Deep Industries declares 2:1 stock split, posts 44% net profit growth in Q3 | Mint
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Business News/ Markets / Stock Markets/  Deep Industries declares 2:1 stock split, posts 44% net profit growth in Q3
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Deep Industries declares 2:1 stock split, posts 44% net profit growth in Q3

Deep Industries Ltd. is a small-cap company with a market worth of ₹909.60 Cr.

The shares of Deep Industries closed today on the NSE at ₹283.90 apiece level, down by 3.94% from the previous close of ₹295.55. (REUTERS)Premium
The shares of Deep Industries closed today on the NSE at 283.90 apiece level, down by 3.94% from the previous close of 295.55. (REUTERS)

Deep Industries Ltd. is a small-cap company with a market worth of 909.60 Cr. It operates in the energy industry and is focused on offering services such as drilling and workover, gas dehydration, and air & gas compression. It also has competence in integrated project management. The firm, which is a top solution provider in the energy industry, has announced its Q3 earnings as well as a corporate action of a 2:1 stock split.

In order to improve the liquidity of the company's shares and to make it more affordable for small investors and retail investors as also to broaden the small investors base, the Board of Directors of Deep Industries cited the reason behind the stock split.

In Q3FY23, the company posted revenue from operations of 98.06 Cr on a consolidated basis, up by 30% from 75.38 Cr in Q3FY22. The company said its EBITDA reached 41.69 Cr in the quarter ended December 2022 compared to 29.44 Cr in the quarter ended December 2021 whereas EBITDA margin stood at 41.68% from 38.90% in the year-ago quarter. The net profit of Deep Industries reached 24.93 Cr in Q3FY23 compared to 17.17 Cr in Q3FY22, representing a growth of 44% whereas PAT margin stood at 24.93% in Q3FY23 against 22.69% in the same quarter last year.

Paras Savla (Chairman and Managing Director) of Deep Industries commented on the business outlook by saying that “Indian government is focussed on increasing gas usage in the energy basket from the current 6% to 15% by 2030. At the same time, the focus has been brought to revive the domestic production of gas which was in decline since 2012. All these efforts are yielding results and gas production in India is slated to increase by 18% CAGR till FY25E. This is reflected in our strong order book, which currently stands at 976cr up 76% YoY. With a thriving bidding pipeline, future demand looks promising and our debt-free, well-funded status positions us for success."

“The Government also announced the availability of 26 exploration and development blocks totaling around 2.23 lakh sq km under the HELP Policy. Furthermore, 75 discovered oil and gas fields across multiple onshore and offshore basins were offered under DSF-3 bidding. These policies have interested many new players forming a base for the potential expansion of our clientele. With the acquisition of Dolphin, the group is set to expand its services portfolio to the offshore segment. Now we are in a position to give service to our clients both onshore and offshore from exploration to production and processing. With multiple growth factors in action, we anticipate substantial growth ahead. Our revenue outlook is positive, and we anticipate robust interest in our offerings," said Paras Savla.

The shares of Deep Industries closed today on the NSE at 283.90 apiece level, down by 3.94% from the previous close of 295.55.

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ABOUT THE AUTHOR
Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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Published: 08 Feb 2023, 05:19 PM IST
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