IMO its unfair to compare the two business models…although good to know as information on the potential of QC for incumbents, as and when they decide to enter it, if they enter it.

Deep Industries Ltd Q2FY25 earnings call:

• Deep Industries Limited reported strong Q2 and H1 FY25 results, driven by robust order flows and a promising billing pipeline. Consolidated revenue from operations rose 29% to ₹130.62 crore in Q2 FY25 and 25% to ₹254.07 crore in H1 FY25. The company’s order book grew to ₹2,622 crore, nearly 119% higher than in Q2 FY24.
• The company secured a significant 15-year production management contract worth ₹142 crore from ONGC. This contract, the first of its kind from ONGC, aims to enhance production from ONGC’s mature fields in Rajamundi. Deep Industries expects to earn service revenue linked to production increases through this contract. The company anticipates margins above 40% for this production enhancement contract.
• The refurbishment of the Prabha asset, an offshore support vessel acquired through the Dolphin Offshore acquisition, is in its final stages and is expected to contribute to revenue from Q4 FY25 onwards. The refurbishment process took longer than initially estimated due to unforeseen circumstances. The company expects Prabha to generate minimum revenue of $50,000 per day.
• Deep Industries is optimistic about its growth prospects in FY26, driven by the production enhancement contract and the deployment of Prabha. The company projects a consolidated revenue of around ₹800 crore in FY26, representing a year-on-year growth of approximately 35%.
• The company’s core business order book stands at around ₹1,250 crore, and the management anticipates securing additional orders in the next 3 to 6 months. The bidding pipeline for traditional business is approximately ₹800 crore.
• Deep Industries clarified that its high debtor days are primarily due to old receivables from the Dolphin Group, amounting to approximately ₹141 crore. Excluding these old receivables, the company’s normal debtor days are in the range of 90 to 100. The management is pursuing the recovery of these receivables, including through arbitration awards.
• The company emphasized that its business is not directly linked to global crude oil prices. Deep Industries operates primarily in the services business, with fixed-price contracts for the duration of the contract. The company’s focus is on natural gas, and its business is largely domestic, insulating it from global crude price fluctuations.

This earnings call highlighted Deep Industries’ strong financial performance, significant contract wins, and optimistic growth outlook. The management addressed investor concerns regarding the delayed Prabha deployment, old receivables, and the impact of crude oil prices.

Also a bit of concern for me is the delay in inorganic acquisition that the company is being going through.

Disclosure : Invested in different tea companies and biased