Company report: OCTL

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1. Registered Address: 108 Kanchanjunga, King Koti Road,Hyderabad 500001 Tel.:[phone]Fax:[phone] ,Email:[email protected] Website:www.octlindia.com Company Profile

2. Table of Content Company Profile Company History Product & Services Management Team Ownership Peer Group Financials Geographic Segment Announcements 2

3. Company Profile OCTL is a leading companies in the world processing range of Oil Country Tubular Goods. Single unique integrated Plant located at Narketpally and corporate headquarters at Hyderabad, India. The facilities include Upsetting, Heat Treatment, Non-Destructive Testing, Metallurgical Laboratory, Gagging and Calibration Laboratory, Tool Joint and Coupling Threading, Casing and Tubing Threading, Friction Welding of Drill Pipe, Hydrostatic Testing and Internal Plastic Coating of Tubular. Oil Country Tubular Limited has been assessed and certified by the American Petroleum Institute Quality Registrar (APIQR) as being in compliance with ISO 9001:2008 Quality System. OCTL is licensed by American Petroleum Institute (API) as: 1. Manufacturer of Casing and Tubing: plain end, threaded and coupled, and threader as per API Specification 5CT 2. Manufacturer of Drill Pipe as per API Specification 5DP 3. Manufacturer of Rotary Drill Stem Elements as per API 7-1 Top 3

4. Company History 1985 - Oil Country Tubular (OCTL) was incorporated on 22 nd February. The Company obtained Certificate of commencement of business on 30 th March. The Company was promoted by United Steel Allied Industries (USAI), its managing partner K. Suryanarayana and their associates. The Company entered into a technical collaboration with Baker Huges Tubular Services Inc. USA., for Oil exploration equipment, comprehensive technology for manufacture of tubular in one integrated plant, and a wellhead scan log - computerized system for automatic and elaborate inspection of tubing on well site. 1991 - The overall production and sales were affected due to restriction on imports. The company proposed to expand its capacity from 50,000 MT to 75,000 MT with additional investment in equipment and other assets. 1995 - The Company entered into a long term arrangement with M/s. Grant Prideco SA Switzerland, a subsidiary of EVI, USA for services and purchase of tubular goods manufactured by the Company. This arrangement ensure optimum utilization of the capacity and substantially add to the income of the company. 1997 - OCTL has only a marketing joint venture with EVI – 100% sales agreement. EVI has entered into an exclusive manufacturing agreement with OCT for five years by which 75% of the OCT's manufacturing facility was exclusive to EVI. The company manufactures drill pipes, production tubing's and casing pipes for the oil exploration industry in technical collaboration with Baker Huges Tubular Services of the US. 1998 - OCTL is yet another company that currently enjoys the benefits of catering to the oil industry. OCTL supplies the oil industry (mainly ONGC) with tubes and pipes that are used in drilling operations. The company managed to improve the debt equity ratio by repaying a substantial quantum of debt amounting to Rs.33 crore. 1999 - The company floated a new arm - United Seamless Tubular Ltd, to manufacture seamless pipes ranging from 5 inches to 14 inches with a capacity of 140 thousand tonnes per annum. 2003 - Shri Sunil Kapoor ceases to be Director with effect from December 5, 2003 as IFCI has withdrawn the nomination vide letter dated December 5, 2003. Source: Money Control Top 4

5. Product & Services Products Drill Collars (Slick and Spiral) Accessories: Rotary Subs, Lift Plugs and Lift Subs, Cross Over (Drill Pipe to Drill Collar or Drill Collar to Drill Collar), Stabilizer Sleeves, Welded Blade Stabilizers & Integral Stabilizers and Cast Steel Lifting Bails Drill Pipe   Tubing OCTL DS Connection   Casing  Heavy Weight Drill Pipe Top 5

6. Product & Services Services Reconditioning of Drill Pipe Rethreading of Drill Pipe Field Inspection Tool Joint Hardfacing Internal Plastic Coating Top 6

7. Management Team Board of Directors Designation Mr . K. Suryanarayana Chairman Mr . Sridhar Kamineni Managing Director Mr . K. G. Joshi Whole time Director Dr . Abdul Halim Bin Harun Director Dr . T. S. Sethurathnam Director Dr . N. S. Datar Director Mr . K. V. Ravindra Reddy Director Top 7 Source: BSE India

8. Ownership Ownership Dec - 10 Promoter & Promoter  Group 19,121,701 Indian 19,121,701 Foreign -- Public 25,167,829 Institution 68,630 FII 5,400 DII 63,230 Non Institution 25,099,199 Bodies Corporate 2,605,247 Source: BSE India Top 8

9. Peer Group Oil Country Tubular Ltd. Great Offshore Aegis Logistics Dolphin Offshore Peer Group Comparison Results (in USD Million) Mar- 2010 Oil Country Tub Great Offshore Aegis Logistics Dolphin Offsh Sales 70.67 215.40 60.71 112.34 PAT 11.88 37.49 8.29 9.92 Equity 9.42 7.92 3.99 3.35 Source: BSE India Top 9

10. Financials Income Statement (Annual Trend) (In USD Million ) 2009-10 2008-09 2007-08 2006-07 2005 - 06 Revenue 70.67 89.44 72.24 55.64 33.70 Other Income 0.55 0.37 0.38 0.69 0.29 Total Income 71.22 89.81 72.62 56.33 33.99 Expenditure -48.65 -68.37 -53.60 -48.63 -28.40 Interest -0.37 -0.46 -7.99 -3.94 -3.63 PBDT 22.20 20.98 11.03 3.76 1.96 Depreciation -1.49 -1.59 -1.53 -1.33 -1.40 PBT 20.72 19.39 9.50 2.43 0.56 Tax -8.84 -5.57 -3.35 -0.41 -0.07 Net Profit 11.88 13.82 6.15 2.03 0.49 Profit Trend (In USD Million) Source: BSE India Top 10

11. Geographic Segment Profit Contributing Countries (Profit %) Profit (In USD Million ) America 33 3.92 African 5 0.59 Europe 1 0.12 India 32 3.80 Other Asian 29 3.45 Total 100 11.88 The Company is predominantly engaged in the manufacture and sale of Oil Country Tubular Goods where the risks and returns associated with the product are uniform. Hence, the Company has identified the geographic segments as its primary segment for reporting. The geographic segments of the Company are America, Europe, India and Other Asian Countries. Source: Company Annual Report Top 11

12. Announcements Oil Country Tubular net plummets 85.9% for Sep`10 qtr Oil Country Tubular  disclosed a phenomenon drop in standalone net profit for the quarter ended September 2010.  During the quarter, the profit of the company declined 85.90% to Rs 34.09 million from Rs 241.85 million in the same quarter previous year. Source: IRIS (25-OCT-10) ICRA upgrades short term rating of Oil Country to `A1 Credit rating agency, ICRA has upgraded the short term rating assigned to the Rs 235 million fund based limits and the Rs 830 million non fund based limits and has also assigned an LA rating in the long term to the Rs 92.5 million fund based limits of Oil Country Tubular (OCTL) to A1 from A2+ earlier. Source: IRIS (02-DEC-09) Oil Country to set up threading facility in Oman Oil Country Tubular (Oil Country), a Hyderabad-based company, is mulling over to set up a threading facility in Oman. The company is also in talks with Oman based Golden Dunes International and Malaysian based UMW Petropipes for setting up a joint venture. Source: IRIS (22-JAN-09) ICRA assigns `A2+` rating to Oil Country Tubular ICRA has assigned an A2+ rating to the Rs 235 million fund based limit and the Rs 830 million non fund based limit of Oil Country Tubular (OCTL). A2 is the above-average credit-quality rating assigned by ICRA to short-term debt instruments; instruments rated in this category carry higher credit risk than instruments rated A1. Source: IRIS (24-DEC-08) Source: IRIS Top 12

13. Thank You ! By: Pranjali Singh (Research Analyst)