Summary: VA Tech Wabag won a ₹2,332 crore order for a 300 MLD desalination plant in Saudi Arabia. FY25 results showed order book growth of 19%, revenue of ₹3,294 crore, and PAT up 20.2%, with shares gaining 4.5% post-announcement.
Indian equity benchmarks slipped slightly in early Thursday trading as weakness in IT stocks, driven by demand uncertainty, outweighed optimism surrounding a possible free-trade agreement with the UK.
By 10:34 a.m. IST, the Nifty 50 had eased 0.17% to 25,179.65, while the BSE Sensex declined 0.2% to 82,559.8. Most of the sectoral indices traded in the red, with the IT index leading losses, down 1.7%.
VA Tech Wabag Limited received a Letter of Award from the Saudi Water Authority for a 300 MLD mega seawater desalination plant in Yanbu, Saudi Arabia.
VA TECH WABAG Limited (WABAG), a prominent Indian multinational specialising in water technology, has announced the receipt of a Letter of Award for a significant 300 Million Liters per Day (MLD) Sea Water Reverse Osmosis (SWRO) Mega Desalination Plant project in Yanbu, Kingdom of Saudi Arabia. The contract is valued at approximately $272 million, which translates to SAR 1,019 million or ₹2,332 crores.
The project, awarded by the Saudi Water Authority (SWA), involves the comprehensive scope of design, engineering, supply, construction, and commissioning of the desalination plant. This greenfield development will be located along the west coast of the Kingdom of Saudi Arabia. While the Letter of Award has been received, the contracting formalities are set to commence, with the effective date for the execution's start to be announced post-contract signing. The execution period for the project is 30 months from the effective date.
This prestigious project aligns with and contributes to the ambitious goals of Saudi Vision 2030, further solidifying WABAG's global leadership in the desalination sector.
For FY25, the company reported an order book of ₹13,666.7 crore, reflecting a 19% year-on-year growth. Revenue for the fiscal year stood at ₹3,294 crore, up 15.3% from the previous year, while EBITDA grew 14.2% to ₹430.2 crore. Net profit (PAT) increased by 20.2% to ₹295.3 crore.
In Q4 FY25, revenue rose 23.8% year-on-year to ₹1,156.2 crore, supported by a 21.9% rise in EBITDA to ₹140.8 crore. PAT for the quarter stood at ₹99.5 crore, marking a growth of 37.4% compared to the same period last year.
On Thursday, VA TECH WABAG share price surged over 4.5% on an intraday basis as the company secured a letter of award from the Saudi Water Authority to establish a 300 MLD mega seawater desalination plant. As of 10:41 am IST, the stock price was trading at ₹1,608.70 per share, up by 1.04%.
On a year-to-date basis, the stock price has given 9.80% returns while in the last 12 months it has surged over 87%. In the longer period of 5 years, it has seen a jump of 1,379%.
Disclaimer: The article is for informational purposes only and not investment advice.
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