VA Tech Wabag (WABAG) Q4 12/13 earnings summary

Executive summary

• FY13 delivered profitable growth despite weak global conditions: consolidated revenue rose 12% to Rs. 1,619 crore, EBITDA rose 19% to Rs. 155 crore, and PAT increased 22% to Rs. 90.34 crore.

• Highest-ever annual order intake of Rs. 2,155 crore lifted the 31 March 2013 order book to Rs. 4,284 crore, providing revenue visibility.

• Standalone PAT increased 20%; EPS rose 22%, and a 350% dividend was proposed.

Financial highlights

• Consolidated revenue was Rs. 1,619 crore versus Rs. 1,444 crore in FY12; reported growth was 12.12%.

• Consolidated EBITDA reached Rs. 154.86 crore versus Rs. 130.03 crore, up 19.23%; PBT was Rs. 135.19 crore versus Rs. 111.05 crore.

• Consolidated PAT was Rs. 90.34 crore versus Rs. 73.75 crore; basic EPS was Rs. 34.08 versus Rs. 27.90.

• Operating cash flow improved to Rs. 81.74 crore from an outflow of Rs. 92.60 crore; net cash position strengthened to Rs. 303 crore from Rs. 274 crore.

Outlook and guidance

• FY14 outlook was optimistic, with management expecting substantial order intake, supported by the order book, local market presence and emerging-market position.

• Long-term ambition: €1 billion revenue while preserving the asset-light model, liquidity and profitable growth.

• Strategic priorities include emerging economies, desalination and recycling, O&M/DBO/BOOT work, local alliances, decentralised operations and cost optimisation.