DEEP I Indus ustries es L Limited ed Inves estor Presen entat tatio ion – Feb ebruary 2017 2017
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 securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. 2
Q3/9M FY17 Snapshot 3
Strategic Initiatives & Quarter Snapshot Successfully executed QIP to raise Rs. 63.8crs. Shares issued at Rs. 228/- per equity share. Funding to give flexibility to capitalize on opportunities available in the Oil & Gas Services space Executed definitive documents for a PE Investment of USD 20mn from Tridevi Capital Partners in to Prabha Energy Private Limited. Deep Industries to hold 51% in Prabha Energy post investment. Funds to be utilized for development and production of Natural Gas from CBM block located in Northern Karanpura coalfields where Prabha Energy holds 25% participating interest Strengthened Balance Sheet with improved earnings visibility and equity infusion in form of QIP and PE Investment in Subsidiary have led to Upgrade in Credit Rating by CARE 4
Standalone Profit & Loss Rs. Cr Q3FY17 Q3Y16 9MFY17 9MFY16 FY16 71 53 202 114 169 Revenue 30 40 Direct Expenses 21 14 59 11 14 Employee Expenses 5 5 14 7 18 Other Expenses 4 3 11 EBITDA 41 31 119 66 96 1 0 0 1 Other Income 1 Depreciation 9 4 24 11 20 EBIT 33 27 96 55 77 Finance costs 6 4 18 10 15 PBT 27 23 77 45 62 Tax 9 10 27 17 21 PAT 18 13 51 28 41 5
Standalone Balance Sheet Rs. Cr Sep-16 Mar-16 Rs. Cr Sep-16 Mar-16 286 258 Shareholders Fund Total Non Current Assets 591 489 Share Capital 29 18 Fixed Assets 572 476 0 11 Share Suspense Account Non Current Investments 17 13 Reserves & Surplus 257 229 Long term loans & advances 2 0 301 225 Total Non Current Liabilities Other Non Current assets 0 0 Long Term Borrowings 256 186 Total Current Assets 116 134 42 37 Deferred Tax liabilities Other Long Term Liabilities 3 2 Current Investment 13 4 Total Current Liabilities 119 141 Inventories 6 6 Short Term Borrowings 88 78 Trade Receivables 54 56 24 15 Trade Payables Cash & Cash Equivalents 18 17 Other Current Liabilities 4 31 Short Term loans & Advances 24 49 4 17 Short term provision Other current asset 1 3 TOTAL EQUITY & LIABILITIES 707 624 TOTAL ASSETS 707 624 6
Historical Profit & Loss Rs. Cr FY12 FY13 FY14 FY15 FY16 60 65 91 101 169 Revenue Direct Expenses 20 16 22 24 40 Employee Expenses 7 7 9 13 14 Other Expenses 5 6 7 9 18 29 36 52 55 96 EBITDA Other Income 1 2 1 1 1 Depreciation 7 10 12 12 20 23 28 41 44 77 EBIT Finance costs 4 6 9 11 15 PBT 18 21 33 33 62 Tax 6 9 13 12 21 PAT 12 12 20 21 41 Cash PAT=PAT+ Depreciation
Growth over the Years Revenue (Rs Crs) EBITDA (Rs Crs) 119 202 96 169 +29% +35% 101 55 52 91 65 36 60 29 FY12 FY13 FY14 FY15 FY16 9MFY17 FY12 FY13 FY14 FY15 FY16 9MFY17 EBITDA Margin (%) PAT (Rs Crs) 51 41 58.7 57.4 56.9 55.2 54.3 47.5 +36% 21 20 12 12 FY12 FY13 FY14 FY15 FY16 9MFY17 FY12 FY13 FY14 FY15 FY16 9MFY17 8
Strong Balance Sheet Net Debt/Equity Net Debt/EBITDA 0.94 3.22 2.53 2.15 0.61 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 5.10 2.67 5.02 2.63 4.84 2.33 4.31 2.25 4.10 1.74 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 9
About Us
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 » Technically sound team with with presence in Oil Field based vendors providing vast experience in the industry Services and Exploration & competitive edge Production » More than 2 decades of » 1st Mover advantage in Gas » Recently Credit ratings experience in Oil & Gas with Compression and De— upgraded to “A” and “A1” for large clients in Public and hydration segment in India Long term and Short Term Private space Bank Facilities by CARE Rating 11
Key Milestones 2016: Executed definitive documents for a PE Investment of USD 20mn from Tridevi Capital Partners in to Prabha Energy Private Limited. 2016: Raised Equity of Rs. 63.80 through QIP. 2011 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 2016 2014: Award of 25% stake in North Karanpura CBM Block Entry into Gas 2011: Awarded India’s Largest Gas Compression Contract at Rajamundary by ONGC, Kariakal by Dehydration HOEC 2011: Awarded 1 CBM Block in Indonesia; Winner of 3 O&G Blocks under NELP IX 2010: Natural Gas Compression Contract at Borohola by ONGC; and Gamnewala by ONGC; ISO 2006 14001:2004 & BS OHSAS 18001:2007 Certification - 2010 2008: Contract awarded for Natural Gas Compression at Balol by ONGC and Kemalapuram by CPCL ; Awarded 1 Onshore O&G block under NELP VII Entry into E&P 2007: Awarded 3 marginal fields by ONGC 2006: Awarded 2 CBM blocks under CBM III and Initial Public Offer (“IPO”) 2001 - 2005: Purchased one 100 Ton Cardwell KB 500 S Axle Mobile Rig 2005 Registered with International Association of Drilling Contractors (“IADC”) & ISO 9001-2000 certification 2004: Sales Representation Agreement with reputed and experienced compressor packagers in USA Entry into Rigs 2001: Gas compression Equipment Lease and Service Agreement with Hanover, Asia Inc. USA 1991 - 1997: Contract awarded for Natural Gas Compression by ONGC 2000 1994: Contract awarded for Air Compression by ONGC ; Strategic shift from providing Entry into Gas Crude Oil/Liquid transport services to providing Air/Gas compression services Compression 12 1991: Commenced activities of providing liquid transportation services
Management Team First generation MBA from Bentley MBA from Swinburne promoter with over 20 College, USA, has over University of years experience in Oil & 17 years of experience in Technology, Australia, is Gas industry. execution of projects in instrumental in the Work Rupesh Savla Dharen Savla the oil and gas sector Over Rig and Drilling Paras Savla Rig Activities Managing Director Executive Director Chairman & MD Holds CA degree from Over 20 years of The Institute of experience in exploration Chartered Accounts of and development of India. He has over 10 conventional & years of work experience unconventional hydro of which he has been carbon resources. Past Rohan Shah associated with our Premsingh Sawhney assignments include company for over 6 ONGC, Essar & Reliance CFO years . Director Industries 13
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