Va tech Wabag posted net loss of Rs 9.88 crore in Q1FY16

VA Tech Wabag (VTWL) recently announced its June 2015 quarter result. The revenue of the company  boosted by 13.83 per cent to Rs 457 crore in Q1FY16 as compared to same period in previous financial year. Its total expenditure increased by 16.73 per cent to Rs 444 crore in Q1FY16 on yearly basis. VTWL's total expenditure increased mainly due to a 15.4 per cent increment in raw material prices in Q1FY16 on yearly basis.

VTWL's EBITDA declined by 40 per cent to Rs 12.3 crore in Q1FY16 compared to the same period in previous fiscal year. The company's EBITDA margin contracted by 242 basis points to 2.69 per cent in Q1FY16 on yearly basis. Its EBIT decreased by 58.12 per cent to Rs 7.19 crore in Q1FY16 on yearly basis as depreciation expense increased by 53.45 per cent to Rs 5.11 crore during the quarter. VTWL  witnessed loss before tax of Rs 21 lakh in Q1FY16 against PBT of Rs 15.64 in Q1FY15 as interest expense increased by 383.66 per cent to Rs 7.4 crore during the quarter. The company posted net loss of Rs 9.88 crore in Q1FY16 while it had net profit of Rs 10.17 crore in Q1FY15.

Considering geographic segment wise revenue VTWL earned 45 per cent from the India segment and remaining 55 per cent from the Rest of World segment in June 2015 quarter. The revenue from Indian segment increased by 120.86 per cent to Rs 209.49 crore in Q1FY16 on yearly basis. The revenue from the Rest of World decreased by 20.21 per cent to Rs 258.11 crore in Q1FY16 on yearly basis.

VTWL's shareholding pattern indicates that FII holdings contracted by 120 basis points to 28.85 per cent and DII holdings also contracted by 58 basis points to 21.24 per cent in June 2015 quarter. The share price of the company tumbled by 9.59 per cent and trading at Rs 735.15 on intraday basis.

VTWL had an order intake of more than Rs 1000 crore from International geographies during the June 2015 quarter. The company's total order book stood at Rs 7631 crore including framework contracts of Rs 1542 crore as of Q1FY16.

VTWL is one of the world’s leading companies in the water treatment field. The company has exposure towards plant building, design, completion and operation of drinking water and wastewater plants for both the municipal and industrial sectors. It operates in Europe, Far East Asia, near and around Middle East, and the African regions. VTWL operates in three business units namely Municipal Business Group (MBG), Industrial Water Group (IWG) and Operation Business Group (OBG). MBG caters to the water and waste water treatment solutions of municipalities, which also operates and maintains plants built by sectoral peers. IWG provides water management solutions for demineralization plants, reverse osmosis plants and CPU plants, which are used by various industries, which include steel, petrochemical, fertilizers and power. OBG is responsible for operating and maintaining water treatment plants within India and abroad.