Deep Industries Limited — PPTs, 02-05-2025: Investor Presentation

1. Financial Highlights:

Deep Industries posted Q4 revenue of ₹167.2 Cr, up 39.7% YoY, with EBITDA at ₹62.5 Cr (+27.4% YoY) and PAT at ₹41.9 Cr (+17.8% YoY). EBITDA margin was 36.1%, slightly down, while PAT margin stood at 24.2%. For FY25, revenue grew 34.5% to ₹576.1 Cr, EBITDA rose 35.3% to ₹263.8 Cr, and PAT increased 31.6% to ₹161 Cr. The balance sheet strengthened with equity at ₹1,820 Cr and total assets of ₹2,393 Cr. ROCE and ROE improved to 13% and 12%, respectively, with a low debt-to-equity ratio of 0.14x.

2. Strategic Initiatives & Growth Drivers:

The company is expanding vertically through a ₹1,402 Cr, 15-year Production Enhancement Contract (PEC) with ONGC targeting mature fields with high-margin cash flows. Offshore services growth comes from acquiring Dolphin Offshore and leasing its DP2 accommodation barge “Prabha” on a 3-year contract worth ₹281 Cr. Focus areas for FY26 include integrated project management, charter hire of gas processing facilities, and offshore marine services.

3. Business Developments:

Wholly owned subsidiary Beluga International DMCC signed a 3-year lease for the “Prabha” barge with Ballast Shipping (₹281 Cr). A 7-year charter for a 100MT workover rig in Assam valued around ₹90.7 Cr was also secured. These deals support long-term cash flow and expand service capabilities across drilling, workover rigs, dehydration, and compression units.

4. Market Position & Competitive Advantage:

With 30+ years in oil & gas support, Deep Industries covers 70% of the post-exploration value chain. Its conversion of EPC contracts into charter hires, strong asset base, 99.4% uptime, and skilled workforce set it apart. Offshore entry and a global footprint in MENA and Mexico strengthen its leadership and scalability.

5. Investor Implications:

Diversified growth avenues, a robust order book, and margin expansion highlight positive growth potential. Long-term contracts enhance revenue visibility, while offshore expansion unlocks new markets. Execution risks around offshore integration should be watched, but overall the company shows steady potential for value accretion backed by solid financials and operational strength.