This Water Management stock which deals in the business of designing, supplying, installing, constructing, and managing operations related to drinking water, industrial water treatment, wastewater treatment, and desalination plants up by 10 percent after receiving an order from the Kingdom of Bahrain for a Treatment Plant worth Rs. 121 crore.
Share Price Movement
In Wednesday’s trading session, Va Tech Wabag‘s share price was up by 10 percent to the day’s high of Rs. 1,335.20. The stock reiterated from the day’s high and was trading at Rs. 1,317.40 which is 8.66 percent higher from the previous close of Rs. 1,212.45 per share. In the past year, the stock has given around 103 percent returns and outperformed the Nifty Index.
What Happened
The company’s stock surged after the company received an order from the Kingdom of Bahrain for the BAPCO Refining Industrial Wastewater Treatment Plant worth $14 Million or approx Rs. 121 crores. The company is to be involved in the Operations and Management (O&M) of the Industrial Wastewater treatment plant in Bahrain for a period of 7 years.
Management Commentary
Commenting on this order win, Srinivasan K, the General Manager of the Middle East Regional Headquarters said, “We are extremely happy to secure this Industrial Wastewater treatment operations order in the Kingdom of Bahrain. We express our gratitude to BAPCO for their trust and confidence in WABAG. This order win is a testament to our technological excellence and our unwavering commitment to delivering world-class water solutions to the oil and gas sector globally.”
Financials
In its latest filing for the quarter ending September 2024, the company reported a 5.26 percent rise in revenue, reaching Rs.700 crore compared to Rs.665 crore in Q2FY24. During the same period, net profit increased by 16.66 percent to Rs.70 crore in Q2FY25, compared to Rs.60 crore in Q2FY24.
Order Book & Revenue Guidance
The total order book as of September 2024 is more than Rs. 14,600 crore with 9 percent of EPC projects and the remaining 41 percent from O&M projects. The revenue guidance is expected to grow 15 to 20 percent CAGR over the next three to five years. EBITDA guidance of 13 to 15 percent in the same period.
Company Profile
VA Tech Wabag is a water management company specializing in water treatment and desalination solutions. The company was founded in 1995 and offers comprehensive services for municipal and industrial clients globally.
Written by – Santhosh S
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