Deep Industries Limited · NSE:DEEPINDS
Deep Industries — Q3 FY2020 Earnings Presentation
44 slides from Deep Industries's earnings presentation, Feb 12, 2020
Slide 1: Deep Industries Limited – Investor Presentation cover letter
DE.EP Industries L . . . . - -- .. Limited -'-·-'---"" .Oil & Gas Exploration Production & Services February 12, 2020 To, To, Corporate Relations Department Corporate Relations Department Bombay Stock Exchange Limited National Stock Exchange of India Ltd. 2nd Floor, P.J. Towers, Exchange Plaza,Plot
Slide 2: Investor Presentation – February 2020
DEEP Industries Limited Investor Presentation – February 2020 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
Recent Orders The Company secured fresh & repeat orders for the amount of Rs. 84 Crores approx. during the recent period. 01 Natural Gas Compression Received various Fresh as well as Extension Orders worth Rs. 30.48 Crs approx. for the period ranging from 1 to 3 years for Natural Gas Compression Ser
Slide 6: Standalone Profit & Loss
Standalone Profit & Loss Standalone Particulars (Rs. Cr) Q3 FY20 Q2 FY20 Q3 FY19 9M FY20 9M FY19 Revenue 56.01 50.14 60.39 177.43 189.03 Direct Expenses 20.14 19.16 16.44 66.15 49.12 Employee Expenses 7.02 6.01 5.33 17.66 16.10 Other Expenses 4.01 4.69 4.51 17.00 19.77 EBITDA 24.84 20.28 34.11 76.62
Slide 7: Consolidated Profit & Loss
Consolidated Profit & Loss Consolidated Particulars (Rs. Cr) Q3 FY20 Q2 FY20 Q3 FY19 9M FY20 9M FY19 Revenue 55.87 52.93 73.70 174.99 231.64 Direct Expenses 20.21 19.76 21.93 68.88 74.55 Employee Expenses 8.06 6.97 6.30 20.64 18.66 Other Expenses 4.14 10.14 4.80 18.29 21.28 EBITDA 23.46 16.06 40.67
Slide 8: 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 9: 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 10: Balance Sheet Strength
Balance Sheet Strength Financial Discipline demonstrated consistently 1 < 0.6x • Accelerated path to Leverage Reduction and Leverage Target Leverage Debt-to-EBITDA Reduction in FY 20 • One of the best Debt-to-EBITDA ratio in the industry 2 ~65.00 % • Focused on High Cash Generating and Quick Healthy
Slide 11: 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 12: 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 13: 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 14: 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 15: About Us
About Us
Slide 16: Company at a Glance
Company at a Glance Deep Industries Limited 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 » Long term association with » Technically s
Slide 17: Management Team
Management Team Mr. Paras Savla Mr. Rupesh Savla Mr. Dharen Savla Managing Director Managing Director, Prabha Chairman & MD Energy Pvt. Ltd. (PEPL) First generation promoter with over MBA from Bentley College, USA, has 26 years experience in Oil & Gas over 22 years of experience in execution MBA fro
Slide 18: Diversified Capabilities
Diversified Capabilities • Pioneer & leading provider of High Pressure Gas Natural Gas compression Compression • Compression is a must-run service for Gas Transportation • Attractive & long-term customer relationships Natural Gas • First Mover in Onshore Gas Dehydration Market in India • Wide Range
Slide 19: Long Term Client Relationships
Long Term Client Relationships …a testimony of our capabilities 18
Slide 20: Services Business
Services Business
Slide 21: Customized Solution Provider in Oil & Gas Value Chain
Customized Solution Provider in Oil & Gas Value Chain Natural Gas Compression Natural Gas Dehydration Customised End to End First mover in Onshore Gas solutions on turnkey basis Dehydration Business Equipment + Installation + O&M End use/Application 02 End use/Application 01 Gas Gathering Stations,
Slide 22: Gas Compression Division
Gas Compression Division 21
Slide 23: 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 24: 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 25: 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 26: Gas Dehydration Division
Gas Dehydration Division 25
Slide 27: 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 28: 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 29: Work Over & Drilling Rigs Division
Work Over &Drilling Rigs Division 28
Slide 30: 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 Expertise ▪ Owns & Operates 9 Workover Rigs with capacity ranging from 30T to ▪ Provided complete solutions related 100T
Slide 31: 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 32: Integrated Project Management Services
Integrated Integrated Project Project Management Services Management Services 31
Slide 33: Integrated Project Management Services
Integrated Project Management Services • Integrated Project Management (IPM) is a turnkey solution to drill and complete a well or a number of wells under single contract. • Under IPM, we are Focusing on complete project, using in-house expertise as well as third party services. • Services included
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 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 36: Business Potential
Business Potential
Slide 37: Growing Market Potential
Growing Market Potential Natural Gas Compression Natural 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 b
Slide 38: Certificates
Certificates.... ah 0 IADC DEEP INDUSTRIES LIMITED CERTIFICATE OF MEMBERSHIP 2019 Intemational Association of Drilling Contractors BUREAU VERITAS Certification DEEP INDUSTRIES LTD. HEAD OFFICE: worssnar: ISO 9001:2015, ISO 14001:2015 & BS OHSAS 18001:2007
Slide 39: And Accolades
... And Accolades tt 4 14"ABLA, CONGRATULATIONS Paras Savia 0 THE REGION'S TOP 200 SMALL AND MIDSIZE COMPANIES NOVEMBER 23, 2010
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 45 schools 40
Slide 42: Socially Responsible Corporate – Smart Class Initiative (2/2)
Socially Responsible Corporate – “Smart Class” Initiative (2/2) 41
Slide 43: Socially Responsible Corporate – Medical Check-up Centre
Socially Responsible Corporate – 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 serv
Slide 44: For further information, please contact
For further information, please contact: Deep Industries Ltd CIN: L63090GJ1991PLC014833 Mr. Rohan Shah, CFO rohan@deepindustries.com www.deepindustries.com 43