I have sent an email to the company with similar queries and have also asked them about the total number of employees working with the company. I have received a response for the breakup of revenue and PAT numbers. The question on employee count was not answered (may be missed). Below is the response that I have received on their numbers.
Nilesh Shah, MD of Kotak AMC, indicates that the high market returns observed in recent years are unlikely in the future. He emphasizes the need for better earnings growth and governance standards. Increased spending from the government and strong local investor support could influence market performance. Global events and foreign investment behaviors will continue to impact volatility.
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I don’t have a view beyond the commentary of global jack-up operators. What is clear and should have a bearing on the cycle, is that new supply is almost non existent.
And as you rightly pointed out, even at current day rates, justifying ordering a new jack-up rig is not sensible because return on capital is well below cost. Newbuild jack-up rig quotes range from 200mn-300mn USD depending on specifications and at 90k USD/day jack-up rates and even assuming aggressive EBITDA margins of 50%, the return on capital employed ranges between 5.5%-8.5%, significantly below any reasonable estimate of cost of capital.
This is why you see offshore asset managers like Valaris talking about returning cash to shareholders rather than deploying them on new assets. This is why the orderbook to fleet ratio is as low as it is and thinking logically, this supply crunch should continue for the foreseeable future. Also time to build a new rig ranges between 2-3 years, so even if new orders come in, for the rig to add to fleet supply, there will be a delay of 2-3 years.
Some data on current jackup outlook, utilisation and day rates from Valaris’s Q3 PPT and Shelf Drilling’s Q2 PPT.
So the global cycle looks robust judged in terms of the supply side. The jack in the box is of course global demand which nobody can predict. But as long as oil prices are above 60$/barrel, industry research seems to suggest that there will be no significant cutdown in offshore drilling volumes by E&P companies.
Some near term risks specific to Jindal Drilling which should be closely tracked
Sales decline 7.10% to Rs 101.17 crore
Sales rise 59.09% to Rs 0.35 crore
Sales rise 50.00% to Rs 0.60 crore
A total of 18,296 shares changed hands on the counter till 12:48PM (IST)