Deep Industries Limited · NSE:DEEPINDS
Deep Industries — H1 FY2023 Earnings Presentation
29 slides from Deep Industries's earnings presentation, Nov 10, 2022
Slide 1: DEEP Industries Limited Q2 & H1FY23 Investor Presentation
DEEP Q2 & H1FY23 Investor Presentation Industries 10th November’2022 Limited 1
Slide 2: Disclaimer
Disclaimer 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 securitie
Slide 3: Agenda
Agenda Business Outlook & 1 Management Commentary 2 Key Strategic Highlights 3 Strong Order Book 4 Acquisition of Dolphin Offshore 5 Financial Performance 6 Annexures PAGE 3 DEEP Industries Limited
Slide 4: Management Commentary & Business Outlook
Management Commentary & Business Outlook Paras Savla (Chairman and Managing Director) “The Oil & Gas industry is witnessing a strong demand environment for over a year now. This translates to continued build up of order book albeit with a lag of 6-9 months considering involvement of complex engineer
Slide 5: Key Highlights of Q2 & H1FY23
Key Highlights of Q2 & H1FY23 Consolidated Performance for Q1FY23 Consolidated Performance for H1FY23 Current Capacity Utilization Gas Compression ~85% Gas Dehydration ~50% Workover & Drilling Rigs ~100% Strong EBITDA Margin Fuelling Growth Figures are on Consolidated basis and rounded off to neares
Slide 6: Key Strategic Highlights Q2FY23
Key Strategic Highlights Q2FY23 Particulars Current Status o NCLT has approved the Resolution Plan under IBC for acquiring Dolphin Offshore Enterprises (India) Ltd. Dolphin Offshore o This acquisition will lead to quick market access to offshore services which Acquisition otherwise would have taken
Slide 7: Strong Order Book
Strong Order Book Rs Crs 815 765 632 556 434 400 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Major Order Wins in Q2FY23 o Rs 71.64 crore from Oil India Ltd. – charter hiring of 2 Workover Rigs (550 HP (min) – 750 HP(max)) capacity for 3 years o Other fresh orders and extensions worth ~Rs 20 Crores dur
Slide 8: Rationale for Dolphin Offshore Acquisition
Rationale for Dolphin Offshore Acquisition Value creation for stakeholders of Deep Industries Expand portfolio of services 1 Quick market access to to Offshore Oil & Gas industry offshore services which leading to diversification of otherwise would have revenues 5 2 taken 2-3 years for DIL to get re
Slide 9: Dolphin Offshore – Way Forward
Dolphin Offshore – Way Forward 760+ Time to Turn Assets & Around Acquisition Liabilities taken Dolphin’s over by Deep Business Hon’ble NCLT has Dolphin is non- Assets - Real Estate approved the resolution operational since last ~3 properties in Mumbai as plan under IBC 2016 years and Deep would well
Slide 10: Improving Balance Sheet Strength
Improving Balance Sheet Strength Long Term Debt Reduction – Rs Crores 223 231 101 83 41 17 FY17 FY18 FY19 FY20 FY21 FY22 DEEP Industries PAGE 10 Limited
Slide 11: Consolidated Income Statement Q2FY23
Consolidated Income Statement Q2FY23 Particulars (Rs. Cr) Q2 FY23 Q2 FY22 H1FY23 H1FY22 FY22 Revenue from Operations 66.67 91.27 139.81 162.28 321.6 Other Income 9.79 1.47 12.11 2.35 4.6 Total Income 76.46 92.74 151.92 164.63 326.3 Direct Expenses 33.77 47.38 62.79 75.99 149.3 Employee Expenses 7.73
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Crs) Sep-22 Mar-22 Particulars (Rs Crs) Sep-22 Mar-22 Non-Current Assets 962.0 943.3 Equity 1144.6 1,130.0 Share Capital 32.3 32.0 Property Plat & Equipment 482.9 483.5 Other Equity 1112.3 1,098.0 Capital Work In Progress 48.4 4.6 Non-Controlling Interest -
Slide 13: Annexures
Annexures PAGE 13
Slide 14: Presence Across the Energy Value Chain
Presence Across the Energy Value Chain UPSTREAM MIDSTREAM DOWNSTREAM Drilling Completions Gathering Processing Pipeline Rrefining Distribution Transportation Characteristic Benefits across full spectrum The Result to Deep Production Focused Relatively stable compression demand Highly efficient opera
Slide 15: Experienced Management Team
Experienced Management Team Paras Savla, Chairman and Managing Director - Over 30 years of experience. He is a Commerce Graduate from Gujarat University and under his direction and stewardship the organisation has expanded multifold. Under his vision, the organisation has transformed itself over the
Slide 16: Natural Gas Compression
Natural Gas Compression What is compression? What sets us apart? o Natural Gas Compression is an essential technology Pioneers: We pioneered natural gas compression services on employed to boost the pressure of natural gas for its charter hire basis in India and are one of the largest Company in var
Slide 17: Natural Gas Compression
Natural Gas Compression Growth Drivers/ Varied End User Applications During transportation of Gas through pipeline, there is pressure loss. Compression of Gas Natural Gas is required to boost the pressure to ensure that Natural Gas flows through Transportation pipeline Industrial application : refin
Slide 18: Natural Gas Dehydration
Natural Gas Dehydration What is Gas Dehydration? What sets us apart? o Dehydration of natural gas is a technology First Movers Advantage : We are one of the first companies in employed to separate the moisture content and India who qualifies to provide Gas Dehydration on charter hire other heavy con
Slide 19: Natural Gas Dehydration
Natural Gas Dehydration Growth Drivers Opportunity The immediate potential at present state to Dehydrate Gas is estimated to be additional ~10 MMSCMD. Size PNGRB has made it mandatory to have the Gas Dehydrated before transportation Compliance through the National Gas Grid New In addition to PSUs no
Slide 20: Workover & Drilling Rigs
Workover & Drilling Rigs What is Workover Rig Operation? What sets us apart? o Oil & Gas producing wells require servicing and Asset & Capacity : Owns & Operates 8 Workover Rigs with maintenance at regular intervals in order to capacity ranging from 30T to 100T, 3 Drilling Rigs with capacity smoothe
Slide 21: Workover Rigs & Drilling Rigs
Workover Rigs & Drilling Rigs Growth Drivers Governments India has a stated policy of increasing self reliance in energy production where the PSUs contribute significantly. Energy Push Onshore Onshore Drilling space has huge potential to grow as Investments required Drilling in Onshore drilling are
Slide 22: Integrated Projected Management (IPM)
Integrated Projected Management (IPM) What is IPM? What sets us apart? o Integrated Project Management (IPM) is a turnkey Niche Technical Capabilities: IPM services requiring solution to drill and complete a well or several wells capabilities to provide pool of niche services involving highly under
Slide 23: Integrated Project Management (IPM) Cost Effective Solutions
Integrated Project Management (IPM) Growth Drivers Cost Effective o Effective bespoke solutions o Competitive price advantage over MNCs Solutions Improved o Enhanced operational efficiency for clients o Improved synergies across the process due to seamless flow of Synergies services Strategic o Stro
Slide 24: Reaching New Horizons
Reaching New Horizons Deep Industries Limited forays into manufacturing of CNG Booster Compressors through its subsidiary RAAS Equipment Pvt Ltd. RAAS has the capability to manufacture Booster Compressor Packages of 22 kw / 37 kw which are highly efficient, low noise and optimally designed. The Boos
Slide 25: Catering to Strong Growth Segment
Catering to Strong Growth Segment Snapshot of City Gas Distribution Authorisations in India How will it be beneficial to us? Installed Capacity RAAS has current installed capacity of 250 units per annum with an aim to double the installed capacity in next 3 years. Efficient supply chain & Operationa
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility PAGE 26
Slide 27: Smart Class Initiative
Smart Class Initiative Deep Industries Ltd. undertook an initiative to install Smart Classes in schools of under privileged children with a view to enable holistic development of students through the use of modern technology. This facility has already been installed in 50 schools. PAGE 27 DEEP Indus
Slide 28: Medical Check-Up Centre
Medical Check-Up Centre Furthering the CSR initiatives, Deep Foundation – a philanthropic arm of Deep Industries Limited, established the state of art Medical Checkup Centre at Shri Kutchi Jain Sewa Samaj Ahmedabad. This facility aims to provide medical check-up services at nominal rates with a view
Slide 29: About Us & Investor Contact
ABOUTS US & INVESTOR CONTACT DEEP INDUSTRIES LIMITED (DIL), is a leading solutions provider in energy sector. DIL is specialized in providing Gas Compression Services, Drilling Rigs and Workover Rigs Services, Gas Dehydration Services, and having expertise in Integrated Project Management Services.