VA Tech Wabag shines on new order

VA Tech Wabag (VTWL) in consortium with IDE Technologies secured Rs 594 crore order from Chennai Metropolitan Water Supply and Sewage Board (CMWSB). The company has bagged the contract for construction,Operation & Maintenance (O&M) of 45 Million Litres per Day (MLD) tertiary treatment plant at Koyambedu, Chennai.

The project value consists of Engineering Procurement and Construction (EPC); and O&M portion as Rs 396 crore and Rs 198 crore respectively, for 15 years. CMWSB’s project will adopt a state of art ultra-filtration and reverse osmosis technology to treat the secondary domestic waste water for providing a consistent quality of water to various industries.

The project is a decisive step in the direction of domestic waste water recycling. The new project will create alternate sources of water wherein treated water from Koyambedu Sewage Water Treatment Plant will be recycled and conveyed to various industries at Irungattukoattai, Sriperubudur and Oragadum through a pipeline of approximately 72 km.

On financial front, VTWL’s order book stands at Rs 3356 crore in 9MFY16. Out of the total order book 40.38 per cent is derived from domestic projects while 59.62 per cent from domestic and international projects.

The share price of VTWL increased by 6.23 per cent on bourses in early trades; and is trading at Rs 463.4 on an intraday basis. The share price of the company is trading at discount of 52.72 per cent from its 52 week high price of Rs 970.

VTWL is in the business of water treatment field. The company's principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. Its Industrial Water Group (IWG) offers water management solutions for steel, petrochemicals, fertilizers, oil and gas, and power industry, among others. VTWL‘s Operations Business Group (OBG) operates and maintains more than 70 water, and waste water treatment plants.