Deep Industries Limited · NSE:DEEPINDS
Deep Industries — Q1 FY2017 Earnings Presentation
31 slides from Deep Industries's earnings presentation, August 2016
Slide 1: Ȃ ͳ ͳ
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Slide 2: 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 securitie
Slide 3: 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 » Well experie
Slide 4: Key Milestones
Key Milestones 2016: Awarded contract worth INR 2,468 Mn in Gas Dehydration Business for Rajamundry Phase II 2015: Awarded contract worth INR 1,750 Mn for two Drilling Rig Services. 2015: Awarded contracts worth INR 2,780 Mn in Gas Dehydration Business 2011 2014: Award of 25% stake in North Karanpur
Slide 5: Management Team
Management Team First generation MBA from Bentley MBA from Swinburne entrepreneur with over 25 College, USA, has over 20 University of Technology, years experience in Oil & years of experience in Australia, has over 13 Gas industry. execution of projects in years of experience, is Nominated as a fin
Slide 6: Well Diversified Portfolio
Well Diversified Portfolio Gas Compression Workover & Gas Dehydration Exploration & Drilling Rigs Production First Company in One of the Key First Company in Oil & Gas India to provide Player in India India to provide Exploration & high pressure providing Natural Gas Production from Natural Gas Onsh
Slide 7: Long Term Client Relationships
Long Term Client Relationships …a testimony of our capabilities 7
Slide 8: Service Business
Service Business 8
Slide 9: 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 Pioneer in Onshore Gas solutions on turnkey basis Drilling and Workover jobs Dehydration Solutions Equipment + Installation + O&M 02 01 03 Gas Ga
Slide 10: Gas Compression Division
Gas Compression Division 10
Slide 11: Leadership in Gas Compression Business
Leadership in Gas Compression Business… Pioneer We are the first Company in India to provide high pressure Natural Gas Compression Solutions High Visibility Contract period for Gas Compression Market Leader ranges from 3 to 5 years We are the largest private sector company in this segment in India a
Slide 12: 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 13: With High Entry Barriers
…With High Entry Barriers Technical Expertise Customization Skilled engineers are required to 01 Expertise and Technical tie install, mobilize and operate equipments 02 ups enables us to provide customized solutions in quickest possible timelines Capex Capex required is high due to nature of 03 Pena
Slide 14: Rigs Division
Rigs Division 14
Slide 15: 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 3 Drilling and Expertise 9 Workover Rigs with various capacities Provided complete solutions related t
Slide 16: Growth Drivers
Growth Drivers Government’s Energy Push India has a stated policy of increasing energy reserves where the PSU’s contribute significantly. 01 Onshore Drilling Opportunity Investments in Onshore drilling is low compared to offshore 02 04 Benign Raw Material Prices Low crude prices, soft metal prices a
Slide 17: Gas Dehydration Division
Gas Dehydration Division 17
Slide 18: 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 19: 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 20: Exploration & Production
Exploration & Production 20
Slide 21: 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 22: Business Potential
Business Potential 22
Slide 23: Growing Market Potential
Growing Market Potential Gas Compression Gas Dehydration Gas demand is expected to increase by Government has made it mandatory to 5.4% p.a over 2007-30 as per IEA. have the Gas dehydrated before they Out of the total Gas Compression can be inserted to the gas pipelines Business in India currently o
Slide 24: Opportunities Just Ahead
Opportunities Just Ahead Market leader in Gas Compression and Dehydration business on a Contractual basis Increase market share in Gas Compression with majority market share in compression Business business Only Company in India able to provide wide Leverage our experience and track record in range
Slide 25: Certificates
Certificates.... Ol DEEP INDUSTRIES LIMITED DEEP INDUSTRIES LIMITED ae pp ICT 7S TR ISO 9001-2008 & ISO 14001-2004 ee {EP INDUSTRIES LIMITED is a Contractor member in good standing PPO OF FGLEPMENTS AMD SERVICES OF CAS OMPRERIOM AND ON SHORE CHELLIS FOG OPERATIONS FOR CH AND GAS SECTOR PROVIRION OF
Slide 26: And Accolades
… And Accolades 26
Slide 27: Financials
Financials 27
Slide 28: Standalone Profit & Loss
Standalone Profit & Loss Rs. Cr Q1FY17 Q1FY16 YoY Q4FY16 QoQ FY16 Revenue 64 27 136.2% 55 17.3% 169 Direct Expenses 20 7 10 40 Employee Expenses 4 3 3 14 Other Expenses 3 2 11 18 EBITDA 37 16 133.4% 30 20.9% 96 EBITDA Margin 57.0% 57.7% 55.4% 56.9% Other Income 0 0 0 1 Depreciation 7 3 9 20 EBIT 30
Slide 29: Growth over the Years
Growth over the Years Revenue (Rs Crs) EBITDA (Rs Crs) 169 96 +29% +35% 101 55 91 52 60 65 64 36 37 29 FY12 FY13 FY14 FY15 FY16 Q1FY17 FY12 FY13 FY14 FY15 FY16 Q1FY17 EBITDA Margin (%) PAT (Rs Crs) 41 55.2 57.4 54.3 56.9 57.0 +36% 47.5 20 21 16 12 12 FY12 FY13 FY14 FY15 FY16 Q1FY17 FY12 FY13 FY14 FY
Slide 30: Strong Balance Sheet
Strong Balance Sheet Net Debt/Equity Net Debt/EBITDA 0.94 3.22 2.53 0.61 2.15 1.85 1.86 0.50 0.47 0.45 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Interest Coverage Ratio Debt Service Coverage Ratio 5.02 5.10 2.67 2.63 4.84 4.31 2.33 2.25 4.10 1.74 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15
Slide 31: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Deep Industries Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L63090GJ1991PLC014833 CIN: U74140MH2010PTC204285 Mr. Rohan Shah, CFO Ms. Payal Dave/ Mr. Shogun Jain [email protected] [email protected] / jshogun@sgapl