Jindal Drilling And Industries Limited (NSE: JINDRILL) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Unidentified Speaker
Raghav Jindal — Managing Director
Analysts:
Unidentified Participant
Varatharajan Sivasankaran — Analyst
Mehul Panjuani — Analyst
Nirvana Laha — Analyst
Shiv Jhaveri — Analyst
Manikant Gupta — Analyst
Darshil Jhaveri — Analyst
Sandeep Dixit — Analyst
Pankaj Motwani — Analyst
Presentation:
operator
Wait while you are joined to the conference. The conference is now being recorded. It. Sa. Ladies and gentlemen, you had been connected to Ginger Drilling Ltd. Earnings conference call call will begin shortly. Please stay connected. Ladies and gentlemen, you had been connected to Jinder Drilling Limited Earnings conference call call will begin shortly. Please stay connected. It Ladies and gentlemen, good day and welcome to the General Drilling Limited Q4FY25 earnings conference call hosted by NP Stock Broking Limited. As a reminder, all participant lines hold in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on attached on phone.
Please note that this conference has been recorded. I now hand the conference over to Mr. Vartarajan Sivasankaran from Antech Stockbroking. Thank you. And over to you sir.
Varatharajan Sivasankaran — Analyst
Thank you Musta. A very good afternoon to everyone. On behalf of Antiq Stockbroking I would like to welcome all the participants and the management of General Drilling to this conference call. We have with us Mr. Nagal Jindal, Managing Director and Mr. Kaushal Bangani, Deputy General Manager, Investor Relations and Finance. Without further ado, I would like to. Hand over the call to the management for the opening events to be followed. By the Q and A. The floor is yours.
Raghav Jindal — Managing Director
Thank you Mr. Varasarajan. Good afternoon shareholders and thank you for joining our earnings call. The key Development in Quarter 4 FY25 was acquisition of Rig Jindal Pioneer on 5th March 2025. The acquisition was pending for some time and we are pleased that it was concluded in this quarter. Revenue and EBITDA improved due to this acquisition and full quarter operations of General Supreme. Further improvement is also expected in revenue and earnings in Quarter 1 FY26. I will briefly summarize key financial indicators. On comparison of Q4FY25 with last quarter Q3FY25 our revenue improved by 4% to 264 crores.
EBITDA increased by 7% from 81 crores to 87 crores. PAT increased by 8% from 49 crores to 53 crores and EPS increased from 17 to 18 rupees per share. On comparison of financial year 25 with last financial year 24 our revenue improved by 37% to 884 crores. EBITDA increased By 19% to 237 crores increased by 24% from 114 to 141 crores and EPS increased from 39 rupees per share to 49 rupees per share. The improvement in earnings was expected and was communicated in earlier calls. I would now like to take you through our earnings presentation.
The first slide talks about Jindal Drilling and our breed profile. A key point to note here is that in this quarter after acquisition of Jindal Pioneer, we now own three offshore jackup rigs and additionally operate two jackup rigs with ONDC with the sixth rig being currently under refurbishment. The details of each of these rigs are on the next slide. Order book position has been updated with a new contract of Jindal Explorer also being included. Order book stands at 1791 crores. The amortization of order book, rig wise, year wise is given on slide 6 which will help interested participants in understanding how our revenue will pan out based on the current contract that we have.
I have already spoken about the financial indicators and would now directly go to slide 11 which details borrowing. Our gross debt has fallen from 282 crores in March 24 to 139 crores in March 25 and net cash position has improved from 51 crores in March 24 to 131 crores in March 25. Going forward, we expect net cash position to improve further and it is on the basis of the internal accrual that we will generate that we will be able to discharge purchase consideration of General Pioneer. There will be no requirement of any debt to fund that acquisition.
The shareholding structure is on the next slide and that will conclude our presentation. I would now request Mr. Varasarajan to kindly open for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press Star in one on the touchdown telephone. If you wish to remove yourself from question Q, you may press Star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Mehul Pujiani from 40 cents. Please go ahead.
Mehul Panjuani
Thank you so much for the opportunity. Sir, I’m new to the. I’m tracking this company very recently. So I just want to understand because I’m new to oil and gas sector and rigs etc. So is there some correlation between the oil prices, the crude oil prices and our business? I mean if the crude oil prices are I mean go up, does our prospects potential business for business increases?
Raghav Jindal
There is a definite correlation because we are an oil and gas industry participant. So correlation with oil and gas will Always be there.
Mehul Panjuani
So is there any predictability in the correlation or it is. It depends on the market and everything. Let’s say if we say that for every $1 of increase in the price of crude, is there any correlation which we can establish?
Raghav Jindal
There is no fixed formula. It depends on the participants available in the market, the number of rigs available. There is a general trend. But there is no specific formula based correlation that you are seeking.
Mehul Panjuani
Right. And so my next question is that. Since is my understanding correct that all our rigs are operational with ONGC except the Mexico rig?
Raghav Jindal
Yes. We’ve detailed the contracts and the position of these rigs in our presentation.
Mehul Panjuani
Right. And also I was going through some data. Is there a price revision in the day charge with ONGC in the last two quarters?
Raghav Jindal
Can you repeat? Is there a price revision?
Mehul Panjuani
Yeah. Have the price in revised? The daily, daily rates have been. They have them in revised in the last two quarters.
Raghav Jindal
Yes. And it has already been mentioned in the presentation. I would urge you to go through that. The prices don’t change by the quarter, it changes by the contract.
Mehul Panjuani
Okay. Okay, sir. Yeah. Thank you. Thank you so much.
operator
Thank you. The next question is from the line of Nirvana Ladha from Bradrinath Holdings. Please go ahead.
Nirvana Laha
Hi, good morning. Thanks for the opportunity and congrats again on a great quarter. I’m sure the next few quarters will also be great. However, my question is regarding the new rate that we have received for Dimwal Explorer. So that rate at 35,000 seems to be lower than the rate that we managed to get even during the last cycle. So if you can detail what led to this phenomenon of sudden collapse in rates, because the last time I think the general had mentioned about his expectations of rates, that was somewhere in the $60,000 range. I know that’s completely up to the bidding process, but there’s a big delta from where our expectations were and where the rate finally landed.
So can you give your explanation as to why this happened and what is your expectation for contracts that are coming up for renewal in 2025 and H126 for general reliability?
Raghav Jindal
Definitely. You know, it was quite a low rate. ONGC had cancelled the last two contracts and the third one also, it had not come to any outcome. I believe there were some competitors who had three rigs standing and they were very desperate for a contract and they did not assess markets very well. Out of the three rigs that were to be contracted, there were about seven participants and they dropped the prices down to this level. But which they realized that you know the difference between their bidding and the person who was held to their bidding.
There was a substantial amount of 20, $25,000 in between. So I’m guessing they learned their lesson by leaving that money on the table and hopefully it should not be repeated again.
Nirvana Laha
Okay,
Raghav Jindal
so we do expect it to. Go up drastically again in the next quarter, in the next tenders, whenever they come in, which is going to be late 25, early 26.
Nirvana Laha
Okay, okay, that’s, that’s happening to here. On the same lines. Mr. Kendall, I’ve asked this before and I think as an investor, I would like to again, you know, hear you on this. See, this was a clear case of ONBC strategically, either intentionally or unintentionally, playing things out such that Indian players, Indian rig owners who choose to contract with OMBC exclusively, they were put in a situation where rates came out to such low level. So as the promoter, do you think that having all our eggs in the ONDC basket is still, still the right way to go? As an investor, I would like to understand, for example, we decided that Pioneer should also come back from Mexico and start working with ONDC in Indian waters.
So can you help me understand why are we, in spite of these dynamics, why are we still comfortable having all our eggs in the ONGC basket? What prevents us from having some diversification in Mexican, Brazilian or, you know, other waters to avoid situations like this? Would be very helpful to get an understanding of this thought process.
Raghav Jindal
Yeah, no, we don’t want to put all our eggs in one basket. But like how we had an opportunity in Mexico, we did go for that. Similarly, we are looking at opportunities all around the world and we will go with the best opportunity and whichever is the best option for the company. And the eggs, like, you know, Saudi Aramco in the middle had laid down a lot of rigs, leading to a lot of uncertainty. They again have laid off three or four more rigs in this quarter. Hence, you know, in the international market, the rates are flexible, it changes and they can cut your contract at any time.
Hence, we always thought ongc, at least we have a steady contract and the price remains the same. So seeing that Jindal Pioneer is of Mexico, if it gets a contract back in Mexico, we’ll be happy to put it there. If it gets somewhere in India, whether it’s ONGC or any other contractor, we would be happy to do that as well. And we are open to it looking for opportunities in the Middle east as well. So we are doing whatever is best for the rig and the company. At that point of time, rather than just saying that we will only go with ONGC or we will not go with ongc, we are taking the best opportunity that is available for the rig at that time.
Nirvana Laha
Okay, sure. So that’s happening to hear. And sir, one more question since I have you on the call. Is there any plan for General Drilling to utilize some of these cash flows into other kinds of offshore or oil and gas assets other than rigs? Do we plan to exclude exclusively continue to be an offshore rig player? I’m asking that because of the deep cyclical nature of offshore rigs, in particular, even onshore rigs are less cyclical. So that obviously causes these boom and bust cycles. So is there any plan of utilizing our cash flows to diversify slightly in a related area or in the near future? We continue to be fully intrigued.
Raghav Jindal
No, we are not only doing, we are not only going to be there with the rigs offshore. We are looking at different opportunities. We are already in the space of directional drilling and mud logging. We are looking at different related services as well. And as and when we get some feasible options, we will be looking into it more strategically in India or outside.
Nirvana Laha
Okay. Okay. And last question from my side. Can you give any outline as to on what timeline we plan to bring more assets exclusively under GIML Drilling? Specifically talking about Explorer and Virtue one, are you in a position to give some kind of guidance?
Raghav Jindal
No, I don’t think so. We have any such plans in the near future. But yeah, the consolidation is always there in the mind, but I don’t have any timelines for that.
Unidentified Speaker
Okay, thank you. Just to add to what Mr. Jindal said, whenever we do go ahead with consolidation of these entities, since they are related parties, we will have to approach shareholders for their approval. So communication in advance will be provided to all shareholders.
Nirvana Laha
All right, thank you.
operator
Thank you. The next question is from the line of the Shiv Chaveri from Crown Capital. Please go ahead.
Shiv Jhaveri
Hello. Good afternoon, sir. Hopefully I’m audible. Firstly congratulations on a great set of numbers. Sir. Hello.
Raghav Jindal
We can hear.
Shiv Jhaveri
Hello. Yeah. Okay. Okay, thank you. Thank you, sir. So, sir, just wanted to, you know, just get a sense of your upcoming year. So I think in the presentation we have, you know, given a very detailed, you know, bifurcation. So with this I think we can expect around 900 crores of, you know, revenue. So just wanted to know is there any. Because we, I think General Pioneer gets, uh, you know, is there only for the half year. So, uh, you know, so any additional revenue we can forecast in this or how would it flow through? That’s my first question.
And how would the margins look right now? Like, we have done a good 35% margin. So we can assume that will be now our base margins.
Raghav Jindal
For the revenue part on General Pioneer. We will have to wait till the new contract is finalized. We cannot estimate that right now. For the margin, you can take a blended margin of around 35% for the entire year.
Shiv Jhaveri
Okay, okay, Fair. Fair enough, sir. And so I just wanted to know, like, I think you’ve answered kind of a bit in the previous participant, but I’ve, I was reading somewhere that ONGC is very aggressively wanted to cut the rig cost. So we’ve had like contracts at a bit of a higher rate. So do we expect, expect like the 35, 45,000 to be a good drain from now onwards or any sense that you could give. Understand, no commitment because the tendering process.
Raghav Jindal
A very low range and I don’t think so. ONGC was also expecting it to be coming down so drastically. Like I said before, it is, it is just a mishappening by a competitor to bid so low. Even ONGC had not expected flight such low rates. So definitely that’s not the new range. We will be still be targeting the 60s or higher in the coming 10 days.
Shiv Jhaveri
Oh, okay. Okay, that’s, that’s, that’s really great to hear, sir. And so I just wanted to know like we were talking, okay, we want, we are open for diversification and everything. So any concrete like discussions and targets we’ve seen or, you know, we can expect in this coming year or how would, how would you, you know, you know, give, if you could give a brief timeline for the process, like how would we look at and what areas or what kind of matrixes are we looking at? So in terms of if you want to expand, sir.
Raghav Jindal
I don’t see anything in the current year as such, but we are in talks with various companies for various services or maybe acquiring different assets. But it’ll only be. We will only. Be able to do it if it’s feasible and if we get an opportunity, we would not be investing in anything without a contract. So it’s like what you get.
Shiv Jhaveri
Well, okay, fair enough. Yeah, that’s it. From my side. All the best. Thank you.
operator
Thank you. The next question is down the line of Sandeep Dish take from Algarve Partners. Please go ahead. Ahead. Yes, sir, we can hear.
Sandeep Dixit
Okay.
operator
Mr. Sandeep, go with the question please.
Sandeep Dixit
You hear me?
operator
Your voice is not audible properly.
Sandeep Dixit
Is this any better?
operator
Yes, sir.
Sandeep Dixit
Sorry. For that the 18.3 crore of share of associates that you booked in the last quarter. Is that only what you want?
Raghav Jindal
It is Virtue one for the entire quarter. Sorry. Virtue Drilling for the entire quarter. And Discovery Drilling also for the entire quarter. But the revenue or the income of Jindal Pioneer was accruing entirely to discovery drilling till 4th of March.
Sandeep Dixit
So this 18 point crores would presumably put on sharply as we as we acquire Pioneer. Am I right?
Raghav Jindal
Since we have acquired it, this figure will decline. But the overall profitability of Jindal Drilling will increase. Because now revenue of Jindal Pioneer will accrue entirely to general ruling.
Sandeep Dixit
So the other question was with regards to the the revenue drop potentially in FY26. Given that we’ll have two contracts expiring in FY26, is it fair to assume? Obviously we don’t know what the new contracts to be. Echo 8. But as a base assumption, can we assume that the revenue for FY26 will be lower than FY25?
Raghav Jindal
That is not correct. I will urge you to refer to slide 6 of the earnings presentation. The order book has been detailed on this slide. In FY26 we have given a figure of 898 crores. Most likely the revenue will be higher than this because we have given a conservative figure. Over here. The revenue in FY25 was 828 crores. So even after giving a conservative figure the revenue shows an increase of 70 crores. In reality, I think we will cross that figure and positively surprise shareholders.
Sandeep Dixit
But. So this. This 898 includes virtue one. Now given that we are consolidating below the bottom line, this two particulars. Will it be part of your revenue?
Raghav Jindal
Sir, I’ll interrupt you. There is a difference between Virtue 1 and Virtue Drilling PT Limited. We are consolidating Virtue Drilling PT Limited. The oh. The rig is not getting consolidated. The profitability of the company gets consolidated which is virtualing VT limited.
Sandeep Dixit
Okay. Thank you very much. Can I swim in on the typical refurbishment time? Can we assume two to three months?
Raghav Jindal
No, sir. For rigs which are expected to be deployed with ongc, refurbishment is usually five to six months. And that is also the time which is given by ongc.
Sandeep Dixit
Okay. Revenue starts only after it is equipped.
Raghav Jindal
Correct?
Sandeep Dixit
Thank you, sir. That’s all the question.
operator
Thank you. A reminder to all participants. You can press STAR in one to ask question. A reminder to all participants. You may press STAR in GUN to ask question. The next question is from the line of Manikant from Investment Wealth. Please go ahead.
Manikant Gupta
Am I audible?
operator
Yes sir, you’re audible.
Manikant Gupta
Okay. Yeah, as usual. So congratulations on Stellar Quarter. My question is regarding the rigs that are going going to end in Discovery One, Zimble Co1 and Zimble St. So most of the things are ending by mid of July 2026. So when will the bidding process be starting? Like is it two months before? Because we have a refurbishment time of five months like you mentioned. So like post repurbishment or while in the repurposing will go ahead or are the talks already in progress? A few of these.
Raghav Jindal
For the rigs that you mentioned. Contracts are ending in middle of 2027 financially and once the contract ends then it goes for refurbishment and then it gets deployed on new contract.
Manikant Gupta
Okay. And like you mentioned that you are exploring even the other parts of not not just for oc. You are looking deployment of Pioneer at Mexico side or the other other places. So do you see better rates compared to what we are seeing here currently? The rig grades at that basis
Raghav Jindal
I. Would not put the 35,000 that we’ve got right now as a benchmark. But yes, they are different rates at different parts of the world. So if the cost in operating these rigs are different and we will be looking at this analysis and going with the best option, okay, everything counts. Sometimes the prices are higher in the Middle east, but there’s uncertainty about the continuity of the rig.
Manikant Gupta
Got it. And coming to the order book like FY26 looks solid like you mentioned, 898 looks to be conservative number. But going ahead FY27 28 with the current situations, how do you see Jindal Drilling performing across next two to three years? So do you see a bright vision going ahead or do you see any big stops that you are anticipating now itself?
Raghav Jindal
Next contract is scheduled to be awarded towards the later part of the year after the tender comes out. We don’t expect the rates of 35,000 going forward. It is a one off due to some special situations which was in play. That situation will not continue going forward. Therefore new contracts will be at a higher rate. If you look at the rates at which Discovery One, Jingle Star, these two rigs, they are deployed at 48324 for Discovery One and Jindal Star is at 44,000. We expect day rates for these rigs to be much higher. Since day rates for these rigs will be much higher then the revenue that will accrue to us will also be higher and consequently we expect subject to getting good rates the revenue for FY27 28, 29 to be in line with whatever we have done in FY25.
Manikant Gupta
Got it. And coming to the debt part, like this year there was like good amount of production plan. So is this the way forward going? So can we assume that the debt will be going below 100 crores or like how is that going to be?
Raghav Jindal
Yes, yes. I’ve already said that debt will continue to reduce aggressively. And we are net cash right now. So the debt is only at a gross level.
Manikant Gupta
Okay, that’s my next question. What’s the plan with the net cash? Like do you have something that are in the pipeline already or what’s the plan with that?
Raghav Jindal
We have purchased General Pioneer on the 5th of March and we have to make the payment to the seller.
Manikant Gupta
Okay, got it. So the cash will be used to make the individual.
Raghav Jindal
Mostly, yes. And then once rigs get de hired, then there is a certain amount of refurbishment cost which gets incurred for which we require cash flow.
operator
The next question is from Badrinath Holdings. Please go ahead.
Nirvana Laha
Hi. Thanks for the opportunity again. I just wanted to know what is the payment schedule for the acquisition of Jindal Pioneer?
Raghav Jindal
It’s a deferred payment schedule. The entire payment will be completed within one year.
Nirvana Laha
Within one year. Okay. And when do we expect the subsidiary to return as part of the cash?
Raghav Jindal
So you’re talking about shareholder loans?
Nirvana Laha
Yeah. We also have extended debt to the subsidiary. Right. The subsidiary that owned.
Raghav Jindal
We don’t have any subsidies.
Nirvana Laha
The joint venture.
Raghav Jindal
If given shareholder loans to the joint venture, their rig is also operational. So as and when they get the cash from their operations, they will repay us. If you look at the loan to joint ventures, it has come down from last year and I think in this year full repayment is expected.
Nirvana Laha
Okay. All right. Thank you.
operator
Thank you. The next question is from the line of Darsheel Chaveri from COM Capital. Please go ahead.
Darshil Jhaveri
Hello. Thank you so much for taking my question again, sir. So just one small bookkeeping question. What can we expect our effective tax rate to be? Sir?
Raghav Jindal
It will be lower than 25% because we’ve acquired the rig. And I’m talking about the current tax rate only. It is likely to be. It will be lower than 25% because we have acquired the rig and we get accelerated depreciation.
Darshil Jhaveri
Okay. Okay. And just wanted to know, our rig in Mexico, would that also help us lower our tax rate or that tax start a full rate only, sir.
Raghav Jindal
It’s taxed at the full rate because the income accrues to the Indian entity.
Darshil Jhaveri
Oh, okay. Okay, fair, fair, fair enough. And there’s just one more question, like when we talk about industry, like the bidding is explained because there were a few cancellations and that is why they wanted to desperately get the order and that lower rate. So currently are those other rigs in some utilization or you know, like we just hope that the same similar situation doesn’t come to us in the later half of the year when these are again wanting to, you know, just offload their rigs and you know, work at maybe a minimal cost. Right. So are the currently like those rigs and the cancellations are still occupied or.
They are like if we have any knowledge about that part. So that would be, you know, to give us a good ship.
Raghav Jindal
Out of the three ship had, one has gone into ngc, the other is also contracted somewhere and one is lying idle. So yes, they only would have one rig to offer in the next contract.
Darshil Jhaveri
Oh, perfect, perfect. That really helpful. So okay, thank you. That’s it from my side.
operator
Thank you. The next question is from the line of Sandeep from Aljaf Partners. Please go ahead. Yes, sir.
Sandeep Dixit
So sir, slightly more longer term question. If I understand correctly, the key drivers of growth are A the rates which are subject to demand and supply and two, diverging the balance require more assets. Now, given that we have, we have a sort of limited visibility on the demand and supply, would you be looking to leverage the balance sheet for acquiring assets? And the reason I’m asking this question is last quarter you mentioned that as of now there are not much assets available because the market is in an uptrend.
Raghav Jindal
There is no limited visibility in terms of the operations of the company. Tenders will be issued by ONGC as per their schedule and we are the largest offshore drilling contractor with them. We will be the biggest beneficiaries as and when the tenders come in. We will be participating and naturally we will also be awarded some contracts. The point that I think which you are trying to make is that the fluctuations in oil and gas cycle will continue to have an impact on us. So that is a correct statement and it is the nature of the business that we are in.
We cannot dealing ourselves from the fluctuations in the oil and gas cycle. We can minimize it and that is the way we expect the business will continue. We have done really well over the past two years and we will see record revenue and profits in FY26. Regarding the desire for debt, we are debt averse and that is the reason why we have survived in this industry for so long and have become a market Leader. So we do take debt to acquire assets but we try to repay the debt as early as possible.
operator
Yes, Mr. Sandeep, will that answer your question? Mr. Sandeep? Sir, is Narasman from the Paris bench. We’ll move to the next. The next question is down the line of Pankaj Motwani from Equity securities these questions.
Pankaj Motwani
Yes, thank you for the opportunity. So my question is like I have a question on the regret. So like you, you have highlighted that the regret were mostly because of the aggressive bidding as for the decline in the regret. So like I just want to understand could the like broader market dynamics like the impact from the Saudi Aramco cancellation of the regret of the contracts of the context in the last year like they had also contributed to this softness in the rig. Like just trying to understand the global sectors has also had an impact in the Indian market.
Raghav Jindal
Yeah, in general everything does have a little bit of impact. But none of those rigs are suitable for the Indian market or coming into the Indian market. So the pool of rigs that are there for the Indian market remains where it is unless someone has a big investment and changes their rigs for the Indian market. So there is a certain, certain aspect that does have an effect but not majorly.
Pankaj Motwani
Okay. And just to get a sense of competition, competitive. So like how many RICs are currently available in Indian market for this? Especially for the ONG setup tender
Raghav Jindal
there were seven rigs. For the current tender of three rigs. So three got contract. There are four left. But it’s a cyclical process. Two more rigs from Jindela coming up next year. So someone might give their rig somewhere else. So that’s the kind of.
Pankaj Motwani
Got it. And just
Raghav Jindal
going forward right now ONDC. Is. Has their demands less. That’s why they’re coming out with less tenders because they are having some meetings with BP to streamline their process. Once that’s done by the next the coming year their demand would increase substantially. So we would be looking at higher discounts within ONGC as well.
Pankaj Motwani
Got it. And one more question. I just want to know the rental charges for the jingle staff and Virtue and General Explorer.
Raghav Jindal
We are not disclosing that for Jindal Explorer since it’s owned by another listed entity. It is $23,000 and it is in public domain. For the previous contract.
Pankaj Motwani
Yes, yes. So for the new contract what is the, what will be the rate for the exporter?
Raghav Jindal
We don’t know right now. To answer you, General Drilling would only benefit further. Not. Jindal Drilling does not bear any Losses to update the rigs for the coming tender. So the like. So you are saying the the contact will be. Affect the profitability of general.
Pankaj Motwani
Okay, yeah. That’s my questions. Thank you.
operator
Thank you. The next question is from the line of Sambhav Bajaj, an individual investor. Please go ahead.
Unidentified Participant
Good afternoon, sir. I want to ask one question that in last call it was written that for General Finance that The rate was $40,000. But it has been written in the order book that 36500 only. And second, second thing about the same is that I think the contract will cancel or it was told that in December 2025. But it has written in the order book as September 2025.
Raghav Jindal
The rate of 40,000 was applicable from 1st of June. So I think that is what you’re referring to. And the duration is based on an estimated number of wells. The contract that we have with the charterer is based on the number of wells rather than a fixed timeline. So as and when time progresses we get better clarity. So the September 25th for this particular asset may not necessarily be September 25th. It can also be August or it can be October because it depends on the number of wells which have to be completed by the ring.
Unidentified Participant
And one question I want to ask that. What is the other business of discovery dealing? Because both the dicks have. We have bought that. So anything on that?
Raghav Jindal
There is no other business.
Unidentified Participant
There is no other business. Okay, sir. And operating expenses have been turned down. So this is because of Pioneer rent which we are not paying or some other thing.
Raghav Jindal
It is because of that. Because revenue will increase since on General Pioneer there aren’t any operational expenses that we have to incur.
Unidentified Participant
One last question. Explorer. There is any Explorer basement will happen in that five to six months. That in which time we are not deploying with the ongc.
Raghav Jindal
Correct. So General, Explorer is under refurbishment as we speak. It is expected to be redeployed on the new contract in November or maybe a little earlier.
Unidentified Participant
Okay, sir. Thank you, sir.
Raghav Jindal
Thank you.
operator
Thank you. A reminder to all participants. UMAP s Star and want to ask questions. A reminder to all the participants. You may press star and one to ask the question. Questions. No further questions from the participants. I now hand the conference over to the management for closing comments. Over to you, sir.
Raghav Jindal
So thank you to all the participants. I hope the presentation has cleared all questions and we look forward to participating and talking to you in the future as well.
Unidentified Speaker
Thank you Mr. Jindal for taking time out from your schedule and thank you shareholders for participating in case of any further queries, please feel free to connect on the address mentioned in the presentation. Thank you.
operator
Thank you. On behalf of Intech Stock Working Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you. Thank you.