Submission Details
• Date of Submission: August 12, 2024
• Earnings Call Date: August 6, 2024
• Compliance: Transcript provided in accordance with SEBI regulations
• Signatory: Shilpa Sharma, Deep Industries Limited
Financial Performance Highlights
• Revenue Growth: 22% increase to Rs. 123.45 crore
• Net Profit Growth: 25% rise to Rs. 38.74 crore
• Key Drivers: Robust order flow and operational efficiencies
• Future Contributions: Refurbished barge asset, Prabha, expected to boost revenue from Q3 FY25
Market Opportunities
• Government Focus: Infrastructure and energy transition
• Sector Focus: Gas processing and oil and gas support services
Q&A Session Insights
• Asset Availability: Dolphin lacks DSVs and PSVs; evaluating purchase opportunities
• Revenue Expectations: Dolphin project revenue projected between 40 to 50 crores over several quarters
• Capital Expenditure: Barge investment around 11 to 11.5 million dollars
• Market Dynamics: Good margins expected from refurbishing second-hand equipment
• Order Book Stability: Continuous revolving order book with a substantial bidding pipeline
Strategic Acquisitions
• Kandla Energy and Chemicals: Strategic purchase for chemical manufacturing at low cost
• Dolphin Offshore: Acquisition details and current cash position exceeding 150 crores
Financial Projections
• Execution Timeline: Current order book estimated at 2.5 to 3 years
• Expected Margins: Projected between 40% to 45%
• Standalone Sales Growth: Year-on-year growth projected over 20-25%
Operational Insights
• Contract Duration: OSV contracts typically range from two to three years
• Receivables Status: Ongoing discussions for recovery with no anticipated write-offs
• Segment Revenue: 45% from gas processing, 34-35% from rig services
Future Outlook
• Peak Revenue Potential: Order book of 1,240 crores expected realization over 2.5 years
• Utilization Rates: Rigs fully occupied, gas processing equipment over 85% utilized
• Long-term ROCE Target: Set at 14-16%
Conclusion
• Growth Optimism: Company remains optimistic about growth and revenue generation in upcoming quarters.

Earnings Call Overview
• Date: May 18, 2024
• Transcript submitted on: May 22, 2024
• Key Executives: Managing Director Paras Savla, CFO Rohan Shah
• Focus: Audited financial results for the quarter and fiscal year ending March 31, 2024
Financial Highlights
• Order Book:
• 12% year-on-year increase
• Current value: INR 1,210 crores
• Significant order from Oil India Limited: INR 81 crores
• Revenue:
• Q4 FY '24: INR 119.7 crores (16% increase YoY)
• Total FY '24: INR 427 crores (25% growth)
• EBITDA:
• Q4: INR 49.1 crores (37.5% margin)
• FY '24: INR 195 crores (42.2% margin)
• Profit After Tax (PAT):
• Q4: INR 36.1 crores (31% increase)
• FY '24: INR 123.5 crores (53% growth)
Management Insights
• Return Ratios:
• ROCE: 12.42%
• ROE: 11.83%
• Future Growth:
• Strong order book with 2.5 to 3-year execution timeline
• Targeting EBITDA margin of 45% in FY '25
• New drilling rigs expected to contribute INR 5 crores monthly
• Barge operations projected to generate INR 90-100 crores annually
Investments and Market Outlook
• Total Investment: Exceeds INR 196 crores
• Other Income: Approximately INR 40 crores from interest and mutual funds
• Dolphin International:
• Expected EBITDA margin over 50%
• Projected minimum 25% top-line growth for FY '25
• Plans to maintain a 75% stake in Dolphin
• Bid Pipeline: Approximately INR 1,000 crores, mainly from existing services
Q&A Highlights
• Adjusted PAT confirmed at INR 42 crores for the quarter
• Revenue expectations from Dolphin: INR 400 crores over 2-3 years
• Focus on operating a barge and exploring opportunities in PSVs and diving support systems
• Evaluation of potential inorganic growth opportunities in early stages
Conclusion
• The call concluded with an invitation for further questions and expressions of gratitude to participants.

Earnings Call Overview
• Date: February 7, 2024
• Transcript submitted on: February 10, 2024
• Key Executives: Chairman Paras Savla, CFO Rohan Shah
• Focus: Unaudited financial results for the quarter and nine months ending December 31, 2023
Financial Highlights
• Order Book:
• Reached INR 1,200 crores
• 23% year-on-year increase
• Revenue:
• Highest revenue quarter at INR 105 crores
• 6.8% increase from the previous year
• EBITDA:
• Increased to INR 49 crores
• Profit After Tax:
• Rose to INR 28 crores
Future Outlook
• Optimism about demand in the oil and gas sector
• Strong bidding pipeline and ongoing infrastructure investments
• Expected revenue growth from Dolphin Offshore: INR 90-100 crores next financial year
• Projected 20% growth for Deep Industries
• Execution timeline for order book: 2.5 to 3 years
• Anticipated steady-state operating margins: 42% to 45%
• Year-on-year growth expectation: 25%
Capital Expenditure (Capex)
• Estimated capex for FY '25: INR 100 crores
• Focus on adding rigs and compressor packages
• Current liquidity: INR 131 crores
Subsidiary Performance
• RAAS Equipment underperforming due to low demand for CNG Booster packages
• Accumulated losses from Dolphin business: Exceeded INR 100 crores (usable for tax purposes)
Strategic Initiatives
• Shift towards an asset-light model:
• Renting office space instead of owning
• Funds allocated for refurbishing and acquiring new equipment
• Development focus on hydrogen sector equipment (biogas and hydrogen compressors)
Additional Insights
• Order book growth with fixed completion timelines
• Joint venture discussions with Focus Energy regarding higher-capacity rigs
• Plans to sell real estate assets to support Dolphin's operations
Conclusion
• The call concluded with an invitation for further questions from participants.

Earnings Call Overview
• Date: November 3, 2023
• Submission of transcript on November 7, 2023
• Participants: Chairman and Managing Director Paras Savla, CFO Rohan Shah
• Focus: Unaudited financial results for the quarter and half-year ending September 30, 2023
Key Financial Highlights
• Order Book Growth:
• 47% year-on-year increase, reaching INR 1,195 crores
• New contract from ONGC worth INR 108 crores
• Consolidated Revenue:
• INR 101.32 crores for the quarter, a 52% increase from the previous year
• Profit after tax: INR 29.52 crores
• Standalone Performance:
• Revenues up 50% to INR 91.02 crores
• Outlook:
• Positive growth driven by a robust bidding pipeline and favorable market conditions
Q&A Session Insights
• Revenue Stagnation:
• Rohan Shah explained revenue from the order book typically materializes 6-8 months post-mobilization
• Growth expected to start in Q3
• Growth Projections:
• Anticipated revenue increase in FY '25, potentially exceeding INR 500 crores
• Q3 and Q4 expected to show revenue improvement
• Dolphin Segment:
• Refurbishment costs funded through planned capital raise
• Margins for Dolphin could reach 60-70%
• Updates on joint ventures and capital expenditure plans
Dolphin Offshore Updates
• Favorable arbitration award expected to lead to incoming receivables
• Recent sale of investments (INR 100 crores) was a reallocation, not a loss
• Plans to invest over INR 100 crores in FY '24 for capital expenditures, including drilling rigs and gas processing packages
Bidding Pipeline and Future Outlook
• Current bidding pipeline valued at INR 800 crores
• Order book approximately INR 1,190 crores, with ONGC contributing 65%
• Anticipated improvements in demand for RAAS in FY '25
• Overall optimism about future growth and order inflows

Earnings Call Overview
• Date: June 1, 2023
• Discussion of audited financial results for the fiscal year ending March 31, 2023.
• Key participants: Chairman Paras Savla and CFO Rohan Shah.
Financial Highlights
• Record revenues: INR 341 crores (6% increase YoY).
• Strong order book: INR 1,078 crores (71% increase YoY).
• Major contract secured with ONGC.
• Final dividend recommended: INR 1.85 per share.
• Stock split executed to improve market liquidity.
Integrated Project Management (IPM) Segment
• Successful completion of first integrated project.
• Ongoing small projects with Oil India and Selan.
• Positive outlook for future projects with ONGC.
• Projected revenue growth of 20% CAGR for FY '24.
Goodwill Amortization and Financial Management
• Annual impairment testing conducted; no impairment needed this year.
• External agencies engaged for fair assessments.
Upcoming Contracts and Capital Expenditure
• Three gas compression contracts in mobilization.
• Projected capital expenditure: INR 45 crores for a new drilling rig.
• Optimism about recovering INR 140 crores receivables from Dolphin Offshore.
Revenue Expectations and Growth Potential
• Estimated earnings from Dolphin Offshore: INR 30-35 crores over five to six months.
• Natural gas dehydration contributing around 5% to revenue.
• Focus on growth in the integrated project management segment.
Debt Profile and Financial Discipline
• Currently net debt-free; target debt-to-equity ratio of 0.5.
• Emphasis on financial discipline and effective client fund management.
Segment-wise Order Book Breakdown
• Gas compression: 52% of order book.
• Rig services: 36% of order book.
Dolphin Offshore Acquisition Insights
• Challenges attributed to poor financial management.
• Optimism about growth potential in offshore services.
• Focus on sourcing talent from the market.
RAAS Subsidiary Performance
• Turnover: INR 17 crores for FY '23.
• Projected revenue of around INR 40 crores from Dolphin after refurbishment.
Capital Expenditure Landscape
• Increased capex from ONGC and Oil India expected to create service opportunities.
• Ongoing scrapping of old facilities and entry of private players driving demand.
Conclusion
• Management expresses optimism about future growth opportunities across various segments.
• Focus on maintaining a healthy order book and bidding pipeline while prioritizing profit margins over revenue growth.

Earnings Performance
• Date of Call: February 7, 2023
• Revenue Growth: 30% year-on-year to INR 98 crores for Q3
• Profit After Tax: INR 25 crores with a PAT margin of 25%
Key Updates
• Acquisition: Completed acquisition of Dolphin Offshore Enterprises to enhance service offerings.
• Order Book: Current order book at INR 976 crores, a 76% increase year-on-year.
• Market Outlook: Positive growth outlook supported by a favorable market and debt-free status.
Management Insights
• Future Projections: Optimism about surpassing previous revenue peak of INR 400 crores.
• Gas Dehydration Services: Current utilization stable, but new bids expected to improve future utilization.
• Capital Expenditure: INR 84 crores spent this financial year, with an additional INR 20 crores anticipated.
Sector Growth
• Gas Sector Demand: Projected growth rate of 18-20% CAGR over the next 3-4 years.
• Market Share: Deep Industries holds over 80% market share in gas compression services in India.
Financial Health
• Debt Profile: No new debt incurred post-Dolphin acquisition.
• Net Cash Balance: Reported between INR 55-60 crores.
• Dolphin Stake: Current holding at 95%, expected to reduce to 75% over three years.
Strategic Opportunities
• Gas Pipeline Network: Potential for service provision to companies connecting to the National Grid.
• Revenue Potential: Feasibility of achieving INR 1,000 crores in revenue in the coming years.
Additional Discussions
• Cost-Saving Measures: 57% decrease in other expenses attributed to ongoing initiatives.
• Execution Capability: Affirmed ability to handle orders exceeding INR 1,000 crores in the next 2.5 years.
• Share Listing: Confirmation that the Dolphin entity will be listed.
Conclusion
• The call concluded with management expressing gratitude and inviting further inquiries through their investor relations consultant.