VA Tech Wabag gains after consortium with Muhibbah wins order from Petronas

VA Tech Wabag rose 3.73% to Rs 709.20 at 10:30 IST on BSE after company said Petronas awarded Rs 1500 crore effluent treatment plant order to Wabag's consortium with Muhibbah Engineering (M) Bhd.

The company made announcement after market hours yesterday, 2 September 2015.

Meanwhile, the BSE Sensex was up 242.37 points, or 0.95%, to 25,695.93.

On BSE, so far 19,010 shares were traded in the counter, compared with an average volume of 13,714 shares in the past one quarter.

Shares of mid-cap company hit a high of Rs 735.35 and a low of Rs 709 so far during the day. The stock hit a record high of Rs 970 on 17 March 2015. The stock had hit a 52-week low of Rs 617.20 on 28 April 2015.

VA Tech Wabag (Wabag) said that Malaysia's national oil and gas company, Petroliam Nasional Berhad (Petronas), through one of its wholly-owned subsidiary, on 1 September 2015, awarded the consortium of VA Tech Wabag and Muhibbah Engineering (M) Bhd, a contract for the design competition for Re-FEED and engineering, procurement, construction and commissioning of the Effluent Treatment Plant (ETP) for Petronas' Rapid (refinery and petrochemicals integrated development) project in Pengerang, Johor, Malaysia.

The contract was awarded by PRPC Utilities and Facilities Sdn. Bhd., a subsidiary under the Petronas Group of companies.

VA Tech Wabag will execute the project in partnership with Muhibbah Engineering, which has vast experiences in construction and infrastructure projects.

The contract value of the ETP is about Rs 1500 crore. The ETP will form part of the Rapid complex at Pengerang, Johor, in southern Malaysia.

The Rapid Project consists of a world scale integrated site which includes refining activities and petrochemicals production.

On consolidated basis, VA Tech Wabag reported net loss of Rs 9.88 crore in Q1 June 2015 as against net profit of Rs 10.17 crore in Q1 June 2014. Total income rose 12.6% to Rs 456.52 crore in Q1 June 2015 over Q1 June 2014.

VA Tech Wabag is a leading multinational company specialized in water and waste water management.

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