Deep Industries Ltd

- The company has taken some debt for the refurbishment of the Prabha barge, with the balance funded through internal accruals. - Interest costs have increased due to new debt taken. - The company is maintaining liquidity and a strong cash position (over ₹150 crore in cash and liquid investments) to capitalize on acquisition opportunities such as Dolphin Offshore and Kandla Energy & Chemicals. - There is a strategic focus on being cash-rich to fund future acquisitions and asset purchases rather than immediately seeking new large-scale fundraising. - No explicit mention of any new or planned large equity fundraising in the near term. - The firm is cautious with cash management to be able to act quickly on acquiring better assets when opportunities arise.

- Planned CAPEX for the current year is around ₹150 crore, with about ₹100 crore already in process (Page 8). - The CAPEX mainly includes buying 3 new rigs to meet full asset utilization in drilling and rig services (Page 8). - Investment of around $11 to $13 million has been made in refurbishing the Prabha barge, with some pending minor costs (Pages 5, 11). - There is a small strategic investment of around ₹2 crore in acquiring Kandla Energy and Chemicals, a company under liquidation, to explore synergies in chemical manufacturing for drilling (Pages 7, 13). - The company is open to evaluating other acquisition opportunities, especially second-hand equipment for Dolphin Offshore, though exact numbers depend on market availability (Page 5). - The firm maintains high liquidity (~₹150 crore cash and liquid investments) to be agile for future acquisitions (Page 7). - They are exploring opportunities in emerging areas like hydrogen but it is premature for concrete investments (Page 6).

- The company expects over 20-25% year-on-year growth in standalone sales (Page 9). - Strong bidding pipeline and consistent new order flows are driving robust revenue growth (Page 3). - Execution of current order book of Rs. 1246 crore will continue to contribute over the next 2.5 years (Page 12). - New contracts from ONGC worth approximately Rs. 140 crore support revenue growth (Page 3). - Commercialization of new rigs is expected in next 4-6 months, adding to capacity (Page 13). - Dolphin Offshore's refurbished assets (barge Prabha and DSV) expected to contribute to revenue from Q3 onwards, with Dolphin revenue expected to grow significantly (Pages 3, 9, 11). - The company is evaluating similar opportunities in offshore services to expand revenue streams (Pages 5, 6). - Overall, management is optimistic about robust bidding pipeline with awards expected in 1-2 quarters, supporting steady growth (Page 6).

- Consolidated revenue from operations rose by 22% in Q1FY25, with strong order execution and consistent new orders. - EBITDA grew by 26.4%, with margins maintained between 42% to 45%, supporting robust cash flows. - Net profit increased by 25% year-on-year in Q1FY25, with a PAT margin of 28.8%. - Order book stands at Rs. 1246 crore, 12% higher than Q1FY24, indicating strong future revenue visibility. - Firm orders for 3 new rigs expected to commercialize within 4-6 months, driving future growth. - Dolphin Offshore expected to contribute Rs. 70-80 crore this year, growing to Rs. 100+ crore next year with over 50% EBITDA margins. - Standalone operations anticipate 20-25% year-on-year sales growth. - Robust bidding pipeline and favorable macroeconomic conditions suggest sustained growth. - Target ROCE is 14-16% as assets get commercialized and capital employed optimizes returns.

- Current order book stands at approximately Rs. 1246 crore, stable compared to mid-last year. - This order book excludes Dolphin Offshore orders. - Orders are expected to be executed over the next 2.5 to 3 years. - Robust bidding pipeline with substantial bids submitted; awards expected in next 1-2 quarters. - Recent orders include contracts from ONGC worth around Rs. 140 crore. - Dolphin Offshore order book will be reported separately going forward; includes barge and other vessel contracts. - Continuous inflow of new orders balances execution, keeping order book stable but poised for growth. - Evaluating opportunities beyond current assets, including refurbishment and acquisition of vessels.