Deep Industries shines after order wins from ONGC

Deep Industries was buzzing in trade on Wednesday on the back of two order wins worth Rs. 183.50 crore from ONGC.

The two orders are valued at Rs. 183.5 crore and involve deployment of two 1,000 HP Drilling Rig for ONGC Ahmedabad Asset for three years. The management indicated that Indian oil exploring major has begun issuing orders after a long hiatus which are positive signs for the industry and the company. The order wins combined with increase in order book improve the company’s revenue visibility in the coming years.

Deep Industries is a leading service provider in the oil and gas and coal bed methane (CBM) sectors. The company’s business interests lie in natural gas compression, natural gas dehydration, drilling rigs services and integrated project management services.

The company revenues for the quarter ended December 2018 stood at Rs. 60 crore as against Rs. 74.66 crore in the corresponding quarter last year, registering a degrowth of 19 per cent. The company’s net profit for the quarter ended December 2018 stood at Rs. 15 crore as against Rs.18.38 crore YoY.