VA Tech Wabag (WABAG) Q4 18/19 earnings summary

Executive summary

• FY19 results softened as two major overseas projects completed and newer orders were still in early execution; the order book reached a record ₹9,292 crore.

• Significant order wins, geographic diversification and a strong pipeline support management’s expectation that new-order revenue will gain momentum in FY20.

Financial highlights

• Consolidated revenue from operations was ₹2,781 crore vs. ₹3,457 crore YoY; standalone revenue was ₹1,748 crore vs. ₹1,856 crore.

• Consolidated EBITDA, excluding exceptional items, was ₹215 crore vs. ₹301 crore; PAT attributable to owners was ₹105 crore vs. ₹132 crore.

• Consolidated basic EPS was ₹19.21 vs. ₹24.08; standalone basic EPS was ₹18.73 vs. ₹21.45.

• Order intake reached ₹4,879 crore and the March 31, 2019 order book was ₹9,292 crore, including framework contracts.

• Consolidated operating cash flow was negative ₹76 crore; standalone operating cash flow was negative ₹94 crore.

Outlook and guidance

• Management expects revenue from major new orders to pick up momentum in FY20 and expressed confidence in robust growth on the back of the order book.

• Priorities include executing key projects, improving profitability, leveraging cluster synergies and expanding in emerging markets, particularly MEA, Africa and South East Asia.

• The asset-light model, technology focus and competitive pricing remain central to pursuing sustainable, predictable and profitable growth.