New order boosts VA Tech Wabag

VA Tech Wabag rose 1.11% to Rs 564 at 11:28 IST on BSE after the company said it has won a repeat order from Bangalore Water Supply and Sewerage Board for a value of around Rs 250 crore.

The new order was announced before market hours today, 14 January 2014.

Meanwhile, the S&P BSE Sensex was down 77.58 points or 0.37% at 21,056.63.

On BSE, so far 318 shares were traded in the counter as against average daily volume of 8,423 shares in the past one quarter.

The stock hit a high of Rs 571.75 and a low of Rs 564 so far during the day. The stock had hit a 52-week high of Rs 587.85 on 17 January 2013. The stock had hit a 52-week low of Rs 380.65 on 30 July 2013.

The stock had outperformed the market over the past one month till 13 January 2014, advancing 4.84% compared with the Sensex's 2.02% rise. The stock had also outperformed the market in past one quarter, jumping 15.62% as against Sensex's 2.95% rise.

The small-cap company has equity capital of Rs 5.31 crore. Face value per share is Rs 2.

VA Tech Wabag said that the scope of order from Bangalore Water Supply and Sewerage Board (BWSSB) comprises of design and construction of 90 MLD waste water treatment plant at Bellandur Amanikere, Karnataka with operation and maintenance (O&M) for a period of 7 years. The project is funded by Japan International Cooperation Agency (JICA), the company said in a statement.

Commenting on this development, Mr. S Natrajan, Sales Head, VA Tech Wabag said, "We are delighted to get this repeat order from BWSSB, one of our key clients in municipal sector. We continue to enjoy customer confidence of Municipal clients based on our proven track record and execution capability".

Currently Wabag is executing a WWTP project at K&C Valley for BWSSB which is also funded by JICA. In addition, Wabag has been operating and maintaining five WWTPs in and around Bangalore, the company said in a statement.

VA Tech Wabag's consolidated net profit declined 1.5% to Rs 17.42 crore on 33.9% growth in net sales to Rs 464.55 crore in Q2 September 2013 over Q2 September 2012.

The WABAG Group acts as a systems specialist and full service provider with a focus on the planning, installation and operation of drinking and waste water plants for local government and industry in the growth markets of Asia, North Africa, Middle East, the Central and Eastern Europe states.

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