NED DRILLING TOOLS LTD

CIN: L29199DL1985PLC015796 OIL DRILLING EQUIPMENT MANUFACTURING AND SERVICES

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A-22, Phase-II, Noida-201305 Distt. Gautam Budh Nagar. Uttar Pradesh, India E-mail : [email protected] Website: WWW.UDTLTD.COM

29-06-2021

Department of Corporate Service BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001

Security ID - 522014

Sub: Earning Updates on Financial Results

Dear Sir/Ma'am,

Pursuant to regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we are submitting herewith copy of the press release titled "Earning Updates" based on financial results for quarter and year ended 31st March, 2021. The earning updates are along with operational highlight on the financial results.

Kindly take the same on record.

Thanking You,

Yours faithfully For United Drilling Tools Ltd.

Pramod Kumar Gupta Managing Director DIN - 00619482

UDT/SEC/2021-22/BSE-15-NSE-16

Listing Compliance Department National Stock Exchange of India Ltd. Exchange Plaza, C-1 Block-G. Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Security ID - UNIDT

Regd. Office: 139A, First Floor, Antriksh Bhawan, 22 Kasturba Gandhi Marg, New Delhi - 110 001

United Drilling Tools Limited

CIN: L29199DL1985PLC015796

Head Office: A-22, Phase-II, Noida Distt. - Gautam Budh Nagar, U.P - 201305, India.

Q4 & 12M FY21 - Earning Updates

Revenue from Operations reported at ₹1428.54mn in FY21 and ₹469.11 mn in Q4FY21

EBITDA stands at ₹426.90mn in FY21 and ₹59.47mn in Q4 FY21

PAT at ₹ 326.98 mn in FY21 and ₹ 41.66mn in Q4 FY21

Noida, 29 June, 2021: United Drilling Tools Limited, a leading manufacturer of oil drilling tools has announced its 4rd Quarter and Year ended earning updates of FY2021. Co. reported higher revenue despite challenges, EBITDA and PAT margins are at 29.14% and 22.30% respectively.

Particulars (INR MN)	FY 21	FY 20
Revenue from Operations	1428.54	1117.51
Other Income	36.47	29.18
Total Revenue	1465.01	1146.69
Total Expenses	1073.61	619.15
EBITDA	426.90	559.57
EBITDA Margin (%)	29.14%	48.80%
Depreciation	26.75	26.97
Finance Cost	8.75	5.06
PBT	391.40	527.54
Current Tax	62.94	73.37
Deferred Tax	1.48	1.99
Tax	64.42	75.36
PAT	326.98	452.18
Other comprehensive profit / loss	$-0.28$	$-0.63$
Net PAT	326.70	451.55
PAT Margin %	22.30%	39.37%
Diluted EPSAlling	16.09$\mathcal{F}$	22.24

Financial Statement Highlights for FY21 v/s FY20

Q4 & FY Earning Updates

Financial Performance Comparison - FY21 v/s FY20

▶ Total Revenue from operations increased by 27.83% from ₹1117.51 Mn in FY20 to ₹1428.54Mn in FY21 owing to procurement of big order of INR 125 Cr from ONGC executed in F.Y.2020-21.
EBITDA decreased by 23.71% y-o-y from ₹559.57Mn in FY20 to ₹426.90Mn in FY21 due to increase in raw material consumption cost owing to surge in steel process and further due to Covid-19 labour was not available, so the contract labor and allied cost also increased
PAT decreased by 27.65% y-o-y from ₹451.55 in FY20 to ₹326.70Mn in FY21.
Cost of material consumed stood at ₹971.58Mn in FY21, compared to ₹384.08 Mn in FY20
Current Assets stood at ₹1164.96 Mn in FY21, compared to ₹500.97 Mn in FY20 as the orders were executed before time and the same have been realized in April 21/May 21
Current Liabilities stood at ₹343.06 Mn in FY21, compared to ₹61.12 Mn in FY20 (Increased due to PCFC loan availed which was repaid in April 21 and May 21)
▶ ROE in the year has decreased from 27.55 % in FY20 to 16.86 % FY21
ROCE in the year has decreased from 33.26 % in FY20 to 21.84 % in FY21

Financial Statement Highlights for Q4 of FY21 v/s Q4 of FY20

Particulars (INR MN)	Q4 FY 21	Q4 FY 20
Revenue from Operations	469.11	222.45
Other Income	4.64	9.23
Total Revenue	473.75	231.68
Total Expenses	423.47	144.40
EBITDA	59.48	96.53
EBITDA Margin (%)	12.55%	41.67%
Depreciation	7.09	7.13
Finance Cost	2.10	2.12
PBT with Exceptional Item	50.29	87.28
Exceptional Items
PBT	50.29	87.28
Current Tax	7.84	8.58
Deferred Tax	0.78	$-2.65$
Tax	8.62	5.93
PAT	41.67	81.35
Other comprehensive profit / (loss)	0.25	(0.33)
Net PAT	41.92	81.02
PAT Margin %	8.84%	34.97%
Diluted EPSed	2.06CODAnte	3.99

Financial Performance Comparison - Q4 FY20 v/s Q4 FY21

The total Revenue from increased by 111% from ₹ 22.25 Mn in Q4 FY20 to ₹ 46.91 Mn in Q4 FY21 mainly due to change in product mix.
▶ EBITDA stood at ₹ 59.48 Mn in Q4 FY21, compared to ₹96.53 Mn in Q4 FY20
Net profit stood at ₹41.67 Mn in Q4 FY21, compared to ₹81.35 Mn in Q4 FY20

Business Updates

1. Progress on setting up a new manufacturing plant in Gujarat near Mundra Port; The Mundra plant will be fostering the most recent planned items, for example, packaging pipe with the connector gathering section further extending the current item portfolio. Moreover, it will upgrade UDTL's manufacturing capacity as this unit will be capable of producing highly customized designs which require advanced level of precision engineering and making this a best in class unit.
1. Update on the execution of orders received from UK worth $1,10,000 USD; UDTL has also progressed in the execution of orders received from UK based global offshore engineering solution provider, Aquaterra Energy. As committed, the orders have been executed and delivered in March 2021.
1. Order book position as on 31st March 2021;

UDTL has a confirmed order book position of more than ₹800 mn from the domestic markets, the details of the order is as follows; connectors worth $\overline{\tau}^{\sim}42$ mn connectors, casing pipes worth ₹150 mn, winches worth ₹10 mn gas lift valves worth ₹20 mn and stabilizers worth ₹25 mn.

Management Comments

Commenting on the performance of Q4 FY21, Mr. Pramod Kumar Gupta, Chairman & Managing Director, United Drilling Tools Ltd. said, "We would like to express my gratitude to all fellow stakeholders as this been one of the most challenging yet successful financial year in the history of United Drilling Tools Ltd, we have exhibited great performance despite challenges. The pandemic era, global dynamics and abnormal increase in raw material prices have opened up several challenges in the past year, but we have evolved through these and overcome them. We feel confident and are well equipped to be able to deliver our performance and be able to exploit different opportunities despite any hurdles that may be at macro or micro levels. The Board declared a dividend of Rs. 2.1 per share (21% of face value) in FY21.

For the H1 of FY22, our core focus is going to be on getting order from Indian oil companies also as international oil companies and repair providers. We also are in process of developing some new products and improving the planning of existing product which can open new marketplace for us."

Management Guidance

UDTL intends to increase its revenue by above 30% on y-o-y basis for next 2 years and expects its EBITDA margins to be 30-35 % in this fiscal and the next fiscal. This will be possible due to increased contribution from exports and change in product mix, further with new capacities added for value added products which will expand margins. Also, UDTL has been added by many MNC oil explorations cos and expects to procure sizeable orders in the coming years. UDTL has already bidding for orders of ₹ 1250 mn from Oil companies in domestic market as well as from global oil major companies, further UDTL proposes to bid for orders ₹1000 mn also in the coming quarter, all these orders are proposed to be executed by March 2022. As a business strategy and in tandem with the policy, UDTL focuses on bidding for high margin segment product and is in the process of adding a new product to cater high-tech segment players of Oil & Gas Industry.

About United Drilling Tools Ltd.

Commenced operation in the Year 1985, headquartered at New Delhi, the company is Worldwide Leader in Connector Technology. United Drilling is a leading Manufacturer of Wire line & well service equipment, Gas lift equipment's, Downhole tools and large OD casing pipe with connector in the world. All the equipment can be supplied with most reliable designs and quality and are very competitively priced as compared to other suppliers. United Drilling Tools Limited is dedicated to manufacture high-quality products of field -proven test designs in conformity with international standards as per ISO 9001.

For further information on the Company, please visit www.udtltd.com

Nikhil Gupta United Drilling Tools Limited Email: [email protected] Contact: +91 87500 55919

Disclaimer:

CERTAIN STATEMENTS IN THIS DOCUMENT MAY BE FORWARD LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES LIKE GOVERNMENTACTIONS, LOCAL POLITICAL OR ECONOMIC DEVELOPMENTS, TECHNOLOGICAL RISKS, AND MANY OTHER FACTORS THAT COULD CAUSE OUR ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED BY THE RELEVANT FORWARD-LOOKING STATEMENTS. UNITED DRILLING TOOLS LIMITED WILL NOT BE IN ANY WAY RESPONSIBLE FOR ANY ACTION TAKEN BASED ON SUCH STATEMENTS AND UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.

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