Shares of United Drilling Tools declined 9 percent intraday on June 9 a day after ace investor Ashish Kacholia pared part of his stake from the company through open market transactions.
Kacholia sold 1.58 lakh UNITD equity shares at an average price of Rs 190.49 per share, reducing his stake in the oilfield equipment manufacturer by 0.78 percent. Prior to the disinvestment, he had held 5.7 lakh shares amounting to a 2.81 percent stake in the company as of March 2023.
In terms of financial performance, United Drilling Tools reported a net profit of Rs 2.83 crore for the March quarter, which is a significant decrease of 65.5 percent compared to the profit of Rs 8.22 crore recorded in Q4FY22. Additionally, the company's revenue for Q4FY23 stood at Rs 22.35 crore, reflecting a 44 percent decline from the corresponding quarter of FY22 when the revenue was Rs 40.05 crore. The Earnings Per Share for the March quarter of FY23 was 1.37, down from 4.05 in FY22.
The United Drilling Tools share price has fallen nearly 23 percent over the past month and 33.28 percent in 2023 so far.
Despite challenges, United Drilling Tools managed to stay profitable by implementing cost-cutting measures, the company said in a filing to the exchanges. The company has announced the distribution of an interim dividend of 12 percent and a recommended final dividend of 6 percent to its shareholders for FY23.
“FY23 has been most challenging financial year in the history of the company, but the things look promising in the current FY 2024,” Chairman-cum-Managing Director Pramod Kumar Gupta said.
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