Q1 2027 Jindal Drilling and Industries Ltd Earnings Call Transcript
Key Points
- Received a new contract from ONGC for one rig, with deployment expected as early as October 2026.
- Order book stands at ₹1,310 crores, providing revenue visibility.
- Company remains cash-rich despite recent rig acquisition and refurbishment, with cash position expected to improve.
- EBITDA margins are expected to improve in H2 FY27 due to de-hiring of lower-margin rigs.
- Management is optimistic about redeploying the three de-hired rigs, supported by the government's Samudra Manthan initiative and expected industry-wide increase in drilling activity.
- Three rigs are expected to be de-hired within the current financial year, leading to a revenue decline in H2 FY27.
- Refurbishment period of 4-6 months for de-hired rigs will result in no revenue during that time.
- Refurbishment costs are significant, estimated at ₹90-110 crores per rig, requiring cash conservation.
- The latest rig contract was awarded at a lower day rate ($47,600) than the bid ($62,000), indicating pricing pressure from ONGC.
- The ONGC legal dispute remains unresolved after 14-15 years, with a potential liability of ₹163 crores if the case is lost.
Ladies and Gentlemen, Good day and welcome to the Jindal Drilling and Industries Limited Q1 FY27 Earnings Conference Call hosted by Antique Clock Broking Limited.
(Operator Instructions) I now hand the conference call over to Mr. Bharat Ranjan. From Antic Stock, thank you, and over to you, sir.
Thank you. Very good afternoon, ladies and gentlemen. Itâs my pleasure to welcome you all to this first quarter FY27 earnings call of Jindal Drilling and Industries Limited. I request Mr. Kaushal from general management to deliver his opening remarks.
Thank you, Mr. Varatharajan. Good afternoon, shareholders, and thank you for joining our earnings call. The first quarter of FY27 was fairly good for the company. The key development apart from financial results has been the receipt of a contract from ONGC for one of the rigs
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