VA Tech Wabag rises on strong Q2 earnings

The order backlog for the company now stands at Rs 4,025 crore.

VA Tech Wabag has surged 8% to Rs 515 after reporting almost three-fold jump in its consolidated net profit at Rs 17.69 crore for the quarter ended September 2012 on back of higher revenue from international business. The company engaged in water and water management had profit of Rs 6.92 crore in a year ago quarter.

The company’s net sales grew 31% at Rs 347 crore in September quarter against Rs 265 crore in previous year quarter, VA Tech Wabag said in a statement.  EBITDA or operating profit margin has improved substantially from 6.11% to 9.24% during the recently concluded quarter.

The company has booked more than Rs 260 crore of fresh orders intakes during the quarter taking the total order intake of the company for the current year to over Rs 860 crore.

“Our strong order pipeline and current order backlog of Rs 4,025 crore, give us a very good visibility for the next two years,” said Rajiv Mittal, managing director of the company.

The stock opened at Rs 501 and hit a 52-week high of Rs 529 on the NSE. A combined 86,336 shares have changed hands on the counter so far on both the exchanges.