The Debt has now become negligible. It is a circuit stock for the time being. In terms of valuation, it trades at 131 P/E. The sales numbers are steady, but unlike its run in the early 2010’s, the market is much more fragmented.

Quite a high valuation, the sector however is touted to outperform.

Disc: Not Invested, looking for good entry point

VA Tech Wabag has announced its financial results for the quarter and half-year ending September 30, 2023, reporting impressive figures:

Sales and Profitability:

• Consolidated Revenue from operations: Rs. 12,178 million
• Consolidated EBITDA: Rs. 1,636 million (13.4% increase)
• Consolidated Profit After Tax (PAT): Rs. 1,102 million (43% YoY increase)
• Standalone Revenue from operations: Rs. 11,134 million
• Standalone EBITDA: Rs. 1,534 million (13.8% increase)
• Standalone PAT: Rs. 1,011 million (70% YoY increase)

Order book:

• Order Intake: Rs. 13.17 billion
• Order Book: Rs. 121 billion, including Framework contracts

Mr. Rajiv Mittal, Chairman & Managing Director of VA TECH WABAG LIMITED, expressed confidence in their growth trajectory, emphasizing a focus on industrial, international, and multilaterally funded projects. Their strong order book position and commitment to sustainable, profitable growth with a positive cash flow are expected to continue in the second half of the financial year.

Looks good results.
Other Income has jumped from 9 to 18 Cr, OPM has improved to about 30% from 27% Y-o-Y, Tax % has reduced from 30% to 27%.
Also, on Yearly basis Net Profits are up by 22% at TTM level.
Inflation related pressure on margins is now under control, and may continue to reduce further in FY24.

VA TECH WABAG has secured a consortium order for a significant water treatment project in Tunisia. Here are the key details:

• The project is a consortium Design, Build, Operate (DBO) order worth approximately 215 million Tunisian Dinars (about EUR 63 Million).
• It is for a 345 MLD Bejaoua Drinking Water Treatment Plant in Tunisia.
• The order has been awarded by Societe Nationale D’exploitation Et De Distribution Des Eaux (SONEDE).
• The project is funded by the French Development Agency (AFD) and European Investment Bank (BEI).
• It will be executed over 30 months, followed by a 12-month operation and maintenance period.
• WABAG’s scope under this order includes Engineering & Procurement (EP) and Operation & Maintenance (O&M).
• This project will strengthen WABAG’s market position in North Africa, where they have a strong track record.
• The project involves modern and compact Lamella Clarifiers, installation, commissioning, and a one-year O&M period.
• WABAG will be the leader of the consortium, with Entreprise Gloulou Mohamed et Salem (EGMS) as the partner responsible for all civil works.
• This project is expected to enhance water security in Tunisia significantly.

I am interested in meeting