Deepak Builders & Engineers India Limited — Q3 FY26

Deep Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SofQsMnzOas Published: 3 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Deep Industries Limited Q3 and 9M FI26 conference call hosted by 0:10 10 seconds systematics institutional equities. As a reminder, all participants lines will be in the listener only mode and there will be an opportunity for you to ask 0:18 18 seconds questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:25 25 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:32 32 seconds Sudep Anand. Thank you and over to you. Thank you and good morning everyone. 0:38 38 seconds Thanks for joining us today for the Q3 and 9 months FI26 earnings call of deep industries. On behalf of systematics, I would like to thank the management for 0:46 46 seconds giving us the opportunity to host the call and also many congratulations for the great set of numbers. Uh today we have with us Mr. Paris Savla, chairman 0:54 54 seconds and managing director and Mr. Rohan Sha, director of finance and CFO. Now I would like to hand over the call to the management for the opening remarks and 1:02 1 minute, 2 seconds then we can open the call for a Q&A. Uh thank you and over to you Pas. Thank you. 1:10 1 minute, 10 seconds Good morning everyone and thank you all for joining us today to discuss our performance for the third 1:17 1 minute, 17 seconds quarter and 9 months ended 31st December 2025. 1:22 1 minute, 22 seconds We sincerely appreciate your continued interest and confidence in deep industries. 1:28 1 minute, 28 seconds I trust you have had the chance and the opportunity to review our financial results, press release and investor 1:37 1 minute, 37 seconds presentation which have been made available on the company's website and stock exchanges. 1:43 1 minute, 43 seconds I'm joined today by our director of finance and CFO Mr. Roan Sha who will take you through the financial 1:50 1 minute, 50 seconds performance for the quarter and 9 months in detail after my remarks. 1:56 1 minute, 56 seconds Let me briefly take you through India's macroeconomic environment and the evolving dynamics of the energy sector. 2:05 2 minutes, 5 seconds India's energy sector is currently witnessing one of its strongest multi-year investment cycles. 2:13 2 minutes, 13 seconds The policy focus has decisively shifted from energy security to energy independence 2:22 2 minutes, 22 seconds with a clear road map to mobilize over USD 100 billion of investments in oil and gas by 2030 and a broader 2:30 2 minutes, 30 seconds opportunity of over USD 500 billion across the energy value chain. 2:37 2 minutes, 37 seconds This includes accelerated domestic exploration, expansion of gas and LG infrastructure, 2:44 2 minutes, 44 seconds high refining capacity and deeper integration across upstream and downstream segments. 2:50 2 minutes, 50 seconds India's natural gas consumption is projected to grow by nearly 60% by 2030 2:57 2 minutes, 57 seconds rising from 188 mm SCMD in FI24 to around 297 mm SCMD under the good to go scenario. 3:08 3 minutes, 8 seconds In this constructive and fastmoving industry environment, our focus is not on chasing activity but on disciplined 3:15 3 minutes, 15 seconds execution, asset reliability and capital efficiency at the project level areas where our operating experience and 3:24 3 minutes, 24 seconds integrated capabilities provide a clear advantage. 3:29 3 minutes, 29 seconds Now I'll speak about the operational performance highlights. 3:33 3 minutes, 33 seconds During quarter 3 FI26, the industries continue to deliver consistent operational performance with 3:40 3 minutes, 40 seconds a sharp focus on safety, execution discipline and asset reliability across all operating sites. 3:47 3 minutes, 47 seconds Our production enhancement operations at Rajamundi field progressed as planned during the quarter. During operations, 3:56 3 minutes, 56 seconds there was a gas leakage incident which was encountered at the site. 4:01 4 minutes, 1 second This was an unexpected geological surprise encounter during operations through a swift response. Strong safety 4:10 4 minutes, 10 seconds systems and close coordination with OMGC and the regulatory authorities. The situation was successfully contained 4:17 4 minutes, 17 seconds within 5 days which is a rare outcome in such cases and notingly we didn't had 4:23 4 minutes, 23 seconds any casualty about the business momentum and order book 4:32 4 minutes, 32 seconds across our core service offerings onshore drilling workover services processing and production enhancement 4:40 4 minutes, 40 seconds asset utilization remained healthy during the quarter Continued policy thrust on expanding exploration acourage, strengthening gas 4:48 4 minutes, 48 seconds infrastructure and enhancing domestic production capabilities is supporting sustained demand for integrated oil field services. Our order out remains 4:58 4 minutes, 58 seconds robust providing multi-year revenue visibility and reinforcing confidence in our long-term growth outlook. 5:06 5 minutes, 6 seconds on the strategic priorities. As we move through the remainder of FI26, our strategic priorities remain centered 5:13 5 minutes, 13 seconds on maintaining the highest standards of safety and operational excellence, optimizing asset utilization and execution efficiency, 5:21 5 minutes, 21 seconds thereby strengthening cash flow discipline and balance sheet quality and participating selectively in value accurative domestic and international 5:30 5 minutes, 30 seconds opportunities that are aligned with India's expanding energy ecosystem. 5:35 5 minutes, 35 seconds We believe this balanced approach positions us well to navigate operating complexities while continuing to create long-term value. 5:46 5 minutes, 46 seconds In closing, I would like to thank our employees for their dedication and professionalism, our clients for their 5:53 5 minutes, 53 seconds continued trust, and our partners for their collaboration. We also thank our investors for their ongoing support and confidence in deep industries. 6:03 6 minutes, 3 seconds With that, I now invite Rohan to take you through the financial highlights for quarter 3 and 9 months FI26. 6:11 6 minutes, 11 seconds Thank you. 6:17 6 minutes, 17 seconds Thank you Barazi. Investor friends, thank you for joining the call today. 6:23 6 minutes, 23 seconds I am pleased to share with you another strong quarterly and 9 months performance of Deep Industries Limited. 6:31 6 minutes, 31 seconds All comparisons are on a yearon-year basis which would provide a fair evaluation. 6:38 6 minutes, 38 seconds I'll start with quarter first. For third quarter ended 31st December 25 revenue 6:46 6 minutes, 46 seconds stood at 221.5 cr up by 43.1% yearonear. 6:56 6 minutes, 56 seconds Tight control over operating costs helped us post AITA of rupees 110.1 cr 7:03 7 minutes, 3 seconds in Q3 FY26 reflecting 46.3% YI growth with an AITA margin of 47.6%. 7:15 7 minutes, 15 seconds We continued to maintain healthy I beta margins in the range of 46 to 48% ensuring strong operating cash 7:23 7 minutes, 23 seconds generation to support our future growth trajectory. 7:28 7 minutes, 28 seconds Net profit for the quarter was rupees 71.3 cr up by 49.8% 8% yearonear 7:38 7 minutes, 38 seconds for 9 months ended on 31st December revenue from operations stood at rupees 7:46 7 minutes, 46 seconds 642 cr registering 57% yearon-year growth 7:54 7 minutes, 54 seconds for 9 months FY26 was rupees 318 cr up by 58% yearonear 8:03 8 minutes, 3 seconds with an average IETA margin of 46.3%. 8:09 8 minutes, 9 seconds Profit after tax for 9 months FY26 was rupees 204.3 cr 8:17 8 minutes, 17 seconds showing 59.7% year-on-year growth. 8:22 8 minutes, 22 seconds As on data our order book stood at rupes 2,967 cr providing strong revenue visibility for the coming quarters. 8:34 8 minutes, 34 seconds With this I now open the forum for question and answer. Thank you. 8:40 8 minutes, 40 seconds Thank you. So we'll now begin the question and answer session. Anyone who wishes to ask a question may press star 8:47 8 minutes, 47 seconds and one in the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 8:58 8 minutes, 58 seconds Ladies and gentlemen, the first question comes from the line of part Agalwar from Bestian Research. Please go ahead. 9:04 9 minutes, 4 seconds Hi, thank you for the opportunity. Uh, so I have two questions. One is around order book. So you know uh for last few 9:12 9 minutes, 12 seconds quarters our order view has plenty of around you know 3,000 crores and our major client has announced you know 9:18 9 minutes, 18 seconds major capex for 27. So when can we expect you know new series of order coming from those clients? 9:28 9 minutes, 28 seconds So uh regular tenders are being uh floated by various oil and gas producers 9:35 9 minutes, 35 seconds including and we are regularly bidding those tenders uh related to our part of 9:42 9 minutes, 42 seconds services and uh I think for us uh bidding tenders and getting orders on 9:49 9 minutes, 49 seconds regular basis is uh consistent over quarters. So yeah it would be uh continuous flow for us. 9:58 9 minutes, 58 seconds Okay. Uh so currently for what is the amount of order that we bid for so far right now which is outstanding and the lotment is pending. 10:08 10 minutes, 8 seconds So our current bidding pipeline is somewhere around 800 K tentatively but since those are bids uh amount may vary. 10:18 10 minutes, 18 seconds Got it. And generally success rate it is around 20 30%. 10:22 10 minutes, 22 seconds Yeah, it is uh in some of verticals it is more than 50%. 10:28 10 minutes, 28 seconds As well uh second is on the you know PC project that you're doing for the OMC. So are we producing above the baseline right now? 10:39 10 minutes, 39 seconds Yes. So in PC uh it is progressing well as per our expectation. 10:46 10 minutes, 46 seconds Got it. And uh so so out in this quarter how much percentage of revenue is coming from PC if you can see that 10:54 10 minutes, 54 seconds so PC we have uh started recently so uh it would not be measured in percentage 11:01 11 minutes, 1 second yeah though it is uh not much contribution from PC this quarter but in coming quarters it will come up well. 11:10 11 minutes, 10 seconds So if your products are producing above baseline then my expectation is that we're getting a good revenue right then in that case it should be contributing decently. 11:20 11 minutes, 20 seconds Yeah but uh see uh what additional you are generating over and above baseline is also uh material while calculating 11:29 11 minutes, 29 seconds the revenue contribution. So we are seeing this in this quarter uh contribution from PEC was somewhere 11:36 11 minutes, 36 seconds around 20 CR which eventually uh would be ramping up over a period of time. 11:44 11 minutes, 44 seconds Got it. So uh at some point it would reach uh around 100 crores per quarter kind of number or difficult to achieve that. 11:52 11 minutes, 52 seconds So uh our expectation from this particular project is around 150 cr on a year basis. 12:00 12 minutes 150 on a year basis. Okay, thank you so much. Thank you. 12:05 12 minutes, 5 seconds Thank you. The next question comes from the line of Rohit Priya Darshi from Mittal Analytics Private Limited. Please go ahead. 12:14 12 minutes, 14 seconds Yeah. Hi, thanks for the opportunity sir and congratulations on the good set of numbers. Uh sir, I wanted to understand 12:21 12 minutes, 21 seconds more on the macro environment uh front on the offshore breeding market. So is there any slowdown in offshore activity or do you still see strong demand? 12:33 12 minutes, 33 seconds I think overall oil and gas industry is witnessing a good growth. Uh particularly our interests are more into 12:41 12 minutes, 41 seconds onshore activities and therefore we have an understanding that uh the demand is increasing in onore activities. With 12:51 12 minutes, 51 seconds regards to offshore uh there is attraction but we won't be able to permit exactly how offshore 12:59 12 minutes, 59 seconds has been uh okay okay and sir uh uh can you please 13:06 13 minutes, 6 seconds also comment on the uh uh draining and related services like uh demand related to vessels that we use in uh uh uh you know offshore activities Thanks. 13:21 13 minutes, 21 seconds Sorry, I didn't get your question. Can you please uh uh repeat that? 13:26 13 minutes, 26 seconds Yeah. So, I was asking about the uh vessels that are required. So, uh what kind of demands are uh you are seeing related to the vessels. 13:38 13 minutes, 38 seconds See primarily we are uh looking towards the vessels which are more or less uh support uh kind of which are involving 13:47 13 minutes, 47 seconds support services uh like our barge or anchor handling tugs or diving support 13:55 13 minutes, 55 seconds vessel kind of. So on those areas uh we are witnessing a good amount of demand 14:02 14 minutes, 2 seconds and uh that demand is prevailing uh I think around the globe. So there uh there is a good opportunity going forward. 14:12 14 minutes, 12 seconds Okay. And and sir uh in our Q3 revenues uh we grew up to 222 crores which is uh 14:20 14 minutes, 20 seconds growth of 40% yearon year. So I wanted to understand which segment contributed most to this growth like uh onshore rigs 14:28 14 minutes, 28 seconds PC or gas compression if you can quantify the segment. So uh growth is uh 14:35 14 minutes, 35 seconds almost in each segment. So uh as I said uh production enhancement is something which is new which has started 14:42 14 minutes, 42 seconds contributing and with regards to offshore services uh they have also uh started contributing in full uh during 14:51 14 minutes, 51 seconds the quarter. So uh and of course by deploying new rigs and uh assets uh in 14:59 14 minutes, 59 seconds other verticles also we are uh seeing good amount of growth. So uh I would say we are exactly uh going on as per 15:08 15 minutes, 8 seconds ouration and this growth is uh very much visible. 15:13 15 minutes, 13 seconds And sir uh is this growth more of volume driven or uh there is some pricing or uh day rate improvement also happened 15:24 15 minutes, 24 seconds of volume a volume driven. Okay. Okay. And so last question would be on the offshore business which is our uh dolphin and prop. 15:33 15 minutes, 33 seconds Mr. Rohit you may rejoin the queue for the follow-up question. Sure. 15:39 15 minutes, 39 seconds Ladies and gentlemen, in order to ensure that the management is able to address question from all the participants in the conference, please limit yourselves to two questions. 15:50 15 minutes, 50 seconds The next question comes from the line of Manancha from MoneyB Investment Advisor. Please go ahead. 15:57 15 minutes, 57 seconds Yes. Hi. Uh thank you for the opportunity. Uh first of all, I would like to congratulate the entire team and the management for you know consistently 16:05 16 minutes, 5 seconds delivering since past 3 years. So uh very rare to find uh this sort of execution over this sort of time frame. 16:13 16 minutes, 13 seconds So congratulations for that. Uh my first question was uh on this uh production enhancement scheme. You mentioned that 16:19 16 minutes, 19 seconds you expect to ramp up ramp up to say 150 cr sort of uh uh output. So uh you are 16:26 16 minutes, 26 seconds expecting this ramp up to happen in the next year itself or it it should be a gradual ramp up over the next 2 three years. Uh and also the incident which 16:35 16 minutes, 35 seconds occurred I believe was at this particular site only. So um will that lead to any sort of delay in the ramp up? 16:46 16 minutes, 46 seconds Thank you Manan. Uh yes. So this 150 cr uh revenue we are expecting uh from next 16:54 16 minutes, 54 seconds financial year onward. So maybe not full next financial year but on full year basis probably 27 28 we can reach uh over and above 150 cr. 17:07 17 minutes, 7 seconds to answer to your second question about that incident. Yes. Uh that was an unfortunate uh incident happened uh in production enhancement contract itself. 17:17 17 minutes, 17 seconds But uh as uh said by Paras by we have uh contained that in just record time of 5 17:25 17 minutes, 25 seconds days and uh and have avoided any losses uh pertaining to that. So uh I would say 17:32 17 minutes, 32 seconds there would be little delay in uh the revenue ramp up because of this uh maybe 17:39 17 minutes, 39 seconds around 2 3 months uh delay in uh ramp up of revenue. Other than that we are not forcing uh any uh negative out of this. 17:49 17 minutes, 49 seconds Understood. Uh my second question was on the dolphin side. uh in the current quarter uh uh uh we have booked some 17:57 17 minutes, 57 seconds expenses or there is some increase in the raw material consumption. Um our understanding was that uh uh the price 18:04 18 minutes, 4 seconds that we have negotiated is post all expenses. So if you can just uh tell us what uh this increase in expenses in Dolphin has been. 18:15 18 minutes, 15 seconds Right. So uh there were certain amount of uh repairing uh were required as per 18:22 18 minutes, 22 seconds client's additional requirement in the barge and since that asset is up and running uh the expenses which we had 18:30 18 minutes, 30 seconds incurred had posted into the operating expense that is how in this quarter it is appearing little high. 18:37 18 minutes, 37 seconds So this is a one-off it is not expected to continue in the subsequent quarters. 18:42 18 minutes, 42 seconds Uh mostly no. Yeah. repairing you cannot uh comment upon or expect but yeah you can say like that. 18:51 18 minutes, 51 seconds Okay understood. Uh thirdly on the order book side uh generally every quarter you 18:58 18 minutes, 58 seconds know since the past few quarters we have been winning orders close to 200 to 300 crores. Uh while this quarter overall 19:06 19 minutes, 6 seconds order wins have been close to this 140 crores. So has there been a a roll over to the subsequent quarter and should we 19:13 19 minutes, 13 seconds expect you know subsequent order wins or conclusion of these uh tenders that we have bit for in the Q4? 19:22 19 minutes, 22 seconds Yes. So uh we are expecting good amount of conversion in Q4 uh based on uh tenders we did and uh in one or two we 19:31 19 minutes, 31 seconds are L1 as well. So uh yes I can see uh the order win for this particular 19:38 19 minutes, 38 seconds quarter was not as high as it was in earlier quarters but uh that can spill over in Q4. Yeah. 19:47 19 minutes, 47 seconds Mr. Man, you may rejoin the queue for the follow-up question. Sure. 19:51 19 minutes, 51 seconds The next question comes from the line of Sanjay Sha from KSA Securities. Please go ahead. 19:57 19 minutes, 57 seconds Yeah, good morning gentlemen. Thanks for opportunity and your detailed presentation is really helpful. So my question was regarding uh given our PSU 20:06 20 minutes, 6 seconds exposure, how comfortable are you with the receivable cycle and are there any structural improvement in the payment 20:13 20 minutes, 13 seconds timelines and and continuing to that and Gail are a key clients. How are you thinking about diversifying client 20:21 20 minutes, 21 seconds exposure without compromising on margins? 20:26 20 minutes, 26 seconds See having said that PSUs do definitely have the largest market share in India 20:33 20 minutes, 33 seconds and therefore it's not possible to completely get out of that PSU culture or to an extent of course we are trying 20:42 20 minutes, 42 seconds to get uh to the private clients and which we have other than OMGC and G. So we have our clients with oil India we 20:50 20 minutes, 50 seconds have clients with GSPC, LNG, Zantaa, Telan. So likewise we are working almost 20:57 20 minutes, 57 seconds with all the leading oil and gas producers. But having said that the kind of market share and the demand that has 21:06 21 minutes, 6 seconds been generated from these one or two companies cannot be uh avoided. 21:12 21 minutes, 12 seconds U we have our exposures also with other clients and there we are constantly working on expanding our client base 21:20 21 minutes, 20 seconds which I'm very sure maybe in some uh short span of time could be witnessed. 21:25 21 minutes, 25 seconds But it won't be uh very immediate. And regard to comfort, we have been working with these clients now over 30 years. So 21:35 21 minutes, 35 seconds we have a reasonable experience working with these clients and understanding the culture. So uh and and with that we 21:43 21 minutes, 43 seconds don't find any difficulty working with these clients. 21:49 21 minutes, 49 seconds So my second question was regarding new opportunities. What are the new opportunities? what we see for our 21:55 21 minutes, 55 seconds company and uh what are the ma uh uh steps taken by the management to go ahead with that. 22:04 22 minutes, 4 seconds Uh with regards to the new opportunity we are constantly thriving as we had said that we are working in four different verticals of our business and 22:12 22 minutes, 12 seconds each of the verticals uh have proved uh a fabulous outcome on each of these. So 22:20 22 minutes, 20 seconds our idea is to expand our services into each of these verticals each of the capacities because with the process plant we are running few process plants. 22:29 22 minutes, 29 seconds Our idea is to work on more of these such opportunities which can help us expand not only the revenues but also 22:36 22 minutes, 36 seconds expand our profits. Likewise we are also looking into get into an higher capacity rigs uh which are the need of India 22:45 22 minutes, 45 seconds today. So we are actively working on those opportunities to get in that segment. So we believe for at least few 22:53 22 minutes, 53 seconds years from now we have got our hands full and with the new requirements are better that are generated in the market or from the clients 23:01 23 minutes, 1 second uh would definitely take care of what all that you mentioned and uh what was the other thing that you mentioned sorry I 23:09 23 minutes, 9 seconds yeah it was regarding the same new opportunities and how you see that uh scaling uh from management bandwidth and 23:17 23 minutes, 17 seconds uh uh required fund for that And uh you know there are all possibilities that 23:24 23 minutes, 24 seconds new PC should also come up. I think our clients would be firming up the requirement because this probably should have worked very good for the companies 23:33 23 minutes, 33 seconds as well. So we see a good amount of growth if it has to come also from PC. 23:40 23 minutes, 40 seconds Mr. Sanjay you may rejoin the queue for the follow-up question. Sure. 23:44 23 minutes, 44 seconds The next question comes from the line of Khan Bava an individual investor. Please go ahead. 23:52 23 minutes, 52 seconds Hello. Yes. Hello. Yes. Yes, you are. 23:59 23 minutes, 59 seconds Yeah. Uh, hi. So, I just have one question regarding your Kla Energy acquisition. Sorry if you have addressed 24:06 24 minutes, 6 seconds this before, but I need a little bit more clarification on this. 24:11 24 minutes, 11 seconds So, you've had a 250 odd crite off last year in the fourth quarter and uh in the 24:18 24 minutes, 18 seconds Carla annual report balance sheet you still have about 28 odd crores of uh doubtful receivables. 24:29 24 minutes, 29 seconds So can we expect another write off coming uh from this? 24:36 24 minutes, 36 seconds So we are giving our attempts for recovery of those old receivables and uh 24:43 24 minutes, 43 seconds once we would be having a clear and fair idea about uh what amount to be recovered and what will not be able to 24:51 24 minutes, 51 seconds recover we may uh go for some provisioning but uh we are not expecting uh any such provisioning in this 25:00 25 minutes financial year and also having said that we like to reiterate that these house we have not paid any uh any amount towards 25:09 25 minutes, 9 seconds this outstanding. So this was a part and partial of the uh you know the company that we got in. So this is an additional 25:17 25 minutes, 17 seconds effort that we are trying to see uh the maximize or or to maximize whatever recovery that we can make. 25:26 25 minutes, 26 seconds Right. So if I'm not mistaken you acquired it from the IPC for about a lakh rupees right? 25:34 25 minutes, 34 seconds No, for 2 crores around 2 crores. 25:37 25 minutes, 37 seconds Oh, sorry, my my bad. My my understanding is wrong. So, you've acquired it for 2 crores and you've 25:45 25 minutes, 45 seconds already done a write off of about 250 crores and potentially another 200 crores per write off. 25:52 25 minutes, 52 seconds So what was the reason behind acquiring a company which is potentially causing you to write off close to 450 odd crores 26:01 26 minutes, 1 second which is more than two years of your earnings if I take the last two years. 26:09 26 minutes, 9 seconds Yeah. So our interest in acquiring this particular company was largely uh the hydrocarbon fluids uh which they used to 26:17 26 minutes, 17 seconds manufacture uh in their uh good times. So uh those uh hydrocarbon fluids we are using in 26:25 26 minutes, 25 seconds our drilling processes and that can be our uh I would say uh one of the major 26:32 26 minutes, 32 seconds inputs while drilling wells and with this uh we can achieve some amount of backward integration. So that was our prime intention to acquire this company. 26:44 26 minutes, 44 seconds also it was available at very reasonable price along with some uh real estate properties. 26:52 26 minutes, 52 seconds So uh that was a primary intention to acquire. 26:57 26 minutes, 57 seconds Mr. Kar you may rejoin the queue for the follow-up question. 27:01 27 minutes, 1 second The next question comes from the line of Deepak from IG India. Please go ahead. Hello. Am I audible? 27:10 27 minutes, 10 seconds Yes, you are. 27:12 27 minutes, 12 seconds Yeah sir. So we have a muted growth on Q despite we have a PC contract revenue this quarter. So which segment or which 27:20 27 minutes, 20 seconds product of ours has given the lesser growth this quarter uh Q basis and also if you can provide us the guidance on 27:28 27 minutes, 28 seconds the revenue for next year and uh uh what's the status on the Q? 27:37 27 minutes, 37 seconds So uh Q on Q there can be some uh projects uh may be spilling over to next 27:44 27 minutes, 44 seconds contract and there can be one or two contracts or uh assets which will may be in transit from one contract to another. 27:53 27 minutes, 53 seconds So there can be uh reasons uh during these quarters. So generally we uh we 28:02 28 minutes, 2 seconds advise our investors to review our performance on yearly basis rather than quarterly basis because these are all 28:10 28 minutes, 10 seconds long-term contracts and uh in second quarter uh contribution from 28:17 28 minutes, 17 seconds PEC is also not that significant. So more or less uh results are in line. 28:24 28 minutes, 24 seconds Okay. and sir uh revenue guidance and uh any status on QIP based on our uh existing order book uh 28:34 28 minutes, 34 seconds we are pretty confident that uh for next year also we would be having uh growth of more than 30 35%. 28:43 28 minutes, 43 seconds And uh the similar growth we can uh expect uh next to next year as well uh 28:50 28 minutes, 50 seconds depending on the new orders which uh we are getting uh on regular basis. 28:56 28 minutes, 56 seconds Mr. QIP we have just uh paused that process as of now and we are uh not going ahead with it. 29:07 29 minutes, 7 seconds Okay. Thank you. Thank you. 29:11 29 minutes, 11 seconds The next question comes from the line of Gorup SD from Sajak Securities. Please go ahead. 29:17 29 minutes, 17 seconds Uh hello sir. Uh sir, first of all that the PC fire incident the well has been permanently kept. 29:29 29 minutes, 29 seconds What is the status as of as of now? Has it been permanently kept? 29:35 29 minutes, 35 seconds No no no it is not permanently kept. It is kept temporarily. And once we have our rig that is uh expected to come 29:43 29 minutes, 43 seconds within 3 months. So once we have that rig going we will try to recover that well and uh try to produce from that. 29:54 29 minutes, 54 seconds Uh but you will only I mean it's not mandatory. It's you will only try to recover it. 30:01 30 minutes, 1 second Of course we'll try to recover it. 30:04 30 minutes, 4 seconds Okay. And can you tell the total financial loss in this incident because I think as per the sources one rig has 30:12 30 minutes, 12 seconds been destroyed in this rig has been destroyed certain portions of rigs have been destroyed and we have 30:20 30 minutes, 20 seconds the necessary insurance for ensuring that our losses are recovered but we don't find major uh you know losses 30:29 30 minutes, 29 seconds towards any other thing. There would be few uh amounts that we are not still aware about because that assessment is still going on but we don't feel that it 30:38 30 minutes, 38 seconds should be significant but who will be funding these we have covered very well we have covered very well not only on the rig 30:46 30 minutes, 46 seconds side but also on the west side but sir as per the newsc has declared 10,000 xgracia to the five nearly 5,000 30:54 30 minutes, 54 seconds families and a 100 blood hospitals who will be funding these things exatia has nothing to do when you are 31:02 31 minutes, 2 seconds itself telling exgratia it is out of uh you know something responsibilities or whatever that is already operating in 31:09 31 minutes, 9 seconds that area for years together and they have definitely a larger infrastructure and being the largest ESU they have been 31:18 31 minutes, 18 seconds doing this CSR activities for years together so this incident of giving an amounts on xratia I don't think it is 31:26 31 minutes, 26 seconds contractually uh you know if there is any liability towards us so that is something that 31:33 31 minutes, 33 seconds would have done it but it does not have any implication as of as we speak on us. 31:40 31 minutes, 40 seconds Okay. Thank you. Thank you. Thank you. 31:45 31 minutes, 45 seconds The next question comes from the line of Ankur Savaria an individual investor. Please go ahead. 31:51 31 minutes, 51 seconds uh thanks a lot for giving me the opportunity and uh I really congratulate the management for giving a stellar performance quarter after quarter and I 32:01 32 minutes, 1 second also think that I also agree with you that you have postponed the QIP because for last one and a half years we have 32:07 32 minutes, 7 seconds given you have given excellent results and the share price hasn't shown in the 32:14 32 minutes, 14 seconds prices that it should have shown. Uh my question regarding is sir uh 32:21 32 minutes, 21 seconds as of now what is the status of the court case that we have we are ongoing with OMGC in the Supreme Court sir 32:31 32 minutes, 31 seconds sorry you can you please uh speak a little loud and can you please stop are you referring to 32:39 32 minutes, 39 seconds the court case that you have sir uh in the Supreme Court regarding the 180 cr that 32:45 32 minutes, 45 seconds uh you feel that you'll get well uh we have already got uh uh a good 32:54 32 minutes, 54 seconds amount already from the same and the matter is been contested by our client and it is currently not in Supreme 33:02 33 minutes, 2 seconds Court. It is lying with high court. So as we mentioned that we have already won this case at the arbitration level. Then 33:10 33 minutes, 10 seconds we have already won it at an commercial uh court level and now the matter is with the high court. 33:17 33 minutes, 17 seconds We don't know we cannot time exactly when these uh uh that these court orders 33:24 33 minutes, 24 seconds are going to come or what but we anticipate that it should be in next 3 to 6 months. 33:33 33 minutes, 33 seconds Okay. And for you this year I think we will do some a revenue of about 850 crores. Uh are you confident that a 30% 33:42 33 minutes, 42 seconds jump that is somewhere about 11 1150 is possible for next year? 33:47 33 minutes, 47 seconds Sorry sir your voice is not getting clear. If you can uh speak little louder or can uh uh take the headphone. 33:56 33 minutes, 56 seconds Sir is it clear now? Yeah now it's better. 34:00 34 minutes Okay. Sir are you confident that the revenue this year I think we'll somewhere close around 1150 850 crores 34:09 34 minutes, 9 seconds the revenue will grow to 1150 crores next year are you confident about that sir yeah based on our existing order book we 34:16 34 minutes, 16 seconds are quite confident on that okay thanks a lot for answering my questions and all the best 34:24 34 minutes, 24 seconds thank you the next question comes from the line of Rohit Priya Dashi from Malar anal Analytics private limited please go ahead. 34:34 34 minutes, 34 seconds Thanks for the opportunity. Uh sir question is related to the ending or praa DP2 barge. Uh so what was the 34:42 34 minutes, 42 seconds approximate revenue and emit the contribution from uh you know in quarter 3 from these 34:50 34 minutes, 50 seconds so I think uh dolphin results are also in public. So uh it would be clearly uh 34:56 34 minutes, 56 seconds evident from that. uh currently uh I'll just uh tell you what exact contribution 35:04 35 minutes, 4 seconds uh is coming from Gulf. Uh it has contributed around 30 cr 35:11 35 minutes, 11 seconds uh on revenue and almost 13 and a half cr on profitability by dolphin for the quarter. 35:23 35 minutes, 23 seconds Okay. In fact from uh the uh praha DPU that we uh have can you tell me the approximate revenue and aida from that also? 35:35 35 minutes, 35 seconds Sorry prabhard DP2 bars uh the revenue that we are generating from praha DP2 bar. 35:43 35 minutes, 43 seconds Yes. 35:46 35 minutes, 46 seconds How much? Sorry sir I want. So we are expecting around uh 100 cr from that particular asset in current financial year as revenue. 35:57 35 minutes, 57 seconds Okay. Okay. Understood. And sir uh on the utilization level uh are we fully utilized here? 36:04 36 minutes, 4 seconds Yes. So uh currently we are operating that single asset and it is 100% utilized. 36:11 36 minutes, 11 seconds Okay. Okay. Got it sir. Thank you. Thank you so much sir. That is all from my side. Thank you. 36:17 36 minutes, 17 seconds Thank you. The next question comes from the line of Manancha from MoneyB Investment Advisor. Please go ahead. 36:24 36 minutes, 24 seconds Yeah. Hi, thanks for the followup. Uh my question was on Kandla. So now it's been almost 19 months since we acquired that asset. Uh when are we looking to uh see 36:34 36 minutes, 34 seconds that asset uh commercialize and start contributing because I believe it was supposed to lead to some sort of margin expansion for you as well. 36:43 36 minutes, 43 seconds Correct. So as per original plan uh it should start uh contributing from FY27. 36:51 36 minutes, 51 seconds So we are working towards it. So in this particular financial year we are not expecting anything out of them. 36:58 36 minutes, 58 seconds Okay. But in in in the next financial year is it in the first half or the second half that you're targeting? 37:04 37 minutes, 4 seconds We are targeting uh second half. And would it require any sort of capex? 37:12 37 minutes, 12 seconds Yes, it would but not major one. 37:16 37 minutes, 16 seconds Okay. Uh secondly, on the bid that we have bid pipeline of 800 crores, uh does this also have uh any sort of bid that 37:25 37 minutes, 25 seconds we've bid uh which would require us to require any acquire any asset on the offshore side like I believe we were 37:32 37 minutes, 32 seconds looking to add more vessels uh in the offshore segment either tugs or platform 37:39 37 minutes, 39 seconds support vessels. So, so, so is is the current bid pipeline inclusive of that? 37:45 37 minutes, 45 seconds No, the 800 K does not include the offshore bits. 37:51 37 minutes, 51 seconds Is there any separate bid pipeline for that? 37:54 37 minutes, 54 seconds Mr. Man, you may rejoin the queue for the follow-up question. 37:57 37 minutes, 57 seconds So, uh for offshore, as of now, we are on evaluation stage. So, uh bidding is not yet done. 38:07 38 minutes, 7 seconds The next question comes from the line of Diwa Karana from Proin Equity. Please go ahead. Uh hello. Hello. Uh so my question uh is a 38:17 38 minutes, 17 seconds micro one. So uh can you explain how does the lower crude oil prices impact our business? 38:24 38 minutes, 24 seconds So in our uh business entire revenue is coming from services uh which are more of support services to oil and gas 38:34 38 minutes, 34 seconds sector and the services are more of inevitable in kind of nature and so uh 38:41 38 minutes, 41 seconds it has very negligible or I would say uh least impact on crude oil price because 38:48 38 minutes, 48 seconds whatever crude oil price would be these services would be required. 38:53 38 minutes, 53 seconds Okay. Okay. Sir just two more question sir uh after this Venezuela episode US is going to increase the production of 39:01 39 minutes, 1 second uh Venezuela oil. So do you think you can capitalize any opportunity there in terms of barge or any other products you have? 39:09 39 minutes, 9 seconds So yeah there can be a opportunity. So it is just a recent development. So uh it would be difficult to comment upon 39:17 39 minutes, 17 seconds but yeah uh since we have also entered into offshore support services we can have opportunities and in those regions 39:25 39 minutes, 25 seconds as well and as a matter of fact even our government and our honorable prime minister is uh you know having a tribe 39:34 39 minutes, 34 seconds or a trust to produce more oil and gas within the country. So I think with that kind of uh uh things that are moving in 39:41 39 minutes, 41 seconds the country that will also give a big amount of u you know boost to our segment within India. So we are equally 39:50 39 minutes, 50 seconds excited to look the opportunities in India as well as any other countries possible. 39:57 39 minutes, 57 seconds Okay. Answer one last question. So you said you know you are not going ahead with the QIP. So does this impact our future growth and capex plan? 40:06 40 minutes, 6 seconds Uh not uh really because uh we are generating some handsome cash uh from 40:13 40 minutes, 13 seconds business and uh we are very much comfortable on our debt levels as well. 40:19 40 minutes, 19 seconds So we have a huge opportunity to raise debt as well as and when required. So uh largely we'll be able to manage without QIP. 40:31 40 minutes, 31 seconds Okay. Thank you sir. 40:35 40 minutes, 35 seconds Thank you. The next question comes from the line of Abisha from Siddhi Technologies. Please go ahead. Uh hi. Uh 40:42 40 minutes, 42 seconds so I have one question regarding the onshore vessels that were going to be inbound from China. So what's the 40:50 40 minutes, 50 seconds status? It were going to be deployed in December and one of the uh vessels or rigs I would say were going to be 40:59 40 minutes, 59 seconds deployed in Cupo. So can you just elaborate the status uh what uh what is the status of both the rigs? 41:07 41 minutes, 7 seconds So the rigs uh it was rigs not the vessel uh and uh rigs which were uh we were intending to deploy in December 41:16 41 minutes, 16 seconds have already been deployed and the rig which we are expecting in Q4 would be deployed somewhere in first week of March. 41:26 41 minutes, 26 seconds Okay. And uh what the revenue can we expect from both of those Ricks? Uh any status upon that if we can 41:34 41 minutes, 34 seconds those numbers I need to check but definitely it will contribute to incremental revenue for Q4. Okay. Yeah. Thank you. 41:43 41 minutes, 43 seconds Thank you. 41:44 41 minutes, 44 seconds Thank you. The next question comes from the line of Goro Sud from Sajak Securities. Please go ahead. 41:52 41 minutes, 52 seconds Uh sir just a follow-up question since you told that it will take around 3 months for the rate to come and there is no confirmation when the well will be 42:00 42 minutes capped off and services will be resumed in the PC contract. So will it affect our queue for revenue and further quarter revenue and margins also. 42:11 42 minutes, 11 seconds So as I mentioned it will it will take us a quarter or so to bring the new rate but having said that u there would be a 42:19 42 minutes, 19 seconds definitely a little impact on it but uh and uh today with the the PC contract we 42:28 42 minutes, 28 seconds are working on 40 different wells. So the one that uh the incident has taken place was one of them. Of course that 42:36 42 minutes, 36 seconds was a substantial of it. But having said we have other 39 wells with us and we are flowing lot of gas from many other 42:44 42 minutes, 44 seconds wells. So that could be a little impact on the incremental gas that we were to produce from this well. But barring that everything is under control. 42:55 42 minutes, 55 seconds Okay. And the order we got from Gale is it a renewed contract or a totally new contract? 43:02 43 minutes, 2 seconds It's a new contract. the one that we you're talking about the one that we uh had had given out to the exchanges, right? Are you talking of the same? 43:10 43 minutes, 10 seconds Yeah. Yeah. Yes. Yes. Yes. Yes. Complet. 43:19 43 minutes, 19 seconds Thank you. The next question comes from the line of Shaker and individual investor. Please go ahead. Yeah. Thank you for the opportunity sir. 43:28 43 minutes, 28 seconds It's a little bit macro side. So uh we have this carbon capture utilization and storage team which has got 20,000 cr of 43:35 43 minutes, 35 seconds funding. Uh if we look at the mechanism over there cap carbon capture is not in our uh you know expertise but capture I 43:43 43 minutes, 43 seconds mean compressing the uh you know carbon atom or transporting it or injecting it into into the mature well for uh you know enhanced all recovery or to you 43:52 43 minutes, 52 seconds know storage it. Uh we are actually having a too much of you know technological overlap. So are we looking into this kind of a segment like the 44:01 44 minutes, 1 second CCUs which is uh right now in a pilot stage but can we expect it to be a very major you know growth vertical just like 44:09 44 minutes, 9 seconds how SLB and Hallebertton are currently doing for many uh people and the second one I mean one is just to you know 44:16 44 minutes, 16 seconds reduce the terminal value for our oil and gas business one is CC and the other two are compressed bio gas and hydrogen 44:24 44 minutes, 24 seconds for compressed biogas we have the 5% mandate mandate which is actually voluntary I mean mandatory from fi 28 29 44:32 44 minutes, 32 seconds so how are we seeing this because even in compressed bio gas we have to like you know uh seeing this compression and dehydration at you know service but the 44:41 44 minutes, 41 seconds total addressable market size for compressed biogas doesn't seem that huge but for this PCU it's uh it looks so 44:48 44 minutes, 48 seconds huge because out of the total 100% around 20 to 30% goes to the storage and you know costing so are we looking 44:57 44 minutes, 57 seconds uh at this particular thing as a you know something which can reduce our terminal value sir 45:05 45 minutes, 5 seconds I'll just try to answer both of your questions in one answer the markets with oil and gas like any other markets are 45:12 45 minutes, 12 seconds evolving there are lot of technological changes are happening lot of new products new lines of businesses are evolving around the main line of 45:20 45 minutes, 20 seconds business so currently we are emulating many opportunities the one that he mentioned about the carbon capture the 45:27 45 minutes, 27 seconds one that you mentioned about biogas and all. So we are actively looking into each of these segment and we are trying to align with our main line of business. 45:38 45 minutes, 38 seconds As we speak today, nothing of it is formed. But we are actively looking out at every of this opportunity and upon an 45:46 45 minutes, 46 seconds appropriate time, we will definitely try to get into such business where we feel that it could be a good equation and with the kind of philosophy, business 45:54 45 minutes, 54 seconds philosophy that we have at deep industry. 45:57 45 minutes, 57 seconds That's great. And the second one is Mr. Shaker, you may rejoin the queue for the follow-up questions. 46:05 46 minutes, 5 seconds The next question comes from the line of Pankage Matwani from Equirus Capital. 46:09 46 minutes, 9 seconds Please go ahead. Yes, thank you for the opportunity. So I have one question online of the KEX plans. So so earier we have KEX plans for the PC 46:18 46 minutes, 18 seconds of around 160 K and some KEX in the for the for the and gas processing also and 46:25 46 minutes, 25 seconds also some equations plan in the DNA. So so now with the QRP now paused. So now so now how does the company plan to fund 46:34 46 minutes, 34 seconds the fund this capex and initiatives? 46:39 46 minutes, 39 seconds So the uh regular capeex of gas processing plants and rigs uh we are uh being funded through internal approvals 46:48 46 minutes, 48 seconds and uh loans. So uh as I said uh earlier uh we have a very low uh debt on our 46:57 46 minutes, 57 seconds books and we are pretty comfortable to increase it to uh certain level. So 47:04 47 minutes, 4 seconds largely routine KEEX would be funded from uh internal approvals and debt. 47:09 47 minutes, 9 seconds With regards to uh PEC KEEX also uh we would be uh funding it through approvals and debt only. With regards What? Yeah. 47:21 47 minutes, 21 seconds So, yeah. With regards to acquisition of targets, it can uh differ uh a bit uh or maybe in next year. 47:32 47 minutes, 32 seconds Okay. So like we are waiting for the QIP or like we will take that for those 47:40 47 minutes, 40 seconds acquisition. As of now we are not going ahead with it but yeah uh in future at opportune time we may think but as of now no. 47:51 47 minutes, 51 seconds Got it. And just one more clar clarification so like just want to know like where is the praba barge currently deployed because as per my sources it 47:59 47 minutes, 59 seconds got shifted from Mexico to Africa. So any reason for the changing deployment? 48:04 48 minutes, 4 seconds Yeah so Prabha is currently deployed in uh African waters. 48:10 48 minutes, 10 seconds committees any questions on diplomatic sorry I didn't get your question just want to know like the 48:19 48 minutes, 19 seconds so so late it was in Mexico and now it has been shifted to Africa so so any reason for change so uh yeah it's uh it 48:28 48 minutes, 28 seconds can be uh floated uh from region to region right okay got it thank you 48:37 48 minutes, 37 seconds thank you the next question comes from the line of Kapil Kumar an individual investor. Please go ahead. Yeah. Hi, I joined the call bit late. 48:46 48 minutes, 46 seconds Not sure if this already discussed regarding the uh fire in the uh Andra well a while back. Uh just wanted to 48:56 48 minutes, 56 seconds understand is there a penalty clause in the contract with OMGC? If yes, uh why hasn't been any provision made in this 49:03 49 minutes, 3 seconds quarterly result? Second related question is uh with the loss of uh the 49:11 49 minutes, 11 seconds product there the gas uh while we were expected to maintain some baseline production that may get affected. So how 49:18 49 minutes, 18 seconds will uh OMGC be compensated for that uh loss of uh uh product in the well? 49:27 49 minutes, 27 seconds So we do not have any such provisions in the contract for claiming any loss or penalty. But but if you don't produce 49:35 49 minutes, 35 seconds the gas in itself is a penalty to you because if you're not producing you're not you're not reaching the minimum threshold and therefore that is in 49:44 49 minutes, 44 seconds itself a penalty. So that is nothing as an external penalty but uh our thrust is 49:52 49 minutes, 52 seconds to bring back the well and the production in place very soon and once we are out we'll again come resume their reverse. 50:00 50 minutes Okay. How much uh of the PC contract value got affected because of that fire? 50:06 50 minutes, 6 seconds Let's say that accounted for 2% 5% 10% of overall expected uh volumes. 50:14 50 minutes, 14 seconds So it has been uh deferred I would say uh because uh we will not be able to produce from that particular well at 50:23 50 minutes, 23 seconds least for 2 3 months. So the incremental revenue is deferred now for 2 3 months. 50:31 50 minutes, 31 seconds Okay. And it doesn't bar us from any future contracts the uh accident that that event that happened there. No 50:41 50 minutes, 41 seconds nothing of that that is has got nothing to do accidents and I I not say that it's very common but this is part and 50:48 50 minutes, 48 seconds partial of oil and gas business. So even this in such kind of incidents happened with other contractors or with 50:54 50 minutes, 54 seconds themselves that is not something that because of this you have any penal actions and this is something that is uh 51:03 51 minutes, 3 seconds is a part and parcel of an oil and gas industry. 51:08 51 minutes, 8 seconds Okay, sure. Thank you so much for answering my questions. Thank you. 51:12 51 minutes, 12 seconds Thank you. The next question comes from the line of Shaker, an individual investor. Please go ahead. 51:18 51 minutes, 18 seconds Thank you for the followup sir. So it's regarding HF hunters and in the other vessel under it has been relocated from 51:25 51 minutes, 25 seconds Mexico to Argentina. So are we getting any uh premium dates because it's harsh environment in Argentina? 51:35 51 minutes, 35 seconds Sorry if you can repeat your question. I'm not getting it clear. 51:39 51 minutes, 39 seconds It's regarding the other vis dolphin option. We have other vessels which is HF Hunter under JV, right? 51:45 51 minutes, 45 seconds So it has been moved from Mexico to Argentina. So Argentinian waters are very harshness. So are we getting any premium day rates? 51:54 51 minutes, 54 seconds So they are in line with what we were earlier used to get. 51:59 51 minutes, 59 seconds Okay. And the other one is regarding uh you know this India US trade deal. uh they are saying that the in uh the 52:06 52 minutes, 6 seconds custom duty on the industrial goods imported from America we are going to wave it off. So we are we are actually 52:13 52 minutes, 13 seconds importing lot of compressors and stuff from America. So is it going to uh you know positively impact us because the cost is going to reduce because of trade deal? 52:23 52 minutes, 23 seconds Yes. Uh definitely uh though we can get uh the duty credit but if duties would 52:30 52 minutes, 30 seconds be reduced it will definitely help us uh reducing our capex. 52:35 52 minutes, 35 seconds That's good. That's great. And the other one is regarding uh the uh acquisition of bezels. So how many uh more months 52:43 52 minutes, 43 seconds are we expecting to finalize a contract and you know buy out a vessel on that also? 52:48 52 minutes, 48 seconds So we are actively evaluating but uh we would follow the uh policy which we otherwise follow in deep 52:57 52 minutes, 57 seconds is uh we acquire asset or we do capex only on getting form order. So once we 53:04 53 minutes, 4 seconds have order in place then only we can go ahead and uh buy the asset. So I think that policy we will follow in dolphin as well. 53:14 53 minutes, 14 seconds Okay. Okay. Thank you sir. That's it from me. Thank you. 53:18 53 minutes, 18 seconds Thank you ladies and gentlemen. As there are no further questions. I would now like to hand the conference over to Mr. Rohan Sha for closing remarks. 53:28 53 minutes, 28 seconds 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. 53:37 53 minutes, 37 seconds We would happy to answer all your queries and we thank you systematics for organizing this call. Thank you. 53:46 53 minutes, 46 seconds On behalf of systematics institutional equities that concludes this conference. 53:50 53 minutes, 50 seconds Thank you for joining us and you may not disconnect your lines.