Q4FY23 Notes:
• Order book has increased to Rs. 1,078 Cr.; up by 71% on YoY basis. With regards to breakup of our order book, out of INR1,078 crores of order, almost gas compression consists of 52% of order book. Rig consists of around 36% of order book. Gas dehydration consists around 5% of order book, and rest is from integrated project management.
• Company is witnessing highest ever bidding pipeline which could further enhance the order book going forward. Our bidding pipeline is as good as around INR800 crores, and of which we are expecting some good amount of conversion in current year as well
• Refurbishment of major assets has been started and it is expected that Dolphin will start earning operational revenues in H2FY24
• Growth Guidance: With regards to growth coming up in the next financial year, since we have a good amount of order book in place and almost sure kind of revenue for the next 2 to 2.5 years, we expect to grow around 20% on a conservative basis on CAGR. That is what we expect for years to come.
• IPM: So in integrated project management, we have successfully completed our first project and we are doing some small integrated projects with Oil India and Selan as well. With ONGC, we have bidded for another integrated project. We are expecting to have some good outcome in that as well.
• I think since we are into pure services business, our business has not much impact of crude or gas prices because at the end of the day our services are indispensable kind of services. Whatever the price would be, our services would be required by every producer and transporters.
• There are three gas compression contracts which are getting added by this current quarter and will start coming into revenue.
• Dolphin Offshore assets: we have already started getting expressions from various clients and the response is excellent because the asset which we are having, I think it is one of the rare assets and there are only six to seven such assets in entire world. So, we are quite bullish on getting business on that asset.
Business would be almost same as our business margin. There can be some higher margins as well. But conservatively, we are expecting 40%, 45% EBITDA
Even before the acquisition, we met our clients and there is a lot of vacuum in this industry.
Dolphin used to do around INR300 crores, INR400 crores, INR500 crores top line. Is that market of that size still there available for us? Paras Savla: Honestly speaking, I believe it is much, much, much more than what even they were doing, because they were doing this before four, five years now. And in these four, five years, the level of requirement, the level of services, see lot of equipment, what they used to, a lot of services, what they used to provide in the market, I think the demand has superseded to what the supply is. So I’m just being optimistic. I do not have a clarity on what the answer would be in terms of numbers. But the only thing that I clearly understand is that these numbers are very, very easily achievable in a span of time.
• RAAS has achieved INR17 crores over a year for FY ’23. We are already providing booster compressors to Adani, IOCL, Gujarat Gas, AGNP and all. We are reporting EBITDA of around 19%
• See, we are very much focused and as I mentioned to see, the only thing that we believe is that we have to have a lot amount of financial discipline and that is the key to this business. So, if we do not get our dues intime, this could be dangerous. And we know this, having seen having acquired these companies where they had gone wrong, so we’ll never make such mistakes. We are very, very, vigilant on getting our dues.
• Raja Panda: Recently the Dhamra project was announced where LNG import of a roughly large amount from Adani Gas is going to happen. So, my question was, does the gas compression services that our company provides are required for such kind of import? Paras Savla: Yes,yes it is very much needed. So, we have been in past already providing services to Petronet LNG, KLPL, and we are already doing it for GFPC LNG right now. So, this requirement of compressor are definitely going to be for any new LNG terminal that is going to come up.
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