Jindal Drilling & Industries Ltd

- No plans to raise new debt for general purposes; existing debt is primarily for rig refurbishment. - Debt on rig Discovery-1 (around Rs. 80 crores) will be fully repaid by 31st May 2024 from internal accruals. - Company expects improved cash flows and does not foresee need for additional debt. - Financing for the purchase of rig Jindal Pioneer (net cash outflow approx. US$ 45 million) will be staggered and internal accruals will be utilized; no specific mention of new debt. - No mention of raising equity capital in the current or near future plans. In summary, Jindal Drilling & Industries Limited is not currently planning fundraising through new debt or equity, relying instead on internal accruals and existing cash flows for capital needs.

- The company is in the final stage of acquiring Rig Jindal Pioneer, currently deployed at a bareboat charter rate of US$ 35,000 per day; this purchase has been approved by the board, audit committee, shareholders, and is awaiting final statutory approval. - This acquisition is strategic to increase operations in India, as demand for rigs from ONGC is expected to rise. - Jindal Pioneer will be refurbished and redeployed in India post its current contract in Mexico, with refurbishment expected to take about 6 months after contract completion. - Payment for Jindal Pioneer will be on a staggered basis, and the company does not plan to take on fresh debt for this acquisition. - The company plans to increase its fleet of rigs to capitalize on the positive market outlook. - No new construction orders for rigs are currently planned due to long delivery timelines (2.5 to 3 years) and high prices (~US$ 270-300 million).

- The company expects EBITDA to improve on a year-on-year and quarter-on-quarter basis, with a dip in Q1 and Q2 FY25 due to rig refurbishment but a sharp improvement from Q3 FY25 onwards. - Acquisition of Rig Jindal Pioneer, currently on a US$ 35,000/day charter, is expected to immediately boost earnings once regulatory approvals are received. - ONGC's demand for rigs is stable with expectations of increased production, which should drive rig demand and revenue growth over the next few years. - Fleet expansion plans include increasing the number of rigs operated, supported by the purchase of Jindal Pioneer, anticipating higher day rates in the coming years. - Market outlook for rig day rates is positive, with existing older contracts at lower rates transitioning to higher rate contracts, supporting revenue growth. - Refurbishments and redeployments of rigs such as Jindal Supreme will extend asset life and contribute to improving revenue from FY25 onwards.

- FY24 saw improved revenue and profitability due to deployment of all 5 rigs. - Earnings in FY25 expected to improve with redeployment of owned rig Jindal Supreme by Oct-Nov 2024 at higher rates. - EBITDA expected to decline in Q1 and Q2 FY25 due to one rig de-hire, but rise sharply from Q3 FY25 onwards. - Acquisition of rig Jindal Pioneer (pending statutory approval) will immediately enhance earnings upon completion. - Promoter stake increased in Q4 FY24, positively impacting shareholder value. - Market outlook remains very good with increasing rig demand expected from ONGC and rising rig rental rates. - Long-term plans include expanding rig fleet to capitalize on buoyant market conditions. - Earnings fluctuations primarily due to transitioning rigs from low-rate old contracts to higher-rate new contracts. - PAT and EPS improved by around 80% in Q4 FY24 versus Q4 FY23.

- The order book as of 31st March 2024 stands at approximately US$ 251 million. - Majority of the earnings and EBITDA are generated from the rig segment. - The company is currently operating 5 rigs, with plans to increase the fleet. - Jindal Pioneer is in the process of being purchased; once acquired, it will contribute to the order book and earnings. - ONGC currently operates around 34 rigs; demand for rigs is expected to increase with rising exploration targets. - ONGC's rig requirement remains steady with occasional tender cancellations and re-tendering expected. - No free rigs are presently available from Jindal Drilling, indicating full deployment. - Future contracts are anticipated at higher day rates, reflecting market buoyancy and increased demand.