Deep Industries Ltd

- 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.

- 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).

- 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.

- 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.

- 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.