Deep Industries Limited · NSE:DEEPINDS
Deep Industries — Q3 FY2019 Earnings Presentation
39 slides from Deep Industries's earnings presentation, Feb 15, 2019
Slide 1: DEEP Industries Limited
DEEP Industries. Limited Oil & Gas Exploration Production & Services February 15, 2019 To, To, Corporate Relations Department Corporate Relations Department , Bombay Stock Exchange Limited ~ational Stock Exchange of India Ltd. 2nd Floor, P.J. Towers, Exchange Plaza,Plot No. C/1, G-Block, Dalal Stree
Slide 2: Investor Presentation – February 2019
DEEP Industries Limited Investor Presentation – February 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: Standalone Profit & Loss – As per IndAS
Standalone Profit & Loss – As per IndAS Rs. Cr Q3FY19 Q3Y18 9MFY19 9MY18 Consolidated Performance Revenue 60.4 74.7 189.0 221.4 ▪ Deep International Direct Expenses 16.4 24.6 49.1 68.2 DMCC, a 100% Employee Expenses 5.3 6.2 16.1 16.3 subsidiary of Deep Other Expenses 4.5 6.2 19.8 17.3 Industries has
Slide 6: Standalone Balance Sheet – As per IndAS
Standalone Balance Sheet – As per IndAS Rs. Cr Sept-18 Mar-18 Sep-17 Rs. Cr Sept-18 Mar-18 Sep-17 Non Current Assets 524 543 579 Equity 481 455 418 Property Plat & Equipment 489 509 501 Share Capital 32 32 32 Capital Work In Progress 13 13 52 Other Equity 449 423 386 Intangible Assets 0 0 0 Total No
Slide 7: Growth over the Years
Growth over the Years Revenue (Rs Crs) EBITDA (Rs Crs) 300 156 161 277 +33% +35% 169 96 91 101 52 55 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBITDA Margin (%) PAT (Rs Crs) 74 76 +40% 57.4 56.9 56.2 54.3 53.6 41 20 21 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY18 financials are as
Slide 8: Historical Profit & Loss
Historical Profit & Loss Rs. Crs FY13 FY14 FY15 FY16 FY17^ FY18^ Revenue 65 91 101 169 277 300 Direct Expenses 16 22 24 40 84 91 Employee Expenses 7 9 13 14 20 23 Other Expenses 6 7 9 18 17 26 EBITDA 36 52 55 96 156 161 EBITDA Margin 55.2% 57.4% 54.3% 56.9% 56.2% 53.6% Other Income 2 1 1 1 9 7 Depre
Slide 9: Strong Balance Sheet
Strong Balance Sheet Net Debt/Equity Net Debt/EBITDA 0.94 2.53 2.15 1.85 1.86 0.57 0.50 1.41 0.45 0.47 0.21 0.59 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Interest Coverage Ratio Debt Service Coverage Ratio 11.78 2.63 2.33 2.25 2.18 1.74 1.80 5.81 4.84 5.10 4.31 4.10 FY13 FY14 FY15
Slide 10: 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 11: 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 12: 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 13: About Us
About Us
Slide 14: 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 15: 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 16: 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 17: Long Term Client Relationships
Long Term Client Relationships U GSPC - ~l~~fll~ OIL INDIA LIMITED GUJARAT GAS Selan Exploration c -NIKO RESOURCES LTD Llfllll D ASSAM ~ G S~~COMPANYLTD c;caz I INDIA t A C.. ¥1 V"OCalA~ A'-'IA• Of' -.r.o ) …a testimony of our capabilities 16
Slide 18: Services Business
Services Business
Slide 19: 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 20: Gas Compression Division
Gas Compression Division 19
Slide 21: 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 22: …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 23: …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 24: Rigs Division
Rigs Division 23
Slide 25: 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 26: Growth Drivers
Growth Drivers Government’s Energy Push India has a stated policy of increasing energy reserves 1 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 27: Gas Dehydration Division
Gas Dehydration Division 26
Slide 28: 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 29: 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 30: Exploration & Production
Exploration & Production 29
Slide 31: 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 VN-ONN-2010/1 future and thus is in the league of producers, service providers Marginal Gas fields Acreage: 3776 sq. km and technology provider
Slide 32: Business Potential
Business Potential
Slide 33: 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 34: Certificates….
Certificates…. DEEP INDUSTRIES LTD . .. . ..... :-~~ Ht;AOQFFK:.f' Ml 11,A lr. 1ft,NI H ~ R Fr-C':(1~JtAR'C,<WI P l"~• At"-'T~ I N~ION'II,Rifn\", !ll SloP ...,.6AU.ecf'..L A<Wl• ...We.o.J. ......t:OAaAC - 8!0 ;o,! OWAMT IN!lt" WORK,.IOP' nrO' I N~~r:o; I m. O.,P' r"_.......R P':TRQ lllJWP, ~AI/A -ll
Slide 35: … And Accolades
… And Accolades 14THABLA 7 CNOC Forb~:! A.c;IA .t"ct It .O.. Jt ll.. .AW 4 JOS20"5 / - - ..... ,.. Ct. . ...... '""' " - f CO GqA.T ULAT I ONS Paras Savla CM it-..ln& '10 ~t=lntha1nu U.f..C..A ..... U.. IN l~ •c. -. 4.S•t , t.h'>Lr~C· ~~ .....utt. t; ... TH REGION S TOP 200 ANO llitOSI:Z CO .. _,ANI
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility
Slide 37: 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 36
Slide 38: Socially Responsible Corporate – “Smart Class” Initiative (2/2)
Socially Responsible Corporate – “Smart Class” Initiative (2/2) 37
Slide 39: 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