Deep Industries Limited · NSE:DEEPINDS
Deep Industries — Q1 FY20 Earnings Presentation
42 slides from Deep Industries's earnings presentation, Aug 13, 2019
Slide 1: Deep Industries Limited – Investors/Analysts Presentation cover letter
DEEP Industries L--.............O.W Limited Oil & Gas Exploration Production & Services August 13, 2019 To, To, Corporate Relations Department 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-Blo
Slide 2: Investor Presentation – August 2019
DEEP Industries Limited Investor Presentation – August 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 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 Work Over Rigs Fresh & Repeat Orders from ONGC worth Rs. 27.85 Crs for a period of 3 years and 1 year Order 03 Natural Gas Compressio
Slide 6: Standalone Profit & Loss
Standalone Profit & Loss Standalone Particulars (Rs. Cr) Q1 FY20 Q4 FY19 QoQ Q1 FY19 YoY FY19 Revenue 71.3 70.1 1.7% 73.8 -3.4% 259.1 Direct Expenses 26.8 27.0 20.6 76.2 Employee Expenses 4.6 4.5 5.9 20.6 Other Expenses 8.3 7.9 7.6 27.7 EBITDA 31.6 30.6 3.2% 39.7 -20.4% 134.7 EBITDA Margin 44.3% 43.
Slide 7: 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 8: Consolidated Profit & Loss
Consolidated Profit & Loss Consolidated Particulars (Rs. Cr) Q1 FY20 Q4 FY19 QoQ Q1 FY19 YoY FY19 Revenue 66.2 77.1 -14.1% 86.7 -23.6% 308.7 Direct Expenses 28.9 34.3 29.8 112.1 Employee Expenses 5.6 5.7 6.5 24.4 Other Expenses 4.0 8.2 7.9 28.7 EBITDA 27.7 28.9 -4.1% 42.5 -34.8% 143.5 EBITDA Margin
Slide 9: 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 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 05 content has 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 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 18: 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 19: 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 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 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 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 1 install, 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: Rigs Division
Rigs Division 26
Slide 28: 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 29: 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 30: Gas Dehydration Division
Gas Dehydration Division 29
Slide 31: 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 32: 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 33: Exploration & Production
Exploration & Production 32
Slide 34: 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 35: Business Potential
Business Potential
Slide 36: 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 37: 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 38: … 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 37
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility
Slide 40: 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 41 schools 39
Slide 41: Socially Responsible Corporate – “Smart Class” Initiative (2/2)
Socially Responsible Corporate – “Smart Class” Initiative (2/2) 40
Slide 42: 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 41