VA Tech Wabag (WABAG) Q4 15/16 earnings summary

Executive summary

• Record order intake of ₹5,140cr lifted the year-end order book to ₹7,308cr, supporting future execution despite subdued markets.

• Consolidated revenue rose 5% YoY to ₹2,548.6cr and EBITDA rose 8% to ₹224.7cr, while PAT fell to ₹92.8cr from ₹110.5cr, mainly amid working-capital pressure.

• Organisational realignment into India, Europe, MEA and LATAM clusters aimed to improve synergies and support the long-term €1bn revenue ambition.

Financial highlights

• Consolidated revenue was ₹2,548.57cr in FY16 vs ₹2,435.15cr in FY15; consolidated EBITDA was ₹224.65cr vs ₹209.47cr.

• Consolidated PAT was ₹92.82cr vs ₹110.46cr; standalone revenue rose 23% to ₹1,513.43cr, EBITDA increased to ₹206.07cr from ₹149.26cr, and PAT reached ₹117.43cr.

• Consolidated order intake reached a record ₹5,140cr; order book at March 31, 2016 was ₹7,308cr.

• Operating cash flow was negative ₹256.6cr on a consolidated basis, reflecting working-capital needs; operating cash flow was negative ₹14.7cr standalone.

Outlook and guidance

• Year-end order book of ₹7,308cr underpinned expected revenue inflow in coming years; no numerical FY17 earnings guidance was stated.

• Long-term ambition remained €1bn revenue, with cluster realignment intended to expand the global footprint, improve collaboration and support profitable growth.

• Opportunities cited in India include Namami Gange, Smart Cities, Swachh Bharat, desalination, wastewater reuse and stricter industrial treatment requirements.

• The global water-treatment outlook included rising demand for recycling and reuse, municipal wastewater capacity and industrial treatment, plus desalination growth.