VA Tech Wabag (WABAG) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated revenue rose 16.24% to Rs 1,443.52 crore; PAT grew 40% to Rs 73.75 crore, while the closing order book reached Rs 3,731 crore.

• Standalone turnover exceeded Rs 1,000 crore for the first time, rising 36.81% to Rs 1,003.47 crore; standalone PAT increased 36% to Rs 75.12 crore.

• Order intake was Rs 1,774 crore; operations expanded with subsidiaries in the Philippines, Oman and Namibia, and two new BOOT projects.

Financial highlights

• Consolidated revenue was Rs 1,443.52 crore vs Rs 1,241.82 crore; EBITDA was Rs 130.04 crore vs Rs 121.03 crore, up 7.44% YoY.

• Consolidated PAT was Rs 73.75 crore vs Rs 52.57 crore, up 40%; reported consolidated profit had no exceptional item in FY12, versus Rs 12.86 crore in FY11.

• Standalone EBITDA rose 29.24% to Rs 115.42 crore; standalone PAT increased to Rs 75.12 crore from Rs 55.26 crore.

• Consolidated cash and cash equivalents ended FY12 at Rs 265.13 crore vs Rs 212.98 crore; net cash from operations was negative Rs 92.60 crore vs positive Rs 27.09 crore.

Outlook and guidance

• FY13 order prospects included Mumbai Sewage Disposal Project bids exceeding Rs 5,000 crore and repeat oil, gas and steel orders expected at around Rs 400 crore.

• Overseas subsidiaries were expected to book more than €125 million of orders in FY13; alliance-partner bids ranged from $200 million to over $1 billion.

• Municipal Business Group targeted 20% topline growth in FY13; O&M expected to contribute substantially to the order book, including seven-year Nemmeli O&M valued at Rs 500 crore.

• Management outlined a five-fold growth ambition over five years, supported by market expansion, asset-light investment, subsidiary profitability and selective acquisitions.