Oil Country Tubular Ltd Management Discussions

a) Industry Structure and Developments, Opportunities and Threats, Performance, Outlook, Risks and Concerns:

All Plant & Machinery are fully functional status and started executing the Orders on hand.

The Company received Orders from OIL on development basis and successfully executed all these Orders. The Company will be technically qualified for different products.

The Company will be meeting the Turnover and Net worth criteria for the tenders and will be bidding for ONGC /OIL Tenders.

The Company plan to approach the Banks for Non-fund based working capital limits of Rs. 25 Crores covering Bid Bonds, Performance Bank Guarantees and Letter of Credit for raw material procurement.

The Crude Oil prices are on the rise and it is an indication of increased requirement of tubulars for the exploration and drilling activities. The requirement of tubulars is more than 100,000 MT in India and the Company expects to have orders for the supply of premium connections and drilling products. Further, the Company is also bidding for supply of drilling products internationally and expects to convert them to Orders during the year.

PROSPECTS:

The company is participating in the new tenders floated by ONGC and OIL and global tenders for the FY 2025-26. The company expects the tenders to open during July-August2025 and shall be finalised the tenders in Sept-Oct2025. These tenders are in our product line Drill Pipes, Heavy Weight Drill Pipes, Drill Collars , Premium Casing and other related products.

The company is specialised in premium connections for which the Company has the Licenses and the fully integrated facility makes OCTL competitive and successful in securing more Orders.

Further Government of India has also amended the Steel Policy by in the Condition Melt & Pour replacing Value Addition of 35 % means that raw materials are to be procured domestically. The company is working on similar lines to comply with the policy.

The company has focused on sectors of Defense, Aero Space, Power, Railways and Critical Engineering Machining Components. This shall diversify the revenue mix from single industry focused sector to multi-industrial sectors to bring steady growth and stability in the company revenues in the future.

Your company is operating in core sunrise sectors and has big opportunities for growth in next coming years.

Internal Control Systems and their Adequacy:

Management has put in place effective Internal Control Systems to provide reasonable assurance for:

• Safeguarding Assets and their usage.

• Maintenance of Proper Accounting Records and

• Adequacy and Reliability of the information used for carrying on Business Operations.

Key elements of the Internal Control Systems are as follows:

(i) Existence of Authority Manuals and periodical updating of the same for all Functions.

(ii) Existence of clearly defined organizational structure and authority.

(iii) Existence of corporate policies for Financial Reporting and Accounting.

(iv) Existence of Management information system updated from time to time as may berequired. (v) Existence of Annual Budgets and Long Term Business Plans.

(vi) Existence of Internal Audit System.

(vii) Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.

(viii) The Company has appointed an Independent Auditor to ensure compliance and effectiveness of the Internal Control

Systems in place.

The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing carried out in all the key areas of the operations. Additionally the Audit Committee approves significantissues raised by the all the audit plans and reports for

Internal and External Auditors. Regular reports on the business development, future plans and projections are given to the Board of Directors. Internal Audit Reports are regularly circulated for perusal of Senior Management for appropriate action as required.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance. Risk assessments, inspections and safety audits are carried out periodically.

b) Financial and Operational Performance:

The Highlights of Financial Operational Performance are given below:

( In Lakhs)

S. No. Particulars	2024-25	2023-24
1 Sales / income from operations	12290.31	1823.94
2 Other Income	286.45	145.09
3 Sub-total	12576.76	1969.03
4 Total Expenditure (Before interest)	14,935.43	9017.50
5 Profit/(Loss) Before Interest, Tax and Exceptional Items	-2,358.67	-7048.46
6 Operating Margin %	-	-
7 Profit/(Loss) After Tax and Exceptional Items	(2910.07)	(7647.04)
8 Return on Average Capital Employed % (Before Interest and Tax)	(0.07)	(0.17)
9 Current Ratio (Current Assets / Current Liabilities)	2.08	2.15

c) Human Resources Development and Industrial Relations:

The Company has constituted an Internal Complaint Committee (ICC) in pursuant to the provisions of Companies Act, 2013 for prevention, prohibition and redressal of complaints / grievances on the sexual harassment of women at work places, Industrial Relations.

The number of female, male, and transgender employees, respectively, as on the close of the financial year 2024-25 are:

i) Male Employees	: 161
ii) Female Employees	: 5
iii) Transgender Employees	: NIL

 

d) Details of significant changes (i.e. change of 25% or more : as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Since, FY 24-25 is the first full year of operation after coming out of CIRP process, the numbers of current year are not comparable with the previous year.

(i) Debtors Turnover (ii) Inventory Turnover (iii) Interest Coverage Ratio (iv) Current Ratio (v) Debt Equity Ratio

(vi) Operating Profit Margin (%)

(vii) Net Profit Margin (%) or sector-specific equivalent ratios, as applicable.

e) Details of any change in Return on Net Worth as compared : to the immediately previous financial year along with a detailed explanation thereof

Since, FY 24-25 is the first full year of operation after coming out of CIRP process, the numbers of current year are not comparable with the previous year.

f) Cautionary Statement:

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.

For and on behalf of the Board of Directors

K. Suryanarayana	Tatineni Yoganand
Chairman & Managing Director	Director
DIN: 00078950	DIN: 07593253

 

Place: Hyderabad

Date : 7-August-2025