Aegis Vopak Terminals Ltd Management Discussions

Introduction

India?s logistics sector is experiencing a major overhaul, driven by industry demand, the integration of operations, and consistent government backing.

What was once confined to mere terminalling and storage has expanded into a cohesive ecosystem that delivers end-to-end supply chain solutions—spanning strategic planning, and a host of value-added services—all increasingly underpinned by analytics and automation. This presents a unique and challenging opportunity. Aegis Vopak Terminals Limited

(AVTL) plays a significant role in this metamorphosis. In this context, we commit ourselves to supporting India?s transition to a more sustainable future. We provide liquid and gases storage and terminalling services across 6 port locations India in a safe and sustainable manner with a dedicated focus on environmental impact. In addition, we have conceptualized Project GATI (Gateway Access to India) to capitalize on emerging market opportunities and to strategically invest in storage solutions and infrastructure necessary to address the market?s evolving demands. Our strategy is to establish a presence and provide our terminalling services at key ports along the Indian coastline.

Terminalling

AVTL continues to go from strength to strength, and we have no doubt that the combined reputation and quality of the promoters Aegis and Vopak together impacts the third-party logistics industry structure in the form of industry consolidation. An example is the various acquisitions and additions since its inception, making AVTL the most prominent tank terminal service provider in several of the major ports of India. We expect that this consolidation of the industry will continue over the years to come. This combined with the continuing addition of liquid and gas storage capacity on a greenfield and brownfield plans, in new ports addition like JNPA and existing ports such as Haldia, Kandla and Mangalore resulted in an excellent performance.

FY 2024-25 Robust Profit Growth

With the increase in LPG throughput volumes and liquid tankage capacity, the operational profit of the Group increased to Rs. 461.43 crore as compared to Rs. 403.17 crore in the previous year. Furthermore, the EBITDA split between LPG and Liquids is reflected below:

Liquid Logistics Division

Revenue from liquid terminalling revenues were at Rs. 344.73 crore as compared to Rs. 356.46 crore the previous year, and EBITDA of the division was at Rs. 236.32 Crores compared to Rs. 252.56 Crores in the previous year. This was a 10.68% increase in revenue when we exclude a one time take or pay revenue of Rs. 45 crores in the previous year. The capacity additions at Mangalore (75,230 m3) and JNPT (101,900 m3) [details stated below under ‘New Developments?] completed in March

2025 are expected to benefit the segment from current fiscal. Despite tough business conditions, the division is able to grow revenue and EBITDA. Future growth in this division will come from the additional capacity utilisation and better mix of products handled at JNPA, Haldia, Kandla, Mangalore, and Kochi as well as future capacity additions at ports, which is also expected to result in higher realisations.

Gas Terminaling Division

In FY 2024-25, the gas terminalling division recorded revenues of Rs. 276.35 crore as compared to Rs. 205.30 crore in the previous year, an increase of about 34.61%. The EBITDA for the Gas division increased to Rs. 245.36 Crores as compared to Rs. 173.88 Crores in the previous year, an increase of about 41.11%. This steady growth in LPG in India signals an increasing demand for LPG, and our integrated logistics services make AVTL uniquely positioned to both capture market share and achieve our vision of a more sustainable future.

New Developments

The company has further enhanced its LPG infrastructure by completing the acquisition of a new LPG terminal at Mangalore on June 19 2025, with a static storage capacity of 82,000 MT. This increases the total

LPG static capacity from 70,800 MT to 152,800 MT. Additionally, a new LPG terminal at Pipavav, with a capacity of 48,000 MT, is expected to be commissioned by July 2025.

To strengthen its presence in ammonia terminalling, the company plans to acquire India?s first independent ammonia terminal at Pipavav, Gujarat, with a static capacity of 36,000 MT. This acquisition is projected to be completed before the end of calendar year 2026.

The Company has acquired a terminal at JNPA with a designed total storage capacity of 101,900 m3 for liquid products comprising 30 tanks, with a total storage land area of 16,165 m2. This facility would cater to the Maharashtra, Hyderabad, Silvassa and Gujarat hinterlands. Further, at JNPA, the company has been allotted an additional 121,000 m2 plot for setting up storage tanks.

The Company has acquired an incremental terminal in Mangalore, Karnataka on March 01, 2025 with a designed total storage capacity of 75,230 m3 for liquid products comprising 19 tanks, with a total storage land area of 28,867 m2. The Company has also been allotted an additional plot measuring 60,703 m2 at Mangalore for setting up of storage infrastructure and related facilities. In addition to the above, the Company?s wholly owned subsidiary (CRL Terminals Private Limited) has been allotted a plot admeasuring 27,458 m2 for constructing storage tanks, which would further strengthen the Company?s presence in the port of Kandla when operational.

Summary

With its strong market presence, capacity expansion, improved liquid terminalling and steadily higher throughput in the Gas Division, the company is well-positioned for a step up growth in FY 2025-26.

The significant changes in the financial ratios of the Company, which are more than 25% as compared to the previous year on a consolidated basis, are summarised as follows:

Internal Controls Systems and Adequacy

The Company has a proper and adequate system of internal controls to ensure that all the assets are safeguarded, protected against loss from unauthorised use or disposition and that transactions are authorised, recorded, and reported correctly. The Company conducts audits of various departments based on an annual audit plan through an independent internal auditor and reports significant observations along with ‘Action Taken Reports? to the Audit Committee from time to time. The views of the statutory auditors are also considered to ascertain the adequacy of the internal control system.

The Company regularly updates its risk management policy to protect the property, earnings, and personnel of the Company against losses and legal liabilities that might be incurred due to various risks.

Occupational Health, Safety, and Environment

The emphasis on OHSE continues at all of the terminals of the company. The Company is committed to the best standards in safety and continuously monitors relevant matters. In addition to periodic reviews by the management, the Company has formed a high-level committee comprising of three directors and other Company executives, wherein matters concerning the subject are discussed. Safety drills are regularly carried out at all facilities.

Although the company has a low carbon footprint, efforts are underway to reduce the impact on the environment and improve environmental sustainability; it continues to monitor emissions with the installation of a continuous monitoring system at two locations and investing in pollution control systems. The company has engaged leading engineering Institutes to design equipment and model the impact on the environment. These efforts ensure that we are making progress towards our commitment to a more sustainable future.

Human Resources Development

AVTL employs over 521 people. As the Company is growing fast, we are committed to competence development of young managers and recruitment of middle management in specific areas to sustain the future growth envisaged in the business.

Risks and Concerns

Inordinate delays in renewing licences and permits take a significant amount of time and resources, which could be deployed more productively. Project timelines could be extended due to the lengthy and complex process of securing environmental permits.

Corporate Social Responsibility

Aegis Group contributes directly towards the eligible Corporate Social Responsibility ("CSR") projects and is also a proud contributor to ANaRDe Foundation, a government-accredited NGO. Acting through this Foundation, the company has continued to work actively in rural development and poverty alleviation, primarily in Gujarat. The Foundation has been engaged in a focused initiative for the benefit of rural communities in India, including rural housing and sanitation, water resource management, and financial inclusion. The Group contributes to ANarDe Foundation to fulfil its corporate social responsibility.

Forward-Looking Statements

This report contains forward-looking statements based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company?s actual results, performance, or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information, or events.

Three Year Financial Report

# Adjusted Net Debt = Non current borrowings + Current borrowings - Bank balance - Investments

* Capital Work in Progress (CWIP) and Capital Advances represent investments in assets that are not yet operational and therefore do not contribute to current EBITDA.

** EBITDA on Capital Employed = EBITDA / Average Capital Employed