Shares of VA Tech Wabag Limited, a leading water treatment company, rose by as much as 13.4% to ₹1,550 each on the NSE on Monday, February 10, 2025, after the company announced strong results for the December quarter (Q3 FY25). The news of a big order win also supported the stock's rise.
Solid financial performance in Q3 FY25
In the December quarter, VA Tech Wabag posted a profit after tax (PAT) of ₹70.2 crores, an 11.6% rise compared to last year. The company's EBITDA went up by 6.3%, reaching ₹105.1 crores.
However, the EBITDA margin dropped to 13% from 14% in the same quarter last year. Revenue increased by 15.1% year-on-year, amounting to ₹811 crores. These results show the company is performing well and continuing to grow.
Big jump in order intake and revenue growth
VA Tech Wabag saw a massive rise in order intake, which increased by 525.4% year-on-year to ₹2,781.3 crores in the December quarter. For the nine months ending December 2024, the total order intake reached ₹5,075 crores, a rise of 188.1% compared to last year. Revenue for the period also grew by 11.2% to ₹2,137.8 crores, with EBITDA up by 10.8% to ₹289.4 crores and PAT rising 13.2% to ₹195.8 crores.
These numbers show the company's strong growth across multiple areas.
Big order win in Saudi Arabia
VA Tech Wabag also secured a major order worth USD 371 million (around ₹3,251 crores) from Al Haer Environmental Services Company in Riyadh, Saudi Arabia. The order is for building a 200 MLD (megaliters per day) Independent Sewage Treatment Plant (ISTP), part of Saudi Arabia's Vision 2030 project. This win helps VA Tech Wabag strengthen its presence in the Middle East, making it appealing for those looking to invest in stocks.
Should you invest in stocks of VA Tech Wabag?
If you are looking to invest in stocks, VA Tech Wabag might be an attractive option. With a 110% rise in share price over the past 12 months, the company's strong financial results and growing order book suggest that it could continue to perform well. Those interested in long-term growth may find the company's stock appealing. On February 10, 2025, at 1:45 PM, the stock was trading at ₹1,401.15 per share.
Moreover, if you are considering how to invest in stocks with strong growth potential, VA Tech Wabag could be worth a closer look.
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