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UNITED DRILLING TOOLS 2020-21 Annual Report Analysis
Wed, 31 Mar

UNITED DRILLING TOOLS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

UNITED DRILLING TOOLS Income Statement Analysis

  • Operating income during the year rose 27.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 26.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.3% in FY21 as against 47.5% in FY20.
  • Depreciation charges decreased by 0.8% and finance costs increased by 72.9% YoY, respectively.
  • Other income grew by 25.0% YoY.
  • Net profit for the year declined by 27.7% YoY.
  • Net profit margins during the year declined from 40.5% in FY20 to 22.9% in FY21.

UNITED DRILLING TOOLS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,118 1,429 27.8%
Other income Rs m 29 36 25.0%
Total Revenues Rs m 1,147 1,465 27.8%
Gross profit Rs m 530 390 -26.4%
Depreciation Rs m 27 27 -0.8%
Interest Rs m 5 9 72.9%
Profit before tax Rs m 528 391 -25.8%
Tax Rs m 75 64 -14.5%
Profit after tax Rs m 452 327 -27.7%
Gross profit margin % 47.5 27.3
Effective tax rate % 14.3 16.5
Net profit margin % 40.5 22.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

UNITED DRILLING TOOLS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 406 million as compared to Rs 134 million in FY20, thereby witnessing an increase of 202.4%.
  • Long-term debt down at Rs 1 million as compared to Rs 4 million during FY20, a fall of 70.4%.
  • Current assets rose 114% and stood at Rs 1 billion, while fixed assets fell 7% and stood at Rs 1 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 31%.

UNITED DRILLING TOOLS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,641 1,937 18.1
 
Current Liabilities Rs m 134 406 202.4
Long-term Debt Rs m 4 1 -70.4
Total Liabilities Rs m 1,832 2,401 31.1
 
Current assets Rs m 574 1,228 113.9
Fixed Assets Rs m 1,258 1,173 -6.7
Total Assets Rs m 1,832 2,401 31.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



UNITED DRILLING TOOLS Cash Flow Statement Analysis

  • UNITED DRILLING TOOLS's cash flow from operating activities (CFO) during FY21 stood at Rs -48 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -151 million, an improvement of 1,064.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 148 million, an improvement of 219% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -50 million from the Rs -4 million net cash flows seen during FY20.

UNITED DRILLING TOOLS Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 133 -48 -
Cash Flow from Investing Activities Rs m -13 -151 -
Cash Flow from Financing Activities Rs m -124 148 -
Net Cash Flow Rs m -4 -50 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for UNITED DRILLING TOOLS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.1, an decline from the EPS of Rs 22.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 261.9, stands at 22.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 3.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 55.0 70.4
TTM Earnings per share Rs 22.3 16.1
Diluted earnings per share Rs 22.3 16.1
Price to Cash Flow x 4.4 12.5
TTM P/E ratio x 4.7 22.6
Price / Book Value ratio x 1.4 2.3
Market Cap Rs m 2,230 4,415
Dividends per share (Unadj.) Rs 4.6 2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for UNITED DRILLING TOOLS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY21, from 4.3x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 45.7x during FY21, from 105.3x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 16.9% during FY21, from 27.6% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 20.6% during FY21, from 32.4% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 14.0% during FY21, from 25.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 4.3 3.0
Debtors’ Days Days 404 1,537
Interest coverage x 105.3 45.7
Debt to equity ratio x 0.0 0.0
Return on assets % 25.0 14.0
Return on equity % 27.6 16.9
Return on capital employed % 32.4 20.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how UNITED DRILLING TOOLS has performed over the last 5 years, please visit here.

UNITED DRILLING TOOLS Share Price Performance

Over the last one year, UNITED DRILLING TOOLS share price has moved up from Rs 104.4 to Rs 261.9, registering a gain of Rs 157.5 or around 150.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for UNITED DRILLING TOOLS and quarterly results for UNITED DRILLING TOOLS)

Annual Report FAQs

What is the current share price of UNITED DRILLING TOOLS?

UNITED DRILLING TOOLS currently trades at Rs 222.9 per share. You can check out the latest share price performance of UNITED DRILLING TOOLS here...

What was the revenue of UNITED DRILLING TOOLS in FY21? How does it compare to earlier years?

The revenues of UNITED DRILLING TOOLS stood at Rs 1,465 m in FY21, which was up 27.8% compared to Rs 1,147 m reported in FY20.

UNITED DRILLING TOOLS' revenue has grown from Rs 818 m in FY17 to Rs 1,465 m in FY21.

Over the past 5 years, the revenue of UNITED DRILLING TOOLS has grown at a CAGR of 15.7%.

What was the net profit of UNITED DRILLING TOOLS in FY21? How does it compare to earlier years?

The net profit of UNITED DRILLING TOOLS stood at Rs 327 m in FY21, which was down -27.7% compared to Rs 452 m reported in FY20.

This compares to a net profit of Rs 247 m in FY19 and a net profit of Rs 127 m in FY18.

Over the past 5 years, UNITED DRILLING TOOLS net profit has grown at a CAGR of 11.9%.

What does the cash flow statement of UNITED DRILLING TOOLS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of UNITED DRILLING TOOLS reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -48 m as compared to Rs 133 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -151 m as compared to Rs -13 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 148 m as compared to Rs -124 m in FY20.

Here's the cash flow statement of UNITED DRILLING TOOLS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations306-211306133-48
From Investments-10-24-10-13-151
From Financial Activity-9940-198-124148
Net Cashflow198-19597-4-50

What does the Key Ratio analysis of UNITED DRILLING TOOLS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of UNITED DRILLING TOOLS reveals:

  • Operating profit margins witnessed a fall and stood at 27.3% in FY21 as against 47.5% in FY20.
  • Net profit margins declined from 40.5% in FY20 to 22.9% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of UNITED DRILLING TOOLS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)34.322.518.147.527.3
Net Profit Margin (%)25.917.315.840.522.9
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of UNITED DRILLING TOOLS

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