{"id":175401,"date":"2026-01-22T12:57:13","date_gmt":"2026-01-22T17:57:13","guid":{"rendered":"https:\/\/alphastreet.com\/india\/deep-industries-ltd-deepinds-q4-2025-earnings-call-transcript\/"},"modified":"2026-01-22T12:57:13","modified_gmt":"2026-01-22T17:57:13","slug":"deep-industries-ltd-deepinds-q4-2025-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/deep-industries-ltd-deepinds-q4-2025-earnings-call-transcript\/","title":{"rendered":"Deep Industries Ltd (DEEPINDS) Q4 2025 Earnings Call Transcript"},"content":{"rendered":"

Deep Industries Ltd (NSE: DEEPINDS) Q4 2025 Earnings Call dated May. 02, 2025<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Unidentified Speaker<\/strong><\/p>\n

Paras Savla<\/strong> \u2014 Chairman and Managing Director<\/em><\/p>\n

Rohan Shah<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Analysts:<\/h2>\n

Unidentified Participant<\/strong><\/p>\n

Pankaj<\/strong> \u2014 Analyst<\/em><\/p>\n

Balasubrahmanyan<\/strong> \u2014 Analyst<\/em><\/p>\n

Nirava Nehru Nirvana Laha<\/strong> \u2014 Analyst<\/em><\/p>\n

Ankur Savarya<\/strong> \u2014 Analyst<\/em><\/p>\n

Amit Kumar<\/strong> \u2014 Analyst<\/em><\/p>\n

Pujan<\/strong> \u2014 Analyst<\/em><\/p>\n

Srikar Sai<\/strong> \u2014 Analyst<\/em><\/p>\n

Rajesh Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Rajesh Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

And gentlemen, good day and welcome to the Deep Industries Limited Q4FY25 earnings conference call hosted by afactors PR. From the management we have Mr. Paras Savla, Chairman and Managing Director and Mr. Rohan Shah, whole time Director of Finance and Chief Financial Officer to take the discussion forward. As a reminder, all participant lines will be 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 this conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded.<\/p>\n

I now hand this conference over to Mr. Paras Savla from Deep Industries. Thank you and over to you sir.<\/p>\n

Paras Savla<\/strong> \u2014 Chairman and Managing Director<\/em><\/p>\n

Good evening everyone. It gives me immense pleasure to speak to you all today as we present our fourth quarter and full year performance for the financial year 2025. Thank you very much for joining this call. Our quarter four and FY25 results, press release and investor presentation are available on our website as well as on exchanges. I believe you all had a chance to go through it. I AM joined by Mr. Rohan Shah, Director, Finance and CFO who will assist me in answering your queries after my break. He will share the financial performance of the company in detail and we will then take your questions.<\/p>\n

The Indian oil and gas sector is undergoing a transformative phase driven by progressive policy and growing demand. The Oilfields Amendment Bill passed in Lok Sabha in March 2025 has redefined the sector’s trajectory by expanding the definition of mineral oils to include shale gas and unconventional hydrocarbons. Streamlining dispute resolution and incentivize enhanced oil recovery techniques, this legislation is unlocking new opportunities for exploration and production. Complementing this, the 10th round of the Open Acreage Licensing Policy launched during India Energy Week 20 leverages AI driven seismic data analysis to accelerate the discovery of new reserves. These reforms align with India’s goal to expand its exploration area to 1 million square kilometers by 2030, signaling a robust push towards self reliance at BIP Industries.<\/p>\n

We are strategically positioned to thrive into this evolving landscape. Our expertise in drilling and workover services directly supports the nation’s focus on EOR and unconventional hydrocarbons, the key pillars of the Amendment bill. As India ramps up exploration, our capabilities will play a vital role in tapping into new and marginal fields. Additionally, our proficiency in our value added services like charterhead of entire gas processing facilities and integrated project management aligns seamlessly with the government’s ambition to double natural gas production to 60 billion cubic meters and enhance its share in the energy mix. In line. With this Vision, Deep Industries Ltd.<\/p>\n

Through its group company Dolphin Offshore Enterprise, has taken a significant step in expanding its offshore services. Beluga International, a wholly owned subsidiary of Dolphin Offshore, has entered into a three year lease agreement with Balas Shipping, a Mexican company, for the deployment of Prabha DP2 accommodation barge. This strategic move is poised to enhance justice’s global footprint in the offshore services sector, thereby leveraging the strong operational capabilities of its group entities. It underscores our commitment to innovation and growth, positioning us to capitalize on emerging operations opportunities in the global energy market. Our strategy is clear, enhance operational efficiency, adopt cutting edge technologies and seize emerging opportunities.<\/p>\n

We are actively exploring production enhancement contracts and charter hiring of entire gas processing facilities segments poised to drive our growth in the coming years. These initiatives not only bolster our services portfolio but also contribute significantly to India’s energy security and economic Looking ahead, Deep Industries is committed to leverage the supportive policy framework and favorable market to deliver sustained value. With India’s energy demand projected to grow faster than any major economy, reaching 11 million barrels per day by 2045 and natural gas consumption forecast to hit 550 million cubic meters per day by 2030, the opportunities are immense.<\/p>\n

We will continue to innovate, collaborate and lead into the dynamic sector, ensuring that your company remains a cornerstone of India’s energy future. With this I invite Ron Shah to provide a detailed overview of the financial performance of quarter four and FY25. Following his remarks, we will be happy to address any questions you may have. Thank you.<\/p>\n

Rohan Shah<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Thank you Parazwai Investor Friends, thank you for joining the call today. Happy to share with you another stellar quarterly and full year performance of Deep Industries Limited. All the comparisons are on year on year basis which would provide fair evaluation. Now we would like to inform that during fourth quarter there was one time loss of rupees 251 crore reported under exceptional items due to cleaning exercise post acquisition of Kandla Energy and Chemicals Ltd. From Liquidation and Dolphin Offshore Shipping Ltd. From CIRP. We have shown both amount with and without these exceptional item in profit and loss and in investor presentation.<\/p>\n

For fair comparison purpose it would be worthwhile to consider PAT without considering this exceptional item. Other details are on consolidated basis as Follows. Revenue from Q4FY25 rose to Rs. 167.2 crore up by 39.7% year on year. For full year revenue, operational revenue jumped by 35% to rupees 576.13 crore. The strong growth momentum in top line comes from execution of our orders as well as consistent new order flows. Tight control over our costing and operational efficiencies have helped us post 27.4% year on year growth in EBITDA to 62.5 crore in Q4FY25. For full year EBITDA it has grown by 35.3% to Rs.<\/p>\n

263.8 crore with EBITDA margin of 43%. We have been maintaining EBITDA margins in the range of 41 to 44% providing us a decent cash flow to strategize our future growth trajectory. Net profit or pat attributable to owners for the fourth quarter excluding one time loss was at rupees 41.9 crore up by 17.8% year on year. For full year, pat attributable to owners stood at rupees 161 crore up by 31.6%. As on date, our order book stood at rupees 2,960 crores. We are happy to inform that board of directors have recommended final dividend of rupees 3.05.<\/p>\n

That is 61% on the face value of rupees 5 per equity share subject to approval of shareholders of the company at the ensuing Engine Journal meeting. As we look ahead to FY26, Deep Industries is well positioned for a bright and promising future. Building on our strong performance in recent years. We are confident in our ability to maintain this project positive trajectory. As Paras Bhai said, our success is driven by a solid foundation of operational excellence, a sharp focus on cost optimization and a steadfast commitment to innovation. These trends enable us to seize new opportunities as they arise in the energy sector.<\/p>\n

With this I now open the forum for question and answer. Thank you.<\/p>\n

Questions and Answers:<\/h2>\n

operator<\/strong><\/p>\n

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pankaj from Aquarius securities. Please go ahead.<\/p>\n

Pankaj<\/strong><\/p>\n

Yeah. Hi. Thank you for the opportunity. So if I see the consolidated performance and if I compare quarter quarter. So like the margins of the company has been declined. So like the margin margins have declined from around from 43% to 34%. So like what is the reason behind it?<\/p>\n

Rohan Shah<\/strong><\/p>\n

So on quarterly basis as we consolidated newly acquired companies in Addition to their exceptional items, there are certain other expenses also which were consolidated under Q4. And that is the reason particularly for drop in margin in Q4. If you look from years perspective, full year perspective, they are in line.<\/p>\n

Pankaj<\/strong><\/p>\n

So what is the quantum of the expenses?<\/p>\n

Rohan Shah<\/strong><\/p>\n

These are in range of around 10 to 11 crore for the quarter.<\/p>\n

Pankaj<\/strong><\/p>\n

So like we can. So it will be like these are.<\/p>\n

Rohan Shah<\/strong><\/p>\n

One time of course, so it would not be recurring kind of.<\/p>\n

Pankaj<\/strong><\/p>\n

Okay. And like a guided margin would be 40 to 40%.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, yeah.<\/p>\n

Pankaj<\/strong><\/p>\n

And okay, that’s got it. And also talking about the Dolphin Offshore book. So I. So like this CWIP of the dolphin offshore has reached to around 222 crores. And so I think in the last call we were discussing that the barge innovation expense would took around 110 to 120 crore. So like what is the composition of this area?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, so in addition to refurbishment cost, we included the book value of barge as well into cwip. So putting value as well as refurbishment cost, it has reached to this level.<\/p>\n

Pankaj<\/strong><\/p>\n

Okay. And what is the life cycle? What is the life of these assets? So like. Like what can. What is the depreciation we can expect from this?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Sorry, your voice is not.<\/p>\n

Paras Savla<\/strong><\/p>\n

Louder please.<\/p>\n

Pankaj<\/strong><\/p>\n

So I’m saying like what is the life life of this assets?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, it would be almost 15 years.<\/p>\n

Pankaj<\/strong><\/p>\n

Okay. And also in your notes like you have mentioned that one of the like a subsidy. Beluga International has made an investment of around $2.2 million in HF Hunter. So like what kind of investment? Like are we looking into this company?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, so that that investment is for joint venture with HF Offshore. And under this JV we have acquired one anchor handling tug. So our stake in that investment would be 37%. So it would be addition to our fleet for offshore services.<\/p>\n

Pankaj<\/strong><\/p>\n

Got it. And one last question on on exception loss. So like you have posted around 250 crores of exception loss. So like what exactly comprise this? Like you mentioned that that was on account of cleaning. Cleaning up. Cleaning up. So like what exactly comprised of this cleaning exercise? Like does it compare asset write down or liability provisioning or what?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, it is primarily consisting of writing off of inventory and receivables which are not recoverable.<\/p>\n

Pankaj<\/strong><\/p>\n

Okay, so so like whole of the write off is non cash in nature.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, yeah. These are non cash items and it is just an accounting effect. We’ll have to take it in consolidation.<\/p>\n

Pankaj<\/strong><\/p>\n

Okay. And one more question. Like do you have any update on the like 108 ONGC arbitration. Sorry, do you have any update on 108 crores of ONGC arbitration award.<\/p>\n

Rohan Shah<\/strong><\/p>\n

ONGC arbitration you are saying?<\/p>\n

Pankaj<\/strong><\/p>\n

Yeah, yeah.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So that out of that 108 crore 75% we already have received and ONGC had challenged that arbitration into civil code which where again, again we got order in our favor. But ONGC has now appealed to a higher court and so we are waiting for higher court to get it clear.<\/p>\n

Pankaj<\/strong><\/p>\n

Okay. And just one more question. Like you have mentioned that the energy will result in backward integration. So like what kind of margin benefit we can expect from this equation?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah. So since many chemicals and fluids would be useful, so we believe in our operating margins we can have an improvement of more than 2 to 3% at least on a minimum side.<\/p>\n

Pankaj<\/strong><\/p>\n

Okay, got it. That’s it for myself. Thank you. All the best.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of viral shah from Ambit Wealth. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Hi. Good evening sir.<\/p>\n

Paras Savla<\/strong><\/p>\n

Good evening.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

So basically sir, couple of questions. One auditors are given opinion. So pertaining to the newly acquired entity. Right. KL and Right. So could you elaborate more what is this related to? Sorry, could you elabet more into this?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Since this equation happened in only last day of financial year, so we are in process of evaluating that receivables in full. So Currently as on 31st March, we believe that we should take all those receivables to next financial year because without evaluating and finalizing on its recoverability, we should not take any action. So with regards to receivables for Canada, we are continuing them.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, got it.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So apart from that, our equation cost for taking Kanla is very minuscule against what we are getting as receivables and all other properties and experiences. So we would definitely try to take maximum benefit out of it.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it. So as of now, when you look at this provisioning which we have done, everything is done and dusted or there is something more expected going forward.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So as of now, whatever provisioning we have done that was very clear from upfront like this, whatever is required, we have already provided. And with regards to this other provisions, we will take the decision based on our evaluation and we believe that majority of them we can be recovered.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

No, no. So agreed. So as of now we have made the entire provisioning or there is some more expectation which can come in. Whatever the assessment which you want to put in.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So as on date, whatever was required, we have done entire provision.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And. And for both the thing.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Right.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Dolphin. And so Dolphin, there can be no more surprises. Kindler. There can be some expected. Is the understanding correct or no Yeah.<\/p>\n

Rohan Shah<\/strong><\/p>\n

I think for both of these companies, whatever was required we have provided. So surprises I am not sure for any of them would be there. But yeah, at the end of day it’s an equation. So post evaluation only.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And you did mention that you know there were 11 or 12 crore of extra expenses. So if you add them back, you are at the same margins of last quarter, right? Is the understanding correct?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it.<\/p>\n

Rohan Shah<\/strong><\/p>\n

At the end of the equation, cost for acquiring both this company put together is just 9 crore for us. And so against 9 crore these two companies with their properties, their receivables and their experiences with their assets is coming in. So we believe these two can give us a great amount of push going forward.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it, Got it. Understood. So lastly took more questions from my end. One, what is the update on this product enhancement contract?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Where are we going in production enhancement contract? We have taken over the charge on the field in first week of April and we have started doing groundwork there. So this entire field is now in our control and baseline production. We are continuing with baseline production and we have started applying our efforts for increasing production. So as we had said before, it will take five to six months to reach to the incremental production level. So we are quite poised to get incremental production by H2.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it, got it. That was really nice. Lastly, Paris Bhai were mentioning on the new opportunities which are expected, could you throw some more light onto this space per se? What is the bit pipeline expected and are we bidding for new tenders? Such tenders going forward.<\/p>\n

Paras Savla<\/strong><\/p>\n

Have mentioned that the 10th round of OLAP is already there. One more round of DSF 4 is already out. So likewise and many such PCs are also out, are not out. They are supposed to get out very soon. So we see in front of us lot of opportunities in these bidding rounds, in various bidding rounds. So that is the biggest hope we have as we go forward. Government is also quite excited to and want the Indian producers to produce more oil and gas. So ahead of us we feel there are immense opportunities in the sector.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

But in terms of numbers, can we quantify something which can be coming for this first half? Is there something possibility in first half or second half in terms of number of contracts?<\/p>\n

Paras Savla<\/strong><\/p>\n

I think in quarter second from second quarter onwards you may have, you may see some numbers coming up in a big way with these PCs and all. So and as we go forward these numbers will definitely be reflected to what our expectations are.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it, Got it, got it. Lastly, apart from this exceptional item which we have recovered, where we have booked around 251 crores. Is there a possibility that something can be reversed positively as well moving forward?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Something can be.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Sorry, reverse positively. This is the negative part of it. But can we reverse the positive part of it as well? Something which can be recovered from the question?<\/p>\n

Rohan Shah<\/strong><\/p>\n

No, not from these two targets, not from.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it done. Thank you. Thank you. Thank you.<\/p>\n

operator<\/strong><\/p>\n

The next question is from the line of Sudhir Pedha from Beda family office. Please go ahead.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Good afternoon sir. And congratulations for the good operational numbers.<\/p>\n

Paras Savla<\/strong><\/p>\n

Thank you sir.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

My question is first with the new opportunity and new avenues of segment coming up this year as far as revenues are concerned like production enhancement and then Dolphin Barge and as you mentioned other opportunity in the second half and this acquisition, recent acquisition of Kandla. So what kind of revenue growth do you see in this current year? 2526 and of course profitability. What is your guidance for this year? Current year?<\/p>\n

Paras Savla<\/strong><\/p>\n

So our expectations, with the kind of order book that we have, we are very very confident and on a very conservative side we expect a minimum growth year on year of 25% or maybe even 30%. And our profits would always should be in line with what our current numbers are in the same, in the same ratios as we go forward to 20 to 30%.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Great, great. And so as I look at the console balance sheet, so your receivable numbers have doubled from 276 crore to 588 crore. I believe that is a receivable of that recently acquired Kandla Chemical.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct. So we have categorically given note for this receivables. So as you rightly said, the number is primarily because of the receivables of these two targets which we have acquired.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. And so now we have to take a 250 crore hit. So. And we have spent I think only 9 crore on those equation. Of course you have explained. But can you elaborate the rational behind acquiring these two companies and taking the hit on the balance sheet? So whether the network of the our main DEEP industry will be affected how this entire transaction was done? Actually no.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So even after taking this one time loss, net worth of DEEP is positively affected only. So it has increased only so even after this hit, net worth of DEEP is not affected negatively. Second, the primary rationale for acquiring these two targets is more related to business expansion. So with regards to Kanla Energy and chemicals they were into manufacturing of various hydrocarbon fluids and chemicals. And as you are aware that in our integrated project management and under production enhancement contract we are consuming so many Such chemicals and hydrocarbon fluids. So by acquiring this this can be a good opportunity of backward integration by which our operating margins we have an opportunity to improve our operating margins significantly.<\/p>\n

So primarily that was the reason for acquiring Kandla. And with regards to Dolphin shipping they are already having few tugs running already into Indian oceans. And by that acquisition we can immediately increase our fleet in our offshore services.<\/p>\n

operator<\/strong><\/p>\n

Sorry to interrupt you Sudhir but I would like to request you to rejoin the question queue. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference please limit your questions to one per participant. The next question is from the line of Balasubrahmanyan from Aryanth Capital. Please go ahead.<\/p>\n

Rohan Shah<\/strong><\/p>\n

If he is not available we can take next question.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Hello.<\/p>\n

operator<\/strong><\/p>\n

Yes sir, the next question is from the line of Raman KV from Sequent Investments. Please go ahead.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Hello sir, can you hear me?<\/p>\n

Paras Savla<\/strong><\/p>\n

Yes.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

So my. I want to understand working capital cycle and as well as the receivables with respect to the company. So my understanding is 363 crores of receivable is of the company prior adjusted for the recent acquisition. Right?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

And how much of this is like you know within 90 days and after 90 days like what percent of these.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Receivables are old receivables of old management. So we have received this with our equation of these companies with miniscule cost.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

No, no, no I’m not. I’m talking about the the company level receivables. Only 363 crores of deep industries receivable. How much of this. What. What percentage percent of this receivable is 90 days.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So if you remove then 363 crore then balance receivables are my regular receivables from deep and other subsidiaries and majority of them would be 90 days. I would say more than 70 to 80% would be 90 days and balance would be more than 90 days.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Okay, answer my question on the write off part is. So you. You did the write off is with respect to the inventory and receivables and it’s like a non cash items. So are we with respect to the receivables front are we expecting this 208 crores of receivables in the coming year in FY26 or is it like you have totally written off the 208 crores of the receivables?<\/p>\n

Rohan Shah<\/strong><\/p>\n

No. So we have kept those receivables outstanding because evaluation is going on and since we have recently acquired and taken control over the company. Company so all documents and supportings we are going it through and we are quite hopeful to recover out of this receivables as well.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Okay, answer. My last question is with respect to the Dolphin offshore revenue. We have seen that it had Dolphin offshore in Q4 did around 20 crores of revenue. Can we expect in FY25 the Dolphin offshore revenue to be around 120 crores.<\/p>\n

Rohan Shah<\/strong><\/p>\n

FY26 we are expecting revenue of almost 100 crore. For sure we can book more than this if we’ll add few more projects in Dolphin. But as of date we are for sure for 100 crore.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Okay, thank you sir. Thank you so much.<\/p>\n

operator<\/strong><\/p>\n

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference please limit your questions to two per participant. The next question is from the line of Mr. Bala Subramanian from Arihant Capital. Please go ahead.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Good evening sir. Thank you so much for the opportunities.<\/p>\n

Paras Savla<\/strong><\/p>\n

Sir, my first question regarding right now.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

The oil prices are hovering around $60 per barrel. Generally if oil prices goes below $60.<\/p>\n

Paras Savla<\/strong><\/p>\n

Really difficult for like oil exploring companies to make money.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

I just want to understanding at this.<\/p>\n

Paras Savla<\/strong><\/p>\n

Scenario is there any slowdown of getting a new contracts or execution of current contracts? I understand we have around nearly 2900.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Crore kind of order book at this point of time. And how much is from short term.<\/p>\n

Paras Savla<\/strong><\/p>\n

And long term contracts? Is there any execution of this?<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Is there any delay getting in new contracts? This is my first question sir.<\/p>\n

Paras Savla<\/strong><\/p>\n

As far as the sentiment goes, as I mentioned earlier there is a lot of excitement into the sector. So the theory goes that even see Government of India largely companies like ONGC or Oil India they have a mandate to keep producing oil and gas irrespective of the prices going way lower or beat high. Because their endeavor is always to produce oil. 20, 30 years we have seen that the drilling activities as far as the PCs are concerned they have been following a very strong mandate of, you know, energy sufficiency. So in all these years we have seen that this is the scenario has not much impacted to the PSUs.<\/p>\n

And as we go ahead with the private sector I think when the crude oil prices assumingly they go low it gives a great opportunity for them to do a capex. Because whenever the prices have to go up they would be still able to get all these services and everything and other cost at a very reasonable rate. It is nothing more than a deferred. This call is now being recorded of these diplomatic, you know understanding they will definitely going and we keep Doing this investment. Thirdly, our contract, assuming that we have a contract for the three years prices may go, it does not have any impact on commitments and our services.<\/p>\n

They are, they are fixed for that period and therefore we are, we are not impacted on the crude oil prices even if they have to go low or even if they have to go high. But we believe that in either of the conditions we have seen in all these years our businesses have not been impacted because of any of these changes.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

Got it sir. So my second question regarding capex of 500 crore for this year is that for this CAPEX and we also planning.<\/p>\n

Paras Savla<\/strong><\/p>\n

For QIP and then we are going.<\/p>\n

Balasubrahmanyan<\/strong><\/p>\n

To close for direct.<\/p>\n

Rohan Shah<\/strong><\/p>\n

See primarily we would be doing capex of 500 crore of which more than 350 crore would be for equipment. We would be adding few more rigs and other gas processing equipment in this financial year. And we are also evaluating few opportunities of acquisition as well. So all put together 500 crores are planned for this financial year. But having said so, we are quite comfortable on our liquidity position. So we would definitely look for good time to go ahead with qip.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of Nirava Nehru Nirvana Laha from Badrinath Holdings. Please go ahead.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Hi. Thanks for the opportunity. Sir, my question is regarding the DP2 barge for the contract that enterprises Dolphin Offshore declared. It said that the contract is worth 281 crores of net net of opex over three years. So does that mean if I divide that by three that comes to around 94 crores. So does that mean that from this contract the EBITDA recognized by Dalton Offshore should be around 94 crore because it stays net of opex. So is that understanding correct?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yes. So you have rightly understood it. So since it is net of OPEX almost the revenue would be ebitda. I would say almost but yes.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Got it. And sir, what will be the estimated cost below EBITDA in terms of interest and depreciation?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Depreciation interest cost and administrative cost would.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Be there any any idea on quantification there?<\/p>\n

Paras Savla<\/strong><\/p>\n

Sir, I’m just trying to see how.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Much will flow through to pdt.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Would be little early to say but would not be much. So percentage I’ll it will be difficult to quantify as of now.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Okay. And how much losses are left to be set off in Dolphin Offshore as a whole for tax purposes.<\/p>\n

Rohan Shah<\/strong><\/p>\n

For Dolphin Offshore India has more than 100 crore carry forward loss. But this revenue would be booked in Dubai. So there will have a tax of 9%.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Okay. And sir, for this regarding this exceptional item loss. So can you clarify something? So if I look at H1 console equity for Leap Industries that was around 1500 crores. And FY25N console equity is around 1820 crore even after this write off. So if I just subtract the two numbers that’s 320 crore plus 250 crore. So for is it correct that by paying 9 crores what we actually initially added to our book value of equity was around 500 crores or 550 crores. And from there we have taken a 250 crore write up to arrive at the present balance sheet.<\/p>\n

Is that right?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct. It is more or less. What you are saying is right.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Okay, last question. Sir, in Kandla Energy, Dolphin Shipping you said that there are some tabs which are operating. Those are the operating assets in Kanla Energy. I missed your commentary. What are the kind of operating assets that we have gotten from this acquisition?<\/p>\n

Rohan Shah<\/strong><\/p>\n

So they have factory, land and machinery. So we’ll just have to revive that machinery. Then we’ll have to start working on it.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Okay. And your earlier guidance for a 40% revenue growth for FY26 and you know maintaining or improving EBITDA that that holds even after this write off and when you’re coming to terms with these acquisitions there are no changes in those kind of guidance.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, yeah. That guidance will continue to be hold because based on our existing order book we will definitely be growing on. See if you will see on operational revenue front we have grown this year 35% and that is what exactly we were envisaging. And for FY26 also we are envisaging growth of more than 30% or so. So that growth will continue to be there.<\/p>\n

Nirava Nehru Nirvana Laha<\/strong><\/p>\n

Okay. All right, sir, all the best. Thank you.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Thank you.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of Deepak Podar from Sapphire Capital. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, I’m audible, sir.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yes.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yes, sir. On this Prabha. That expected to generate additional revenue from first quarter. Right. So. So what is the quantum? I mean per quarter? This can add to your revenue from first quarter.<\/p>\n

Rohan Shah<\/strong><\/p>\n

It’s primarily $30,000 a day. So proportionately that much amount. Hello.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

I don’t know. There was a sound which came. Yeah. Sir, I think you please continue. Yeah, there was some disturbance.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So it’s $30,000 a day and we’ll definitely have revenue starting from good Q1. So we are expecting more than almost 55 to 60 days revenue from Q1 and then definitely. So in this contract on Yearly basis you will have a revenue of more than 330 days.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Correct. 330 days. Yearly revenue at 30,000 per day.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. So so given this kicker in your revenue, I mean do you also expect a quarter on quarter revenue will see improvement? I mean from fourth quarter to first quarter?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, of course. So quarter on quarter growth would definitely be there. Because the revenue from barge was not there in last Q4. So it would definitely be ahead. And from Q2 end or from Q3 starting we’ll have additional revenue from production enhancement as well. So Q1Q growth is also quite visible, quite possible.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Right on Q and q. Because this first quarter you will have a benefit of Prabhat 2. And from second quarter onwards you will have a production enhancement benefit. Right. And what would the production in enhancement? Additional revenue that can kicker in.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So our primary estimate says that in H2 we can have a revenue of around 65 to 70 crore from production enhancement.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

In H2 that is about 35, 40 crores per quarter. 30. 35 crores per quarter.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Okay. So in second quarter also you expect a similar jump. I mean that’s where your kicker will start, right?<\/p>\n

Rohan Shah<\/strong><\/p>\n

No. So our expectation is it will take Q3. But we are trying if we can get some revenue in end of Q2.<\/p>\n

operator<\/strong><\/p>\n

Sorry to interrupt you, Mr. Deepak Pozar. But I would request you to rejoin the question queue. The next question is from the line of Rajesh Jain from RK Capital. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Hi sir. Good evening. You mentioned that you are expecting an increase in operating margins as a result of the acquisition of Kandala Energy. So how much increase you are expecting? And then if you’re expecting an increase in the margin, so then the PAT growth must be more than the revenue growth of 25, 30%. Right?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah. So PAT will definitely improve in line with incremental operating margins. And that would definitely be reflecting in PAT as well.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, but how much improvement you are expecting in the operating margins? How many dips?<\/p>\n

Rohan Shah<\/strong><\/p>\n

I just. I just expect that it should improve more than 2% from first year. And then probably we can improve further.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, so you’re expecting a 2% increase in FY26 in the operating margins at a console level.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. And so how much tax rate should we estimate for FY26 blended tax rate for the full year?<\/p>\n

Rohan Shah<\/strong><\/p>\n

The tax rate for my overseas revenue from Dolphin would be 9%. And my entire India business would be 25%.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, fine. And so like what is a bid pipeline now?<\/p>\n

Rohan Shah<\/strong><\/p>\n

The bidding pipeline as of now is somewhere around 550 crore or so. And we are expecting, in fact we are bidding almost every month. We are bidding one or two projects. So this bidding pipeline would continue to be there or will be growing.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

The order book that you mentioned, 2960 crore, that is executable over how much duration and in particular how much order book is executable over FY26 and FY27.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So out of 2960 crores of order book, 1400 crore is executable over a period of 10 years. And balance you can consider 2 and half to 3 years.<\/p>\n

operator<\/strong><\/p>\n

Sorry to interrupt, sir, but I would request you to rejoin the question queue. The next question is from the line of Manan Shah from Manibi. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, hi. Thanks for the opportunity. Regarding these two acquisitions, are we carrying any liabilities also in these or the liabilities have been written off?<\/p>\n

Paras Savla<\/strong><\/p>\n

No.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Since one equation is from CIRP and another is from liquidation. So all liabilities, they have been cleaned off. So it’s a clean slate.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Understood. And this Kanla which we acquired, was that an operational asset or since when has that asset not been operating? So I mean, I don’t think we will be able to straightaway start manufacturing from that asset.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Right.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

We’ll have to invest something into that, into the plant and machinery to revive that asset. Or it is an asset that we can immediately start commercializing.<\/p>\n

Rohan Shah<\/strong><\/p>\n

No, so you are right. So they are. They were non operational for I think more than two and half to three years. So we will not be able to immediately start them. But yeah, we’ll have to do some work on it. But that would not be much. Okay.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, understood. So but I mean this asset is capable of then generating what sort of revenue or what sort of does this asset is capable of?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Primarily our focus is to first try to take benefit out of backward integration. So in addition to backward integration, whatever market we would be doing is still under evaluation. Okay.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And the receivables that are there for Kanla, what type of companies are these?<\/p>\n

Rohan Shah<\/strong><\/p>\n

They are largely Indian companies.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Indian companies only. Okay. Who would have a similar profile like us?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, would be many. Like whoever is consuming chemicals and fumes.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, but these chemicals you mentioned primarily get. These chemicals you mentioned primarily get consumed in processing of gas, right?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah. So they had a variety of chemicals. Few of them are primarily for our kind of business.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, understood.<\/p>\n

operator<\/strong><\/p>\n

Sorry to interrupt you, Mr. Mananshah, but I would request you to rejoin the question queue. Next question is from the line of Paringala from Mavira amc. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Hello. Am I audible.<\/p>\n

operator<\/strong><\/p>\n

Hello.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, yeah, yeah. So my question was relating to the accumulated losses of the acquired entities. Sorry if that’s a repeat question. But what I understood is Dolphin has a hundred crore carry forward loss. Accumulated loss. Is that correct?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Correct. Dolphin offshore enterprise has that accumulated loss in income tax. Yes.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. Okay. And how about the second acquisition of Kandla?<\/p>\n

Rohan Shah<\/strong><\/p>\n

No, they do not have much accumulated loss. That’s in few lakhs.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. Okay. So second question is regarding the Dolphin. So from the existing you said that we are expecting a minimum of 100 crores of revenue in FY26. So this is in addition to the existing. So we already have that in operation. Right. So is any spillover from the current FY25 going into 26 plus we are expecting 100 crores or 100 crores is old plus new.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah. So some still over from 25 and then balances it would be like from this barge. And of course we would be getting profit from our joint venture as well where we are having that anchor handling tug. So since it is a JV with 37% stake, it would not come under line to line consolidation but it would have a contribution at profit level.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. Okay. Sure. Thank you.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Thank you. Thank you.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of Vimok Shah from Goyam Labdi Fintech. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yes, sir. Thank you for the opportunity. Congratulations for the good set of numbers. So most of the questions were answered earlier. So I was. Just one question, sir. Could you please elaborate on the nature of CAPEX required for this PEC over the next few years and how it aligns with the overall FY26 CapEx plan.<\/p>\n

Rohan Shah<\/strong><\/p>\n

So CapEx for PEC would largely be in laying in connecting wells as well as for drilling few wells. Largely that would be the CapEx and other than that would be OpEx. So whatever CapEx we have planned, we have considered PEC full CapEx in that as well.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, got it. Thank you.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Thank you.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of Ankur Savarya, an individual investor. Please go ahead.<\/p>\n

Ankur Savarya<\/strong><\/p>\n

Good evening all. Congratulations on a good set of numbers. Most of my questions were answered. One question is regarding the qip. Since you have, you know, spoken about the qip. Our performance has already gotten better but the valuation of our company has come down. So is there a ballpark figure which you think below which you will not take the qip?<\/p>\n

Rohan Shah<\/strong><\/p>\n

That ballpar figure is something difficult to quantify. But definitely in this type of market we would not do it because we are quite comfortable on Liquidity front. And so for us it is not something that we want fund immediately. So we can definitely wait for good time.<\/p>\n

Paras Savla<\/strong><\/p>\n

And also we are not very panic about the situation.<\/p>\n

Ankur Savarya<\/strong><\/p>\n

Yeah, but do we also have a last date before which we have to complete the qip?<\/p>\n

Rohan Shah<\/strong><\/p>\n

No, no. So that approval lasts for one year.<\/p>\n

Ankur Savarya<\/strong><\/p>\n

Yeah. So is it possible that if in case you do not get your desired evaluation, you can also forego the qip? Is that possible, sir?<\/p>\n

Rohan Shah<\/strong><\/p>\n

So currently what we believe is that we’ll have to wait for few months. That is what we believe otherwise, other than that we have not thought of.<\/p>\n

Ankur Savarya<\/strong><\/p>\n

And one thing more, regarding your exceptional losses that you have seen in your balance sheet. It is no, as I understand, it is not a cash loss, but a book. Book accounting loss. But whatever you have kept as receivable can in future they also become an exceptional loss in future balance sheets.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah. So it’s little early to say it on it because we are evaluating their recoverability. And so out of their total receivables there can be a possibility that we cannot recover all. So there. There can be a possibility.<\/p>\n

Ankur Savarya<\/strong><\/p>\n

Yeah. And would that help us in future to reduce our taxes?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Taxes, I would say since it is under consolidation. So it is not tax benefit as a whole. But yeah, for that particular company, tax benefit is there.<\/p>\n

Unidentified Speaker<\/strong><\/p>\n

Sorry to interrupt, Mr. Savarya, but I would request you to rejoin the question queue. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Amit Kumar, an individual investor. Please go ahead.<\/p>\n

Amit Kumar<\/strong><\/p>\n

Thank you for the opportunity, sir. So I can. As to my understanding, I can understand that we have a cash outflow of 9 crore by acquiring Kanla Chemicals and Dolphins. And 251 crores of one time loss hitting in Q4. So how what benefit we are going to get in in terms of top line and bottom line in next maybe two, three years.<\/p>\n

Rohan Shah<\/strong><\/p>\n

See, as we are discussing on this Kanla, it has a receivables of more than cross which we are evaluating to recover what best we can do out of it. Secondly, we as we speak we are working on backward integration and benefit out of it. Which are quite a decent benefit which we are forcing with improvement in our operating margins. So in terms of value or percentage, it is difficult to quantify. But it would definitely be quite a big than what we have paid.<\/p>\n

Amit Kumar<\/strong><\/p>\n

Okay. Okay. That’s the only question. Thank you.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Thank you.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of Pujan an individual investor. Please go ahead.<\/p>\n

Pujan<\/strong><\/p>\n

Yeah, hi. Thank you. All of my questions are answered. If you can answer. What is the value of land in Canada acquisition?<\/p>\n

Rohan Shah<\/strong><\/p>\n

The land is having value of around. Around 1 and half to 1.7 cycle.<\/p>\n

Pujan<\/strong><\/p>\n

Okay, so not much material.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah.<\/p>\n

Pujan<\/strong><\/p>\n

And also can you elaborate on this 251crore tax loss? Sorry, 251crore exceptional loss. Was it forecasted when required, this entity. Sorry, Was this loss forecasted when we acquired this entity?<\/p>\n

Rohan Shah<\/strong><\/p>\n

No. So they had inventory on books and we were of the impression that we could be able to recover a few of it. But when we taken a control we found that it’s entirely needs to be written off. So loss was forecasted but not that full.<\/p>\n

Pujan<\/strong><\/p>\n

Understood.<\/p>\n

Rohan Shah<\/strong><\/p>\n

But as. As you are aware that we have just paid 2 crore for acquiring Kandla. So monetary wise it is not at all affecting us.<\/p>\n

Pujan<\/strong><\/p>\n

Correct. Thank you. All of my other questions were already answered relating to the loss.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Thank you.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of Srikar Sai, an individual investor. Please go ahead.<\/p>\n

Srikar Sai<\/strong><\/p>\n

Am I audible, sir?<\/p>\n

Paras Savla<\/strong><\/p>\n

Yep.<\/p>\n

Srikar Sai<\/strong><\/p>\n

Yeah. So sir, it’s regarding offshore supply vessels. So does you know Dolphin Shipping actually have like, you know, you know, latest, you know, anchor handling tugs or platform supply vessels or are they aged, you know, 1970s or 1980s? Because if you see the previous their annual reports, we could see them as 1975 or 1980s like you know, Kamrup Kangaroo and all of this and most of them are actually sold off. So how many are actually operational and you know, ready to, you know, even go for dry docking or are we trying to, you know, bring second hand anchor handling tax?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah. So the vessels you named, they are sold, they are liquidated. So the tugs which are available are small tugs and they are currently running. So but the vessels which are liquidated or auctioned there also we have a possibility of getting money because those money are lying with court, a maritime court where you can have your claim in that amount as well.<\/p>\n

Srikar Sai<\/strong><\/p>\n

Sir, this one off topic question, it’s regarding this latest offshore jackup brigades. So they said that the bidders were offering for $35,000, $45,000. So is it actually affecting the offshore segment, sir, like the entire segment or is it just a technical blip? Are there any signs of stress because of crude oil going down and bidding rates going down? Is there any negative impact, sir, offshore?<\/p>\n

Rohan Shah<\/strong><\/p>\n

In offshore drilling, the market is global and offshore drilling rates, be it jack up or be it semi submersible, these rates are largely directly linked with crude oil price because the market is Global and all global players are competing with each other and that is the primary reason we are not focusing on those offshore drilling equipment.<\/p>\n

Srikar Sai<\/strong><\/p>\n

And one last question regarding the traditional services. So this particular 2960 order book, I think it also comprises Dawson’s 284 crore or is it excluding 280?<\/p>\n

Rohan Shah<\/strong><\/p>\n

Yeah, it is inclusive of 281 crore of dollars.<\/p>\n

Srikar Sai<\/strong><\/p>\n

Since last one to two months we haven’t, I’m like last two to three months we haven’t had any you know major contracts getting awarded. So are we waiting any you know tenders getting awarded sir? Or is there any you know pricing competition or something like that?<\/p>\n

Rohan Shah<\/strong><\/p>\n

If you will see our traditional service contracts are not that big. So they are in numbers, they so many. But individual contracts are having value which is not that significant. So that’s how our traditional services business operates. And those small contracts we are getting often. So generally we tend to announce the contracts which are material in nature in terms of value.<\/p>\n

Srikar Sai<\/strong><\/p>\n

Oh, okay, got it. Thank you. All the very best. And that’s it from us.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Thank you.<\/p>\n

operator<\/strong><\/p>\n

Thank you. The next question is from the line of Rajesh Jain from RNK Capital. Please go ahead.<\/p>\n

Rajesh Jain<\/strong><\/p>\n

Thanks for the follow up. Sir, can you give more details on the production enhancement contract? What is your success rate, how confident you are on the success and how are you going to enhance the production and what is the risk that this contract can be terminated if there are no significant enhancements in production?<\/p>\n

Paras Savla<\/strong><\/p>\n

We have done the basic reservoir understanding, geology understanding and we are of the view that we definitely have to do some amount of work which are related to either work over or doing air injection and continuing or doing various services to enhance the production to our understanding. And with our data we are very very confident that we would be definitely able to enhance the production. So now there are two things that we are going to do. One, we are going to enhance the production from the existing wells that have been drilled. Secondly, maybe a year down the line our plan is that we would be drilling new wells and we already have the data.<\/p>\n

We have the understanding that what kind of a production could be hit. So all net that put together we are very very confident that we have been operating into this field for Last more than 15 years I would say and we have a reasonable idea about the geology around these fields. So the production we have seen some of these fields have declined to a drastic stage in last 10, 15 years. And I won’t say that putting a little effort but literally putting a little effort would enhance a good amount of production. And then with drilling few more wells that would be a complete game changer.<\/p>\n

So to our mind we are very confident that we should be able to get the best of the production from these fields.<\/p>\n

Rajesh Jain<\/strong><\/p>\n

But is there a risk that the contract can be terminated also let’s say two years or three years down the line. There is no significant. Is there a risk that the contract can be terminated? How is the agreement structured?<\/p>\n

Paras Savla<\/strong><\/p>\n

By the virtue of any agreement, not with this agreement. Any agreement like any other agreement always has a clause of termination. But usually these kind of services or this kind of contracts are not meant for terminating. These are always to enhance the production. We being coming in from the services background, we have a fair understanding on the equipment, fair understanding of the geology. So therefore we believe that having a huge scope in front of us, there is no reason, there is no reason for either party to terminate the contract because it is going to be a win win situation for both of the parties.<\/p>\n

So going to an extent of termination is something that is to a wild of thought. It could be with any contract. So that possibility is something that we really don’t see.<\/p>\n

Rajesh Jain<\/strong><\/p>\n

Just. You had mentioned to a previous participant that you paid only 2 crore for acquiring Kandla Kandla Energy. And then to my earlier question where I’d asked you how many bips improvement you are expecting in the margins. You said around 2% improvement you are expecting through this Karna acquisition. So, so are we saying that on a console revenue of let’s say around 600 crore or even 700 crore. The 2% of that comes to around 12 to 14 cr. So you are expecting that by by making a payment of 2cr to acquire this company you will be making a making an improvement in your EBITDA by to the extent of 12 to 14 cr within a year.<\/p>\n

Paras Savla<\/strong><\/p>\n

So we had mentioned that there is some amount of investment that we have to do with the existing things and the assets that Kanla has. So it is not Something that with 2 crore we immediately rush to 12 crore there would be some amount of investments which would be done on on the plant for setting up all these facilities. And having said that, if that is done, that will definitely yield that kind of a result.<\/p>\n

Rajesh Jain<\/strong><\/p>\n

Okay.<\/p>\n

Paras Savla<\/strong><\/p>\n

I did not go back on the examples of how Dolphin was acquired. So if you see the example of Dolphin, it is a clear testimony of what we are seeing it today in Dolphin. Also our acquisition was minuscule. But among them we got a property worth more than what our acquisition was. And with the more of arbitration claims and the bars and all Those stuff. So in the companies where you tend to acquire from liquidation or from a CIRP process there is always a good amount of possibility to get that kind of property.<\/p>\n

Rajesh Jain<\/strong><\/p>\n

Investment. How much additional investment you may need to make in the, in the business.<\/p>\n

Paras Savla<\/strong><\/p>\n

We have, we are working towards it. But my, my. My guesstimate would be that it would be less than 10 crore. Not even that much.<\/p>\n

Rajesh Jain<\/strong><\/p>\n

Okay then it’s a super acquisition sir. I must really congratulate you. Absolutely sir. In the January con call you had mentioned that FY25 will not only be the highest ever revenue and EBITDA but also the highest ever net profit in the history of the company. Now the net has been impacted by the one time loss. Okay. You have obviously delivered the highest level revenue and EBITDA and if not for the exceptional loss maybe you would have done the highest ever net profit also. But so, so was this one time write off not decided in the previous quarter?<\/p>\n

Paras Savla<\/strong><\/p>\n

No, it was not decided in the previous quarter and as you very rightly said that it is an exceptional. But if you have to bar this one time loss which is a non cash thing if you see that what we have committed in January it is absolutely same what we had committed in January. So our numbers in terms of our top line or IBTA or maybe even our bottom line are meeting what we said in January.<\/p>\n

operator<\/strong><\/p>\n

Thank you ladies and gentlemen. That was the last question for today. As there are no further questions the participants I now hand the conference over to Mr. Rohan Shah for closing comments.<\/p>\n

Rohan Shah<\/strong><\/p>\n

Thank you everyone for joining this call. It was pleasure interaction with you all. If you have any further queries you can definitely approach us through AddFactors PR or you can directly connect us. We would be happy to answer all your queries. Thank you.<\/p>\n

operator<\/strong><\/p>\n

On behalf of Deep Industries Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.<\/p>\n","protected":false},"excerpt":{"rendered":"

Deep Industries Ltd (NSE: DEEPINDS) Q4 2025 Earnings Call dated May. 02, 2025 Corporate Participants: Unidentified Speaker Paras Savla \u2014 Chairman and Managing Director Rohan Shah \u2014 Chief Financial Officer Analysts: Unidentified Participant Pankaj \u2014 Analyst Balasubrahmanyan \u2014 Analyst Nirava Nehru Nirvana Laha \u2014 Analyst Ankur Savarya \u2014 Analyst Amit Kumar \u2014 Analyst Pujan \u2014 […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,13842,10089],"class_list":["post-175401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-motherson","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":129437,"url":"https:\/\/alphastreet.com\/india\/deep-industries-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":175401,"position":0},"title":"Deep Industries Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 10, 2022","format":false,"excerpt":"https:\/\/youtu.be\/094gwQ5pHug Key highlights from Deep Industries Ltd (DEEPINDS) Q4 FY22 Earnings Concall Q&A Highlights: Ashwin Agarwal from Akash Ganga Investments asked about the segmental breakup of order book. Paras Savla MD replied that almost 30-33% would be contributing from compression and dehydration business. Around 35-37% from rig services and around\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":130763,"url":"https:\/\/alphastreet.com\/india\/heg-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":175401,"position":1},"title":"HEG Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 23, 2022","format":false,"excerpt":"https:\/\/youtu.be\/Zn0qJUSwtSo Key highlights from HEG Limited (HEG) Q4 FY22 Earnings Concall \u00a0 Q&A Highlights: Sonali Salgaonkar \u2013 Jefferies - Analyst Quantum of price hikes between 3Q and 4Q and any price hike from April 1 until now? Ravi Jhunjhunwala - Managing Director Between 3Q and 4Q it\u2019s 12% and expecting\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":130756,"url":"https:\/\/alphastreet.com\/india\/united-spirits-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":175401,"position":2},"title":"United Spirits Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 23, 2022","format":false,"excerpt":"https:\/\/youtu.be\/Vvcm7ol3-Ew Key highlights from United Spirits Limited (MCDOWELL-N) Q4 FY22 Earnings Concall \u00a0 Management Update: MCDOWELL-N expects volatility, temporary import supply constraint and inflationary headwinds to remain in short term, putting pressure on its growth and margins. \u00a0 Q&A Highlights: Avi Mehta - Macquarie Group - Analyst EBITDA and working\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":109778,"url":"https:\/\/alphastreet.com\/india\/infosys-limited-infy-q4-2021-earnings-call\/","url_meta":{"origin":175401,"position":3},"title":"Infosys Limited (INFY) Q4 2021 Earnings Call","author":"Sahil Anand","date":"April 21, 2021","format":false,"excerpt":"Infosys Limited (NYSE: INFY) Q4 2021 earnings call dated\u00a0Apr. 14, 2021 Corporate Participants: Sandeep Mahindroo\u00a0\u2014\u00a0Vice President, Financial Controller & Head \u2013 Investor Relations Salil Parekh\u00a0\u2014\u00a0Chief Executive Officer and Managing Director Pravin Rao\u00a0\u2014\u00a0Chief Operating Officer and Whole-time Director Nilanjan Roy\u00a0\u2014\u00a0Chief Financial Officer Analysts: Ankur Rudra\u00a0\u2014\u00a0JPMorgan \u2014 Analyst Diviya Nagarajan\u00a0\u2014\u00a0UBS \u2014 Analyst\u2026","rel":"","context":"In "Earnings"","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":130726,"url":"https:\/\/alphastreet.com\/india\/aether-industries-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":175401,"position":4},"title":"Aether Industries Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 20, 2022","format":false,"excerpt":"Key highlights from Aether Industries Ltd (AETHER) Q4 FY22 Earnings Concall \u00a0 Q&A Highlights: Gagan Thareja - ASK Investment Managers - Analyst Would growth get constrained due to lack of capacity for the first 3 quarters of FY23? Rohan Desai - Whole-time Director Currently at 80% of utilization. Constantly debottlenecking\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":181549,"url":"https:\/\/alphastreet.com\/india\/jeena-sikho-lifecare-ltd-jsll-q3-2026-earnings-call-transcript\/","url_meta":{"origin":175401,"position":5},"title":"Jeena Sikho Lifecare Ltd (JSLL) Q3 2026 Earnings Call Transcript","author":"News desk","date":"April 8, 2026","format":false,"excerpt":"Jeena Sikho Lifecare Ltd (NSE: JSLL) Q3 2026 Earnings Call dated Feb. 09, 2026 Corporate Participants: Manish Groverji \u2014 Managing Director Nanak Chand \u2014 Chief Financial Officer Analysts: Ranvir Singh \u2014 Analyst Priyanshu Jain \u2014 Analyst Akshay Kaila \u2014 Analyst Abhishek Sengupta \u2014 Analyst Akhilesh Rawat \u2014 Analyst Unidentified Participant\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/175401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/2377"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=175401"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/175401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/147581"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=175401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=175401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=175401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}