divison Rev increased by 71% but due to higher finance costs and stock in trade, there is a decrease in profit margin. The next 2 - 3 years are critical.
However opm reduced to 8%…opm does not include finance cost…CP has grown 83% compare to previous quater but same period OPM is not growing.4%reduction in OPM which is huge…any specific reason
This is due to huge Stock in Trade item, they probably bought gas at a cheap rate from Russia. Not sure why the stock is plummeting since the result was declared considering such a huge revenue jump.
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Talks about 2,300 crores in FY 23 and 3,500 crores in FY 24. Margins should expand given the normalization in gas prices.
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The auto LPG industry is a dying segment but these guys keep expanding capacities in Auto LPG segment I wonder why.
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Have said same almost year back.
https://twitter.com/AmolBhandare10/status/1485254813902589952?t=lZVwKEzOV4X3bwQSTp5EmQ&s=19
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A recent article from The Ken said -
And to be honest, there are some segments where there’s been a large-scale shift towards CNG with only a mild impact from the price surge of last year. Several auto drivers I spoke to in Bengaluru say most new autos bought in the city have been CNG-driven these past few months, compared to the far more common LPG rickshaws that were in demand earlier. “The mileage is far better for CNG. It is almost 40-45 km per kg, while LPG gives 18-20 km,” one auto driver told me.
Confidence Petroleum is one definite beneficiary of this.
Link to the full article: Record gas prices only slowed down CNG, they couldn't stop it - Green Margins by The Ken
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CMP-61
CONFIDENCE PETRO
I had studied there franchise model of Lpg station and cylinder buisness. They have got good margins for dealers in both these segments. Planning to take dealership. other than this they are the sole manufacturer of new kind of cylinder in India which may replace steel cylinder in long run. They have major presence in bangalore city (opened 16 LPG station in a day ). They have successfully crossed 50000kg per day sales in bangalore itself.
They have also started with all India dealership for both these segments.
DISC- invested
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The new cylinder called as Composite Type-4 cylinder.
As per my knowledge as on date there are only two Indian player who manufacture it one is Time technoplast & other is Supreme Industries.
Confidence petroleum procure composite cylinder from Time Technoplast and fill LPG in it and sell under Go Gas Elite Brand.
Recently other oil marketing player also start supplying LPG in composite cylinder and they procure cylinder from Time Techno or Supreme.
No buy or sell recommendations.
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What is the share of revenue between LPG and CNG?
Company doesn’t disclose the bifurcation yet.
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