VA Tech Wabag Limited has informed the Exchange regarding Investor Presentation
An ISO 9001 Company
08th February 2019
BSE Limited, Floor 25, P J Towers, Dalai Street, Mumbai — 400 001
National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Sandra Kurla Complex, Sandra (E), Mumbai — 400 051
Dear Sir / Madam,
Sub: Presentation on Unaudited Financial Results for the quarter & nine months ended 31st December 2018
Pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 ("SEBI Regulations"), please find enclosed a presentation on the Unaudited Financial Results of the Company for the quarter & nine months ended 31st December 2018 made to Investors/ Analysts.
The aforesaid presentation www.wabaq.com in accordance with Regulation 46 of the SEBI Regulations.
is also being hosted on
the website of the Company,
Kindly take on record the same.
Thanking you,
For VA TECH WABAG LIMITED
R SWAMINATHAN COMPANY SECRETARY & COMPLIANCE OFFICER
End: as above
Sustainable solutions, for a better life
WABAG
VA TECH WABAG LIMITED CIN : L45205TN1995PLC030231 "WABAG HOUSE" No.17, 200 Feet Thoraipakkam - Pallavaram Main Road, Sunnambu Kolathur, Chennai - 600 117, India.
Board : +91-44-3923 2323 : +91-44-4223 2323 : +91-44-3923 2324 Fax Email : wabag@wabag.in : www.wabag.com Web
VA TECH WABAG LTD.
RESULT UPDATE PRESENTATION Q3 & 9 MONTHS FY 19
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by VA TECH WABAG LIMITED (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.
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Index
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Key Highlights 9 Months YTD FY 19
Quarterly Performance
Order Book Analysis
Business Overview
Al Madina Al Shamalia (AMAS) Sewage Treatment Plant, Kingdom of Bahrain
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Key Highlights 9M FY 19
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Key Highlights 9M FY 19
Consolidated Revenue : INR 21 Bn
Consolidated EBITDA : INR 1.7 Bn
Consolidated PAT : INR 643 Mn
Order Book over INR 90.6 Bn
including framework orders
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Water Treatment Plant, Melamchi, Nepal
Quarterly Performance
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RESULTS OVERVIEW – Consolidated Profit and Loss
Rs. Millions
Revenue from operations
Cost of Sales
Total Cost of Operations (TCO)
Q3 FY 19 Q3 FY 18
YOY % 9M FY 19 9M FY 18
YOY %
6,619
8,647 (23.5%) 21,017 24,198 (13.1%)
5,073
6,851 (26.0%) 16,184 19,211 (15.7%)
1,007
1,038
(3.0%)
3,148
2,985
5.4%
EBITDA
539
758 (28.9%)
1,685
2,002 (15.9%)
EBITDA margin
8.1%
8.8%
8.0%
8.3%
Forex (Gain) / Loss
46
(20)
~
150
32
~
Net Finance Cost
183
136
34.5%
496
388
27.8%
Depreciation & Amortization
Tax
Share of Profits from Associates / MI (Net)
41
43
(4.8%)
126
133
(5.6%)
149
248
(40.1%)
391
629 (37.8%)
33
(51) (166.7%)
121
(83) (247.9%)
Profit After Tax (Owners)
154
300 (48.7%)
643
737 (12.7%)
PAT margin
2.3%
3.5%
3.1%
3.0%
• Key overseas
projects like AMAS and RAPID are in completion stage; resulting in lower sales and margin compared to previous year
• New orders
received yet to pick up momentum / progress
• Forex losses arising from translation
• Finance cost
increase due to higher working capital requirement
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RESULTS OVERVIEW – Standalone Profit and Loss
Rs. Millions
Q3 FY 19 Q3 FY 18
YOY %
9M FY 19 9M FY 18
YOY %
Revenue from Operations
Cost of Sales
Total Cost of Operations (TCO)
EBITDA
505
608
4,516
4,609
(2.0%) 13,127 13,218
(0.69%)
3,403
3,532
(3.7%)
9,988 10,186
(1.9%)
561
(10.0%)
1,745
1,555
12.2%
• Operating TCO in
516
17.9%
1,394
1,477
(5.6%)
EBITDA margin
13.5% 11.2%
10.6% 11.2%
Dividend Income
Forex (Gain) / Loss
-
59
185 (100.0%)
(2)
~
-
29
201
(100.0%)
26
11.5%
Net Finance Cost
127
80
59.3%
320
225
41.9%
Depreciation & Amortization
Tax
21
22
(5.8%)
141
190
(26.0%)
Profit After Tax
260
411
(36.7%)
64
344
637
66
(2.6%)
454
907
(24.2%)
(29.7%)
PAT margin
5.8% 8.9%
4.9%
6.9%
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• Execution progress impacted by delay in realization and consequent start up on new orders
control; increase in TCO driven by prudent provisioning for doubtful debts
• Net finance cost
higher on account interest cost for working capital
• PAT of previous fiscal includes Dividend earned from overseas projects
Revenue Breakup – 9M FY 19
Rs. Millions
EPC
O&M
Total
Municipal
Industrial Municipal
Industrial
Wabag India
6,422
5,073
Wabag Overseas
3,030
3,542
942
924
267
12,704
458
7,954
EPC
O&M
13%
87%
Total
9,452
8,615
1,866
725
20,658
Municipal
Industrial
EPC [Rs. Bn.]
O&M [Rs. Bn.]
20.9
18.0
3.1
2.5
9M FY 18
9M FY 19
9M FY 18
9M FY 19
45%
55%
India
Europe MDUs*
IIUs
#
17%
24%
59%
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* Multi Domestic Units # India International Units
Key Projects Contributing to Revenue – 9M FY 19
Project Details
Desal & STP Order, Saudi Arabia
Petronas RAPID, Malaysia – ETP
Dangote, Nigeria - ETP & RWTP
Polghawela, Sri Lanka – WTP
HMEL, Bathinda – ETP
Koyambedu, Chennai – TTP
Barmer, Rajasthan – Integrated Water Supply Project
K&C Valley, Bengaluru – STP
Duong River, Vietnam – WTP
Karmalichak, Bihar – Sewerage System & PS
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Revenue recognized [Rs. Mn]
2,556
1,997
1,797
1,142
985
940
706
633
525
452
Order Book Analysis
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Order Intake Breakup
Rs. Millions
EPC
O&M
Total
O&M
EPC 10%
Municipal
Industrial Municipal
Industrial
Wabag India
16,357
5,311
1,609
127
23,404
Wabag Overseas
8,549
2,050
1,054
609
12,262
90%
Municipal
Industrial
Total
24,906
7,361
2,663
736
35,666
23%
Key Orders Received
Desal Plant, Karnataka – MRPL
O&M Orders, Chennai - CMWSSB
Order Value (Rs. Mn.)
4,670
559
77%
India
Europe MDUs*
IIUs
#
1%
3%
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96%
* Multi Domestic Units # India International Units
Order Book Composition
Rs. Millions
EPC
O&M
Total
Municipal
Industrial Municipal
Industrial
Wabag India
30,958
13,656
12,934
1,413
58,961
Wabag Overseas
20,015
3,168
980
485
24,648
EPC
O&M
19%
81%
Framework Contracts
Municipal
Industrial
6,996
22%
Total
50,973
16,824
13,914
1,898
90,605
15.8
67.8
13.9
51.3
O&M
EPC
78%
India
Europe MDUs* 1%
5%
IIUs #
9M FY 18
9M FY 19
94%
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* Multi Domestic Units # India International Units
Order Book of Rs. 83.6 Bn & Framework Contracts of Rs. 7 Bn
Key Contracts in Orderbook
Key Framework Contracts *
Project Details
Amt [Rs. Mn]
Expansion SWTP 9, Jubail, KSA – STP
50 MLD Zarat, Tunisia – Desal
South Doha, Qatar – STP
Desal Plant, Karnataka – MRPL
Polgahwela, Srilanka – WTP
Dangote, Nigeria – ETP & RWTP
Koyambedu, Chennai – TTP
Rithala, Delhi – STP
K&C Valley, Bengaluru – STP
Karmalichak, Bihar – – Sewerage System & PS
8,199
5,494
5,479
4,670
3,935
3,862
2,929
2,893
2,648
2,073
Libya STP of Rs. 6,114 Mn
Koye Fetche, Ethiopia of Rs. 882 Mn
* Contracts wherein Advance Monies / LC awaited, hence not taken in Order Book
Guidance for FY 19 Revenue : INR 35 Bn – INR 37 Bn & Order Intake : INR 53 Bn – INR 57 Bn
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For further information, please contact
Company :
Investor Relations Advisors :
VA Tech Wabag Ltd. CIN - L45205TN1995PLC030231
Stellar IR Advisors Pvt. Ltd. CIN - U74900MH2014PTC259212
investors@wabag.in
www.wabag.com
Mr. Gaurang Vasani, Managing Director vgaurang@stellar-ir.com
www.stellar-ir.com
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