Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or future planned fundraising through debt or equity in the provided transcript. The company mentioned having net cash on hand of around Rs. 100 crore as of now. CAPEX plans are primarily funded through confirmed orders, with no indication of needing additional debt or equity. For Dolphin Offshore, CAPEX of around Rs. 35 crore is currently ongoing, but working capital requirements and funding details are still early to determine. The company prefers an asset-light model in some areas, which might reduce capital intensity and funding needs. Overall, t

Any current/future capex/capital investment/strategic investment?

The company plans CAPEX of around Rs. 80-90 crore for the current financial year, driven by confirmed orders (Page 9). CAPEX includes around Rs. 40 crore for one drilling rig (Rs. 130 crore order) and about Rs. 20 crore for the compression segment; remaining depends on new awards (Page 16). Rs. 35 crore CAPEX is ongoing for refurbishment of Dolphin Offshore assets; this will be capitalized (Pages 12, 17). For Dolphin acquisition, CAPEX is currently focused on reviving existing equipment before operation commencement (Page 12). Additional future CAPEX will be planned post winning new orders; as

Future growth expectations in sales/revenue/volumes?

The company provides conservative revenue growth guidance of around 20% for FY24 and the next 2-3 years. Current order book is strong and growing consistently for 9 quarters, providing good visibility for revenue over next 2.5-3 years. New JVs targeting higher-capacity drilling rigs and EPC business expected to contribute positively to growth. Revenue from Dolphin Offshore is expected to start from the second half of FY24, estimated between Rs. 30-50 crore this year. The bidding pipeline is robust with over Rs. 500 crore worth bids expected to convert into orders soon. The 2000 HP drilling rig

Future growth expectations in earnings/operating earnings/profits/EPS?

The company conservatively guides for a **20% revenue growth** for FY24 but acknowledges potential for higher growth given a strong order book and bidding pipeline. EBITDA margins are expected to remain strong, **above 40%**, with possibilities of slight improvement. Dolphin Offshore is expected to start contributing revenue from the second half of FY24, estimated between **Rs. 30 crore to 50 crore** this year. Synergies from recent JVs (with Focus Energy and Euro Gas) are expected to contribute positively, though exact margin improvement is not yet quantified. The company aims to improve ROCE

Current/ Expected Orderbook/ Pending Orders?

Deep Industries' order book stands at Rs. 1,160 crore, marking a 52% year-on-year increase and an 8% quarter-on-quarter increase. The company has consistently increased its order book for 9 consecutive quarters. A significant recent order includes a Rs. 130 crore contract from ONGC for charter hiring of a 90 metric ton mobile drilling rig. Order book execution timeline spans 2.5 to 3 years with about 48-50 different ongoing contracts. Segment-wise order book breakup: Gas compression ~46%, rigs ~42%, and the remainder from integrated project management and gas dehydration. Bidding pip

IN US

Sale is live|00:00:00left today

Deep Industries LtdQ2 FY24Oil

Deep Industries Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹480P/E: 7.7Market Cap: ₹2.9K CrSector: Oil

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→The company provides conservative revenue growth guidance of around 20% for FY24 and the next 2-3 years.
→Current order book is strong and growing consistently for 9 quarters, providing good visibility for revenue over next 2.5-3 years.
→New JVs targeting higher-capacity drilling rigs and EPC business expected to contribute positively to growth.
→Revenue from Dolphin Offshore is expected to start from the second half of FY24, estimated between Rs. 30-50 crore this year.
→The bidding pipeline is robust with over Rs. 500 crore worth bids expected to convert into orders soon.
→The 2000 HP drilling rigs and higher-capacity contracts will open larger market opportunities adding to growth.
→Conservative approach maintained on guidance despite potential for higher growth.
→Overall, strong market demand driven by government focus on increasing natural gas usage and related infrastructure expansion supports growth.

Margin guidance

Category 3

→The company conservatively guides for a **20% revenue growth** for FY24 but acknowledges potential for higher growth given a strong order book and bidding pipeline.
→EBITDA margins are expected to remain strong, **above 40%**, with possibilities of slight improvement.
→Dolphin Offshore is expected to start contributing revenue from the second half of FY24, estimated between **Rs. 30 crore to 50 crore** this year.
→Synergies from recent JVs (with Focus Energy and Euro Gas) are expected to contribute positively, though exact margin improvement is not yet quantified.
→The company aims to improve ROCE (currently ~12%) via asset-light models in the next 2-3 years, potentially enhancing profitability.
→Order book conversions and new orders in JV segments (contracts typically Rs. 150-250 crore) should drive revenue and profit growth.
→Operating performance and margin improvements are on track with historically strong execution and order flow.

3 more insights locked — sign up free to unlock

Fundraise plans

→There is no explicit mention of any current or future planned fundraising through debt or equity in the provided transcript.
→The company mentioned having net cash on hand of around Rs. 100 crore as of now.
→CAPEX plans are primarily funded through confirmed orders, with no indication of needing additional debt or equity.
→For Dolphin Offshore, CAPEX of around Rs. 35 crore is currently ongoing, but working capital requirements and funding details are still early to determine.
→The company prefers an asset-light model in some areas, which might reduce capital intensity and funding needs.
→Overall, the company has not indicated any intent to raise debt or equity funds imminently or in the near future.

Order book

Yes

→Deep Industries' order book stands at Rs. 1,160 crore, marking a 52% year-on-year increase and an 8% quarter-on-quarter increase.
→The company has consistently increased its order book for 9 consecutive quarters.
→A significant recent order includes a Rs. 130 crore contract from ONGC for charter hiring of a 90 metric ton mobile drilling rig.
→Order book execution timeline spans 2.5 to 3 years with about 48-50 different ongoing contracts.
→Segment-wise order book breakup: Gas compression ~46%, rigs ~42%, and the remainder from integrated project management and gas dehydration.
→Bidding pipeline exceeds Rs. 500 crore with expected conversion into orders within a quarter.
→JV contracts typically range from Rs. 150 to 250 crore per contract with positive wins expected during the year.
→Mobilization for new orders is expected to take more than 6 months.

Capex plans

Yes

→The company plans CAPEX of around Rs. 80-90 crore for the current financial year, driven by confirmed orders (Page 9).
→CAPEX includes around Rs. 40 crore for one drilling rig (Rs. 130 crore order) and about Rs. 20 crore for the compression segment; remaining depends on new awards (Page 16).
→Rs. 35 crore CAPEX is ongoing for refurbishment of Dolphin Offshore assets; this will be capitalized (Pages 12, 17).
→For Dolphin acquisition, CAPEX is currently focused on reviving existing equipment before operation commencement (Page 12).
→Additional future CAPEX will be planned post winning new orders; asset-heavy business with CAPEX closely tied to order confirmations (Pages 9, 6).
→The company is exploring asset-light models like leasing rigs to improve ROCE but balancing margin impact (Page 15).

How does Deep Industries Ltd rank vs peers in Oil?

Pro feature

1Deep Industries Ltd

Rev 2Mar 3

See full Oil sector rankings