Deep Industries wins order worth Rs 90.3 crore from ONGC

Deep Industries today won an order worth Rs 90.3 crore from Oil and Natural Gas Corporation Limited (ONGC). The company’s Chairman and Managing Director (CMD) Paras Savla told CNBC-TV18 that the order is for 1000 Horse Power (HP) drilling rig for ONGC’s Tripura project. Last month, the company had received a 1000 HP drilling rig project for ONGC’s Ahmadabad project, Salva said. The current order book of the company stands at Rs 700 crore. Salva expects earnings before interest, tax, depreciation and amortization (EBITDA) growth of 50-55 percent year-on-year. Going forward, Salva expects more order inflows in the gas dehydration segment for which it has received some orders in April already.Below is the verbatim transcript of Paras Savla's interview with Anuj Singhal and Ekta Batra on CNBC-TV18.Ekta: Can you take us through this Rs 90 crore order win from ONGC, the details of it?A: We have got the latest order coming in from ONGC and that is for 1,000 HP of drilling rig, which they are trying to deploy at Tripura. This is in line with the order we received a month back which was again for 1,000 HP drilling rig for Ahmedabad ONGC project and this was in continuance of the extension of one more order that we have received yesterday evening.Anuj: What is your current order book now and what kind of margins will you enjoy on these projects?A: In terms of order book we are close to about Rs 700 crore order book, which we are standing as of now.Ekta: Can you tell us what visibility you have in terms of future order from ONGC as well as in general for the remaining part of the fiscal?A: There are various projects that are coming these days -- the upcoming project that we are looking at is gas dehydration unit, which is coming up in a big way. We already received some of the orders in this last April for gas dehydration and we are the only ones in the country to provide gas dehydration units on a hiring basis.So we are looking at many such opportunities to come up because it has become a matter of compulsion for the public sector undertaking (PSUs) to comply with dehydrating the gas before they put the gas into the pipeline. So we expect a lot of bids to come up, some of them have already come up and some of them are about to come in near future.