WPIL soars 10% on securing Rs 1,225 cr order from Madhya Pradesh Jal Nigam

Meanwhile, in the past one month, the stock of the industrial products company has zoomed 83 per cent after it reported robust December quarter (Q3FY23) results.

Shares of WPIL were locked at the 10 per cent upper circuit at Rs 2,038.85, hitting a new high on the BSE on Friday after the company announced the receipt of letter of acceptance (LoA) by the company from Madhya Pradesh Jal Nigam Maryadit for Rs 1,225 crore.

The stock surpassed its previous high of Rs 1,949, touched on February 21, 2023. The average trading volumes at the counter jumped over seven-fold today. Around 103,000 equity share changed hands and there were pending buy orders for 43,856 shares on the BSE. In comparison, the S&P BSE Sensex was up 1.4 per cent at 59,712.

WPIL said LoA is for execution of turnkey projects including engineering, procurement, construction, testing .commissioning and 10 years operation & maintenance of Bebus Sunar 2, Kutne Rajnagar, Lower Narmada and Mann Dam multi village schemes for a total value of 1225 crore to be completed in 24 month period.

Meanwhile, in past one month, the stock of the industrial products company has zoomed 83 per cent after it reported robust December quarter (Q3FY23) results, with profit after tax (PAT) jumping 459 per cent year-on-year (YoY) to Rs 83.70 crore on the back of strong revenue. In comparison, the S&P BSE Sensex was down nearly 2 per cent.

WPIL is engaged in the business of providing flow solutions from supply of pumps to turnkey project execution. In Q3FY23, the company’s revenue rose 106 per cent YoY to Rs 507.2 crore. Ebitda (earnings before interest, taxes, depreciation, and amortization) margins improved 732 bps to 20.9 per cent during the quarter.

The strong revenue growth was driven by international business and turnkey project business. International business revenues grew by 64 per cent YoY to Rs 239.6 crore. Turnkey projects revenues grew by 180 per cent YoY to Rs 254.3 crroe. The stabilisation of commodity prices supported margin improvement across all businesses.

The company said the business outlook is supported by the government's increased focus on the Jal Jeevan Mission. The nuclear business of Rutschi was encouraged by new reactor program announced by France. As on December 31, 2022, the company has an executable order book of Rs 3,345 crore.

The management said the international business is positively poised with healthy demand in the oil & gas segment and also the infrastructure projects across MENA region. Furthermore, the new reactors announced by EDF are a significant medium-term opportunity that the company aims to capture, the management said.