Deep Industries Limited · NSE:DEEPINDS
Deep Industries — Q2 FY20 Earnings Presentation
44 slides from Deep Industries's earnings presentation, Nov 18, 2019
Slide 1: DEEP Industries Limited – Investor Presentation cover letter
DEEP Industries L__~~ Limited Oil & Gas Exploration November 18,2019 . Production & Services To, T~, Corporate Relations Department Corporate Relations Department Bombay Stock Exchange Limited National Stock Exchange of India Ltd. 2nd Floor, P.J. Towers, .Exchange Plaza,Plot No. C/1, G-Block, Dalal
Slide 2: Deep Industries Limited Investor Presentation – November 2019
DEEP Industries Limited Investor Presentation – November 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
Recent Orders The Company secured fresh & repeat orders for the amount of Rs. 116 Crores approx. during the recent period. 01 Natural Gas Compression Received various Fresh as well as Repeat and Extension Order Orders from Different clients including ONGC worth Rs. 88 Wins Crs approx. for the period
Slide 6: Standalone Profit & Loss
Standalone Profit & Loss Standalone Particulars (Rs. Cr) Q2 FY20 Q1 FY20 Q2 FY19 H1 FY19 H1 FY18 Revenue 50.14 71.29 54.83 121.42 128.64 Direct Expenses 19.16 26.85 12.02 46.01 32.67 Employee Expenses 6.01 4.62 4.86 10.64 10.77 Other Expenses 4.69 8.31 7.66 13.00 15.26 EBITDA 20.28 31.51 30.27 51.77
Slide 7: Standalone Balance Sheet
Standalone Balance Sheet Rs. Cr Sep-19 Mar-19 Sep-18 Rs. Cr Sep-19 Mar-19 Sep-18 Non Current Assets 521 505 524 Equity 551 510 481 Property Plat & Equipment 458 468 489 Share Capital 32 32 32 Capital Work In Progress 43 16 13 Other Equity 519 478 449 Intangible Assets 0 0 0 Non Controlling Interest
Slide 8: Consolidated Profit & Loss
Consolidated Profit & Loss Consolidated Particulars (Rs. Cr) Q2 FY20 Q1 FY20 Q2 FY19 H1 FY20 H1 FY19 Revenue 52.93 66.20 71.19 119.13 157.94 Direct Expenses 19.76 28.91 22.82 48.68 52.62 Employee Expenses 6.97 5.60 5.83 12.57 12.36 Other Expenses 10.14 4.01 8.52 14.15 16.48 EBITDA 16.06 27.68 34.02
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Cr Sep-19 Mar-19 Rs. Cr Sep-19 Mar-19 Non Current Assets 568 534 Equity 571 525 Property Plat & Equipment 468 468 Share Capital 32 32 Capital Work In Progress 99 64 Other Equity 534 488 Intangible Assets 0 0 Non Controlling Interest 5 5 Investments 0 0 Total Non Curren
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: About Us
About Us
Slide 17: 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 company » Long term association with US » Te
Slide 18: 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 19: 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 20: 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 19
Slide 21: Services Business
Services Business
Slide 22: 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 23: Gas Compression Division
Gas Compression Division 22
Slide 24: 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 25: 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 26: 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 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: Work Over & Drilling Rigs Division
Work Over &Drilling Rigs Division 29
Slide 31: 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 32: 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 33: Integrated Project Management
Integrated Integrated Project Project Management Management Services 32
Slide 34: 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 35: Exploration & Production
Exploration & Production 34
Slide 36: 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 37: Business Potential
Business Potential
Slide 38: 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 39: 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 40: 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 39
Slide 41: Corporate Social Responsibility
Corporate Social Responsibility
Slide 42: 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 41
Slide 43: Socially Responsible Corporate – Smart Class Initiative (2/2)
Socially Responsible Corporate – “Smart Class” Initiative (2/2) 42
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