Promoted by the Jindal group (B C Jindal) as Jindal Leasing in 1983, Jindal Drilling & Industries obtained its current name in the year 1989. The company undertakes drilling operations for ONGC on leased jack-up drilling rigs and mud-logging operations.

JDIL is one of the leading Drilling Contractor in India providing Service to National and International E&P Companies. Its business is organized into following principal operating segments:

.. Offshore Drilling for Oil & Gas

.. Horizontal & Directional Drilling

.. Mud Logging Services

.. Deepwater Semi-Submersibles/Drillships

Investment Rationale:

Jindal Drilling is a Cash Rich company, the Debt to equity ratio of the company stands at 0.16% which is very rare in Oil Drill industry. Thus, it can take leverage for its capital expenditure. The total reserves of the company stand at Rs 258.88cr.

Free float of the company is very less, about 93% of the total holding is held by strong hands.

During the Quarter ended 31st December 2009, the net sales of the company grew 34.31% y-o-y to Rs 278.97cr as against Rs 207.71cr during the same period last year. The operating profit of the company saw an increment of
42% y-o-y to Rs 27.81cr as against Rs 19.6 cr largely on account of increased sales and a marginal contraction in employee cost. The net profit also witnessed an increment of 48.42% to Rs 15.97cr as against Rs 10.76cr as both the Interest and depreciation costs were low as against corresponding period last year.

JDIL has been awarded a firm order for charter hire of drilling unit 'Noble Ed-holt' from ONGC Ltd. for a period of five years. The total value of the contract is approx. Rs 635 Cr. With this, the total number of operational rigs will remain five and directional drilling equipment twenty two.