On a standalone basis, United Drilling Tools' net profit dropped 11.1% to Rs 12.07 crore on 4.7% decrease in net sales at Rs 31.70 crore in Q3 December 2020 over Q3 December 2019.
Profit before tax (PBT) skid 12.6% to Rs 14.44 crore in Q3 December 2020 as against Rs 16.53 crore in Q3 December 2019. Current tax expense for the quarter declined 13% to Rs 2.34 crore as against Rs 2.69 crore in Q3 December 2019. EBITDA stood at Rs 15.36 crore in Q3 FY21, down 11.01% compared with Rs 17.26 crore in Q3 FY20. The Q3 result was declared after market hours yesterday, 26 February 2021.
Meanwhile, United Drilling Tools (UDTL) has a confirmed order book position of more than Rs 50 crore and is bidding orders of around Rs 300 crore from oil companies in domestic and export market with an execution timeline of twelve months.
Pramod Gupta, chairman & managing director (MD) of United Drilling Tools, said: "We had a revamped quarter which strengthened our order book position and improved our margins by EBITDA margins 15.61% from 31.42% in Q2 of FY21 to 47.03% in Q3 of FY21. Also, we are delighted to announce that UDTL has enter into the European market in this New Year with this very prestigious order for our casing pipes with connector worth USD 1,10,000 from the U.K. based, globally recognized Company 'Aquaterra Energy'."
In its guidance, UDTL stated that it has secured a pilot order in H1 FY2021 from Halliburton for supply of conventional mandrels used in lower casing of oil wells. Since UTDL is one of the approved vendors of Schlumberger (USA) and has issued multiple requirements to UDTL, these associations and initial approvals with global oil majors are expected to translate into orders in the upcoming quarters.
Furthermore, UDTL is continuously evolving to be an end-to-end drilling tool manufacturer with tailor- made tender execution capabilities by advancing its technology and technical know-how. This build-up capabilities to execute orders has enabled UDTL to bid for maximum orders.
The Indian government have allocated many marginal fields to private industry for exploring and drilling oilfields, and for the same purpose Government has allotted Rs 45,000 crore for fiscal 2020. All these developments will directly benefit UDTL in getting maximum orders from the domestic oil companies, it added.
Shares of UDTL rose 0.23% to end at Rs 264.85 on Friday, 26 February 2021. UDTL manufactures wire line & well service equipment, gas lift equipments, downhole tools and large outside diameter (OD) casing pipe with connector.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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