VA Tech Wabag (WABAG) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue was INR 2,557 crore and PAT attributable to owners was INR 91 crore; order book reached a record INR 11,050 crore, including framework contracts.

• Operating performance benefited from a 9.6% underlying operating margin and INR 245 crore operating cash flow, alongside working-capital management, debt reduction and improved collections.

• Water reuse, wastewater treatment and desalination opportunities supported a positive long-term outlook, while COVID-19 disrupted activity toward year-end.

Financial highlights

• Consolidated revenue from operations was INR 2,557 crore versus INR 2,781 crore in FY19; standalone revenue was INR 1,746 crore versus INR 1,748 crore.

• Consolidated EBITDA excluding exceptional items was INR 246 crore; PAT attributable to owners was INR 91 crore versus INR 105 crore in FY19.

• Standalone profit after tax was INR 58.76 crore and EPS was INR 10.75; consolidated EPS was INR 16.64 versus INR 19.21 in FY19.

• Consolidated operating cash flow was INR 245 crore; consolidated order intake totaled INR 4,350 crore, including INR 896 crore of overseas net orders.

Outlook and guidance

• Revenue from FY20 orders and projects entering execution was expected to gain momentum in FY21; management expressed confidence in strong growth supported by the record backlog.

• Focus areas include emerging markets, desalination, water reuse, long-term O&M contracts and leveraging geographic and inter-cluster synergies.

• COVID-19 impact remained uncertain; construction-site permissions enabled some work to continue, while supply-chain effects and future economic conditions remained under review.