VA Tech Wabag: Q1FY15 Result Analysis
Gaurav Girdhar / 12 Aug 2014
India’s largest water-treatment company, VA Tech Wabag (VA Tech) reported its first quarter (April-June) earnings wherein the profit of the company more than tripled from the corresponding quarter of last year helped by higher sales in domestic and international markets like Turkey.
The revenue for VA Tech in the first quarter rose by 40% to Rs 401 crore from Rs 286 crore in the same quarter last year. “The new government in India has shown keen interest in the water sector and I am confident that VA Tech Wabag with its inherent skills and executional capabilities is well-placed to capture a large share of the upcoming water-treatment business in the country,” Managing Director, Rajiv Mittal said in the statement.
EBITDA of the company went up by 3.6% on yearly basis to Rs 20.5 crore, however, EBITDA margin declined by 180 basis points to 5.11% due to higher raw material cost. The cost of raw material consumed for the company rose from 69% of net sales at the end of Q1FY14 to 75% of net sales at the end of Q1FY15.
As on 30 June, 2014, the order book of the company stood at Rs 6350 crore including Framework Contracts of Rs 1330 crore. VA Tech saw its profit after tax jumping by 260% on yearly basis to Rs 10.2 crore against Rs 2.8 crore. This was helped by better sales growth, and forex gain of Rs 4.3 crore from loss of Rs 7.2 crore in the corresponding quarter last year.
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