Sorry for being little late in summarizing my questions for AGM due to some unexpected personal reasons. Some of the pointers that I want to be clarified via AGM are:
- For now, entire story is revolving around the ONGC order worth 1482 CR for ~27000 LKM 2D Survey. Want to be doubly sure that there are no lurking surprises in the story. Where exactly is the Quippo vs. ONGC litigation? HC order was in favor of Quippo. Did ONGC filed any appeal challenging the same in SC. What is the outcome of the case, if at all filed. Is the outcome awaited (will add to uncertainty). Is there a possibility of re-bidding if ONGC has not filed any appeal (seems unlikely). In either of the cases, I have an environment of uncertainty. (unfortunately not much of info available on net around Quippor case, not even on SREI site)
- By all means, the plate is full for management. At this juncture are seating with 20X order of FY16 top line. By management own admission this single order is > cumulative past 10 years of order book, phew!!! On top of that, very tight timeline. To be delivered by Mid 2019. Other dimension, (what I understand by reading past ARs) is that this 2D survey is intricate affair, may not be carried out throughout the year. Also, during one of the press conference the management indicated that they will go entirely solo, will not have any revenue sharing partnership etc.
keeping all the enthusiasm aside, in certain terms and in a well chalked out manner, how the company going to deliver on this.
- Required/planned CAPEX of ~100 Cr to meet the new orders. Current long term liability is ~2 Crore. Cash flow from operating activity is ~3.54 CR and from investing activity is ~10.25 Crore for Fy16. All added together falls way short of the required CAPEX thing.
Management has indicated of long term loan and some bit of equity dilution. now the key question to understand is (had raised the same during my previous post), how much of stress this ~100 Cr long term loan will add to BS considering that their current BS size is ~125 Crores. Talking about equity dilution, current share outstanding is 56,34,767 equity share of Rs 10 each aggregating to ~5.64 Cr. only. A sizable equity dilution will have sever impact to EPS considering the low base of outstanding shares.
I understand those are not the pointed direct questions and not sure even in AGM set-up you will have time and liberty to discuss all of this in details. But surely some vibes can be captured around these areas.
Hope you will capture all relevant info even outside of the above questioner. Please do share that for benefit of others
Again, appreciate your effort on this @raj1968.