Water management stock engaged in the entire value chain from concept to commissioning and execution of water supply projects jumped upto 5 percent in the day’s trade following the expansion of operations through the acquisition of a South African company.
Price Movement
With a market capitalization of Rs. 4,340 Crores, the shares of WPIL Limited were trading at Rs. 444.45 per equity share, up 3.5 percent from its previous day’s close price of Rs. 429.55.
What Happened
WPIL Limited has announced that its South African Subsidiary APE Pumps Pty Limited has entered into a Share Purchase Agreement and acquired a 100 percent stake in Eigenbau Proprietary Limited, Bryanston, South Africa.
Eigenbau Proprietary Limited is engaged in providing turnkey solutions in the water and wastewater sector with a strong presence in the South African market and important references across Southern Africa with over 34 years of experience.
Prakash Agarwal, Managing Director, WPIL, said “This acquisition strengthens and builds on WPILs focus on providing flow solutions, especially in the highly prospective African continent along with sharing tremendous synergies with APE Pumps and their turnkey pumping business”.
About the Company
WPIL Limited is engaged in the entire value chain of Pumps & Pumping Systems from concept to commissioning and execution of water supply projects on a turnkey basis for industrial units, power utilities, irrigation departments, and many others.
It is a Market Leader in Pumps & Pumping Systems with a Strong global presence via focused acquisitions and joint ventures, it has 10 strategic manufacturing locations and a strong order book of Rs. 3,798.3 Crores.
Financials & Ratios
Its Revenue from operations grew by 12 percent YoY from Rs. 324 Crores in Q1FY24 to Rs. 363 Crores in Q1FY25, accompanied by profits of Rs. 40 Crores to Rs. 43 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 46.2 percent and a return on capital employed (ROCE) of 20.4 percent. It has reported a debt-to-equity ratio of 0.18.
Written by: Bharath K.S
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