Alphageo is in the business of executing seismic surveys for oil exploration majors such as ONGC, Essar etc. The company has reported reasonably stable revenues and operating profits over the last five years except for a dip in profitability in the last financial year as well as last quarter. It operated average operating profits of about 30cr in the last five years on revenues of about 75cr. It employed no net debt as at 31 st March, 2011. The business is subject to risks of international competition from reputed players, crude oil price drops, technological obsolescence, manpower retention, government policies on oil exploration, highly lumpy revenues including periods of significant revenue and earnings downturns in lean times, cost underestimation on long-term projects, legal risks of non-compliance with laws and regulations, etc.
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