VA Tech Wabag rallies 9% after it bags new order worth Rs 4,400 crore

As of December 31, 2022, VA Tech Wabag has an order book of over Rs 10,000 crore, that includes framework contracts, with 3 times revenue visibility

Shares of VA Tech Wabag rallied 9 per cent to Rs 366 in Friday’s intra-day trade amid heavy volumes, after the company bagged order worth Rs 4,400 crore from Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB).

At 12:35 pm; VA Tech Wabag traded 7 per cent higher at Rs 358.60, as compared to 1.5 per cent rise in the S&P BSE Sensex. The average trading volumes on the counter nearly doubled as around 1.2 million shares changed hands on the NSE and BSE.

The company said that it secured a design, build, and operate (DBO) order, for 400 million litres per day (MLD) sea water reverse osmosis (SWRO) desalination project. The project is scheduled to be executed under the leadership of WABAG in a joint venture with Metito Overseas Limited (Metito).

On March 17, 2023, VA Tech Wabag secured an order worth Rs 800 crore towards DBO for reconstruction, expansion, and operation of Pagla Sewage Treatment Plant (STP), with a capacity of 200 MLD at Pagla in the City of Dhaka, Bangladesh for Dhaka Water Supply & Sewerage Authority (Dhaka WASA).

As on December 31, 2022, VA Tech Wabag has an order book of over Rs 10,000 crore that includes framework contracts, which has around 3x revenue visibility.

"The company continued to be well-placed in few large desalination and waste water treatment orders which is expect to realize soon. The company is also on track to continue being cash positive by end of the financial year," the management added.

So far in March, the stock rallied 19 per cent, as compared to 0.28 per cent decline in the S&P BSE Sensex. It had hit a 52-week high of Rs 374.90 on December 12, 2022.