South West Pinnacle Exploration Reports Q2FY24 Earnings; Present Order Book Stands At Over INR 300 Cr

South West Pinnacle Exploration Limited (SWPEL), an Integrated Service Provider providing end-to-end Drilling & exploration of Natural resources announced its Financial Results for the Quarter and half year ended 30th September, 2023.

For the quarter ended 30 September 2023, the company reported its consolidated revenue from operations stood at INR 23.27 Crores. EBITDA was reported at INR 4.77 Crore, with EBITDA margin coming in at 21%.

BUSINESS UPDATES:

The operations for a long-term CBMProduction project for a very prestigious company in India have since commenced in the month of October 2023.

SWPE has been declared a successful bidder in two tenders, one each from the Central Government organization and PSU. The total value of contracts in which SWPE is declared as an L-1 bidder is over INR 100 Crores. Revenue from these contracts is expected to flow in from Q3 of FY24.

FUTURE OUTLOOK:

The results of the first half of FY24 were somewhat subdued mainly due to heavy monsoons at many of our site locations affecting the top and bottom lines.

Some new projects as envisaged could not be started due to procedural delays in issuance of LOIs coupled with monsoon fury during this period.

Now that things are well in place the shortfall in the H-1 of FY 24 will be made good in H-2 and we expect to register an overall growth of 15% - 20% in the top line in FY 24.

The present order book of over INR 300 Crores is sufficient to achieve our FY24 targets with a clear vision of growth for the next two or three (2-3) years.

Commenting on the results, Mr Vikas Jain, Chairman & Managing Director said,

"Our second quarter results are generally subdued due to Indian climatic conditions yet, we have sustained through market headwinds, reflecting the Company's resilience.

With a robust order book of INR 300 plus Crores, the addition of two new contracts for aquifer mapping and underground drilling and the commencement of the CBM production well project, we are confident of achieving revenue growth of 15 -20% in FY 24. Our diversified capacities enable us to utilize our assets across multiple verticals and services.

Over the last few months, we won several new orders from some new and old clients. This reflects the faith that large players place in our ability and timely execution of projects. Execution of a long-term contract of USD 125 Million through our JV in Oman is progressing well which is making us more confident for bagging and executing many more such contracts in the Middle East region in the times ahead.

Moreover, work at our recently acquired partially explored coal block in the state of Jharkhand with a geological reserve of around 84 Million tons, is also progressing well. We believe that the demand for coal is likely to remain high over the next two to three decades, especially since the need for power generation is on the rise. Dependence on coal is likely to remain high since renewable sources are not viable to fulfil the scale of demand. We aim to utilize our assets and know-how in this project, the revenue generation is expected to commence by FY26.

I would like to thank the entire team of SWPE for their dedication and hard work, as well as our stakeholders, whose support helps us drive the Company forward."

SWPEL is an Integrated Service Provider, providing end-to-end drilling & exploration of natural resources (Coal, Ferrous, Non-Ferrous & Atomic Minerals and Conventional & non-conventional Oil & Gas).

The company has recently won a coal block in the state of Jharkhand, which has a geological reserve of over 84 million tons. It has signed a Coal Mine Development and Production Agreement with the Ministry of Coal, Government of India for the same. Further, the Company is carrying out exploration, drilling & mining services in Oman through a joint venture, namely, Alara Resources LLC.

The Company has completed more than 125 projects during its' 16-year journey since its inception for all leading Government & Private Organizations.

SWPEL has completed approximately 23 Lakh meters of drilling, 5.5 Lakh meters of Geophysical Logging, 511 sq.km. of 3 D Seismic surveys, 411 LKM of 2 D seismic Surveys for exploration of Coal, Mineral, Oil and Gas. SWPE and its JV presently have various running projects under different verticals across India, Bangladesh and the Middle East.