VA Tech Wabag Limited — PPTs, 22-05-2025: Investor Presentation

1. Financial Highlights:

VA Tech Wabag reported FY25 revenue of INR 3,294 Cr, up 15.3% YoY. EBITDA grew 14.2% to INR 430 Cr, with a margin of 13.1%. PAT rose 20.2% to INR 295 Cr, driven by margin expansion and disciplined debt management. RoCE improved to 18.4% and RoE to 14.9%. The company holds a strong net cash position of INR 706 Cr (excluding HAM projects) and maintains operational efficiency with net working capital days at 110. The order backlog remains robust at INR 1,367 Cr, providing solid revenue visibility.

2. Strategic Initiatives & Growth Drivers:

Wabag is focusing on increasing its O&M business to 20% of revenues, emphasizing an asset-light model to boost RoCE. It invests in advanced technology, digitalization, and R&D around sustainable solutions like zero liquid discharge and waste-to-energy. Major capex targets large-scale desalination and municipal wastewater projects, implemented through a “Glocal” hub-and-spoke approach. Collaboration with investor groups aims to tap municipal capital investments.

3. Business Developments:

The company secured new orders worth INR 570 Cr across India, the Middle East, and Africa. Significant projects underway include the 400 MLD Perur Desalination plant and 200 MLD Pagla STP in Bangladesh. Expansion into GCC and Central Asia is underway via strategic hires and alliances. Operational strength is highlighted by O&M contract completions, including a 5-year Bahrain plant contract with 100% availability.

4. Market Position & Competitive Advantage:

Wabag stands as a global leader serving 25+ countries with over 1,500 plants executed. Its competitive edge stems from proprietary technologies, an asset-light model, diversified project portfolio (municipal, industrial, desalination), and robust execution capabilities. Recent long-term credit rating upgrades to AA-/Stable emphasize financial discipline and operational excellence.

5. Investor Implications:

The company shows positive growth potential supported by a healthy order book, improving margins, and steady net cash generation. Growth in O&M and entry into emerging markets could enhance recurring revenues and RoCE. Execution risk on large projects and geographic expansion remains a factor to watch. The proposed dividend reflects balanced capital allocation between shareholder returns and growth funding.