Deep Industries Limited · NSE:DEEPINDS
Deep Industries — Q3 FY2022 Earnings Presentation
35 slides from Deep Industries's earnings presentation, Feb 3, 2022
Slide 1: Deep Industries Limited - Investor/Analyst Presentation Cover Letter
'DEEP Industries -- Limited on & Gas Field Services February 3, 2022 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 No. C/l, G-Block, Dalal Street, Bandra Kurla Com
Slide 2: Corporate & Q3FY22 Earnings Presentation
-DEEP Corporate & Q3FY22 Earnings Industries Presentation 3rd February, 2022 L lted
Slide 3: 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 4: Company Overview
Company Overview Result Oriented Energy Infrastructure Equipment Solutions o Largest outsourced natural gas compression solution provider in India(1) Market Cap 2: Rs Enterprise Value 6,241 Mn (2)(3) : Rs 6,353 Mn o Only company with presence in natural gas compression , rigs services, gas dehydrati
Slide 5: Investment Thesis
Investment Thesis DEEP’s Competitive Position Key Priorities Market High Entry Operating Positioning Barriers Leverage Operate safely and environmentally The only company High efficiency Available capacities responsibly with presence in required in across configuration natural gas mobilisations and
Slide 6: Three Decades of Expertise
Three Decades of Expertise Successful 30+ year company history with proven success over time 1991-1994 1995-2004 2005-2015 2015 - Current 1991 : Starts the 1997 : first contract in 2005 : commences Rigs 2016 : Successfully raised journey Natural Gas services segment & USD 10 million via QIP. Compres
Slide 7: Business Segments
Business Segments Natural Gas Compression Natural Gas Dehydration Workover & Drilling Rigs Integrated Project Management REVENUE MIX ® • Contracts with Fix Rates on Contracts with Fix Rates on Contracts with Fix operating CONTRACT volume of Gas processed day Rates with no Single contract for pool of
Slide 8: 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 9: "Deep" Dive into Business Segments
“Deep” Dive into Business Segments PAGE 8
Slide 10: 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 11: Natural Gas Compression: Growth Drivers
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 12: 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 13: Natural Gas Dehydration: Growth Drivers
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 National Gas Grid Received re-award for Contract
Slide 14: 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 15: Workover Rigs & Drilling Rigs: Growth Drivers
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 16: Integrated Project 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 17: Integrated Project Management: Growth Drivers
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 18: 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 19: Entering into New High Growth Segment
Entering into New High Growth Segment PAGE 18
Slide 20: 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 21: 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? % area of India _ % population of India - GA's covered cumulative Installed Capacity 100.0% 350 90.0% 300 RAAS has current installed capacity of 250 units 80.0% 70.0% 250 per
Slide 22: Technically Strong Management
Technically Strong Management Rajeshkumar Sharma , Executive Director & CEO - heads the newest subsidiary ‘RAAS’. He brings in rich industry experience of more than 25 years. He carries B.S in Engineering & Technology (BITS – Pilani) and M.S in Manufacturing Management (BITS – Pilani). He is also a
Slide 23: Q3 FY22 Earnings Highlight
Q3 FY22 Earnings Highlight PAGE 22
Slide 24: Key Takeaways for Q3 FY22
Key Takeaways for Q3 FY22 FINANCIAL HIGHLIGHTS o Standalone Revenues from operations at Rs 61.09 Crores up by ~44% on YoY basis o Consolidated Revenues from operations at Rs 75.38 Crores up by ~74% on YoY basis o Standalone EBITDA up by ~75% on YoY basis at Rs 27.65 Crores with EBITDA margin of 41.6
Slide 25: Financial Highlights
Financial Highlights Revenue from operations EBITDA & EBITDA Margin PAT & PAT Margin 45.0% 37.6% 41.6% 24.4% 27.9% 23.9% 68 31 19 66 28 61 17 25 16 Q1FY22 Q2FY22 Q3FY22 Q1FY22 Q2FY22 Q3FY22 Q1FY22 Q2FY22 Q3FY22 DEEP PAGE 24 INDUSTRIES
Slide 26: Financial Highlights: Debt Reduction
Financial Highlights Long Term Debt Reduction – Rs Crores Total Debt/Equity 223 231 0.88 101 83 0.24 41 0.11 0.09 0.04 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Executing Balance Sheet Goals DEEP PAGE 25 INDUSTRIES
Slide 27: Financial Highlights: Leverage and Cash Generation
Financial Highlights 1 Strong Debt ~ 0.10x o Accelerated path to Leverage Reduction Servicing Debt-to-EBITDA in with strong debt servicing position. Position 9M FY 22 o One of the best Debt-to-EBITDA ratio 2 ~112.00 % o Focused on High Cash Generating and Healthy Cash Opr.Cash flow-to- Quick Payback
Slide 28: Standalone Income Statement Q3 FY22
Standalone Income Statement Q3 FY22 Standalone Particulars (Rs. Cr) Q3 FY22 Q3 FY21 YoY % Q2 FY 22 QoQ% 9M FY22 9M FY21 Revenues from Operations 61.09 42.53 44% 66.26 -8% 195.21 126.71 Other Income 5.29 0.48 1.31 7.67 4.50 Total Income 66.38 43.01 54% 67.56 -2% 202.88 131.21 Direct Expenses 26.55 17
Slide 29: Consolidated Income Statement Q3 FY22
Consolidated Income Statement Q3 FY22 Consolidated Particulars (Rs. Cr) Q3 FY22 Q3 FY21 YoY% Q2 FY 22 QoQ% 9M FY22 9M FY21 Revenue from Operations 75.38 43.29 74% 91.27 -17% 237.66 133.15 Other Income 0.31 0.35 -11% 1.47 -79% 2.66 4.37 Total Income 75.69 43.64 73% 92.74 -18% 240.32 137.52 Direct Exp
Slide 30: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs Crs) Sep -21 Mar-21 Mar-20 Particulars (Rs Crs) Sep -21 Mar-21 Mar-20 Non-Current Assets 857.21 869.41 933.02 Equity 1062.34 1026.52 963.36 Share Capital 32.00 32.00 960.00 Property Plat & Equipment 452.17 460.54 478.10 Other Equity 1030.34 994.52 3.36 Capita
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Crs) Sep -21 Mar-21 Mar-20 Particulars (Rs Crs) Sep-21 Mar-21 Mar-20 Non-Current Assets 881.79 890.13 869.41 Equity 1100.04 1061.78 1026.52 Share Capital 32.00 32.00 32.00 Property Plat & Equipment 478.20 482.76 460.54 Other Equity 1067.85 1029.74 994.52 Ca
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility PAGE 31
Slide 33: Smart Class Initiative
Smart Class Initiative 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 50 schools DEEP PAGE 32 INDUSTRIES
Slide 34: 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 35: 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.