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Deep Industries Ltd.: Experts' corner
532760 DEEPIND Group (B) BSE data
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Management speaks
C A Rohan Shah
C A Rohan Shah
General Manager - Finance
Deep Industries Ltd.
March 10, 2011, 4:44 pm
Why should an investor buy your company's stock?

Our company has created wealth for its shareholders in the past and will continue to do the same in the future. We are rendering services to various oil and gas companies, which has immense scope. DEEP Industries Limited is a great stock to pick up any time.

Our company offers the following services:

  1. Gas compression
  2. Work over rigs
  3. Marginal gas fields
  4. Coal bed methane

Future :

DIL is now focusing on expanding its operation to Asian countries and south India and will be an outsourcing service provider to players in those regions. It will bring value services to oil & gas players in the international market.

What events do you expect in your industry sector over the next few months? Are these hurdles or catalysts?

The increase in crude oil demand in the past few years has led to higher crude oil prices, thereby increasing drilling activities. As a result of the long time lag involved in the construction of rigs and other oilfield equipment, the demand-supply mismatch is expected to continue in the rig market.

The industry has seen strong growth on the back of increased E&P spending. The industry is not local in nature and government intervention is minimal.

There would be a mix of both hurdles and catalysts, but more of catalysts, as the industry is in the growth phase and we expect lots of tenders in coming months. The major oil marketing and gas transmitting companies have drawn up tremendous capex plans for the years ahead. But as far as growth prospects go, the industry could attract foreign players into the country, which could increase competition.

What growth initiatives has your company planned?

We expect double-digit growth in the next four to six years. We have grown tremendously in the last five years and expect to have similar growth figures in the years ahead, except for the current financial year where we expect to be on a par with the previous year. We are into the oil and gas business and have remarkable scope in CBM blocks projects.

Who is your competition? What differentiates you from them?

We have competition at all levels, for smaller as well as for bigger projects. We differentiate ourselves and outperform our competitors because of our experience and target-oriented approach, which is because of excellent project management skills.

How do you see your company performing over the next financial year?

We expect to perform better in the next financial year due to the commencement of new projects.