VA Tech Wabag (WABAG) Q4 13/14 earnings summary

Executive summary

• FY2013-14 was a record year for order intake at ₹3,354 crore; consolidated revenue rose 38% YoY to ₹2,239 crore and PAT rose 26% to ₹113 crore.

• The firm order book increased 25% to ₹5,354 crore at March 31, 2014, supporting execution visibility over the next two and a half years.

• Growth came amid global uncertainty and currency volatility, with stronger European and emerging-market activity helping offset pressure.

Financial highlights

• Consolidated revenue was ₹2,239 crore versus ₹1,619 crore in FY2012-13; EBITDA was ₹188.5 crore versus ₹154.02 crore.

• Consolidated PBT was ₹166.2 crore versus ₹135.19 crore; PAT was ₹113.35 crore versus ₹90.34 crore.

• Consolidated EPS rose 25% to ₹42.61 from ₹34.08; net worth reached ₹841 crore, up 18% YoY.

• Standalone turnover increased 9% to ₹1,152 crore; EBITDA was ₹141 crore versus ₹139 crore, while net profit was ₹88.58 crore versus ₹90.11 crore.

• Consolidated operating cash flow was ₹112.41 crore versus ₹81.74 crore; closing cash and cash equivalents were ₹330.38 crore.

Outlook and guidance

• Management raised earnings guidance during the year and targeted €1 billion revenue over the next few years; expected acquisition contribution was moderated to 10%-15% of the target.

• International India-backed units were expected to contribute substantially to revenue, supporting global growth, margin improvement and reduced reliance on India.

• Priorities include larger, funded, technically complex projects; Latin American expansion; and growth in higher-margin O&M and refurbishment services.

• The 191 MLD Al Ghubra desalination project in Oman was progressing well and expected to be completed in FY2014-15.