Premier Cryogenics Unlisted Shares

About Premier Cryogenics Unlisted Shares

Premier Cryogenics Limited, established in 1996, has grown to become the largest manufacturer of industrial gases in the North Eastern (N.E.) region of India. The company specializes in producing a wide range of industrial gases, including Liquid Nitrogen, Liquid Oxygen, Industrial and Medical Oxygen, High Purity Nitrogen, and Dissolved Acetylene. Additionally, Premier Cryogenics produces specialty gases such as Helium, Hydrogen, Freon, Calibration Gases, Gas Mixtures, and Ultra-High Purity Gases.

With its professional management structure and strategic expansion plans, Premier Cryogenics is positioned to cater to the increasing industrial gas demand both within the North East region and beyond. The company is listed on the Calcutta Stock Exchange as a public limited company, showcasing its transparent corporate practices and commitment to growth.

2. Business Divisions

Premier Cryogenics Limited operates in several key business segments, making it a prominent player in the industrial gases sector:

• Industrial Gases Manufacturing: Premier Cryogenics manufactures a wide range of industrial gases, including both common and specialty gases. Its products serve multiple industries such as defense, healthcare, oil and gas, infrastructure, and manufacturing.
• Specialty Gases: Apart from traditional industrial gases, Premier Cryogenics is involved in the production and supply of high-end specialty gases like Helium, Hydrogen, and Freon. These gases are essential for critical applications in sectors such as research, healthcare, and electronics.
• Gas Components: The company also manufactures essential components for the gas industry, such as cylinders, valves, regulators, and liquid containers. These components are critical for the safe handling and transportation of gases.
• Power Generation: Through its subsidiary, PCL Power Private Limited, Premier Cryogenics focuses on generating power from natural gas for captive or group captive consumption. This division contributes to the company’s diversification and ensures energy efficiency.

3. Financial Highlights

Premier Cryogenics Limited has demonstrated solid financial performance in recent years, as evidenced by the following key financial metrics:

1. Revenue Decline:
   Premier Cryogenics reported a revenue of ₹7,748 crore in FY 2023, a decline from ₹9,524 crore in FY 2022. While the company’s revenue showed a decrease, it still maintains a strong presence in the industrial gas market, supported by the demand for its products across various sectors.
2. Gross Margins Improvement:
   Despite the decline in revenue, Premier Cryogenics achieved a gross margin of 71.44% in FY 2023, a significant improvement from 62.89% in FY 2022. This increase in gross margins demonstrates the company’s efficiency in managing its cost of goods sold and improving profitability.
3. EBITDA and EBIT Performance:
   Premier Cryogenics posted an EBITDA of ₹2,282 crore in FY 2023, compared to ₹2,689 crore in FY 2022. The EBIT for FY 2023 was ₹1,809 crore, down from ₹2,183 crore in FY 2022. While there was a decline in both EBITDA and EBIT, the company’s profitability remained strong, with an EBIT margin of 23.35% in FY 2023.
4. Profitability:
   The company’s PAT for FY 2023 stood at ₹1,219 crore, down from ₹1,637 crore in FY 2022. The Net Profit Margin (NPM) for FY 2023 was 15.73%, slightly lower than the 17.19% reported in FY 2022. This indicates a minor decline in profitability, primarily due to the decrease in revenue and other expenses.
5. Debt and Liabilities:
   Premier Cryogenics has maintained a relatively stable balance sheet. As of FY 2023, the company reported borrowings of ₹2,352 crore and total liabilities of ₹11,971 crore. Despite these liabilities, the company’s strong reserves of ₹8,190.5 crore in FY 2023 indicate its ability to manage financial obligations effectively.

Pros

• Market Leadership: Largest industrial gas manufacturer in North Eastern India, offering a competitive edge in logistics and stability.
• Advanced Manufacturing Plants: State-of-the-art plants increase production capacity and meet growing demand in critical sectors.
• Energy-Efficient Operations: Utilizes energy-efficient technologies to reduce power costs and improve cost-effectiveness.

Cons

• Power Dependency: Vulnerability to power supply disruptions or increased tariffs, affecting production costs and operational expenses.
• Market Competition: High competition in the industrial gases market, exposing the company to pricing pressures and tender-based sales.
• Government Policy Changes: Risk of policy shifts impacting tax rebates, incentives, and profitability.

Key Details