Slide 1: DEEP Industries Limited
DEEP Industries . Limited Oil & Gas Exploration Production & Services May29,2019 To, To, Corporate RelationsDepartment Corporate Relations Department Bombay Stock Exchange Limited National Stock Exchange of India Ltd. 2"d Floor, P.J. Towers, Exchange Plaza,Plot No. C/1, G-Block, Dalal S~reet, Bandra
Slide 2: Investor Presentation – May 2019
DEEP Industries Limited Investor Presentation – May 2019 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Deep Industries Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti
Slide 4: Performance Snapshot
Performance Snapshot
Slide 5: Order Wins
Orders during recent period 01 Drilling Rigs Repeat Order from ONGC worth Rs. 91.75 Crs for a period of 3 years Fresh Order from ONGC worth Rs. 91.75 Crs for a period of 3 years 02 Workover Rig Fresh & Repeat Orders from ONGC worth Rs. 27.85 Crs for Order a period of 3 years and 1 year Wins Natural
Slide 6: Financial Express CFO of the Year Award 2019
Financial Express CFO of the Year Award 2019 Company’s Group Chief Financial Officer Mr. Rohan Shah was accorded with the “Financial Express CFO of the Year Award 2019 (Small Enterprises- Service Industry)” The award celebrates excellence, best practices and outstanding achievements by India’s l
Slide 7: Consolidated Profit & Loss
Consolidated Profit & Loss Consolidated Performance Commentary Particulars (Rs. Cr) FY19 FY18 YoY Revenue 308.7 312.7 -1.3% While consolidating financials, elimination of inter company Sales and Direct Expenses 112.1 95.4 Expenses between DIL & PEPL to the Employee Expenses 24.4 23.4 tune of Rs. 8
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Cr Mar-19 Mar-18 Rs. Cr Mar-19 Mar-18 Non Current Assets 534 559 Equity 525 462 Property Plat & Equipment 468 509 Share Capital 32 32 Capital Work In Progress 64 47 Other Equity 488 425 Intangible Assets 0 0 Non Controlling Interest 5 5 Total Non Current Liabilities 12
Slide 9: Standalone Profit & Loss
Standalone Profit & Loss Standalone Particulars (Rs. Cr) Q4FY19 Q4Y18 YoY FY19 FY18 YoY Revenue 70.1 79.1 -11.4% 259.1 300.5 -13.8% Direct Expenses 27.0 22.6 76.2 90.8 Employee Expenses 4.5 6.9 20.6 23.1 Other Expenses 7.9 8.4 27.7 25.6 EBITDA 30.6 41.3 -25.8% 134.7 161.0 -16.3% EBITDA Margin 43.7%
Slide 10: Standalone Balance Sheet
Standalone Balance Sheet Rs. Cr Mar-19 Mar-18 Rs. Cr Mar-19 Mar-18 Non Current Assets 505 543 Equity 510 455 Property Plat & Equipment 468 509 Share Capital 32 32 Capital Work In Progress 16 13 Other Equity 478 423 Intangible Assets 0 0 Non Controlling Interest 0 0 Total Non Current Liabilities 101
Slide 11: Performance over the Years
Performance over the Years Revenue (Rs Crs) EBITDA (Rs Crs) +26% +25% 300 156 161 277 259 135 169 96 101 55 FY15 FY16 FY17^ FY18^ FY19^ FY15 FY16 FY17^ FY18^ FY19^ EBITDA Margin (%) PAT (Rs Crs) +30% 54.3 56.9 56.2 75 76 53.6 52.0 60 41 21 FY15 FY16 FY17^ FY18^ FY19^ FY15 FY16 FY17^ FY18^ FY19^ Stan
Slide 12: Historical Standalone Profit & Loss
Historical Standalone Profit & Loss Rs. Crs FY13 FY14 FY15 FY16 FY17^ FY18^ FY19^ Revenue 65 91 101 169 277 300 259.1 Direct Expenses 16 22 24 40 84 91 76.2 Employee Expenses 7 9 13 14 20 23 20.6 Other Expenses 6 7 9 18 17 26 27.7 EBITDA 36 52 55 96 156 161 134.7 EBITDA Margin 55.2% 57.4% 54.3% 56.9
Slide 13: Strong Balance Sheet
Strong Balance Sheet Net Debt/Equity Net Debt/EBITDA 0.94 2.53 1.86 0.57 1.41 0.47 0.21 0.60 0.05 0.21 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Interest Coverage Ratio Debt Service Coverage Ratio 11.1 2.25 8.9 2.04 1.74 1.80 1.51 5.8 5.1 4.1 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
Slide 14: Segregation of Services Business and E&P Business
Segregation of Services Business and E&P Business • Proposed to separate Services Business and E&P Business in 2 separate listed entities with a view to have their own management expertise, financial and operational resources • E&P Business to remain in Deep Industries Ltd., while Services Business
Slide 15: Recent Oil Ministry Decision a big Positive
Recent Oil Ministry Decision a big Positive A big BOOST to the Domestic Oil- Gas Services Industry in India Specialized Services For premium bids and specialised drilling and completion services, the required local content has 05 been pegged at 10% for the first year, 15% in next two years and 20% i
Slide 16: CBM + DSF – a huge opportunity for Service Providers
CBM + DSF – a huge opportunity for Service Providers Award of Contract Areas DSF to benefit CBM - Free Increased under the outsourced Pricing + Activity Discovered Oil-Gas Marketing Small Fields Service (DSF) 2016 providers The CCEA has CBM Activities to The CCEA approved The government approved mov
Slide 17: About Us
About Us
Slide 18: Company at a Glance
Company at a Glance Deep Industries Focused on Deploying Fuel Efficient, latest Equipment in the Oil and GAS Industry with a Vision to become an Integrated Solution Provider with a focus on Domestic and International Market » Diversified Oil & Gas company » Long term association with US » Technicall
Slide 19: Management Team
Management Team Mr. Paras Savla Mr. Rupesh Savla Mr. Dharen Savla Chairman & MD Managing Director, Prabha Managing Director First generation promoter with Energy Pvt. Ltd. (PEPL) over 26 years experience in Oil & MBA from Bentley College, USA, has over 22 years of experience in execution MBA from Sw
Slide 20: Well Diversified Portfolio
Well Diversified Portfolio Gas Compression Workover & Drilling Rigs One of the first One of the Key Player in Company in India to India providing provide high pressure Onshore Workover and Natural Gas Drilling Rigs Services Compression Services on contractual basis Gas Dehydration Exploration & Prod
Slide 21: Long Term Client Relationships
Long Term Client Relationships 0I 3illffi ~f%m 1Ji1,-~llit1 ~:& · ~~ U GSPC ·· ~J OIL INDIA LIMITED O~.<tota' 1\.,.., es {:. Chemicals L_!d ~ :~..,L GW.IAAf5T~ PfTROfET ~Tll GUJARATGAS JIT I Relianee Industrie-s limited -NIKO RESOURCES LTD …a testimony of our capabilities 20
Slide 22: Services Business
Services Business
Slide 23: Customized Solution Provider in Oil & Gas Value Chain
Customized Solution Provider in Oil & Gas Value Chain Gas Compression Workover & Gas Dehydration Drilling Rigs Customised End to End Solution provider for First mover in Onshore Gas solutions on turnkey basis Drilling and Workover jobs Dehydration Business Equipment + Installation + O&M 02 01 03 End
Slide 24: Gas Compression Division
Gas Compression Division 23
Slide 25: Leadership in Gas Compression Business
Leadership in Gas Compression Business… Pioneer We are one of the largest Company in India to provide high pressure Natural Gas Compression Services High Visibility Market Leader Contract period for Gas Compression ranges from 3 to 5 We are the market leaders in years gas compression business in Ind
Slide 26: …In A Growing Market with Varied Applications…
…In A Growing Market with Varied Applications… Distribution During transportation of Gas through pipeline, there is Gas Transportation pressure loss. Compression of Natural Gas is required to boost the pressure to ensure that Natural Gas flows through pipeline Reduce Loss of Evaporation Due to heat
Slide 27: …With High Entry Barriers
…With High Entry Barriers Technical Expertise Skilled engineers are required to install, 1 mobilize and operate equipments Customization Expertise and Technical tie ups 2 enables us to provide customized solutions in quickest possible Capex timelines Capex required is high due to nature of equipment
Slide 28: Rigs Division
Rigs Division 27
Slide 29: Capitalising on Technology & Innovation
Capitalising on Technology & Innovation Leading Solution provider for Coring, Air Drilling, Work over and Drilling Rig Services to Oil & Gas companies in India Assets & Capacities Owns & Operates 9 Workover Rigs with Expertise capacity ranging from 30T to 100T, 2 Provided complete solutions rela
Slide 30: Growth Drivers
Growth Drivers Government’s Energy Push 1 India has a stated policy of increasing energy reserves where the PSU’s contribute significantly. Onshore Drilling Opportunity 2 Investments in Onshore drilling is low compared to offshore Benign Raw Material Prices 3 Low crude prices, soft metal prices and
Slide 31: Gas Dehydration Division
Gas Dehydration Division 30
Slide 32: Leveraging Technical Capabilities to Grab Opportunities
Leveraging Technical Capabilities to Grab Opportunities Blast at the GAIL site increased scrutiny on the processes followed by the producers and transporters of Gas and resulted in regulations being made more stringent This necessitated Gas Producers to get a dehydration units installed at the site
Slide 33: Immense Opportunity due to Government Regulation
Immense Opportunity due to Government Regulation Most of the Onshore Assets do not have dehydration plant in place giving us tremendous opportunity for growth in this space Faster Outsourcing Industry Mandatory Implementation Benefits Potential Government has made it Time taken from award Clients ca
Slide 34: Exploration & Production
Exploration & Production 33
Slide 35: Exploration & Production Portfolio
Exploration & Production Portfolio Diversified into Oil & Gas exploration in 2006-07 seeing the opportunity in the space and unconventional energy being the future and thus is in the league of producers, service providers Marginal Gas fields VN-ONN-2010/1 Acreage: 3776 sq. km and technology provider
Slide 36: Business Potential
Business Potential
Slide 37: Growing Market Potential
Growing Market Potential Gas Compression Gas Dehydration In 2005, India natural gas Government has made it mandatory compression services market was to have the Gas dehydrated before valued at USD 88.51 Mn and this is they can be inserted to the gas projected to reach USD 139.29 Mn by pipelines 2021
Slide 38: Certificates
Certificates…. BUREAU VERJTAS Cf:rtfficat•on DEEP INDUSTRIES LTD. ............. ~ ~, r..:.::.:.~ !o41;AI) (IFI'IC6: Nt> 12 A~ 1<1. N!lo41$1<R t t C::OR:P F'~ROC. (lOP~\'"'C....1 $\IN:).~L-()'Nl;, flll'f'$1!1\15 stOP, ,I.'A@,t,U.6Cf'.4~ FIOAO• .o.we.-.u, ........:0/.SAO - $50 C66, 0 \..UMAT, INf)t"-
Slide 39: … And Accolades
… And Accolades Forb~~ CON GRAT ULATIO NS Paras Savla (~1111!>)11 .110 u ...., ........, ... •. .••:!~~.... • .................. ~~REGION ' S TOP 2 00 ANO MIDSI%1: COI.,AHIQ HOYillai[R ;ra, UU 38
Slide 40: Corporate Social Responsibility
Corporate Social Responsibility
Slide 41: Socially Responsible Corporate – “Smart Class” Initiative (1/2)
Socially Responsible Corporate – “Smart Class” Initiative (1/2) Deep Industries Ltd. undertook an initiative to install Smart Classes in 100 schools with a view to enable holistic development of students through the use of modern technology. This facility has already been installed in 35 schools 40
Slide 42: Socially Responsible Corporate – “Smart Class” Initiative (2/2)
Socially Responsible Corporate – “Smart Class” Initiative (2/2) 41
Slide 43: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Deep Industries Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L63090GJ1991PLC014833 CIN: U74140MH2010PTC204285 Mr. Rohan Shah, CFO Mr. Shogun Jain / Mr. Pratik R. Shah rohan@deepindustries.com shogun.jain@sgapl.net / pra