Q4FY24:
• Order book of INR 1210 crores, reflecting a 12% year-over-year growth.
• Innovating into Charter Hire of entire Gas Processing facilities
• Owns & Operates 9 Workover Rigs with capacity ranging from 30T to 100T, 5 Drilling Rigs with capacity of 1000Hp.
CONCALL NOTES:
• We have added two new drilling rigs in previous quarter of which one has started operation in February 2024 and the other has started operation recently in May 2024. So both put together, it can add INR 5 crores a month going forward.
• Management has delivered on revenue growth guidance of 25% and EBITDA margins of 42% (including other income)
• BIDDING PIPELINE: Highest ever bidding pipeline – 1000cr (This is generally 500crs).
Our routine business has exceptional response in almost out of INR1,000 crores, almost INR700 plus crores is from our regular services, including rigs, compression gas processing and integrated jobs. I would say more than 70% 75% is from our current services portfolio itself.
NEW SEGMENTS: And there are a few good opportunities. We are working on it, which includes production enhancement contracts and enhanced oil recovery business which we believe can change the table, so we have started bidding those opportunities as well.
• DOLPHIN OFFSHORE: We anticipate the revenue stream to commence in the first half of FY '25.
For barge, our expectations are EBITDA around 60%- 65% for that particular asset. On full year basis, revenue of almost INR90 crores to INR100 crores is expected from that particular barge. 65cr should be for FY25
OTHER SEGMENTS: We have begun exploring platform supply vessels opportunities in both local and international markets. Early indications suggest a substantial demand for PSV services.
And in addition to PSVs we are also looking for some diving support systems, which we already have to mobilize. So as a strategy, currently, we are focusing on 1 asset to put in operation, 1 asset will start operating, we’ll add other assets to get into operation and we’ll definitely, going further, we’ll acquire a few more assets as well.
• INDUSTRY TAILWIND: In February 2024, Prime Minister announced that the country is expected to see investments worth USD 67 billion in the gas sector over the next 5 years to 6 years. This focus on domestic natural gas production is expected to attract significant investments given the goal of the increasing gas share in the primary energy mix to 15%. These developments are reassuring growth drivers for our company
• Our ex-goodwill adjusted ROCE has improved to 12.42% from 10.27% previous year. And our ex-goodwill adjusted ROE has improved to 11.83% from 8.18% previous year
• MARGINS TO IMPROVE: our margins would definitely improve as the year passes. And we have always been maintaining our EBITDA above 40%. So yes, we are very much confident that with new service mix added into our revenue stream, this margin will tend to improve
Dolphin margins to be 55-65% range so FY25 Margins will be better than FY24 as dolphin sales kick in
So, in FY '25, we expect it should reach 45%. And in FY '26, it can further improve as well. (Including other income)
• GROWTH GUIDANCE: “Minimum’ 25% sales growth. Orderbook is 1200cr with 2.5-year execution timeline. So, 1200/2.5 = 480 (that’s 12% growth over fy24 revenues of 427) + Dolphin offshore revenues of 60-65cr = 540-545 cr sales in FY25 at MINIMUM. Any new orders will further increase the growth
• Didn’t get business for Kuwait tender.
• INR196 crores is the total investment. And the other income is largely interest and mutual fund income
• We are operating currently for more than 40 different contracts