Whalesbook
Cryogenic OGS Limited has secured a significant Letter of Intent (LOI) valued at approximately ₹5.55 crore from Emerson Measurement Systems and Solutions (India) Private Limited. The order is for the supply of fully integrated metering skids.
Announced on Thursday, this new contract adds to the company's existing order book and signals continued business activity. The project is scheduled for execution within a 24-week timeframe, commencing from the date of manufacturing clearance.
The win reaffirms Cryogenic OGS's strong relationship with key clients like Emerson and highlights its capabilities in manufacturing and supplying specialized integrated metering skids. Such orders are crucial for driving revenue growth and reinforcing the company's market presence in the oil and gas equipment sector.
The successful execution of this order will contribute directly to the company's financial performance and operational efficiency. The ₹5.55 crore contract provides enhanced revenue visibility over the next two quarters and further solidifies Cryogenic OGS's position as a key supplier of specialized metering equipment.
Based in Vadodara, Gujarat, Cryogenic OGS specializes in manufacturing and assembling high-quality measurement and filtration equipment for the oil, gas, petrochemical, and chemical industries. The company has a track record of securing orders from sector leaders. Recent contracts include previous orders from Emerson for truck loading skids and gas metering skids, as well as a ₹1.51 crore order for metering skids from Endress and Hauser India, and an LOI from Suzlon Western India Projects for root and tip support.
Financially, Cryogenic OGS reported revenues of approximately ₹32.90 crore and a profit after tax (PAT) of ₹6.12 crore in FY25 on an annualized basis. The company operates with a zero-debt status, and its FY25 standalone Return on Equity (ROE) stood at approximately 21%, indicating a strong balance sheet.
The company operates in a niche segment of the industrial equipment market. Its peers include companies like Deep Industries Ltd., which is involved in oil and gas drilling and equipment services, WPIL Ltd. which manufactures pumps and fluid handling systems, and Fluidomat Ltd. specializing in fluid handling and metering systems.
Investors will be closely monitoring the timely execution of this ₹5.55 crore order, Cryogenic OGS's ability to secure future contracts from Emerson and other clients, and the impact on its financial results. Any updates regarding the company's planned IPO will also be of interest.