VA Tech Wabag Limited — PPTs, 21-05-2025: Investor Presentation

1. Financial Highlights:

VA Tech Wabag posted consolidated revenue of INR 3,294 Cr in FY25, up 15.3% YoY. EBITDA grew 14.2% to INR 430 Cr with steady margins at 13.1%. Profit after tax rose 20.2% to INR 295 Cr, aided by operating leverage and debt management. The company remained net cash positive at INR 71 Cr (excluding HAM projects) for the ninth consecutive quarter, supported by strong operating cash flow of INR 355 Cr. Return on Capital Employed was healthy at 18.4%. The order backlog increased 19% to INR 1,367 Cr, ensuring solid revenue visibility.

2. Strategic Initiatives & Growth Drivers:

Wabag is focusing on digitalization and green technologies including biogas-to-CBG plants through partnerships, AI-driven operational intelligence, and expanding desalination and water reuse ventures. Increased investments target municipal infrastructure via a potential equity partnership with investor consortiums. Its asset-light model and growing operations & maintenance business, which accounts for 18% of revenue, fuel sustainable growth.

3. Business Developments:

Recent wins include a 400 MLD desalination plant in Perur, Chennai, a 200 MLD ISTP in Saudi Arabia, and multiple municipal O&M contracts such as Agra and Ghaziabad. The company continues to secure large EPC and DBO projects domestically and globally, strengthening its footprint in industrial and municipal water markets. Strategic alliances with water tech startups and AI integration highlight innovation momentum.

4. Market Position & Competitive Advantage:

One of the world’s largest private water operators, Wabag has a presence in 25+ countries with 1,600+ employees. Its strong order book, proprietary technologies (125+ IPs), global R&D, and diversified project mix underpin leadership in municipal and industrial segments. The asset-light EPC+O&M model, sustainability emphasis, and integrated lifecycle services provide a competitive moat and scale advantages.

5. Investor Implications:

Robust top-line growth, margin expansion, solid cash flows, and a healthy order book point to positive growth potential. Strategic focus on sustainability, technology, and municipal capital projects supports medium-term earnings visibility. Investors should watch execution risks on large orders and equity partnership developments. Overall, fundamentals suggest steady value creation and enhancement of shareholder returns, supported by a proposed dividend of INR 4 per share.