Any current/future new fundraising through debt or equity?

No specific mention of any new fundraising through debt or equity in the current or near future was made during the call. The company currently has a debt position of INR 173 crores related to refurbishment expenses, which is expected to reduce to INR 132 crores by 31 March 2025. The repayment schedule thereafter is INR 66 crores each in the next two financial years. Management stated they will generate cash internally from operations and joint venture companies, leading to an improved net cash position. There was no indication of plans for fresh debt or equity raising; the focus remains on in

Future growth expectations in sales/revenue/volumes?

Jindal Drilling expects growth from deployment of company-owned rigs, notably Jindal Supreme, which commenced operations in October 2024 at a higher day rate (~$88,859). Acquisition of rig Jindal Pioneer is in final stages; earnings are expected to improve immediately upon completion. Participation in upcoming ONGC tenders anticipated, providing opportunities to maintain or improve utilization and rates. International markets, especially in the Far East, present additional opportunities if Indian contracts do not materialize. Visibility on year-wise potential revenue break-up has been improved

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

Deployment of company-owned rig Jindal Supreme at a higher day rate (~$88,859 vs earlier $40,700) expected to significantly boost EBITDA and margins. Acquisition of rig Jindal Pioneer underway; upon approval and consolidation, immediate improvement in earnings expected as currently only 49% profit from rig is recognized. Participation in upcoming ONGC tenders for rigs, including renewal of Jindal Explorer contract, with expected stable or improved day rates (likely $65,000-$85,000 range). Efforts ongoing to simplify company structure and consolidate assets to improve valuation and earnings vis

Current/ Expected Orderbook/ Pending Orders?

Jindal Drilling currently operates five offshore jack-up rigs deployed with ONGC. The order book includes contracts with defined day rates and durations for these rigs. The company has bifurcated the order book rig-wise and financial year-wise for clearer revenue visibility. On contract conclusion, fresh tenders are usually issued to ensure continuity. Jindal Explorer's contract ends in May 2025; ONGC is expected to release tenders in November or December 2024. Jindal Drilling plans to participate in the upcoming ONGC tenders and expects to secure the contracts. The company is also open to dep

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Jindal Drilling & Industries LtdQ3 FY24Oil

Jindal Drilling & Industries Ltd Q3 FY24 Earnings Call Analysis

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

Price: ₹566P/E: 7.1Market Cap: ₹1.7K CrSector: Oil

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Jindal Drilling expects growth from deployment of company-owned rigs, notably Jindal Supreme, which commenced operations in October 2024 at a higher day rate (~$88,859).
→Acquisition of rig Jindal Pioneer is in final stages; earnings are expected to improve immediately upon completion.
→Participation in upcoming ONGC tenders anticipated, providing opportunities to maintain or improve utilization and rates.
→International markets, especially in the Far East, present additional opportunities if Indian contracts do not materialize.
→Visibility on year-wise potential revenue break-up has been improved for shareholder clarity.
→Efforts are underway to simplify company structure and consolidate assets to enhance operational efficiency and valuation.
→The company anticipates maintaining or slightly improving rig day rates in line with international market dynamics amid ongoing geopolitical tensions, supporting revenue growth.

Margin guidance

Category 3

→Deployment of company-owned rig Jindal Supreme at a higher day rate (~$88,859 vs earlier $40,700) expected to significantly boost EBITDA and margins.
→Acquisition of rig Jindal Pioneer underway; upon approval and consolidation, immediate improvement in earnings expected as currently only 49% profit from rig is recognized.
→Participation in upcoming ONGC tenders for rigs, including renewal of Jindal Explorer contract, with expected stable or improved day rates (likely $65,000-$85,000 range).
→Efforts ongoing to simplify company structure and consolidate assets to improve valuation and earnings visibility.
→Continued focus on operational improvements and increasing company-owned rig deployment to maximize profitability.
→Absence of major one-off expenses expected in next quarters, supporting stable earnings.
→Management anticipates substantial growth in quarterly EBITDA (potential 3x-4x improvement) post completion of rig acquisition and deployment.

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Fundraise plans

→No specific mention of any new fundraising through debt or equity in the current or near future was made during the call.
→The company currently has a debt position of INR 173 crores related to refurbishment expenses, which is expected to reduce to INR 132 crores by 31 March 2025.
→The repayment schedule thereafter is INR 66 crores each in the next two financial years.
→Management stated they will generate cash internally from operations and joint venture companies, leading to an improved net cash position.
→There was no indication of plans for fresh debt or equity raising; the focus remains on internal cash flow generation and potential rig acquisitions pending regulatory approval.
→Enhancements in visibility and operations are prioritized over fundraising at this stage.

Order book

→Jindal Drilling currently operates five offshore jack-up rigs deployed with ONGC.
→The order book includes contracts with defined day rates and durations for these rigs.
→The company has bifurcated the order book rig-wise and financial year-wise for clearer revenue visibility.
→On contract conclusion, fresh tenders are usually issued to ensure continuity.
→Jindal Explorer's contract ends in May 2025; ONGC is expected to release tenders in November or December 2024.
→Jindal Drilling plans to participate in the upcoming ONGC tenders and expects to secure the contracts.
→The company is also open to deploying rigs internationally if domestic contracts are not renewed.
→Acquisition of Jindal Pioneer rig is pending statutory approval and expected to boost order book and earnings upon completion.

Capex plans

Yes

- Jindal Drilling is in the final stage of acquiring the rig "Jindal Pioneer," awaiting statutory authority approval, expected to conclude soon. - Acquisition of Jindal Pioneer will immediately improve earnings. - No specific mention of other capital expenditures or strategic investments in the current period. - The company is also working on simplifying the structure of Jindal Drilling by consolidating assets to enhance valuation and earnings. - No one-off refurbishment expenses are expected in the near term beyond ongoing operations. - No further large-scale capex explicitly detailed beyond refurbishment work on rigs like Jindal Supreme already undertaken. In summary, the primary near-term strategic investment is the anticipated acquisition of Jindal Pioneer rig.

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