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Va Tech Wabag climbs after Q1 result

Capital Market 

Va Tech Wabag rose 1.85% to Rs 212.10 after the company's consolidated net profit surged 687.5% to Rs 5.04 crore on 5.6% decline in net sales to Rs 430.87 crore in Q1 June 2020 over Q1 June 2019.

Consolidated profit before tax (PBT) dropped 20% to Rs 7.34 crore in Q1 June 2020 as against Rs 9.18 crore in Q1 June 2019. Current tax expense for the quarter slumped 79.9% at Rs 1.66 crore from Rs 8.27 crore in Q1 June 2019, which boosted net profit.

The order book during Q1 FY20-21 stood at Rs 11,117 crore including framework contracts. The order intake was at Rs 442 crore during the quarter. Consolidated EBITDA during Q1 FY21 stood at Rs 29 crore while EBITDA margin was at 6.7%.

Commenting on the Q1 results, Rajiv Mittal, the managing director of Va Tech Wabag, has said: "In a quarter marred by the COVID pandemic, Wabag contributed its share to ensure water security and we are extremely proud of our COVID warriors for the same. We are now in the phase of progressive resumption of site activities to achieve full capacity at the earliest. I am also happy to note that in this tough economic environment we have been able to secure a major order of 48 million USD towards building a 300 MLD STP at Jeddah, KSA, further strengthening our growing presence in the Middle East."

The scrip has risen 190.54% from its 52-week low of Rs 73 hit on 7 April 2020.

VA Tech Wabag designs and builds water and sewage treatment plants. The company constructs sewage treatment, processed and drinking water treatment, effluents treatment, sludge treatment, desalination and reuse plants. It serves municipalities and customers in the power, steel, and oil and gas industries.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, September 16 2020. 11:12 IST