“Wastewater Giant Surges 10% on ₹121 Cr Bahrain Deal for Water Treatment”

This Water Management stock which deals in the business of designing, supplying, installing, constructing, and managing operations related to drinking water, industrial water treatment, wastewater treatment, and desalination plants up by 10 percent after receiving an order from the Kingdom of Bahrain for a Treatment Plant worth Rs. 121 crore.

Share Price Movement

In the trading session on Wednesday, the price of Taich Wabag share increased by 10 percent to hit the day’s high of Rs 1,335.20. The stock bounced back from the day’s high and was trading at Rs 1,317.40, up 8.66 percent from its previous closing price of Rs 1,212.45 per share.

In the last one year, the stock has returned almost 103 percent and has outperformed the Nifty indices.

What Happened

The company’s share reached a high when it received an order of $14 million or approximately Rs 121 crore from an overseas company for BAPCO Refining industrial wastewater treatment plant. The company has to be involved in the operation and management (O&M) of an overseas industrial wastewater treatment plant for a period of 7 years.

Management Announcement

Commenting on the order victory, General Manage Shrinivasan K. of Middle East Regional Headquarters said, “We are very happy to achieve this order of operating industrial wastewater treatment plants in the outer society. We express our gratitude to the children for their trust and faith in us.

This order victory is a proof of our technological progress and our unshakable commitment to provide world class water solutions to the oil and gas regions on a global level.”

Financials

In its latest filing for the quarter ending September 2024, the company recorded a growth of 5.26 per cent in revenue, which rose to Rs 700 crore as against Rs 665 crore in Q2FY24. During the same period, net profit grew by 16.66 per cent to Rs 70 crore in Q2FY25 as against Rs 60 crore in Q2FY24.

Order Book & Revenue Guidance

The total order book till September 2024 is more than Rs 14,600 crore, which includes 9 PRICE projects and remaining 41 PRICE projects. The revenue growth is expected to increase by 15 to 20 PRICEs in the next three to five years. The revenue growth is estimated to increase by 13 to 15 PRICEs in the same period.

Company Profile

VA Tech Wabag is a water management company specializing in water treatment and desalination solutions. The company was founded in 1995 and offers comprehensive services for municipal and industrial clients globally.