WABAGNSE21 May 2019

VA Tech Wabag Limited has informed the Exchange regarding Investor Presentation

VA Tech Wabag Limited

ti

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra Kuria Complex, Bandra (E), Mumbai — 400 051

NSE Symbol: WABAG / BSE Scrip Code: 533269

Dear Sir / Madam,

An ISO 9001 Company 21st May 2019

BSE Limited, Floor 25, P J Towers, Dalai Street, Mumbai — 400 001

Sub: Presentation on Audited Financial Results for the quarter & year ended

31st March 2019

Pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 ("SEBI Regulations"), please find enclosed a presentation on the Audited Financial Results of the Company for the quarter & year ended 31st March 2019 made to Investors/ Analysts.

The aforesaid presentation is also being hosted on the website of the Company, www.wabaq.com in accordance with Regulation 46 of the SEBI Regulations.

Kindly take on record the same.

Thanking you,

Kindly take note of the above.

Thanking you,

For VA TECH WABAG LIMITE

R S AMINATHAN COMPANY SECRETARY Encl: as above

es_

A/34 10-A—) HENNAI 600 117

Sustainable solutions, for a better life

ABAG

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 Fax : +91-44-3923 2324 Email : wabag@wabag.in Web : www.wabag.com

VA TECH WABAG LTD.

RESULT UPDATE PRESENTATION Q4 & 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

1

2

3

Key Highlights FY 19

Quarterly Performance

Order Book Analysis

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Business Overview

Refinery and Petrochemical Integrated Development Project (RAPID), Pengerang, Johor, Malaysia

44

Key Highlights FY 19

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Key Highlights FY 19

 Consolidated Revenue at INR 27.8

Bn

 Consolidated PAT at INR 1,050

Mio

 Order Intake of over INR 48 Bn

 Order Book over INR 92 Bn

including framework orders

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Dinapur Sewage Treatment Plant, Varanasi, UP, India

Quarterly Performance

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RESULTS OVERVIEW – Consolidated Profit and Loss

Rs. Millions

Q4 FY 19 Q4 FY 18

YOY %

FY 19

FY 18

YOY %

Revenue from operations Cost of Sales Total Cost of Operations (TCO) EBITDA before Forex

6,793 10,374

(34.5%)

27,810

34,572 (19.6%)

5,027

8,125

(38.1%)

21,213

27,336

(22.4%)

1,298

1,237

5.0%

4,453

4,224

5.4%

468

1,012

(53.8%)

EBITDA margin

6.9%

9.8%

Forex (Gain) / Loss

64

62

3.2%

Net Finance Cost

213

132

61.6%

Depreciation & Amortization

42

45

(6.2%)

3,012

(28.8%)

8.7%

94

~

520

36.6%

178

(5.7%)

2,144

7.7%

207

710

168

200

~

~

68

(30)

191

(131)

~

408

597

(31.7%)

1,050

1,315

(20.2%)

6.0%

5.8%

3.8%

3.8%

Share of Profits from Associates / MI (Net) Profit After Tax (Owners) PAT margin

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• Key contributors of

revenue and margins in FY18 (AMAS & RAPID) have completed during the year

• New key overseas orders yet to pick up full execution momentum

• Translation driven

forex losses

increase driven by higher working capital and interest rates

Tax

(191)

146

774 (74.2%)

• Net finance cost

RESULTS OVERVIEW – Standalone Profit and Loss

Rs. Millions

Q4 FY 19 Q4 FY 18

YOY %

FY 19

FY 18

YOY %

Revenue from Operations

Cost of Sales

Total Cost of Operations (TCO)

EBITDA before Forex

4,354

5,346

(18.5%) 17,481

18,563

(5.8%)

3,014

4,175

(27.8%) 13,001

14,361

(9.5%)

944

396

711

32.8%

2,689

2,265

18.7%

460

(13.9%)

1,791

1,937

(7.5%)

EBITDA margin

9.1%

8.6%

10.2% 10.4%

Dividend Income

Forex (Gain) / Loss

3

47

-

(5)

~

~

3

76

201

(98.8%)

21 260.5%

Net Finance Cost

144

58 144.2%

464

284

63.3%

Depreciation & Amortization

20

25

(18.4%)

85

91

(6.9%)

Tax

(199)

117

~

145

571

(74.6%)

Profit After Tax

388

265

(48.0%)

1,024

1,171

(12.0%)

PAT margin

8.9%

4.9%

5.9%

6.3%

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• Revenue de-growth driven by delay in realization and consequent startup from new projects

• Operating TCO in

control; increase in TCO driven by prudent provisioning for doubtful debts

• Dividend income

earned from overseas projects included in previous year PAT

• Tax refund order

received w.r.t 80IA

RESULTS OVERVIEW – Balance Sheet

Rs. Millions

Total Equity (Net Worth)

Non-Current Liabilities

Trade Payables

Short Term Borrowings

Other Current Liabilities

Total Equity & Liabilities

Fixed Assets

Other Non-Current Assets

Trade Receivables *

Cash & Bank Balances

Other Current Assets *

Total Assets

Consolidated

Standalone

Mar’19

Mar ’18

Mar’19

Mar ’18

10,856

2,732

15,914

4,841

3,442

11,624

2,732

14,899

4,274

3,774

9,167

2,135

11,145

3,410

2,237

9,169

1,995

9,255

2,763

2,497

37,785

37,303

28,094

25,679

1,570

5,314

13,511

1,790

15,600

37,785

1,768

5,337

13,028

1,852

15,318

37,303

794

5,009

875

5,162

12,317

11,122

734

9,240

568

7,952

28,094

25,679

* Reclassification of POC Receivables from ‘Trade Receivables’ to ‘Other current assets’

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RESULTS OVERVIEW – Working Capital Highlights

Rs. Millions

Inventories

Trade Receivables

Loans and Advances

Other Current Assets

Total Current Assets (A)

Trade Payables

Other Current Liabilities and Provisions

Mar’19

Sep’18

Mar ’18

153

395

382

13,510

14,626

13,028

446

14,997

29,106

15,914

3,442

414

348

16,461

14,587

31,896

28,345

16,213

14,899

4,012

3,774

Total Current Liabilities (B)

19,356

20,225

18,673

Net Working Capital (NWC)

Net Working Capital (No. of Days)

9,750

130

11,671

9,672

122

98

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Revenue Breakup – FY 19

Rs. Millions

EPC

O&M

Total

Municipal

Industrial Municipal

Industrial

Wabag India

7,919

7,267

1,337

338

16,861

EPC

O&M

13%

87%

Wabag Overseas

3,973

4,527

1,307

563

10,370

Municipal

Industrial

Total

11,892

11,794

2,644

901

27,231

47%

EPC [Rs. Bn.]

O&M [Rs. Bn.]

30.1

23.6

4.1

3.5

FY 18

FY 19

FY 18

FY 19

53%

India

Europe MDUs*

IIUs

#

19%

19%

62%

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* Multi Domestic Units # India International Units

Key Projects Contributing to Revenue – FY 19

Project Details

 Desal & STP Order, Saudi Arabia

 Dangote, Nigeria - ETP & RWTP

 Petronas RAPID, Malaysia – ETP

 HMEL, Bathinda – ETP

 Polghawela, Sri Lanka – WTP

 Koyambedu, Chennai – TTP

 K&C Valley, Bengaluru – STP

 Barmer, Rajasthan – Integrated Water Supply Project

 Duong River, Vietnam – WTP

 Karmalichak, Bihar – Sewerage System & PS

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Revenue recognized [Rs. Mn]

3,193

2,403

2,383

1,307

1,194

1,181

885

737

531

519

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

21,355

10,541

1,409

1,357

34,662

90%

Wabag Overseas

9,409

2,738

1,364

612

14,123

Municipal

Industrial

Total

30,764

13,279

2,773

1,969

48,785

31%

Key Orders Received

KMDA, Howrah – STP [ Namami Gange ]

JAJMAU, Kanpur – CETP [ Namami Gange ]

Order Value (Rs. Mn.)

5,748

4,645

69%

India

Europe MDUs*

IIUs

#

3%

26%

71%

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* Multi Domestic Units # India International Units

WABAG’s presence in Namami Gange States

Image for representation purpose only; not to scale

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Order Book Composition

Rs. Millions

EPC

O&M

Total

Municipal

Industrial Municipal

Industrial

Wabag India

32,758

15,634

11,322

1,963

61,677

Wabag Overseas

19,858

3,023

996

369

24,246

EPC

O&M

17%

83%

Municipal

Industrial

Framework Contracts

6,996

24%

Total

52,616

18,657

12,318

2,332

92,919

14.7

71.2

14.9

53.1

FY 18

FY 19

O&M

EPC

76%

#

India

Europe MDUs*

IIUs

4%

24%

72%

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* Multi Domestic Units # India International Units

Order Book of Rs. 85.9 Bn & Framework Contracts of Rs. 6.9 Bn

Key Contracts in Orderbook

Key Framework Contracts *

Project Details

Amt [Rs. Mn]

 Expansion SWTP 9, Jubail, KSA – STP

 KMDA, Howrah – STP

 50 MLD Zarat, Tunisia – Desal

 South Doha, Qatar – STP

 MRPL, Karnataka – Desal

 Dangote, Nigeria – ETP & RWTP

 JAJMAU, Kanpur – CETP

 Polgahwela, Srilanka – WTP

 Koyambedu, Chennai – TTP

 K&C Valley, Bengaluru – STP

7,886

5,748

5,175

5,163

4,288

4,201

4,018

3,537

2,883

2,743

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 20 Revenue : INR 34 Bn – INR 37 Bn & Order Intake : INR 50 Bn – INR 54 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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