VA Tech Wabag bags major oil & gas order in Russia; consolidated sales, net profit jump in June quarter
India’s leading water technology company VA Tech Wabag Ltd has announced a 173 per cent jump in consolidated net profit at Rs 15.23 crore and a 53 per cent rise in consolidated net sales at Rs 658 for the first quarter ended June 2021 even as it consolidated its market position in the oil & gas sector with a major order in Russia.
The Chennai-based company said consolidated net sales were Rs 430.87 crore in June 2020 quarter while net profit was Rs 5.58 crore. The company’s EBITDA for the June 2021 quarter rose by 55 per cent to Rs 46.97 crore up from Rs 30.20 crore in June 2020 on a consolidated basis.
On a standalone basis, VA Tech Wabag said net sales were at Rs 469.59 crore in June 2021 quarter, up 66.72 per cent from Rs 281.66 crore in the corresponding quarter of previous year while net profit was Rs 10.40 crore, a 155 per cent jump from Rs 4.08 crore in June 2020. Standalone EBITDA stood at Rs 32.61 crore in June 2021 from Rs 25.13 crore in June 2020, a rise of nearly 30 per cent.
The company said its order book stands at over Rs 10400 crore including framework contracts giving it “3x revenue visibility”.
“We have been witnessing continuous improvement in the pace of business activities over the last few quarters as the COVID-19 situation eases and this is the case in Q1 FY-22 as well. The projects have picked up good pace and we are confident of another year of profitable growth in FY-22. Our order intake has started showing traction and we are very happy with the latest order of $165 million secured from oil & gas sector in Russia, which is set to be a game changer for WABAG. Going forward, our order pipeline looks strong”, said VA Tech Wabag Managing Director Rajiv Mittal.
Earlier in the month, the company said it had bagged a $165 million (about Rs 1230 crore) breakthrough engineering & procurement (EP) order from Amur Gas Chemical Complex LLC, (AGCC) in Russia.
AGCC is a joint venture of SIBUR Holding Russia and China Petroleum & Chemical Corporation (Sinopec), China. AGCC is set to become one of the world’s largest basic polymer production facilities.
According to a company statement, VA Tech Wabag will be the technology and system integrator for the integrated treatment facilities (wastewater treatment unit). The comapny will deploy advanced technologies to treat wastewater streams. The facility will have a concentrate evaporator unit to maintain zero liquid discharge (ZLD) and the sludge will be de-watered and dried.
The facility will be designed to recycle & re-use the wastewater released from the petrochemical unit, substituting about 25 per cent of the raw water intake requirement. The deployment of ZLD and recycle & re-use makes the facility environmentally friendly and meets stringent environmental regulations.
VA Tech Wabag will perform the scope of design, engineering, procurement, supply and supervision of the facilities during erection and commissioning including process & technology equipment, piping system, electrical, instrumentation / control systems and building & architectural materials.
The technology-dominant breakthrough order in the CIS region, especially in the Russian Federation also marks Wabag’s largest order in the oil & gas sector.
“This order from a marquee customer in the oil & gas sector re-affirms our technological superiority and execution excellence built over the years. We are proud to have secured this contract amidst stiff international competition and we are confident that this project will be another landmark reference for Wabag”, said VA Tech Wabag CEO–India Cluster Pankaj Sachdeva.
