India’s water supply and management sector faces significant challenges, with a projected demand for water expected to double by 2030. Currently, approximately 600 million people lack access to safe drinking water, while the market for water and wastewater treatment is anticipated to grow from $1.31 billion in 2020 to $2.08 billion by 2025
With a market capitalization of Rs 9,011.08 crore, the shares of VA Tech Wabag Ltd were trading at Rs 1,448.10 per share, decreasing around 2.26 percent as compared to the previous closing price of Rs 1,481.65 apiece.
Matter Explanation
As of December 2024, an FII, Vanguard Total International Stock Index Fund, part of the Vanguard Group bought fresh 622,427 equity shares which are equivalent to 1 percent of the company.
Key projects
The company secured a 400 MLD seawater reverse osmosis (SWRO) project in Perur, valued at approximately Rs 4,400 crore. It is also executing a Rs 1,187 crore project under the Namami Gange Programme for a 150 MLD sewage treatment plant and 453 km sewerage network in Patna.
Other key projects include a 200 MLD sewage treatment plant in Pagla, Bangladesh, and an effluent treatment plant for Saudi Aramco in Ras Tanura. These large-scale projects underscore the company’s growing footprint in water treatment infrastructure, both domestically and Internationally.
Trusted Clients
The company has strong clients including municipal organizations like CIDCO, BUIDCO, Delhi Jal Board, Dhaka Wasa, and Uttar Pradesh Jal Nigam, along with industrial giants such as Reliance, ONGC, Petronas, Indian Oil, NMDC, and Pepsico. The company boasts over 125 IP rights and R&D centers in India and Europe.
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Management guidance
Management anticipates a CAGR revenue growth of 15-20% from FY27 to FY29, with EBITDA margins between 13%-15%. The order book is expected to be three times revenue, focusing on 50%+ international projects and 20% of total revenue from O&M while remaining asset-light.
New Initiatives
In FY24, the company formed a strategic partnership with Peak Sustainability Ventures to establish 100 Bio-CNG plants across India, the GCC, Africa, and Europe, with a potential value of ~$200 million. Additionally, it launched “BLUE SEED” to support and invest in early-stage water technology start-ups.
Company profile
Va Tech Wabag Ltd operates in the water treatment industry. Its primary responsibilities include the design, supply, installation, building, and operation of drinking water, wastewater, industrial water, and desalination plants.
Written by Abhishek Singh
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