United Drilling Tools Limited · NSE:UNIDT
United Drilling Tools — FY2022 Earnings Presentation
39 slides from United Drilling Tools's earnings presentation, June 2022
Slide 1: FY22 Investor Presentation
A global manufacturer of high- quality, precision-engineered products in Upstream Oil & Gas Exploration FY22 Investor Presentation
Slide 2: Discussion Summary
Discussion Summary 1. Quarter Performance 2. Company Overview 3.Competitive advantage 4. Market Opportunity 5. Business Strategy and Outlook 6. Future Business Strategies
Slide 3: Disclaimer
Disclaimer This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of United Drilling Tools Limited (“UDT”, "Company“), nor shall part, or all, of this document form the basis of, or be relied on in connection wi
Slide 4: Annual Performance Highlights
Annual Performance Highlights
Slide 5: FY22 – Performance Highlights (Standalone)
FY22 – Performance Highlights (Standalone) Net Income EBITDA Order Book Rs 166.42 Cr. Rs 75.15 Cr. 13.59% YoY 75.99% YoY Rs 100 Cr(Approx.) Profit Before Tax (PBT) Profit After Tax (PAT) Final Dividend 6% (Rs 0.60 / share) Rs 71.64 Cr. Rs 50.36 Cr. Total Dividend 83.22% YoY 54% YoY 21% (Rs 2.10 / sh
Slide 6: Key Developments in Q4FY22
Key Developments in Q4FY22 Development of new product line Development of new product line side pocket mandrels, swift connectors and Lynx connectors are under process which have demand in India and overseas market. Design Patent in U.K. We have received design patent registration in U .K. for multi
Slide 7: Financial Statement (Standalone)
Financial Statement (Standalone) ( Rs Crore) Q4FY22 Q3FY22 Q4FY21 YoY% FY22 FY21 YoY% Net Income 40.06 46.14 47.38 -15.45% 166.42 146.50 13.59% EBITDA 12.16 19.95 5.95 104.71% 75.15 42.70 75.99% EBITDA Margin (%) 30.35 43.24 12.56 45.16 29 PBT 11.13 19.19 5.03 121.27% 71.64 39.10 83.22% PAT 8.11 13.
Slide 8: Annual Performance Scorecard (Standalone)
Annual Performance Scorecard (Standalone) Profit & Loss Statement (Figures in Rs Crore) Particulars FY2018 FY2019 FY2020 FY2021 FY2022 Revenue from Operations 73.91 157.13 1,14.47 1,46.50 166.42 Total Expenses 56.19 127.96 58.71 1,03.81 94.78 EBITDA 17.70 29.2 56 42.70 75.15 EBITDA Margin (%) 24 19
Slide 9: Company Overview
is UNITED Company Overview
Slide 10: Company Overview: Our Journey of Evolution
Company Overview Our Journey of Evolution over Three-and-a-half Decades Accomplished a significant milestone of getting our products patented Commenced operations at the newly set-up manufacturing units • NSEZ (Noida Special Economic Zone) at Noida for production of winch in 2013 Received firs
Slide 11: Company Overview: Manufacturing Proficiencies
Company overview Manufacturing Proficiencies Manufacturing Infrastructure Intellectual Capital 4 State-of-the-Art and Tech- To manufacture standard 350-strong workforce of: focused Manufacturing Facilities precision equipment of proven • Quality Control Engineers Spread across 10,88,000 sq.
Slide 12: World-Class Infrastructure
Company Overview World-Class Infrastructure Machine-shop-with CNC Lathes Vertical Lathe Latest Quality and Machining Centre Control System, Equipment and Gauges Assembly and Fabrication Shop Drilling Machines, Cylindrical Grinders, Milling Machines Research and Development System and Testing System
Slide 13: Company Overview
Company Overview is NITED Crown block Derrick Traveling block Swivel Blowout prevention /~ equipment _- Mud pump
Slide 14: Product Usage as per Type of Wells
Product Usage as per Type of Wells Crude Oil & Gas Wells Onshore/Offshore Wells Exploratory Wells* Production Wells* Marginal Wells* Gas Lift Gas Lift Gas Lift Casing Pipe Casing Pipe Valves Valves Valves with Stabilizers Winches with Stabilizers Winches Winches with with with Connectors Connectors
Slide 15: Product function: Casing Pipe with Connectors
Company overview Fortifying Industry Position through a Comprehensive Product Offering Product function: CASING PIPE WITH CONNECTORS During drilling of oil and gas wells, steel pipes are set inside the drilled well. This is called casing and it helps protect and support the well stream. Generally, c
Slide 16: Product function: Connectors
Company overview Fortifying Industry Position through a Comprehensive Product Offering Product function: CONNECTORS UDT Fast make-up, high performance connectors are manufactured as per highest international quality standards. These are designed for use in offshore and onshore duly welded with Casin
Slide 17: Product function: Wireline Winches
Company overview Fortifying Industry Position through a Comprehensive Product Offering Product function: WIRELINE WINCHES Wireline winch is self-contained and tough enough for most oilfields. It is widely applied across the oil & gas industry for various purposes including well intervention and rese
Slide 18: Product function: Gas Lift Equipment
Company overview Fortifying Industry Position through a Comprehensive Product Offering Product function: GAS LIFT EQUIPMENT Generally fitted on a mandrel installed in production tubing, gas lifting equipment aid in lifting gas utilising artificial method. It is installed as a part of tubing string.
Slide 19: Product function: Stabiliser
Company overview Fortifying Industry Position through a Comprehensive Product Offering Product function: STABILISER Stabilizer is one of the components of drill string elements, generally placed near bit or at the top of the drill string. In the drill string assembly, the drill bit is the lowest com
Slide 20: API Quality Licenses related to products
Company Overview API Quality Licenses related to products Engaged in responsible and eco-friendly manufacturing practices and enhancing workplace safety Quality Certifications - 5 Product licenses (API 19G1, API 19G2, API 5CT, API 7-1 & API 5L)
Slide 21: Key Certifications
Company Overview Key Certifications Engaged in responsible and eco-friendly manufacturing practices and enhancing workplace safety Quality Certifications - ISO 9001:2008 ISO 14001:2015 OHSAS 18001:2007
Slide 22: Endorsed by Indian Marquee Brands
Company Overview Endorsed by Indian Marquee Brands Enduring and deep engagement with Indian renowned Oil Companies
Slide 23: Endorsed by Global Marquee Brands
Company Overview Endorsed by Global Marquee Brands Enduring relationships and deep engagement with globally-renowned Oil Companies
Slide 24: Competitive Advantages
is UNITED Competitive Advantages
Slide 25: Competitive Advantages - Our Value Proposition
Competitive Advantages - Propelling Growth Our Value Proposition #Yearly requirement #Growing overseas #Competitive pricing #Continuous research opportunity As the requirement of our We are aggressively scouting Our products are cheaper by Continuous research & products are based on the for opportun
Slide 26: High-Entry Barriers and First Mover Advantage
Competitive Advantages - Propelling Growth High-Entry Barriers First Mover Advantage – Our Key Market Edge • Setting up a new manufacturing facility, getting API certificates, United Drilling Tools arranging site visits by officials, placing trial orders and to get successful run of products is a de
Slide 27: R&D – A Key Area of Focus
Competitive Advantages - Propelling Growth R & D – A Key Area of Focus with Maximising the Technology Quotient R&D, Precision Engineering and Patented Product is a key focus area for United Drilling Tools Continuous thrust on improving technology and expanding offerings We are a modern, technology-d
Slide 28: Our Business Model: What's driving profitability?
Competitive Advantages - Propelling Growth Our Business Model What’s driving profitability? Key revenue streams (product mix) 1. Higher-margin products What’s driving margins Casing Pipes 22-23% Increasing Profit Margins - 19.00% Wireline Winches 24-26% From 9 % in 2014 to 25-30% currently appro
Slide 29: Market Opportunity
is UNITED Market Opportunity
Slide 30: Increasing Production and Growing Demand of Crude Oil & Gas in India
Market Opportunity Increasing Production and Growing Demand of Crude Oil & Gas in India India is the 3rd Largest Energy Consumer globally Indian Serving India's Investment of Government growing Rs 25 billion India produces only 17% of its total promoting Oil demand for oil expected in requirement fo
Slide 31: Recent decisions from Oil Ministry
Market Opportunity Recent decisions from Oil Ministry – Boosting the Oil & Gas Industry Oil Drilling Oil drilling equipment and tools to require 50% local content in first year, 60% in next two years and 70% in the next two years for getting purchase preference. Local Content Preference State-run fi
Slide 32: Production of Crude Oil & Gas Worldwide
Market Opportunity Production of Crude Oil & Gas Worldwide SUB CONTINENT PRODUCTION OF ITEMS USA MIDDLE EAST CENTRAL ASIA SOUTH EAST ASIA NORTH AFRICA SOUTH AMERICA CRUDE PRODUCTION 11.3 23.89 2.63 1.37 10 7.5 (In Million Barrels) NATURAL GAS PRODUCTION (In Million Cubic 34.4 2 0.014 500 0.67 0.15 F
Slide 33: Future Business Strategies
is UNITED Future Business Strategies
Slide 34: Steadily marching towards a sustainable tomorrow
Future Business Strategies Steadily marching towards a sustainable tomorrow India Business Strategy Outcome Diversifying product range FY2023 Projections Changing sale of product mix Revenues to expand by 30% to 40% Growing order book by increasing global outreach Confirmed orders of Rs 10
Slide 35: Key Priorities to strengthen Global Presence
Future Business Strategies Key Priorities to strengthen Global Presence Rs 9,000 Crore Global Market Size from countries like Middle East, Added new Approved Vendor Hired United States, South America customers such Status with major Oil Marketing and South East Asia as Baker Hughes, Field Drilling C
Slide 36: International Business Strategic Growth Enablers
Future Business Strategies Steadily marching towards a sustainable tomorrow International Business Strategic Growth Enablers to strengthen Global Presence Increasing Adding footprint in registrations in Scaling capacities South East Asia, international of all product lines Middle East and markets Af
Slide 37: Joint Ventures and Technical Collaborations
Future Business Strategies Propelling Growth Joint Ventures and Technical Collaborations Aiming at strategic acquisition of companies engaged in manufacturing of inputs to: Increase product Enhance technology range via new and R & D Reduce cost Enhance revenue product department to of production and
Slide 38: A Perfect Investment Case
Future Business Strategies A Perfect Investment Case Business perspective: Delivered industry leading performance by executing long-term growth strategy Widened portfolio from one principal product in 1992 to 5 key product lines and 20 sub-products Expanded international presence to sustain gr
Slide 39: Thank You
THANK YOU For More Information, Please Contact: Mr. Mukesh Mehta KAPTIFY Consulting Chief Financial Officer Strategy & Investor Relations Advisory 139A, Antriksh Bhawan, First floor, 22 Kasturba Email: contact@kaptify.in | +91 8452886099 Gandhi Marg, New Delhi – 110 001. Website: www.kaptify.in Tele