Global economic review
Overview
Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably.
The growth in advanced economies remained steady at 1.7% from 2023 to 2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023).
On the positive side, global inflation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projected at 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks, and
labour supply improvements. The monetary policies announced by governments the world over helped keep inflation in check as well.
The new US government threatened to impose tariffs on countries exporting to the US unless those countries lowered tariffs for the US to export to their countries. This enhanced global trade and markets uncertainty emerged as the largest singular uncertainty in 2025.
Performance of the major economies, 2024
United States: Reported GDP growth of 2.8% in 2024 compared to 2.9% in 2023.
China: GDP growth was 5.0% in 2024 compared to 5.2% in 2023.
United Kingdom: GDP growth was 0.8% in 2024 compared to 0.4% in 2023.
Japan: GDP growth was 0.1% in 2024 compared with 1.9% in 2023. Germany: GDP contracted by 0.2% in
2024 compared to a 0.3% decline in 2023.
(Source: CNBC, China Briefing, ons.gov.uk, Trading Economics, Reuters)
Outlook
The global economy has entered a period of uncertainty following the imposition of tariffs of products imported into the USA and some countries announcing reciprocal tariffs on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7% for
2025 and 2026, factoring the various economic uncertainties. (Source: imf, United Nations)
Indian economic review
Overview
The Indian economy was projected to grow at 6.5% in 2024-25, compared to a revised 9.2% in 2023-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the worlds fifth-largest economy.
Indias nominal GDP (at current prices) was H331 trillion in 2024-25 (H301.23 trillion in 2023-24). The nominal GDP per capita increased from H2,15,936 in 2023-24 to H2,35,108 in 2024-25, reflecting the impact of an economic expansion.
The Indian rupee weakened 2.12% against the US dollar in 2024-25, closing at H85.47 on the last trading day of FY25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar).
Inflationary pressures eased, with CPI inflation averaging 4.63% in 2024-25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in 2024-25, was the lowest since the pandemic, catalysing savings creation.
Indias foreign exchange reserves stood at a high of USD 676 billion as of April 4, 2025. This marked the fourth straight year where rating upgrades exceeded downgrades, driven by robust domestic growth rural consumption, increased infrastructure investments and low corporate leverage (annualised rating upgrade rate 14.5% exceeded the decade-long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%).
Gross inward foreign direct investment saw a revival in FY25, increasing by 20.6% year-on-year from USD 51.8 billion in the first eight months of FY24 to USD 62.5 billion in the same period of FY25. However, the net foreign direct investment in India declined from USD 7.84 billion in the first nine months of FY24 to USD 1.18 billion in the corresponding period in FY25, increased repatriation and investments by Indian firms across international geographies.
Indias exports of goods and services are projected to reach USD 800 billion in 2024-25, up from USD 778 billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports were expected to grow 2.2% YoY, reaching USD 446.5 billion.
Indias net GST collections increased 8.6%, totalling H19.56 lakh crore in 2024-25. Gross GST collections in 2024-25 stood at H22.08 lakh crore, a 9.4% increase YoY.
Indias services sector grew an estimated 7.3% in FY25 (9.0% in FY24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY25, compared to 8.6% in FY24. Meanwhile, the construction sector expanded at ~8.6% in FY25, slowing from 10.4% in the previous year.
The agriculture sector growth was estimated at 3.8% in 2024-25 (1.4% in 2023-24). Trade, hotel, transport, communication and services related to broadcasting segment were estimated to grow at 6.4% in 2024- 25 (6.3% in 2023-24).
Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately USD 20 billion by year- end. However, there was significant selling pressure in the last quarter, influenced by new tariffs announced by the new US government on most countries (including India).
Outlook
India is expected to remain the fastest-growing major economy. Even though Reserve Bank of India estimates have forecast Indias GDP growth downwards from 6.7% to 6.5% based on risks arising from US tariff levies on India and other countries. The following are some key growth catalysts for India in FY26.
Tariff-based competitiveness:
India identified at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the US high tariffs give India a competitive advantage in the American market over other suppliers. While India faced a 10% tariff after the US suspended the 26% additional duties for 90 days, the levy remained at 145% on China, the biggest exporter to the US. Chinas share of apparel imports into the US was 25%, compared with Indias 3.8%, a large opportunity to address differential (Source: Niti Aayog).
Union Budget 2024-25: The Union Budget 2024-25 laid a strong foundation for Indias economic trajectory, emphasising agriculture, MSMEs, investment, and exports as the four primary growth engines. With a fiscal deficit target of 4.4% of GDP, the government reinforced fiscal prudence while allocating H11.21
The global crude oil industry overview
The global crude oil market is expected to grow from USD 3055.97 billion in 2024 to USD 3207.18 billion in 2025 at a compounded annual growth rate (CAGR) of 4.9%. The global crude oil market is expected to maintain its upward trajectory, reaching USD 3,795.54 billion by 2029 at a CAGR of 4.3%. This growth has been driven by factors such as industrialisation, economic expansion, increased demand in the transportation sector, the petrochemical industry, electricity generation, overall global energy needs, economic development, and geopolitical factors shaping the industry.
lakh crore for capital expenditure (3.1% of GDP) to drive infrastructure development. The February 2025 Budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 1, 2025, individuals earning up to H12 lakh annually will be fully exempt from income tax. Economists estimate that the resulting H1 lakh crore in tax savings could boost consumption by H3-3.5 lakh crore, potentially increasing the nominal private final consumption expenditure (PFCE) by 1.5-2% of its current H200 lakh crore.
Pay Commission impact: The
8th Pay Commissions awards could lead to a significant salary revision for nearly ten million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. The implementation of the 7th Pay Commission led to a sharp rise in monthly salariesfrom H7,000- H90,000 to H18,000-H12.5 lakh setting off a widespread ripple effect across the economy.
Monsoons: The India Meteorological Department predicted an above normal monsoon in 2025. This augurs well for the countrys farm sector and a moderated food inflation outlook.
Easing inflation: Indias consumer price index-based retail inflation in March 2025 eased to 3.34%, the lowest since August 2019, raising hopes of further repo rate cuts by the Reserve Bank of India.
Deeper rate cuts: In its April 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points, reducing it to 6% in its first meeting of 202526. Besides, Indias CPI inflation is forecasted at 4% for the fiscal year 2025-26.
Lifting credit restrictions: In
November 2023, the RBI increased risk weights on bank loans to retail borrowers and NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritised restoring credit flow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks, and are expected to rejuvenate retail lending.
(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council Indian Express, Ministry of External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times)
Key trends shaping the future of the crude oil market include the sectors resilience amid energy transition efforts, shifting investment priorities toward renewable energy, diversification in downstream operations, global initiatives for energy security and independence, and evolving consumer behaviour affecting transportation demand.
As of FY2025, the Asia-Pacific (APAC) region is projected to account for approximately 60% of global oil demand growth, contributing an estimated 2.0 million barrels per day (b/d) to the total increase . This growth is primarily driven by India, which is expected to lead all nations with a 3.39% increase in oil demand, translating to about 1.0 million b/d . Other Southeast Asian countries, collectively known as the Tiger Cubs (including Indonesia, Vietnam, Malaysia, Thailand, and the Philippines), are anticipated to contribute an additional 980,000
b/d by 2030, with Indonesia alone accounting for 470,000 b/d. The Asia Pacific Base Oil Market is expected to grow from 17.65 million tons in 2025 to 22.06 million tons by 2030, with a CAGR of 4.56% over the forecast period (2025-2030). U.S. crude oil production, including condensate, is expected to average 13.5 million barrels per day (b/d) in 2025, rising from 13.2 million barrels per day b/d in 2024.
Organisation of the Petroleum Exporting Countries (OPEC) expects global oil demand to rise by 1.45 million barrels per day (bpd) in 2025, driven by air and road transport, and anticipates consumption reaching 106.6 million barrels per day in 2026.
View Point
Brent crude prices expected to rise from around USD 70 per barrel to USD 75 by the end of 2025. In the medium term, global oil demand is projected
to stand at approximately 106 million barrels per day (mb/d) after 2027, peaking in 2029. By 2030, global oil supply capacity is expected to reach nearly 113.8 mb/d, far exceeding the projected demand of 105.4 mb/d. The petrochemical sector and emerging Asian economies, particularly India and China, will continue to drive demand growth. However, shifting consumption patterns and rising supply capacity will create challenges for market stability in the years ahead.
Global oil demand is expected to grow by an average of 1.1 million barrels per day (mb/d) in 2025, up from 870 thousand barrels per day (kb/d) in 2024. While China will remain the largest contributor to this growth, its expansion is slowing significantly and is now driven primarily by the petrochemical sector.
(Source: EIA.gov, International Energy Agency, Times of India Energy-community.org, Economic Times)
Indian crude oil sector overview
Indias crude oil production reached 13.26 MMT in 2024. Total crude oil processed during the year was 23.9 MMT, reflecting a 5.2% increase over 2023. The country also recorded an all-time high power demand of 250 GW in 2024-25. According to the EIA, Indias liquid fuel consumption is projected to rise by 0.3 million barrels per day in both 2025 and 2026, compared to a 0.2 million b/d increase in 2024, driven by growing demand for transportation fuels. Petroleum product consumption is expected to grow by 4.7% in FY26, reaching 252.93 million tonnes.
Over the long term, Indias oil consumption is expected to grow from 4.05 Mb/d in FY22 to 7.2 Mb/d by 2030 and 9.2 Mb/d by 2050. This upward trend underscores the countrys expanding energy needs, fuelled by rapid industrialisation, an
increasing number of vehicles, and rising demand for petrochemical products. As one of the worlds largest importers of crude oil, India saw a modest 2.3% increase in imports in 2024, largely driven by growing refining capacity. Indias crude import bill rose by 2.7% during FY25, reaching USD 113.9 billion compared to USD 110.9 billion in FY24.
India finds it necessary to import almost 85% of the oil it requires to satisfy the appetite of an expanding economy, including a substantial refining and re-export business. The country now ranks third in the world for oil consumption and second in oil imports.
Outlook
Indian refiners would add 56 million tonnes per annum (MTPA) by 2028 to increase domestic capacity to 310 MTPA. India is planning to double its oil refining capacity to 450-500 million tonnes by 2030. In 2024, Indias oil demand rose to 5.59 Mb/d, up 4.1% from 5.37 Mb/d in 2023. By 2030, it is expected to increase by another 1.3 million barrels per day Mb/d. Global energy consumption continues to be shaped by the dynamic interplay of policy, technology, and consumer preferences, each influencing and adapting to the other.
(Source: IEA.org, Economic Times, PIB, Static. Pib, Deloitte)
Global drilling and offshore rigs industry
The offshore drilling rigs market has experienced significant growth in recent years, expanding from USD 93.55 billion in 2024 to USD 100.03 billion in 2025, reflecting a compound annual growth rate of 7.7%. This growth has been driven by increasing global demand for oil and gas, evolving energy trends, and regulatory developments shaping the industry.
The offshore drilling rigs market is projected to continue its strong expansion, reaching USD 129.76 billion by 2029 at a CAGR of 6.7%. Key drivers in the forecast period include economic factors, sustainability initiatives, geopolitical influences, and the transition to renewable energy. Industry trends expected to shape the market include advancements in floating rig technology, digitalisation and automation, alternative energy exploration, collaborative business models, and remote monitoring and maintenance solutions.
Technological advancements in offshore drilling have significantly improved efficiency and safety. Innovations like high-spec drill ships, dynamic positioning systems, and automated rigs enable deeper water exploration, reducing costs and unlocking previously unreachable reserves. The discovery of major reserves in regions such as the Guyana-Suriname Basin and the Eastern Mediterranean has spurred renewed interest, boosting investments and rig deployments by major oil companies.
(Source: Mordor intelligence.com, The business research company, Grand view research, Fortune business insights, Market us)
Global jack-up rig market
The jack-up rig market has experienced strong growth in recent
years, expanding from USD 3.49 billion in 2024 to USD 3.71 billion in 2025, reflecting a CAGR of 6.1%. This growth has been driven by increased oil and gas exploration activities, regulatory support, offshore production expansion, fleet renewal and modernisation, and a rising focus on Arctic exploration.
The market is expected to continue its upward trajectory, reaching USD 4.72 billion by 2029 at a CAGR of 6.2%. Key factors fuelling this growth include the expansion of the offshore wind energy sector, recovery in oil prices, regional market development, stricter environmental regulations, and rising offshore exploration and production (E&P) investments. The major industry trends shaping the market include the upgradation of aging fleets, deep water and ultra-deepwater exploration, integration of digital technologies, cost-efficiency initiatives, market consolidation, and increased collaboration among industry players.
Growth drivers
Economic and demographic growth: Indias role in global oil markets is expected to expand considerably through 2030, driven by its robust economic growth, large population, and changing demographics. Urbanisation,
industrialisation, and a growing middle class eager for mobility and tourism will underpin the expansion in oil demand. The demand for petroleum products is expected to increase in FY25, with crude oil imports for 2024 standing at 21.4 million tonnes, 7% higher than the 20 million tonnes imported in 2023.
Mobile offshore drilling units:
Technological progress in Mobile Offshore Drilling Units (MODUs) is shaping major trends in the market. MODUs are mobile vessels or platforms used for offshore exploration and production (E&P) of subsea oil and gas reserves. This category includes jack-up rigs, and semi-submersible rigs, all designed for flexibility, enabling them to move between well sites across marine waters to carry out drilling operations.
Increasing investments: The oil and gas market size is expected to grow from USD 7,752.02 billion in 2024 to USD 8,184.98 billion in 2025, at a compound annual growth rate (CAGR) of 5.6%. Growing investments in the upstream oil and gas sector are playing a key role in boosting market expansion. The fluctuating crude oil prices could create uncertainty, potentially slowing down growth.
Refining capacity investments:
Indian oil companies are expanding refining capacity to meet rising domestic demand, adding 1 mb/d over the next seven years, second only to China. This will boost Indias fuel exports to Asia and the Atlantic Basin. By mid-decade, new capacity will increase global product supplies to 1.4 mb/d, then ease to 1.2 mb/d by 2030 as domestic consumption grows.
(Source: IEA.gov, Indian Express, HDFC Fund, Indian Oil Market, PIB, Money control)
SWOT analysis |
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Strengths ? Expertise in offshore drilling operations, supported by advanced technology and established industry practices. |
Weaknesses ? Exposure to fluctuations in oil prices and market demand, which can impact profitability and project feasibility. |
Opportunities ? Expansion into emerging markets with untapped offshore reserves, offering potential for growth in exploration activities. |
? Rising global demand for oil and gas exploration and production activities, driven by economic growth and energy needs. | ? Significant capital investment required for rig modernisation and maintenance, creating financial burdens. | ? Adoption of advanced technologies to improve operational efficiency, reduce costs, and enhance sustainability. |
? High utilisation rates for premium jack-up rigs, signifying robust market demand and operational efficiency. | ? Dependence on regulatory approvals and environmental considerations, which can delay or restrict offshore projects. | ? Diversification into renewable energy sectors like offshore wind farms, aligning with global energy transition trends. |
? Enhanced focus on safety standards and risk management, ensuring compliance with regulatory requirements and operational reliability. | ? Growing competition from alternative energy sources, such as renewables, posing long-term challenges to oil demand. | ? Formation of strategic partnerships and alliances to access new regions, markets, and technological capabilities. |
Threats ? Oil price volatility affecting exploration budgets and investment decisions in the sector. |
? Regulatory changes imposing stricter controls on offshore drilling activities, increasing compliance costs. | ? Geopolitical tensions in key oil- producing regions creating risks for operations and supply chains. |
Financial performance
The Company generated revenues worth Rs 4,756.55 million in 2024-25 compared to the previous years
revenue of H3,996.65 million. At the close of 2024-25, the Companys rigs were operating under a long-term contract. The Company reported a
net loss/gain of H(15,300.77) million in 2024-25 compared with a net loss of Rs 15,751.48 million in 2023-24.
Ratio |
202 | 4-25 | 202. | 5-24 |
Standalone | Consolidated | Standalone | Consolidated | |
Debtors turnover |
1.07 | 4.35 | 0.48 | 1.72 |
Inventory turnover |
0.01 | 0.40 | 0.01 | 0.45 |
Interest coverage |
1.08 | 0.05 | (3.53) | (0.23) |
Current Ratio |
0.18 | 0.02 | 0.22 | 0.02 |
Debt to equity |
-ve | -ve | -ve | -ve |
Operating profit margin % |
39.95 | 11.28 | (250.04) | (62.96) |
Net profit margin % |
(136) | (321.67) | (313.77) | (394.12) |
Return on net worth |
NA | NA | N/A | N/A |
Reasons for the difference
Debtors turnover, consolidated
Turnover increased approximately 1.19 times and average debtors decreased by approximately H1,230 million due to write off of receivables from Middle east region in the previous year.
Debtors turnover, standalone
Turnover increased approximately 1.38 times and average debtors decreased by approximately H703.5 million due to write off of receivables from Middle east region in the previous year.
Interest coverage, standalone
EBIT has become positive in the current year due to increase in revenue from operations in the current year and no write off of receivables in the current year as compared to write off of receivables from Middle East region in the previous year to the tune of H2,318.22 million.
Interest coverage, consolidated
Interest expense increased by approximately H182 million due to translation difference on account of adverse USD/INR exchange rate as compared to the previous year. EBIT has become positive in the current year H536.34 million due to increase in revenue from operations in the current year and no write off in respect of trade receivables in the current year as compared to write off
in respect of trade receivables from Middle east region in the last year to the tune of H2,318.22 million.
Operating profit margin, standalone
EBIT has become positive in the current year due to increase in revenue from operations in the current year and no write off of receivables in the current year as compared to write off of receivables from Middle East region in the previous year to the tune of H2,318.22 million.
Operating profit margin, consolidated
EBIT has become positive in the current year H536.34 million due to increase in revenue from operations in the current year and no write off of receivables in the current year as compared to write off in respect of receivables from Middle East region in the previous year to the tune of H2,318.22 million.
Net profit margin, standalone
Net profit margin has become positive in the current year H1,692.76 million from negative H2,830.18 million in the last year due to increase in revenue from operations H343.50 million in the current year, reversal of provision for crystalised hedging liability H1,554.15 million in the current year and no write off in respect of receivables in the current year as compared to write off in respect of receivables from Middle east region in the previous year to the tune of H2,318.22 million.
Risk management
Economic risk
Price fluctuations may affect the Companys profitability.
Mitigation: To minimise the impact of short-term volatility, the Company has secured the majority of its assets under medium- and long-term contracts.
Regulatory risk
Compliance challenges may affect business operations.
Mitigation: The Company has implemented stringent operational and safety protocols, ensuring adherence to quality, health, safety, and environmental standards.
Competition risk
Increased competition may impact the Companys long-term growth prospects.
Mitigation: The Company has strengthened its competitive edge
Human resources
The Company values its dedicated and passionate workforce as its greatest asset. It offers competitive compensation, a supportive work environment, and well-structured incentive and recognition programs to reward employee achievements. Committed to helping employees reach their full potential, the Company fosters a culture of excellence by encouraging them to exceed expectations, engage in continuous learning, and contribute innovative ideas for workplace improvements. As of March 31, 2025, the Company employed 418 employees during the fiscal year 2024-25. by optimising depreciated assets and fostering long-term partnerships with leading international firms.
Geographic risk
Over-reliance on a specific region may hinder business performance.
Mitigation: The Company mitigates this risk by diversifying its offshore services across multiple regions, reducing dependence on any single market.
Technological risk
Outdated technology may drive clients toward more competitive firms.
Mitigation: The Company
continuously invests in technological advancements to stay aligned with international standards and industry best practices.
Manpower risk
High employee attrition may affect the Companys productivity.
Mitigation: The Company implements comprehensive retention strategies, emphasising career development, employee recognition, and work-life balance to reduce attrition and maintain productivity.
Asset utilisation risk
Variations in global crude oil prices may impact the Companys performance.
Mitigation: The Company has
improved revenue predictability by strategically allocating assets to longterm contracts.
Liquidity risk
High debt levels may result in a liquidity crunch.
Mitigation: The Company actively engages with financial institutions and stakeholders to resolve outstanding payments and ensure financial stability.
Internal control systems and their adequacy
The corporate governance code guides the design and implementation of the organisations internal control and risk management system, serving as its cornerstone. Integral to both the Companys and the Groups overall organisational framework, it involves various employees collaborating to fulfil their respective roles. Under the guidance of the Board of Directors, the Audit Committee review the report submitted by the internal audit department. Company assets are regularly audited and report submitted to audit committee. Alongside supervising and supporting other committees, the Audit Committee and Board of Directors offer strategic guidance and oversight to the Executive Director and senior management.
Cautionary statement
This statement made in this section describes the Companys objectives, projections, expectations, and estimations which may be forwardlooking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. The actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statements on the basis of any subsequent development.
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