Deep Industries Expects Rs 550 Crore Revenue In FY25, Grow Topline By 30% In Next Three Years: CFO

Deep Industries Ltd. is aiming to generate Rs 550 crore in revenue in FY25, driven by a robust order book, with the topline expected to grow by 30% annually over the next two to three years, according to the company’s Director Finance and Group Chief Financial Officer Rohan Shah. 

Deep Industries Ltd, an oil and gas field services company, reported a revenue of Rs 427 crore in FY24.

Talking to NDTV Profit, Shah projected the revenue to surge to Rs 550 crore this fiscal, marking a growth rate of around 30%.

“Against the Rs 427 crore (revenue) which we booked last year we are quite poised to close above Rs 550 crore in this current financial year and it should grow more than 25% to 30% even in the next financial year,” he revealed.

The momentum will be sustained for the next three years, the top executive mentioned.

“So by converting the order book into revenue, we are expecting some good amount of growth of more than 30% for the next two to three years,” he said.

Deep Industries’ order book as of date has crossed the Rs 2,700-crore mark, Shah revealed. Out of this, Rs 1,400 crore of orders are to be executed over the next 15 years, while the rest need to be completed within the next 2.5 to 3 years.

The top executive further said that the bidding pipeline of the company is “quite healthy.”

“We are continuously bidding for various other projects as well. The demand in the industry is exceptional and we believe that it should continue to grow even for the next three to five years,” he said.

The company recently won a 1000 metric tonne workover rig order from ONGC for a period of seven years with an approximate contract size of around Rs 90 crore.

“We can mobilise this contract within the next four to five months,” its CFO said.

Deep Industries is also expecting to improve its margins over the range of 40% “going further,” largely aided by the company’s change in strategy, Shah stated.

“With the change in focus from our traditional services to value-added services, we are now having two major verticals in our service offering. One is natural gas and the second is integrated project management,” he said.

“So both put together, we are expecting to grow at a decent pace and overall, at the company level, margins, we are quite confident that we would be maintaining an Ebitda margin of more than 40% going further as well,” Shah added.

Shares of Deep Industries Ltd. closed 2.93% lower at Rs 572.20 apiece on the NSE on Friday, while benchmark Nifty 50 ended 0.4% lower at 23,431.50 points.