Water.pdf (1.9 MB)
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I have posted it here
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This business is highly govt funding linked, Domestic (state & central) and Foreign (Africa mostly i think) funded through Exim/world bank, etc. Hence WC intensive. Also tracking debtors & its ageing are critical. Lot of liabilities/obligations hidden as Bank Guarantees which doesnât show as debt but as contingent liabilities. Pls add these to debt when analysing debt ratios.
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that I am not aware, it was posted by someone else in thiorum, I donât have any clue.
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VA TECH WABAG has secured a consortium order for a significant water treatment project in Tunisia. Here are the key details:
- The project is a consortium Design, Build, Operate (DBO) order worth approximately 215 million Tunisian Dinars (about EUR 63 Million).
- It is for a 345 MLD Bejaoua Drinking Water Treatment Plant in Tunisia.
- The order has been awarded by Societe Nationale Dâexploitation Et De Distribution Des Eaux (SONEDE).
- The project is funded by the French Development Agency (AFD) and European Investment Bank (BEI).
- It will be executed over 30 months, followed by a 12-month operation and maintenance period.
- WABAGâs scope under this order includes Engineering & Procurement (EP) and Operation & Maintenance (O&M).
- This project will strengthen WABAGâs market position in North Africa, where they have a strong track record.
- The project involves modern and compact Lamella Clarifiers, installation, commissioning, and a one-year O&M period.
- WABAG will be the leader of the consortium, with Entreprise Gloulou Mohamed et Salem (EGMS) as the partner responsible for all civil works.
- This project is expected to enhance water security in Tunisia significantly.
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VA Tech Wabag has announced its financial results for the quarter and half-year ending September 30, 2023, reporting impressive figures:
Sales and Profitability:
- Consolidated Revenue from operations: Rs. 12,178 million
- Consolidated EBITDA: Rs. 1,636 million (13.4% increase)
- Consolidated Profit After Tax (PAT): Rs. 1,102 million (43% YoY increase)
- Standalone Revenue from operations: Rs. 11,134 million
- Standalone EBITDA: Rs. 1,534 million (13.8% increase)
- Standalone PAT: Rs. 1,011 million (70% YoY increase)
Order book:
- Order Intake: Rs. 13.17 billion
- Order Book: Rs. 121 billion, including Framework contracts
Mr. Rajiv Mittal, Chairman & Managing Director of VA TECH WABAG LIMITED, expressed confidence in their growth trajectory, emphasizing a focus on industrial, international, and multilaterally funded projects. Their strong order book position and commitment to sustainable, profitable growth with a positive cash flow are expected to continue in the second half of the financial year.
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Va Tech Wabag is to receive Rs 140 Cr which was a long pending issue
e3162352-9d89-4bbf-98e1-cb670fe004b4.pdf (1.4 MB)
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VA Tech Wabag notified about a recent development in an arbitration case related to a contract with the Telangana State Power Generation Corporation Limited (TSGENCO).
Hereâs what happened:
- There was an arbitration proceeding led by an arbitrator named Honâble Justice (Retd.) Madan B. Lokur. This arbitrator was appointed by the Supreme Court of India.
- The arbitratorâs decision favored TSGENCO, VA Tech Wabag Limited (WABAG), and Gammon Engineers and Contractors (P) Limited (GAMMON). They argued that Tecpro Systems Limited (TECPRO), another consortium member in the contract, couldnât initiate arbitration against TSGENCO without the agreement of the other consortium members.
- The arbitrator ruled that TECPROâs claims against TSGENCO were rejected, and the arbitration proceedings against WABAG and GAMMON were not allowed. TECPRO didnât claim any relief against WABAG or GAMMON.
- This arbitration was about a dispute that arose from the contract between TSGENCO and a consortium of TECPRO, WABAG, and GAMMON. TECPRO initiated the arbitration without the consent of the other consortium members, which violated their consortium agreement.
- As a result of this decision, WABAG, as the leader of the consortium, is entitled to receive around INR 140 Crores (Indian Rupees 140 Crores) that was held by TSGENCO during the arbitration proceedings.
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Any idea on why quarterly revenue has been coming down since last 2 quarters? This stock looks good in long term if they play their technology provider.
They have sold off their European operations last year as per their strategy to move away from regions with lower profit margins. This has helped improve EBITDA margins, but due to lower sales the profits have lowered. However, there are many new projects they have received and sales and earnings both are expected to bounce back strongly
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Those tracking Va Tech, can you please tell the difference between EMS Ltd and Va Tech from the business offering perspective ? Wondering why EMS have such higher margin compared to Va Tech?
Although very difficult to say as limited information is available about EMS Ltd. due to its recent listing, it seems it is executing some different kind of projects compared to Wabag Ltd., otherwise Wabad would definitely look at such projects offering 30% kind of margins. All such projects are tender based.
Another reason may be the revenue mix of EMS Ltd. is different. Apart from EPC revenues, ther emight be other streams offering higher margins.
Bank guarantees are not debt. They are at best penalties that come into effect when the obligations are not fulfilled in line with agreed terms and targets are.missed. Such encashment generally happens in very extreme cases, in other words - seldom encashed.
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Any update on the Mumbai Seawater desalination tender floated by BMC? If Wabag is allotted the project, that would be very big positive.
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