Water management companies play a crucial role in the sustainable management of water resources, addressing both supply and treatment aspects. Their services typically encompass the entire water cycle, including the collection, treatment, and distribution of water, as well as the management of wastewater.
Here are two water management companies that have reported strong financial results for Q1 FY25.
Indian Hume Pipe Company Ltd
Indian Hume Pipe Company Ltd specialises in the manufacturing, laying, and joining of pipelines. The company is also involved in infrastructure development, handling turnkey execution of combined water supply projects. Additionally, it manufactures and supplies concrete railway sleepers for Indian Railways.
For the quarter ended June 2024, Indian Hume Pipe Company Ltd reported consolidated revenue of Rs.364 crores, a 5 percent increase from Rs.347 crores in the same quarter last year. However, sequentially, revenue declined by 10 percent from Rs.404 crores in Q4 FY24.
The company’s Profit After Tax (PAT) surged by 250 percent year-over-year, reaching Rs.31 crores in Q1 FY25, up from Rs.9 crores in the June 2023 quarter. Despite this, PAT fell by 30 percent from Rs.44 crores in Q4 FY24.
Financially, Indian Hume Pipe Company Ltd delivered solid performance ratios, with a Return on Capital Employed (ROCE) of 11.93 percent and a Return on Equity (ROE) of 9.36 percent. The company also maintained a healthy current ratio of 2.69.
In Monday’s trading session, the share price of the company opened at Rs.534.8 per share, 3.4 percent up from its previous close.
Va Tech Wabag Ltd
For the quarter ended June 2024, Va Tech Wabag Ltd reported consolidated revenue of Rs.626 crores, reflecting a 13 percent increase from Rs.553 crores in the same quarter last year. However, sequentially, revenue decreased by 33 percent from Rs.934 crores in Q4 FY24.
The company’s Profit After Tax (PAT) rose by 10 percent year-over-year to Rs.55 crores in Q1 FY25, up from Rs.50 crores in the June 2023 quarter. Despite this growth, PAT declined by 29.5 percent from Rs.78 crores in Q4 FY24.
Va Tech Wabag Ltd demonstrated strong financial performance with a Return on Capital Employed (ROCE) of 16.08 percent and a Return on Equity (ROE) of 13.5 percent. The company maintained a healthy current ratio of 1.76 and a low debt-to-equity ratio of 0.16.
In Monday’s trading session, the share price of the company opened at Rs.1,316.6 per share, 4.27 percent up from its previous close.
Written by – Siddesh S Raskar
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