South West Pinnacle Exploration Limited, a leading private exploration firm specializing in mineral and unconventional energy resource exploration, has reported robust financial results for the first quarter and shared an updated investor presentation highlighting its strategic growth initiatives.

Q1 Financial Highlights

The company reported a consolidated revenue of INR 402.00 crore for Q1, marking a significant 37% year-on-year growth. This strong performance was attributed to a healthy order book and efficient project execution, despite challenges posed by the monsoon season. The profit before tax increased by 19% compared to the same quarter last year.

However, the company's EBITDA margin saw a slight decline to 14.43% from 15.99% in the previous year's corresponding quarter. This reduction was primarily due to a higher contribution from lower-profitability projects and additional expenses incurred for equipment maintenance during the quarter.

Operational Developments

South West Pinnacle Exploration has made significant strides in its operational expansion:

• The company commenced Phase 2 CBM (Coal Bed Methane) production drilling in July, which is expected to drive strong recurring revenue growth.
• Exploration activities have begun in a 1,448 sq. km mining block in Oman under a joint venture (AHML), with operations set to accelerate in the current fiscal year.
• A new order worth approximately INR 30.00 crore was awarded to the company's Oman joint venture (ARL) by Mining Development Oman (MDO).

Order Book and Future Outlook

As of June 30, South West Pinnacle Exploration maintains a robust order book of INR 3,320.00 crore. The company's management expressed confidence that the current order book is sufficient to sustain their target of approximately 20% year-on-year growth.

The company has actively participated in multiple new tenders during the quarter, which are expected to further strengthen its order book. Additionally, South West Pinnacle Exploration is expanding its presence in the Middle East through strategic investments in Australian-listed Alara Resources Ltd (ARL) and Al Hadeetha Mining LLC (AHML) in Oman.

Diversified Service Portfolio

South West Pinnacle Exploration offers a comprehensive range of services, including:

1. CBM Exploration and Production
2. Coal and Mineral Exploration
3. 2D/3D Seismic Exploration
4. Aquifer Mapping
5. Geological and Geophysical Services
6. Underground Drilling

The company has completed over 150 projects, drilled more than 28 lakh meters, and maintains a fleet of 36 advanced drill rigs.

Management Commentary

Vikas Jain, Chairman and Managing Director of South West Pinnacle Exploration, stated, "Our strong Q1 performance, despite seasonal challenges, underscores the resilience of our business model and the growing demand for our services. We are particularly excited about the progress in our international ventures and the commencement of Phase 2 CBM production drilling, which we believe will be significant growth drivers in the coming quarters."

As South West Pinnacle Exploration continues to expand its operations both domestically and internationally, the company remains well-positioned to capitalize on the growing demand for mineral and energy resource exploration services in India and abroad.

South West Pinnacle Exploration Limited (SWPEL) has announced robust financial results for the first quarter, demonstrating significant growth in both revenue and profitability. The company has also made key corporate governance decisions, including the appointment of a new Secretarial Auditor.

Financial Performance

SWPEL reported a substantial increase in its consolidated revenue from operations for the quarter. The company's revenue surged to ₹4,021.62 crore, marking a 36.60% growth compared to ₹2,942.93 crore in the same quarter of the previous year.

The company's profitability also saw a notable improvement. Consolidated profit after tax rose to ₹240.32 crore, up from ₹187.00 crore year-on-year, representing a 28.51% increase.

Segment Performance

The drilling and exploration segment emerged as the primary revenue generator for SWPEL, contributing the entire revenue of ₹4,021.62 crore during the quarter. The coal business segment recorded nil revenue for this period.

Earnings Per Share

SWPEL's basic earnings per share (EPS) stood at ₹0.81 for the quarter, reflecting the company's improved profitability.

Corporate Governance Updates

In a significant move, the Board of Directors has appointed Mr. Baladeva Chitranjan as the Secretarial Auditor of the company. This appointment is for a term of five consecutive years, commencing from the conclusion of the 19th Annual General Meeting (AGM) until the conclusion of the 24th AGM. The appointment is subject to shareholder approval at the upcoming 19th AGM.

Mr. Chitranjan brings 17 years of experience in corporate law, liaising with regulatory bodies, and advisory services related to the Foreign Exchange Management Act, 1999. His expertise is expected to strengthen SWPEL's compliance and corporate governance framework.

Annual General Meeting Arrangements

The company has finalized arrangements for conducting its 19th AGM through video conference and other audio-visual means, in line with the relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India.

SWPEL has appointed the National Securities Depository Limited (NSDL) to provide remote e-voting facilities and conduct the AGM through virtual means. Additionally, Mr. Krishna Kumar Singh, a Practicing Company Secretary, has been appointed as the scrutinizer for the e-voting process.

Conclusion

South West Pinnacle Exploration Limited's strong financial performance, coupled with its proactive approach to corporate governance, positions the company well for the future. The appointment of an experienced Secretarial Auditor and the adoption of virtual AGM arrangements demonstrate SWPEL's commitment to maintaining high standards of corporate compliance and shareholder engagement in an evolving business environment.