Q1 2027 Jindal Drilling and Industries Ltd Earnings Call
Speaker #1: Ladies and gentlemen, you are connected for the Jindal Drilling and Industries Limited Q1 conference call. Please stay connected; the call will begin shortly. Please note, you are connected for the Jindal Drilling and Industries Limited Q1 conference call.
Speaker #1: Please stay connected; the call will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to the Jindal Drilling and Industries Limited Q1 FY27 earnings conference call, hosted by Antique Stockbroking Limited.
Operator: Ladies and gentlemen, good day and welcome to the Jindal Drilling & Industries Limited Q1 FY27 earnings conference call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Varatharajan from Antique Stock. Thank you and over to you, sir.
Speaker #1: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.
Operator: Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Varadarajan from Antique Stock. Thank you and over to you, sir.
Speaker #1: I now hand the conference call over to Mr. Varadharanjan from Antiques Stock. Thank you, and over to you, sir.
Speaker #2: Thank you, Rupra. Very good afternoon, ladies and gentlemen. It's my pleasure to welcome you all to the first quarter FY27 earnings call of Jindal Drilling and Industries Limited.
[Analyst] (Antique Stock Broking): Thank you, Ukra. Very good afternoon, ladies and gentlemen. It's my pleasure to welcome you all to this Q1 FY27 earnings call of Jindal Drilling & Industries Ltd.. I request Mr. Kaushal from Jindal management to deliver his opening remarks. Over to you, sir.
Varatharajan Sivasankaran: Thank you, Ukra. Very good afternoon, ladies and gentlemen. It's my pleasure to welcome you all to this Q1 FY27 earnings call of Jindal Drilling & Industries Ltd.. I request Mr. Kaushal from Jindal management to deliver his opening remarks. Over to you, sir.
Speaker #2: I request Mr. Kaushal from Jindal Management to deliver the opening remarks. Over to you, sir.
Speaker #3: Thank you, Mr. Varadharanjan. Good afternoon, shareholders, and thank you for joining our earnings call. The first quarter of FY27 was fairly good for the company.
Kaushal Bengani: Thank you, Mr. Varadarajan. Good afternoon, shareholders, and thank you for joining our earnings call. The Q1 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 owned by Jindal Drilling. That rig is currently under refurbishment in UAE, and we expect to deploy it as early as October of 2026. Apart from that, results were broadly in line with expectations. We remain the largest offshore jack-up drilling contractor based in India with ONGC. We have five rigs on long-term contracts, which are currently deployed with ONGC, with the sixth rig having recently received a new contract. In the presentation, we've put out the order book and bifurcated it rig-wise and day rate-wise so that one is able to assess how the revenue will shape up going forward.
Kaushal Bengani: Thank you, Mr. Varatharajan. Good afternoon, shareholders, and thank you for joining our earnings call. The Q1 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 owned by Jindal Drilling. That rig is currently under refurbishment in UAE, and we expect to deploy it as early as October of 2026. Apart from that, results were broadly in line with expectations. We remain the largest offshore jack-up drilling contractor based in India with ONGC. We have five rigs on long-term contracts, which are currently deployed with ONGC, with the sixth rig having recently received a new contract. In the presentation, we've put out the order book and bifurcated it rig-wise and day rate-wise so that one is able to assess how the revenue will shape up going forward.
Speaker #3: The key development, apart from financial results, has been the receipt of a contract from ONGC for one of the rigs owned by Jindal Drilling.
Speaker #3: That rig is currently under refurbishment in the UAE, and we expect to deploy it as early as October 2026. Apart from that, results were broadly in line with expectations.
Speaker #3: We remain the largest offshore jackup drilling contractor based in India, with ONGC. We have five rigs on long-term contracts, which are currently deployed with ONGC, and the sixth rig has recently received a new contract.
Speaker #3: In the presentation, we've put out the order book and bifurcated it rig-wise and day rate-wise, so that one is able to assess how the revenue will shape up going forward.
Speaker #3: The order book stands at ₹1,310 crore, and we've also bifurcated the order book year-wise. A key point to note here would be that three of our rigs are expected to be rehired within the current financial year.
Kaushal Bengani: The order book stands at INR 1,310 crore. We've also bifurcated the order book year-wise. A key point to note here would be that three of our rigs are expected to be rehired within the current financial year. Out of the four rigs which were getting rehired in the current calendar year, more or less, one has recently received a contract. We are hopeful that we'll get contracts for the remaining three rigs as well. For Discovery-I and Jindal Star, there has been a slight extension in the duration of the contract, which we have also put out in the presentation. On the financial highlights, revenue is broadly constant with the previous couple of quarters. The dip, which is visible in Q3 of FY26, was on account of a reversal of another income which we had booked in Q2 of FY26.
Kaushal Bengani: The order book stands at INR 1,310 crore. We've also bifurcated the order book year-wise. A key point to note here would be that three of our rigs are expected to be rehired within the current financial year. Out of the four rigs which were getting rehired in the current calendar year, more or less, one has recently received a contract. We are hopeful that we'll get contracts for the remaining three rigs as well. For Discovery-I and Jindal Star, there has been a slight extension in the duration of the contract, which we have also put out in the presentation. On the financial highlights, revenue is broadly constant with the previous couple of quarters. The dip, which is visible in Q3 of FY26, was on account of a reversal of another income which we had booked in Q2 of FY26.
Speaker #3: Out of the four rigs which were getting rehired in the current calendar year, one has recently received a contract, and we are hopeful that we'll get contracts for the remaining three rigs as well.
Speaker #3: For Discovery One and Jindal Star, there has been a slight extension in the duration of the contract, which we have also included in the presentation.
Speaker #3: On the financial highlights, revenue is broadly constant with the previous couple of quarters. The dip, which is visible in the third quarter of FY26, was on account of a reversal of other income, which we had booked in the second quarter of FY26.
Speaker #3: EBITDA remains in line. The variation in EBITDA is primarily on account of the variation in other expenses, which is caused by the forex fluctuation. Forex fluctuation was more prevalent in the last quarter of the previous financial year and less prevalent in the first quarter of the current financial year.
Kaushal Bengani: EBITDA remains in line. The variation in EBITDA is primarily on account of the variation in other expenses, which is caused by the Forex fluctuation, which was more prevalent in Q4 of the previous financial year and less prevalent in Q1 of the current financial year. On the next slide, we've put out the profit and loss comparison. Followed it up with the annual financial highlights. EBITDA mix is given on the subsequent slide, with most of the EBITDA coming from the rig segment. We remain a cash-rich organization despite having acquired one rig in FY25 and conducting refurbishment exercise of the said rig. We expect the cash position to improve going forward. That concludes the presentation. I would now request Mr. Varadarajan to kindly open for questions.
Kaushal Bengani: EBITDA remains in line. The variation in EBITDA is primarily on account of the variation in other expenses, which is caused by the Forex fluctuation, which was more prevalent in Q4 of the previous financial year and less prevalent in Q1 of the current financial year. On the next slide, we've put out the profit and loss comparison. Followed it up with the annual financial highlights. EBITDA mix is given on the subsequent slide, with most of the EBITDA coming from the rig segment. We remain a cash-rich organization despite having acquired one rig in FY25 and conducting refurbishment exercise of the said rig. We expect the cash position to improve going forward. That concludes the presentation. I would now request Mr. Varatharajan to kindly open for questions.
Speaker #3: On the next slide, we've presented the profit and loss comparison, and followed it up with the annual financial highlights. The EBITDA mix is given on the subsequent slide, with most of the EBITDA coming from the rig segment.
Speaker #3: We remain a cash-rich organization, despite having acquired one rig in FY25 and conducting a refurbishment exercise of the said rig. We expect the cash position to improve going forward.
Speaker #3: That concludes the presentation, and I would now request Mr. Varadharanjan to kindly open the floor for questions.
Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star one on their touch-tone telephone.
Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pankaj from Avas Capital. Please go ahead.
Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.
Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pankaj from Avis Capital.
Operator: The first question is from the line of Pankaj from Avas Capital. Please go ahead.
Speaker #1: Please go ahead.
Speaker #2: Yeah, hi. Very good morning. I have two quick questions. One is regarding—I think we have three rigs which are due for expiry in 2026.
[Company Representative] (Avendus Capital): Yeah, hi, very good morning. I have two quick questions. One is regarding, I think we have three rigs which are due for expiry in 2026. Just wanted to understand what is the likelihood of these contracts getting renewed. Are we expecting any idle time for the renewal? What are the rates we are expecting for renewal of these rigs? That's question one. Question two is regarding what kind of CapEx we have actually spent on refurbishment of Pioneer. I believe this is done in UAE. Related question is that are we on track to meet the Q3 deadline, which we have kind of worked with ONGC?
[Analyst] (Avas Capital): Yeah, hi, very good morning. I have two quick questions. One is regarding, I think we have three rigs which are due for expiry in 2026. Just wanted to understand what is the likelihood of these contracts getting renewed. Are we expecting any idle time for the renewal? What are the rates we are expecting for renewal of these rigs? That's question one. Question two is regarding what kind of CapEx we have actually spent on refurbishment of Pioneer. I believe this is done in UAE. Related question is that are we on track to meet the Q3 deadline, which we have kind of worked with ONGC?
Speaker #2: So, just wanted to understand: what is the likelihood of these contracts getting renewed? Are we expecting any idle time for the renewal? And what are the rates we are expecting for renewal of these rigs?
Speaker #2: That's question one. Question two is regarding what kind of capex we have actually spent on refurbishment of Pioneer. I believe this is done in UAE.
Speaker #2: And a related question is: are we on track to meet the Q3 deadline, which we have kind of worked out with ONGC?
Speaker #3: On the first question regarding the rehire of the three rigs, which is expected in the latter part of this year, there will be a refurbishment period of four to six months once the rig gets rehired.
Kaushal Bengani: On the first question regarding the de-hire of the three rigs, which is expected in the later part of this year. There will be a refurbishment period of four to six months once the rig gets de-hired. In that four to six-month period, there wouldn't be any revenue which would accrue to us because the rig would be under refurbishment. The likelihood of the rig getting redeployed is fairly good, subject to whatever nuances that our customer keeps coming up at various points in time in various tenders. Despite that challenge, we remain fairly confident that we'll be able to redeploy these three rigs. The rate is something on which I cannot comment, because if you look at our order book on slide five, you will see the massive fluctuation in the day rates despite these rigs getting redeployed in a similar time period.
Kaushal Bengani: On the first question regarding the de-hire of the three rigs, which is expected in the later part of this year. There will be a refurbishment period of four to six months once the rig gets de-hired. In that four to six-month period, there wouldn't be any revenue which would accrue to us because the rig would be under refurbishment. The likelihood of the rig getting redeployed is fairly good, subject to whatever nuances that our customer keeps coming up at various points in time in various tenders. Despite that challenge, we remain fairly confident that we'll be able to redeploy these three rigs. The rate is something on which I cannot comment, because if you look at our order book on slide five, you will see the massive fluctuation in the day rates despite these rigs getting redeployed in a similar time period.
Speaker #3: In that four to six months period, there wouldn't be any revenue which would accrue to us because the rig would be under refurbishment. The likelihood of the rig getting redeployed is fairly good, subject to whatever nuances that our customer keeps coming up at various points in time in various tenders.
Speaker #3: Despite that challenge, we remain fairly confident that we'll be able to redeploy these three rigs. The rate is something on which I cannot comment, because if you look at our order book on Flight 5, you will see the massive fluctuation in the day rates, despite these rigs getting redeployed in a similar time period.
Speaker #3: On the refurbishment of Jindal Pioneer, we've spent a fairly decent amount through our joint venture, but I would not like to comment on how much we've spent.
Kaushal Bengani: On the refurbishment of Jindal Pioneer, we've spent a fairly decent amount through our joint venture. I would not like to comment on how much we've spent. We expect the refurbishment exercise to be completed by first week of September, and deployment of this rig to take place in the month of October.
Kaushal Bengani: On the refurbishment of Jindal Pioneer, we've spent a fairly decent amount through our joint venture. I would not like to comment on how much we've spent. We expect the refurbishment exercise to be completed by first week of September, and deployment of this rig to take place in the month of October.
Speaker #3: We expect the refurbishment exercise to be completed by the first week of September, and deployment of this rig to take place in the month of October.
Speaker #2: Thank you. Thank you for this. So, a related outcome could possibly be that our H2 revenue will be severely impacted, because three out of six rigs would be kind of out of revenue in H2.
[Company Representative] (Avendus Capital): Thank you for this. Related outcome possibly could be that our H2 revenue will be severely impacted because 3 out of 6 rigs would be kind of out of revenue in H2. Is my understanding right?
[Analyst] (Avas Capital): Thank you for this. Related outcome possibly could be that our H2 revenue will be severely impacted because 3 out of 6 rigs would be kind of out of revenue in H2. Is my understanding right?
Speaker #2: Is my understanding right?
Speaker #3: Yes, absolutely right. Because these three rigs will get rehired, they will go into refurbishment; no revenue will accrue till they get redeployed. So, revenue will decline in the second half of this financial year.
Kaushal Bengani: Yes, absolutely right. Because these 3 rigs will get de-hired, they will go into refurbishment. No revenue will accrue till they get redeployed. Revenue will decline in the second half of this financial year. However, I do not believe that EBITDA will decline in proportion to the decline in revenue. Because right now we are earning most of our EBITDA from the rigs which we own or from the rigs that are deployed at a good rate. We will have a de-hiring of Discovery-I, which is a rig which we own. We will have a de-hiring of Virtue-I, which is a rig which is rented, but on a good rate. We will have a de-hiring of Jindal Star, which is a rig which we've rented, but it is not on a good rate.
Kaushal Bengani: Yes, absolutely right. Because these 3 rigs will get de-hired, they will go into refurbishment. No revenue will accrue till they get redeployed. Revenue will decline in the second half of this financial year. However, I do not believe that EBITDA will decline in proportion to the decline in revenue. Because right now we are earning most of our EBITDA from the rigs which we own or from the rigs that are deployed at a good rate. We will have a de-hiring of Discovery-I, which is a rig which we own. We will have a de-hiring of Virtue-I, which is a rig which is rented, but on a good rate. We will have a de-hiring of Jindal Star, which is a rig which we've rented, but it is not on a good rate.
Speaker #3: However, I do not believe that EBITDA will decline in proportion to the decline in revenue, because right now we are earning most of our EBITDA from the rigs which we own, or from the rigs that are deployed at a good rate.
Speaker #3: So we will have a de-hiring of Discovery One, which is a rig that we own. We will have a de-hiring of Virtue One, which is a rig that is rented but on a good rate.
Speaker #3: And we will have a de-hiring of Jindal Star, which is a rig that we have rented, but it is not at a good rate.
Speaker #3: So, although there will be a decline in revenue from three rigs, the decline in earnings would primarily be from two rigs. Therefore, earnings will not decline in proportion, and you might even see an increase in the EBITDA margin, although absolute earnings would see a decline.
Kaushal Bengani: Although there will be a decline in revenue from three rigs, the decline in earnings would primarily be from two rigs. Therefore, earnings will not decline in proportion, and you might even see an increase in the EBITDA margin, although absolute earnings would see a decline in H2 of the current financial year.
Kaushal Bengani: Although there will be a decline in revenue from three rigs, the decline in earnings would primarily be from two rigs. Therefore, earnings will not decline in proportion, and you might even see an increase in the EBITDA margin, although absolute earnings would see a decline in H2 of the current financial year.
Speaker #3: In the second half of the current financial year.
Speaker #2: Okay, got it. Got it. So, will it be possible for you to give some number in terms of the revenue loss which we are going to have?
[Company Representative] (Avendus Capital): Okay. Got it. Will it be possible for you to give some number in terms of the revenue loss, which we are going to I'm not sure whether we should be calling it a revenue loss or not, whatever that deficit is going to be, and the corresponding EBITDA deficit which we might see because of this.
[Analyst] (Avas Capital): Okay. Got it. Will it be possible for you to give some number in terms of the revenue loss, which we are going to I'm not sure whether we should be calling it a revenue loss or not, whatever that deficit is going to be, and the corresponding EBITDA deficit which we might see because of this.
Speaker #2: I'm not sure whether we—whatever. Whatever the deficit is going to be. And the corresponding EBITDA deficit, which we might see because of this.
Speaker #3: We can do that calculation because the order book has been bifurcated year-wise in Flight 6 of the presentation. So that will broadly be the revenue for the relevant financial year, until a new contract is received.
Kaushal Bengani: We can do that calculation because the order book has been bifurcated year-wise-
Kaushal Bengani: We can do that calculation because the order book has been bifurcated year-wise-
[Company Representative] (Avendus Capital): Right
[Analyst] (Avas Capital): Right
Kaushal Bengani: in slide six of the presentation.
Kaushal Bengani: in slide six of the presentation.
[Company Representative] (Avendus Capital): Correct.
[Analyst] (Avas Capital): Correct.
Kaushal Bengani: That will broadly be the revenue for the relevant financial year, till a new contract is received. We've guided earlier that you should target a blended EBITDA of 35%. I think you will be able to make a fairly accurate assessment of the way the revenue will shape up in H2 of the current financial year.
Kaushal Bengani: That will broadly be the revenue for the relevant financial year, till a new contract is received. We've guided earlier that you should target a blended EBITDA of 35%. I think you will be able to make a fairly accurate assessment of the way the revenue will shape up in H2 of the current financial year.
Speaker #3: And we've guided earlier that you should target a blended EBITDA of 35%. I think you will be able to make a fairly accurate assessment of the way the revenue will shape up in the second half of the current financial year.
Speaker #2: Got it, got it. Thank you for this. I have some more questions, so I will rejoin the queue. Thank you.
[Company Representative] (Avendus Capital): Got it. Thank you for this. I have some more questions, I will rejoin the queue. Thank you.
[Analyst] (Avas Capital): Got it. Thank you for this. I have some more questions, I will rejoin the queue. Thank you.
Speaker #3: Okay.
Kaushal Bengani: Okay.
Kaushal Bengani: Okay.
Speaker #1: Thank you. Ladies and gentlemen, before we take the next question, a reminder to all participants: if you wish to ask a question, please press star and one.
Operator: Thank you. Ladies and gentlemen, before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star 1. We will take our next question from the line of Gaurav Ashok Bhansali from Augment Enterprises. Please go ahead.
Operator: Thank you. Ladies and gentlemen, before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star 1. We will take our next question from the line of Gaurav Ashok Bhansali from Augment Enterprises. Please go ahead.
Speaker #1: We will take our next question from the line of Gaurav Ashok Bhansali, from Augment Enterprises. Please go ahead.
Speaker #4: Yeah, good morning, sir. I just wanted to ask you about the recent order we've got—the recent award we've got. It's at a day rate of ₹45.83 lakhs.
Gaurav Ashok Bhansali: Yeah. Good morning, sir. I just wanted to ask you about the recent award we've got. It's at a day rate of INR 45.83 lakhs. Will we be able to enjoy the US dollar depreciation, INR depreciation, or it's at a fixed day rate of INR 45.83 lakhs?
Gaurav Ashok Bhansali: Yeah. Good morning, sir. I just wanted to ask you about the recent award we've got. It's at a day rate of INR 45.83 lakhs. Will we be able to enjoy the US dollar depreciation, INR depreciation, or it's at a fixed day rate of INR 45.83 lakhs?
Speaker #4: So will we be able to enjoy the dollar depreciation? INR depreciation? Or is it at a fixed daily rate of 45.83 lakhs?
Speaker #3: It's at a fixed day rate of approximately ₹45 lakhs. This contract was denominated in INR.
Kaushal Bengani: It's at a fixed day rate of INR 45 lakhs approximately. This contract was denominated in INR.
Kaushal Bengani: It's at a fixed day rate of INR 45 lakhs approximately. This contract was denominated in INR.
Speaker #4: Yeah, okay. Thank you for that. And, sir, I also wanted to ask you: how many rigs in the market are available for hire, other than our portfolio?
Gaurav Ashok Bhansali: Yeah, okay. Thank you for that. Sir, also wanted to ask you, how many rigs in the market are available for hire other than our portfolio? That would help us in assessing, because Indian rates are way below the global rates. Just outlook on the market for the next six months, one year from you.
Gaurav Ashok Bhansali: Yeah, okay. Thank you for that. Sir, also wanted to ask you, how many rigs in the market are available for hire other than our portfolio? That would help us in assessing, because Indian rates are way below the global rates. Just outlook on the market for the next six months, one year from you.
Speaker #4: Because that would help us in assessing, since Indian rigs are way below the global rates. So, just the outlook on the market for the next six months to one year from here.
Speaker #3: Generally speaking, the trend in the period apart from the last two financial years has been that whenever a rig goes off hire, ONGC comes up with a new contract, and the rig which has been dehired gets deployed on the new contract.
Kaushal Bengani: Generally speaking, what has been the trend in the period, apart from the last two financial years, has been that whenever a rig goes off hire, ONGC comes up with a new contract and the rig which has been de-hired gets deployed on the new contract. However, that has not been the case in the past two years. All drilling contractors have had problems in redeployment of the rigs because of various reasons which is known to all industry participants. However, going forward, we believe that the next three rigs which are getting de-hired, they should be rehired because of the Samudra Manthan exercise the Government of India has announced in the recent past. Specifically, you want the number of rigs which are getting de-hired. That number is not available with me, but if you could send an email, then I'll reply.
Kaushal Bengani: Generally speaking, what has been the trend in the period, apart from the last two financial years, has been that whenever a rig goes off hire, ONGC comes up with a new contract and the rig which has been de-hired gets deployed on the new contract. However, that has not been the case in the past two years. All drilling contractors have had problems in redeployment of the rigs because of various reasons which is known to all industry participants. However, going forward, we believe that the next three rigs which are getting de-hired, they should be rehired because of the Samudra Manthan exercise the Government of India has announced in the recent past. Specifically, you want the number of rigs which are getting de-hired. That number is not available with me, but if you could send an email, then I'll reply.
Speaker #3: However, that has not been the case in the past two years. All drilling contractors have had problems in redeployment of the rigs because of various reasons.
Speaker #3: This is new to all industrial participants. However, going forward, we believe that the next three rigs, which are getting dehired, should be rehired because of the Samudra Manthan exercise.
Speaker #3: The Government of India has announced in the recent past. Typically, you want the number of rigs which are getting dehired; that number is not available with me.
Speaker #3: But if you send an email, then I'll reply.
Speaker #4: Okay, sir. That helps. Thank you so much.
Gaurav Ashok Bhansali: Okay, sir. That helps. Thank you so much.
Gaurav Ashok Bhansali: Okay, sir. That helps. Thank you so much.
Speaker #1: Thank you. Ladies and gentlemen, a reminder to all participants: you may please press star and one to ask a question. We will take our next question from the line of Pankaj from Avast Capital.
Operator: Thank you. Ladies and gentlemen, a reminder to all the participants. You may please press star and one to ask a question. We will take our next question from the line of Pankaj from Avas Capital. Please go ahead.
Operator: Thank you. Ladies and gentlemen, a reminder to all the participants. You may please press star and one to ask a question. We will take our next question from the line of Pankaj from Avas Capital. Please go ahead.
Speaker #1: Please go ahead.
Speaker #2: Yeah, thank you. I'm back. Two quick more questions. One is, I think we saw a loss coming from one of our JVs, some five-odd crore rupees.
[Company Representative] (Avendus Capital): Yeah, thank you. I'm back. Two quick more questions. One is, I think we saw a loss coming from one of our JVs of some five odd crore rupees, in this particular quarter, which is different from what we have been seeing in past. Is there a reason and are we expecting that to kind of come back to profits in coming times? That's question one. Question two is, I think our cash position has improved meaningfully, and also, I believe the debt has gone down, which obviously allows us the flexibility to raise more funds. My question related to this is that, are we planning for any acquisitions, any rigs or anything on that front? Last question on this is, I think we have an ONGC dispute which is going on. Any update if you can give on that would be great.
[Analyst] (Avas Capital): Yeah, thank you. I'm back. Two quick more questions. One is, I think we saw a loss coming from one of our JVs of some five odd crore rupees, in this particular quarter, which is different from what we have been seeing in past. Is there a reason and are we expecting that to kind of come back to profits in coming times? That's question one. Question two is, I think our cash position has improved meaningfully, and also, I believe the debt has gone down, which obviously allows us the flexibility to raise more funds. My question related to this is that, are we planning for any acquisitions, any rigs or anything on that front? Last question on this is, I think we have an ONGC dispute which is going on. Any update if you can give on that would be great.
Speaker #2: In this particular quarter, which is different from what we have been seeing in the past—so is there a reason? And are we expecting that to kind of come back to profits in the coming times?
Speaker #2: That's question one. Question two is, I think our cash position has improved meaningfully. And also, I believe the debt has gone down, which obviously allows us flexibility to kind of raise more funds.
Speaker #2: So, my question related to this is: are we planning for any acquisitions, any rigs, or anything on that front? And the last question on this is, I think we have an ONGC dispute which is going on.
Speaker #2: Any update, if you can get on that, that would be great. And a related question is, is there any potential?
[Company Representative] (Avendus Capital): A related question is that, is there any potential-
[Analyst] (Avas Capital): A related question is that, is there any potential-
Speaker #3: Can I just interrupt you? If you could just ask questions one by one, rather than combining the basic seven questions into one, it makes it difficult for me to address each of these points.
Kaushal Bengani: I'll just interrupt you. If you can just ask questions one by one rather than-
Kaushal Bengani: I'll just interrupt you. If you can just ask questions one by one rather than-
[Company Representative] (Avendus Capital): Okay
[Analyst] (Avas Capital): Okay
Kaushal Bengani: combining six, seven questions into one question, because it just makes it difficult for me to address each of these points.
Kaushal Bengani: combining six, seven questions into one question, because it just makes it difficult for me to address each of these points.
Speaker #2: No problem, sir. You may like to address the question on that JV piece, sir.
[Company Representative] (Avendus Capital): No problem, sir. You may like to address the answer question on that JV please.
[Analyst] (Avas Capital): No problem, sir. You may like to address the answer question on that JV please.
Speaker #3: The first question was about the loss in the joint venture. The joint venture, which is the reason for the loss in the current quarter, is currently undergoing a refurbishment exercise for the rig General Pioneer.
Kaushal Bengani: The first question was the loss in the joint venture. The joint venture, which has been the reason for the loss in the current quarter, is currently doing the refurbishment exercise for Rig Jindal Pioneer. That joint venture was the seller of the rig, as per our sale purchase agreement, they had to provide the rig in a certain condition. The loss in that entity is on account of the refurbishment expenses that are being incurred by that entity, so as to bring the rig into a certain condition before Jindal Drilling takes delivery of the rig.
Kaushal Bengani: The first question was the loss in the joint venture. The joint venture, which has been the reason for the loss in the current quarter, is currently doing the refurbishment exercise for Rig Jindal Pioneer. That joint venture was the seller of the rig, as per our sale purchase agreement, they had to provide the rig in a certain condition. The loss in that entity is on account of the refurbishment expenses that are being incurred by that entity, so as to bring the rig into a certain condition before Jindal Drilling takes delivery of the rig.
Speaker #3: That joint venture was the seller of the rig, and as per our sale-purchase agreement, they had to provide the rig in a certain condition.
Speaker #3: The loss in that entity is on account of the refurbishment expenses that are being incurred by that entity so as to bring the rig into a certain condition before General Drilling takes delivery of the rig.
Speaker #2: Got it.
[Company Representative] (Avendus Capital): Got it.
[Analyst] (Avas Capital): Got it.
Speaker #3: That is the first response. The next question was:
Kaushal Bengani: That is the first response. The next question was.
Kaushal Bengani: That is the first response. The next question was.
Speaker #2: What's cash and cash and debt?
[Company Representative] (Avendus Capital): Was cash and debt.
[Analyst] (Avas Capital): Was cash and debt.
Speaker #3: Yes. What's the difference to the cash balance? As of now, we are not looking at any acquisitions. We are only looking at the ability to redeploy the three rigs which are going to get dehired in the later part of this financial year.
Kaushal Bengani: was a reference to the cash balance. As of now, we are not looking at any acquisitions right now. We are only looking at the ability to redeploy the three rigs which are going to get de-hired in the later part of this financial year. The reason why that is the case is because we want to minimize risk. Instead of having more assets which we have to deploy with ONGC, we are focusing on getting those assets deployed, which are going to get rehired in the later part of this financial year. Further, you should also bear in mind that because these three rigs are getting rehired, they will go into refurbishment. For refurbishment, we need to conserve cash because it's the nature of this industry that refurbishment exercise has to be undertaken after every contract.
Kaushal Bengani: was a reference to the cash balance. As of now, we are not looking at any acquisitions right now. We are only looking at the ability to redeploy the three rigs which are going to get de-hired in the later part of this financial year. The reason why that is the case is because we want to minimize risk. Instead of having more assets which we have to deploy with ONGC, we are focusing on getting those assets deployed, which are going to get rehired in the later part of this financial year. Further, you should also bear in mind that because these three rigs are getting rehired, they will go into refurbishment. For refurbishment, we need to conserve cash because it's the nature of this industry that refurbishment exercise has to be undertaken after every contract.
Speaker #3: The reason why that is the case is because we want to minimize risk. So, instead of having more assets that we have to deploy with ONGC, we are focusing on getting those assets deployed which are going to get dehired in the later part of this financial year.
Speaker #3: Further, you should also bear in mind that because these three rigs are getting dehired, they will go into refurbishment. For refurbishment, we need to conserve cash, because it's the nature of this industry that a refurbishment exercise has to be undertaken after every contract.
Speaker #2: Generally, sir, what is the refurbishment cost on average for a rig once it goes for refurbishment?
[Company Representative] (Avendus Capital): Generally, sir, what is the refurbishment cost on an average for a rig once it goes for refurbishment?
[Analyst] (Avas Capital): Generally, sir, what is the refurbishment cost on an average for a rig once it goes for refurbishment?
Speaker #3: Considering the recent inflationary trend and the increase in labor cost and transit cost of material, I think a figure between ₹90 to ₹110 crores would be a fair estimate per rig.
Kaushal Bengani: Considering the recent inflationary trend and the increase in labor cost and the transit cost of materials, I think a figure between INR 90 to 110 crores would be a fair estimate per rig.
Kaushal Bengani: Considering the recent inflationary trend and the increase in labor cost and the transit cost of materials, I think a figure between INR 90 to 110 crores would be a fair estimate per rig.
Speaker #2: Oh, okay. Okay. That's very quite significant. Yeah. Got it, sir. Got it, sir. Can I ask my last question, sir?
[Company Representative] (Avendus Capital): Oh, okay. Well, that's quite significant. Got it, sir. Can I ask my last question, sir?
[Analyst] (Avas Capital): Oh, okay. Well, that's quite significant. Got it, sir. Can I ask my last question, sir?
Speaker #3: Yes, please.
Speaker #2: Okay. If you can just give us a quick update on the ONGC dispute, which I believe is pending in the Supreme Court.
Kaushal Bengani: Yes, please.
Kaushal Bengani: Yes, please.
[Company Representative] (Avendus Capital): Okay. If you can just give us a quick update on the ONGC dispute, which I believe is pending in Supreme Court. If you can give us some status, second, best of my understanding, other than legal cost, there is no potential exposure which can flow on to us. Is my understanding right on that?
[Analyst] (Avas Capital): Okay. If you can just give us a quick update on the ONGC dispute, which I believe is pending in Supreme Court. If you can give us some status, second, best of my understanding, other than legal cost, there is no potential exposure which can flow on to us. Is my understanding right on that?
Speaker #2: So, if you can give us some status, and second, to the best of my understanding, other than legal costs, there is no potential exposure which can flow onto us.
Speaker #2: Is my understanding right on that?
Speaker #3: There is no material update on the legal dispute, because that case has been continuing for the past 14 or 15 years. We can only hope that it gets concluded sooner rather than later.
Kaushal Bengani: There is no material update on the legal dispute because that case has been continuing for the past 14, 15 years. We can only hope that it gets concluded sooner rather than later because of the legal costs that the company has been bearing for the past 14, 15 years. On the impact that it can have, right now we have received funds, but if we do lose the case, the possibility of which is remote, then we'll have to repay that back to the customer.
Kaushal Bengani: There is no material update on the legal dispute because that case has been continuing for the past 14, 15 years. We can only hope that it gets concluded sooner rather than later because of the legal costs that the company has been bearing for the past 14, 15 years. On the impact that it can have, right now we have received funds, but if we do lose the case, the possibility of which is remote, then we'll have to repay that back to the customer.
Speaker #3: Because of the legal cost that the company has been bearing for the past 14, 15 years. On the impact that it can have right now, we have received funds, but if we do lose the case, the possibility of which is remote.
Speaker #3: Then we'll have to repay that amount back to the customer.
Speaker #2: Okay, we have received the funds. Okay.
Speaker #3: The possibility of that happening is less, as per our assessment and the assessment of our lawyers, because we've been winning that case at every stage over the past 14–15 years, till it reached the Supreme Court for the second time.
[Company Representative] (Avendus Capital): We have received the funds. Okay.
[Analyst] (Avas Capital): We have received the funds. Okay.
Kaushal Bengani: The possibility of that happening is less as per our assessment and the assessment of our lawyers, because we've been winning that case at every stage over the past 14, 15 years till it reached the Supreme Court for the second time. It was earlier in the Supreme Court, it was referred back to arbitration. We won in arbitration again, then again it went to Supreme Court on account of an appeal from ONGC. We don't expect any material negative impact to take place.
Kaushal Bengani: The possibility of that happening is less as per our assessment and the assessment of our lawyers, because we've been winning that case at every stage over the past 14, 15 years till it reached the Supreme Court for the second time. It was earlier in the Supreme Court, it was referred back to arbitration. We won in arbitration again, then again it went to Supreme Court on account of an appeal from ONGC. We don't expect any material negative impact to take place.
Speaker #3: It was earlier in the Supreme Court, and it was referred back to arbitration. We won in arbitration again, and then again, it went to the Supreme Court on account of an appeal from ONGC.
Speaker #3: We don't expect any material negative impact to take place.
Speaker #2: Got it. I was not aware that we have received I was not aware that we have received the funds. So if we lose the case, then we'll have to refund.
[Company Representative] (Avendus Capital): Got it. I was not aware that we have received the funds. If we lose the case, then we'll have to refund. The quantum is around INR 100 crores. Is that right, sir?
[Analyst] (Avas Capital): Got it. I was not aware that we have received the funds. If we lose the case, then we'll have to refund. The quantum is around INR 100 crores. Is that right, sir?
Speaker #2: And the quantum is around 100 crores. Is that right, sir?
Speaker #3: So there are two aspects to it. There is a receivable of ₹63 crore—the original receivable of ₹63 crore. And then there is interest and forex appreciation on the said amount.
Kaushal Bengani: There are two aspects to it. There is a receivable of INR 63 crores, the original receivable of INR 63 crores, and there is interest and Forex appreciation on the said amount. The original receivable was denominated in USD.
Kaushal Bengani: There are two aspects to it. There is a receivable of INR 63 crores, the original receivable of INR 63 crores, and there is interest and Forex appreciation on the said amount. The original receivable was denominated in USD.
Speaker #3: The original receivable was denominated in USD.
Speaker #2: Okay.
Speaker #3: So the total amount is close to 160, 163 crores.
[Company Representative] (Avendus Capital): Okay.
[Analyst] (Avas Capital): Okay.
Kaushal Bengani: The total amount is close to INR 160, 163 crores.
Kaushal Bengani: The total amount is close to INR 160, 163 crores.
Speaker #2: Oh, okay. Quite meaningful. Okay, sir. Thank you. Thanks for all these answers, sir.
[Company Representative] (Avendus Capital): Oh. Quite meaningful. Okay, sir. Thank you. Thanks for all these answers, sir.
[Analyst] (Avas Capital): Oh. Quite meaningful. Okay, sir. Thank you. Thanks for all these answers, sir.
Speaker #1: Thank you. Next question is from the line of CA Akash Thanuka, an individual investor. Please go ahead.
Operator: Thank you. Next question is from the line of CA Akash Thanuka, an individual investor. Please go ahead.
Operator: Thank you. Next question is from the line of CA Akash Dhanuka, an individual investor. Please go ahead.
Speaker #4: Yeah. Good afternoon, sir, and congratulations on the recent set of numbers. So I just have one question. You referred to Samundra Manthan, and please correct me if I'm wrong.
Akash Thanuka: Yeah. Good afternoon, sir, and congratulations on the recent set of numbers. Sir, I just have one question. You referred to Samudra Manthan, and please correct me if I'm wrong. My understanding is all our six rigs are with respect to the shallow water, and Samudra Manthan is basically with respect to deep waters and ultra-deep waters. Do we really stand a chance to gain anything from Samudra Manthan?
Akash Dhanuka: Yeah. Good afternoon, sir, and congratulations on the recent set of numbers. Sir, I just have one question. You referred to Samudra Manthan, and please correct me if I'm wrong. My understanding is all our six rigs are with respect to the shallow water, and Samudra Manthan is basically with respect to deep waters and ultra-deep waters. Do we really stand a chance to gain anything from Samudra Manthan?
Speaker #4: My understanding is all our six rigs are with respect to the shallow water. And Samudra Manthan is basically with respect to deep waters and ultra-deep waters.
Speaker #4: So do we really stand a chance to gain anything from Samudra Manthan?
Speaker #3: Not directly from Samudra Manthan, but when there is a general trend in the industry of an increase in drilling activity, then that transpires. Then everyone benefits.
Kaushal Bengani: Not directly from Samudra Manthan, but when there is a general trend in the industry of an increase in drilling activity, then that transpires, then everyone benefits. It is not restricted to this specific scheme.
Kaushal Bengani: Not directly from Samudra Manthan, but when there is a general trend in the industry of an increase in drilling activity, then that transpires, then everyone benefits. It is not restricted to this specific scheme.
Speaker #3: It is not restricted to the specific scheme.
Speaker #4: No, sir. I just wanted to understand, if it is just with respect to deep and ultra-deep water, do we really stand, indirectly also?
Akash Thanuka: No, sir. I just wanted to understand if it is just with respect to deep and ultra-deep water, do we really stand indirectly also?
Akash Dhanuka: No, sir. I just wanted to understand if it is just with respect to deep and ultra-deep water, do we really stand indirectly also?
Speaker #3: I've already mentioned that when there is a general increase in drilling activity, whether in deep water or ultra-deep water, then shallow water also will get the relevant benefits. Because it cannot happen that the capacities which the country already has, those capacities the government will not use, and straight away will start exploring and developing newer capacities.
Kaushal Bengani: I've already mentioned that when there is a general increase in drilling activity, whether in deep water or ultra-deep water, then shallow water also will get the relevant benefits because it cannot happen that the capacities which the country already has, those capacities the Government will not use, and straightaway will start exploring and developing newer capacities. That is an unlikely outcome.
Kaushal Bengani: I've already mentioned that when there is a general increase in drilling activity, whether in deep water or ultra-deep water, then shallow water also will get the relevant benefits because it cannot happen that the capacities which the country already has, those capacities the Government will not use, and straightaway will start exploring and developing newer capacities. That is an unlikely outcome.
Speaker #3: That is an unlikely outcome.
Speaker #4: Okay. Okay. Thank you, sir.
Akash Thanuka: Okay. Thank you, sir.
Akash Dhanuka: Okay. Thank you, sir.
Speaker #1: Thank you. Next question is from the line of Adar Shendoja, an individual investor. Please go ahead.
Operator: Thank you. Next question is from the line of Adarsh Hinduja, an individual investor. Please go ahead.
Operator: Thank you. Next question is from the line of Adarsh Hinduja, an individual investor. Please go ahead.
Speaker #5: Hi. I'm audible?
Speaker #3: Yes.
Speaker #1: Yes, you are.
Adarsh Hinduja: Hi, am I audible?
Adarsh Hinduja: Hi, am I audible?
Speaker #5: Hello. Hi. I just wanted to understand, how come this latest rig contract was in INR and not USD?
Kaushal Bengani: Yes.
Kaushal Bengani: Yes.
Operator: Yes, you are.
Operator: Yes, you are.
Adarsh Hinduja: Hello. I just wanted to understand how come this latest rig contract was in INR and not USD?
Adarsh Hinduja: Hello. I just wanted to understand how come this latest rig contract was in INR and not USD?
Speaker #3: You should ask ONGC that.
Speaker #5: Okay. And my second question for you, sir, is: For the three rigs that will be available for new contracts after refurbishment, are we looking at domestic opportunities, or are we targeting international as well?
Kaushal Bengani: You should ask ONGC that.
Kaushal Bengani: You should ask ONGC that.
Adarsh Hinduja: Okay. My second question for you, sir, is for the three rigs that will be available for new contracts after refurbishment, are we looking at domestic or are we targeting international as well?
Adarsh Hinduja: Okay. My second question for you, sir, is for the three rigs that will be available for new contracts after refurbishment, are we looking at domestic or are we targeting international as well?
Speaker #3: We are looking at domestic, primarily. However, if an international opportunity comes up, then we are okay to consider that.
Kaushal Bengani: We are looking at domestic primarily. However, if an international opportunity comes up, then we are okay to consider that.
Kaushal Bengani: We are looking at domestic primarily. However, if an international opportunity comes up, then we are okay to consider that.
Speaker #5: Okay. I'm given the higher rates internationally. I'm just curious about the reasoning behind this.
Adarsh Hinduja: Okay. Given the higher rates internationally, I'm just curious for the reasoning behind this.
Adarsh Hinduja: Okay. Given the higher rates internationally, I'm just curious for the reasoning behind this.
Speaker #3: It is not easy to deploy in international waters because the existing participants in that geography will get first preference. It is only when they are fully utilized that we will get an opportunity.
Kaushal Bengani: It is not easy to deploy in international waters because the existing participants in that geography will get first preference. It is only when they are fully utilized, then we'll get an opportunity. All international geographies are having different criteria for the kind of rigs that they want in their waters. Plus there is a counterparty risk. In addition to that, there is the country risk. We'll have to be mindful of all of this before we go ahead with an international deployment.
Kaushal Bengani: It is not easy to deploy in international waters because the existing participants in that geography will get first preference. It is only when they are fully utilized, then we'll get an opportunity. All international geographies are having different criteria for the kind of rigs that they want in their waters. Plus there is a counterparty risk. In addition to that, there is the country risk. We'll have to be mindful of all of this before we go ahead with an international deployment.
Speaker #3: So, all international geographies have different criteria for the kind of rigs that they want in their waters. Plus, there is also a counterparty risk in addition to that.
Speaker #3: There is the country risk, so we'll have to be mindful of all of this before we go ahead with an international deployment.
Speaker #5: Understood. Thank you so much.
Speaker #3: Thank you.
Adarsh Hinduja: Understood. Thank you so much.
Adarsh Hinduja: Understood. Thank you so much.
Speaker #1: Thank you. A reminder to all the participants: anyone who wishes to ask a question, please press star and one. Participants, please press *1 to ask a question.
Kaushal Bengani: Thank you.
Kaushal Bengani: Thank you.
Operator: Thank you. A reminder to all the participants, anyone who wishes to ask a question, please press star and one. Participants, you may please press star and one to ask a question. We will take our next question from the line of Mohan, an individual investor. Please go ahead.
Operator: Thank you. A reminder to all the participants, anyone who wishes to ask a question, please press star and one. Participants, you may please press star and one to ask a question.
Speaker #1: We will take our next question from the line of Mohan, an individual investor. Please go ahead.
Operator: We will take our next question from the line of Mohan, an individual investor. Please go ahead.
Speaker #6: Yes. Thank you for taking the call. Congratulations on the good set of numbers. Do you expect the day rates to improve from what we are currently getting for the three rigs that are due for redeployment?
[Company Representative]: Yeah. Thank you for taking the call. Congratulations on the good set of numbers. Do you expect the day rates to improve, from what we currently are getting for the three rigs that are due for redeployment?
[Individual Investor] (Shareholder): Yeah. Thank you for taking the call. Congratulations on the good set of numbers. Do you expect the day rates to improve, from what we currently are getting for the three rigs that are due for redeployment?
Speaker #3: We expect day rates to improve. But then again, we were also expecting day rates to improve in the current contract that we received. Unfortunately, that has not been the case.
Kaushal Bengani: We expect day rates to improve, we were also expecting day rates to improve in the current contract that we received. Unfortunately, that has not been the case in this contract. We had participated with a rate of $62,000, and we were pushed down to $47,600 approximately. I think more than our expectations, it is the willingness of our customers to pay the correct rate for the kind of service that they are getting compared to the international day rates, which are prevalent as of now.
Kaushal Bengani: We expect day rates to improve, we were also expecting day rates to improve in the current contract that we received. Unfortunately, that has not been the case in this contract. We had participated with a rate of $62,000, and we were pushed down to $47,600 approximately. I think more than our expectations, it is the willingness of our customers to pay the correct rate for the kind of service that they are getting compared to the international day rates, which are prevalent as of now.
Speaker #3: In this contract, we had participated with a rate of $62,000, and we were pushed down to approximately $47,600. I think, more than our expectations, it is the willingness of our customers to pay the correct rate for the kind of service that they are getting, compared to the international day rates which are prevalent.
Speaker #3: As of now.
Speaker #6: One more question is around the tenders, sir. Did they participate in a tender for Pioneer, or is it part of the ongoing engagement with the customer?
[Company Representative]: One more question is around the tender, sir. Did we participate in a tender for Pioneer, or is it part of the ongoing engagement with the customer, the three rigs that you are referring to for redeployment? Do you need to participate in a re-tender, or do they automatically qualify for extension?
[Individual Investor] (Shareholder): One more question is around the tender, sir. Did we participate in a tender for Pioneer, or is it part of the ongoing engagement with the customer, the three rigs that you are referring to for redeployment? Do you need to participate in a re-tender, or do they automatically qualify for extension?
Speaker #6: The three rigs that you are referring to for redeployment—do you need to participate in a re-tender, or do they automatically qualify for extension?
Speaker #3: We have to participate in a tender for each of the rigs. We will have to participate in a tender. The tender can be for one rig, two rigs, or three rigs.
Kaushal Bengani: We have to participate in a tender. For each of the rigs, we'll have to participate in a tender. The tender can be for one rig, two rigs, or three rigs. In that case, if it is a multi-rig tender, then more than one rig can participate in the same tender. A specific tender submission has to be made for each asset that the company owns.
Kaushal Bengani: We have to participate in a tender. For each of the rigs, we'll have to participate in a tender. The tender can be for one rig, two rigs, or three rigs. In that case, if it is a multi-rig tender, then more than one rig can participate in the same tender. A specific tender submission has to be made for each asset that the company owns.
Speaker #3: In that case, if it is a multi-rig tender, then more than one rig can participate in the same tender. But a specific tender submission has to be made for each asset that the company owns.
Speaker #6: Okay. Thank you, sir.
Speaker #1: Thank you. Next question is from the line of Gaurav Ashok Bhansali from Augment Enterprises. Please go ahead.
[Company Representative]: Okay. Thank you, sir.
[Individual Investor] (Shareholder): Okay. Thank you, sir.
Operator: Thank you. Next question is from the line of Gaurav Ashok Bhansali from Augment Enterprises. Please go ahead.
Operator: Thank you. Next question is from the line of Gaurav Ashok Bhansali from Augment Enterprises. Please go ahead.
Speaker #4: Sir, I just wanted an update on the outlook—whether the market is going to be flooded with rigs or if there will be a shortage due to the Samundra monsoon.
Gaurav Ashok Bhansali: Sir, just wanted the update on outlook if the market is going to be flooded with rigs or there will be a shortage due to the summer maintenance. Going forward, will the day rates be in INR, or was this Pioneer a special case?
Gaurav Ashok Bhansali: Sir, just wanted the update on outlook if the market is going to be flooded with rigs or there will be a shortage due to the summer maintenance. Going forward, will the day rates be in INR, or was this Pioneer a special case?
Speaker #4: And going forward, will the day rates be in INR, or was this Pioneer a special case?
Speaker #3: On the outlook, it is very difficult to say with reasonable authority. We remain optimistic, considering what we hear in the media and from industry insiders.
Kaushal Bengani: On the outlook, it is very difficult to say with reasonable authority. We remain optimistic considering what we hear in the media and from industry insiders. There has also been an improvement in oil and gas sector expenditure in other sectors. We believe that in our sector also, improved expenditure will commence, and we will be one of our beneficiaries. That is the only thing that I can tell you right now. Regarding the tender denomination, whether it will be USD or whether it will be INR, I will be able to update you in the earnings call for the next quarter, because then we will have more clarity.
Kaushal Bengani: On the outlook, it is very difficult to say with reasonable authority. We remain optimistic considering what we hear in the media and from industry insiders. There has also been an improvement in oil and gas sector expenditure in other sectors. We believe that in our sector also, improved expenditure will commence, and we will be one of our beneficiaries. That is the only thing that I can tell you right now. Regarding the tender denomination, whether it will be USD or whether it will be INR, I will be able to update you in the earnings call for the next quarter, because then we will have more clarity.
Speaker #3: There has also been an improvement in oil and gas sector expenditure in other sectors, so we believe that in our sector also, improved expenditure will commence and we will be one of the beneficiaries.
Speaker #3: That is the only thing that I can tell you right now. Regarding the tender denomination, whether it will be USD or INR, I will be able to update you in the earnings call for the next quarter, because then we will have more clarity.
Speaker #4: Okay, sir. Thank you so much.
Gaurav Ashok Bhansali: Okay, sir. Thank you so much.
Gaurav Ashok Bhansali: Okay, sir. Thank you so much.
Speaker #1: Thank you. A reminder to all participants that you may press star and one to ask a question. To ask a question, please press star and one, as there are no further questions from the participants.
Operator: Thank you. A reminder to all the participants that you may press star and one to ask a question. To ask a question, please press star and one. There are no further questions from the participants, I now hand the conference back to the management for closing comments.
Operator: Thank you. A reminder to all the participants that you may press star and one to ask a question. To ask a question, please press star and one. There are no further questions from the participants, I now hand the conference back to the management for closing comments.
Speaker #1: I now hand the conference back to the management for closing comments.
Speaker #3: Thank you, shareholders, for joining the earnings call. We will update you as and when we have any developments. Thank you to Mr. Varasarajan for organizing the call.
Kaushal Bengani: Thank you, shareholders, for joining the earnings call. We will update you as and when we have any development. Thank you to Mr. Varatharajan for organizing the call. Thank you.
Kaushal Bengani: Thank you, shareholders, for joining the earnings call. We will update you as and when we have any development. Thank you to Mr. Varatharajan for organizing the call. Thank you.
Speaker #3: Thank you.
Speaker #1: Thank you very much, sir. On behalf of Antiques Stock Broking Limited, that concludes this conference. Thank you all for joining us today and you may now disconnect your lines.
Operator: Thank you very much, sir. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.
Operator: Thank you very much, sir. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.
