Q4 FY2022 & FY2022 Earnings Conference Call"

A NALYST: M R. R AHUL J AIN - A NAND R ATHI S HARE AND S TOCK B ROKERS

M ANAGEMENT: M R. P RAMOD G UPTA - C HAIRMAN & M ANAGING D IRECTOR - U NITED D RILLING T OOLS L IMITED D R. K ANAL G UPTA - E XECUTIVE D IRECTOR - U NITED D RILLING T OOLS L IMITED

M R. M UKESH M EHTA - C HIEF F INANCIAL O FFICER

M R. N AVEEN B HATNAGAR - C OMPANY S ECRETARY

Moderator :Ladies and gentlemen, good day and welcome to the United Drilling Tools Limited Q4 FY2022 and FY2022 Earnings Conference Call hosted by Anand Rathi Share and Stock Brokers. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference, please signal an operator by pressing '*' then '0' on your touchtone telephone. I now hand the conference over to Mr. Rahul Jain from Anand Rathi Share and Stock Brokers. Thank you and over to you Sir!

Rahul Jain :Thank you Melissa. On behalf of Anand Rathi Share and Stock Brokers, I would welcome everyone to Q4 FY2022 and FY2022 earnings call of United Drilling Tools Limited. From the management side, we have Mr. Pramod Gupta - CMD, Dr. Kanal Gupta - Executive Director, Mr. Mukesh Mehta - CFO and Mr. Naveen Bhatnagar - Company Secretary. We will start with the opening remarks from the management side regarding the company brief, its presence in the industry, the result and post which we will open the floor for Q&A. Over to you, Sir!

Kanal Gupta :Good afternoon to all participants and we thank you for your time and interest in UDTL. I am Dr. Kanal Gupta, Executive Director of United Drilling Tools. We would like to also thank Anand Rathi Share and Stock Brokers and Rahul for organizing this event.

During the course of this conference call there would be discussion which could be forward-looking statements regarding trends, our strategy and the anticipated performance of the business. These forward-looking statements are based on management's current views and expectations and are subject to various unforeseen risks and uncertainties including those relating to the impact of COVID-19 on our business, the Oil and Gas industry and the global economic condition. Our actual results may differ materially in any such events.

We believe that you would all have a preliminary understanding about our business and operations, but I would like to present a brief about Untied Drilling Tools Limited. UDTL is the global manufacturer of high-qualityprecision-engineered products in upstream Oil and Gas exploration. It is a single manufacturer of several oil drilling items such as Wireline Winches, Stabilizers, and large OD Multi-start Connectors in India. It is a solution provider with presence in downhole tools, wireline, well service equipment and gas lift equipments. This has led to a 60% market share in upstream drilling tools and equipment market in India.

A good pedigree management with four decades of deep industry experience of servicing in the oil exploration and production sector. The Company has four state-of-the-art technology focused manufacturing facilities across Gujarat and Noida. The company has an integrated value chain from being a stabilizer manufacturer to manufacturing various oil fields, drilling and production product. The revenue breakup was 68% casing pipes and connectors, 10% from gas lift valves, and 3% stabilizers and 19% wireline winches. The key developments during the last financial year, there was development of new product lines such as side pocket mandrel, swift connectors and lynx connectors, which has demand in India and overseas markets. A copy of press release may be viewed in the exchanges.

We have got the design patented registered in UK for multi-start casing pipe connectors, metal to metal seal casing pipe connectors, in base set casing pipe connectors registration of this is valid for a period of 5 years. Copy of press release may be viewed on exchanges. We have appointed marketing representatives in Egypt, Libya and Vietnam to promote our products and expand our market base in these countries. Recently we have also appointed new marketing representative in US region. Registration and local approval for the new upcoming project in Gujarat, being in Rudrapur have already completed and we have started the construction process.

The future business strategies include increasing registrations in the international market, adding footprint in South East Asia, Middle East, Russia and South America, scaling capacities of all new product lines, increase production range via organic and inorganic routes, reduce cost of production and enhance revenue potential and profit margins. I would like to handover to Mr. Mukesh Mehta for the key financial performance highlights.

Mukesh Mehta :Thank you, Sir. Good afternoon everyone. We shall be taking first the annual performance thereafter the Q4 performance of our company. We are pleased to inform that we have achieved a turnover of 156.42 Crores, which is more than 14% more than the previous years and our EBITDA margin is 75%, which is more than 76% of the previous year, which was 42.70 and the margin is last year it was 29%, which has increased to 45.16. PBT is 71.64 Crores which is more than 83% of the last year, which was 39.10 and PAT is 50.36 Crores, which is more than 54% of the previous years, which is 22.7 and the PAT margin last year was 22, this year is 30.26 and earning per share is 24.8 of the current year, previous year it was 15.09.

Now I will take up the Q4 results. Our net income is 40 Crores, which is less than 50% of the previous Q4 2021 which was 47.38 and EBITDA has been raised from 5.95 to 12.96,

which is more than 100% and EBITDA margin of the last quarter 2021 was 12.56, which has increased to 30.35 and PBT of the previous quarter was 5.03, which has now increased to 11.13. PAT in the last quarter of 2021 was 4.1, which has increased to 8.11 in the current year and PAT margin of the last Q4 2021 was 8.8, which has increased to

20.24 and earning per share of Q4 FY2022 is 4 whereas in the Q4 FY2021 is 2.06. In the current year we have paid dividend of 21%. We have just repeated last year also we paid 21% dividend to the shareholders and we have saved the overheads. In the last year it was 27 Crores now it is reduced to 25 gaining about 2 Crores despite inflation. Now, I open the call to Dr. Kanal Gupta for Q&A session.

Kanal Gupta :Thank you Mr. Mehta. We will open for the question and answer session. Thank you.

Moderator :Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Pritesh Chheda from Lucky Investment Managers. Please go ahead.

Pritesh Chheda : Sir, thank you for the opportunity. Sir, in the past all that we have done we were looking at close to about 180 Crores type revenue, what we delivered is about 155 Crores for the full year, any comments there that is my first question? Second is from the cash flow, I see some cash flow has been used for loans and advances and noncurrent assets, so you could help us to understand what is this in the balance sheet and my third question is about your capacity, which is supposed to come in Kandla when it is now slated to come and what kind of revenue growth in do you see in FY2023?

Kanal Gupta :Sir, actually we have consolidated this 166 Crores is only for United Drilling Tools and we have a 100% owned subsidiary P. Mittal and there turnover is around Rs.10 Crores, the total turnover we have achieved is 175 Crores to 176 Crores and we are very close to what we were estimating and the major reason for our turnover to be little less is that as all of us know that there was a big problem in the fourth quarter of this year because of the war between Russia and Ukraine so availability steel items and steel items manufactured from steel was delayed quite a bit, so that has affected our revenues to some extent. So that was the main reason why we were slightly short of our targets that is answer to your first question.

Mukesh Mehta :Your second question you have said that cash flow used for loans and advances?

Pritesh Chheda : And other noncurrent assets.

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United Drilling Tools Ltd. published this content on 03 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2022 05:21:05 UTC.