The Hindu Business Line : Simplex Infra forays into oil drilling

Simplex Infrastructure Ltd is broadening its business canvas by foraying into the oil-drilling sector, as part of its plans to consolidate its presence in different mining segments.

Primarily, a civil engineering company with special focus on foundation engineering and concrete structures, Simplex had recently announced its plans to foray into various mining segment.

Taking this venture another step forward, the company has decided to get into on-shore oil drilling contracts.

Simplex on Friday announced that it has entered into a two-year drilling contract with Oil India Ltd for on-shore oil exploration.

“Our venture into oil drilling business has opened doors to a highly promising sector,” Mr B.D. Mundhra, Chairman and Managing Director of Simplex Infrastructure, said.

Alliance

The company has forged an alliance with an on-shore oil drilling entity, which will provide the operators, manpower and technical expertise to execute the Oil India contract.

Mr Mundhra said one rig of 1,500 HP, costing about Rs 50 crore, has already been ordered and it is expected to be commissioned by October.

He said the company planned to go in for more rigs after gaining experience in contract on-shore oil drilling business.

Q4 net at Rs 18 cr

The company reported a net profit of Rs 17.79 crore for the quarter ended March 31, as against Rs 10.63 crore reported in the corresponding quarter of the previous fiscal. During the quarter, its net sales touched Rs 550.49 crore, as against Rs 396.27 crore in the year-ago quarter.

For the whole of the fiscal, its net profit rose by 29 per cent to touch Rs 53.71 crore from Rs 41.64 crore in 2005-06.

The net sales during the year registered an increase of 27 per cent to Rs 1,710.96 crore from Rs 1,344.58 crore.

Overseas projects account for about 15 per cent of its turnover and 32 per cent of its present order book, with the company executing projects in Sri Lanka, the UAE and West Indies.

Its current order book stands at Rs 7,000 crore

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