VA Tech Wabag Limited has informed the Exchange regarding Investor Presentation
WABAG
An ISO 9001 Company
12th August 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, Bandra Kuria Complex, Bandra (E), Mumbai — 400 051
Dear Sir / Madam,
Sub: Presentation on Unaudited Financial Results for the quarter ended 30th June 2019
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 ended 30th June 2019 made to Investors/ Analysts.
The aforesaid presentation www.wabag.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
C-Th
R SWAMINATHAN COMPANY SECRETARY & COMPLat OFFICER
End: as above
Sustainable solutions, for a better life
ABAG
VA TECH WABAG LIMITED GIN : L45205TN1995PLC030231 "WABAG HOUSE" No.17, 200 Feet Thoraipakkam - Pallavaram Main Road, Sunnambu Kolathur, Chennai - 600 117, India.
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Fax Email Web
+91-44-6123 2323 +91-44-4223 2323 +91-44-6123 2324 wabag@wabag.in www.wabag.com
VA TECH WABAG LTD.
RESULT UPDATE PRESENTATION
Q1 FY 2019 - 20
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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2
3
Key Highlights Q1 FY 19 - 20
Quarterly Performance
Order Book Analysis
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Business Overview
Refinery and Petrochemical Integrated Development Project (RAPID), Pengerang, Johor, Malaysia
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Key Highlights Q1 FY 20
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Key Highlights Q1 FY 20
Standalone Revenue of INR 3,240
Mn; EBITDA of INR 463 Mn
Consolidated Revenue of INR
4,565 Mn; EBITDA of INR 375 Mn
Order Intake of over INR 27 Bn
Order Book over INR 117 Bn
including framework orders
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Duong River Water Treatment Plant, Hanoi, Vietnam
Continuing our success with Namami Gange
Digha 100 MLD Sewage Treatment & 303 km of Sewerage Network
Kankarbagh 50 MLD Sewage Treatment & 150 km of Sewerage Network
HIGHLIGHTS OF THE ORDER
• WABAG’s largest order under
•
Namami Gange Mission INR 1187 Crore order – INR 247 Crore for Sewage treatment on HAM model and INR 940 Crore for sewerage network on DBO model
• WABAG will cumulatively treat over 130 crore liters of sewage every day along the entire stretch of River Ganga Cumulative value of orders entrusted to WABAG under Clean Ganga Mission: Over INR 3000 Crore
•
With this success, 4 out of 6 sewerage zones are entrusted to WABAG in Patna, one of the most populous cities along River Ganga
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Major Order Win - One City, One Operator Model
Ghaziabad 462 MLD Sewage Treatment at 15 STPs & 15 Pumping Stations
Agra 180 MLD Sewage Treatment at 7 STPs & 7 Pumping Stations
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Multi billion dollar market for WABAG with more cities expected to replicate the One City, One Operator Model
Quarterly Performance
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RESULTS OVERVIEW – Standalone Profit and Loss
Rs. Millions
Q1 FY 20
Q1 FY 19
YOY %
Revenue from Operations
3,240
3,402
(4.8%)
Cost of Sales
2,198
2,497
Total Cost of Operations (TCO)
EBITDA
579
463
612
294
57.3%
EBITDA margin
14.3%
8.6%
Net Finance Cost
Depreciation & Amortization
Tax
Profit After Tax
PAT margin
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174
17
73
199
6.1%
85
22
66
121
64.2%
3.6%
• Revenue de-growth on account of new projects in startup phase and expected to pickup in coming quarters
• Higher EBITDA margin on
account of margin expansion in existing projects and also new projects in engineering phase
• Increase in net finance cost mainly driven by higher WCDL borrowing as mandated by banking regulations; higher BG & LC charges due to new projects
RESULTS OVERVIEW – Consolidated Profit and Loss
Rs. Millions
Q1 FY 20
Q1 FY 19
YOY %
Revenue from operations
Cost of Sales
Total Cost of Operations (TCO)
EBITDA
EBITDA margin
Net Finance Cost
Depreciation & Amortization
Tax
Share of Profits from Associates / MI (Net)
Profit After Tax (Owners)
PAT margin
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4,565
3,266
924
375
8.2%
260
35
85
31
26
0.6%
(33.6%)
(9.0%)
(79.7%)
6,879
5,151
1,316
412
6.0%
142
43
101
4
130
1.9%
• Revenue de-growth
driven by key overseas projects (AMAS and RAPID) completed, subdued Europe performance and new projects in startup phase
• TCO under control
driven by cost control measures across the Group, mainly in Europe
Revenue Breakup – Q1 FY 20
Rs. Millions
EPC
O&M
Total
EPC
O&M
18%
Municipal
Industrial Municipal
Industrial
Wabag India
1,692
1,014
338
57
3,101
82%
Wabag Overseas
598
317
278
134
1,327
Municipal
Industrial
Total
2,290
1,331
616
191
4,428
34%
EPC [Rs. Bn.]
O&M [Rs. Bn.]
6.0
3.6
0.8
0.6
Q1 FY 19
Q1 FY 20
Q1 FY 19
Q1 FY 20
66%
India
Europe MDUs*
IIUs
#
12%
18%
70%
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* Multi Domestic Units # India International Units
Key Projects Contributing to Revenue – Q1 FY 20
Project Details
Koyambedu, Chennai – TTP
HMEL, Bathinda – ETP & RWTP
Dangote, Nigeria - ETP & RWTP
Polghawela, Sri Lanka – WTP
MRPL, Karnataka – Desal
K&C Valley, Bengaluru – STP
Petronas RAPID, Malaysia – ETP
South Doha, Qatar – STP
Rithala, Delhi - STP
Barmer, Rajasthan – Integrated Water Supply Project
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Revenue recognized [Rs. Mn]
464
366
325
294
282
151
125
105
87
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Order Book Analysis
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Order Intake Breakup
Rs. Millions
EPC
O&M
Total
Municipal
Industrial Municipal
Industrial
EPC
O&M
63%
37%
Wabag India
10,225
-
16,862
9
27,096
Wabag Overseas
52
60
695
78
885
Municipal 1%
Industrial
Total
10,277
60
17,557
87
27,891
Key Orders Received
BUIDCO, Digha & Kankarbagh – STP & Network
[ Namami Gange ]
UPJN, O&M of Agra & Ghaziabad
Order Value (Rs. Mn.)
11,878
14,776
99%
India
Europe MDUs*
IIUs
#
1% 2%
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97%
* Multi Domestic Units # India International Units
Order Book Composition
Rs. Millions
EPC
O&M
Total
EPC
O&M
Municipal
Industrial Municipal
Industrial
30%
Wabag India
25,715
14,629
25,811
1,931
68,086
NMCG (SPVs) - EPC - HAM
7,947 5,959
- -
1,453 2,268
- -
9,400 8,227
Wabag Overseas
19,499
2,953
1,544
315
24,311
70%
Municipal
Industrial
18%
Framework Contracts
6,996
Total
59,120
17,582
31,076
2,246
117,020
33.3
76.7
15.2
51.3
Q1 FY 19
Q1 FY 20
O&M
EPC
82%
#
India
Europe MDUs*
IIUs
3%
19%
78%
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* Multi Domestic Units # India International Units
Order Book of Rs. 110 Bn & Framework Contracts of Rs. 6.9 Bn
Key Contracts in Orderbook
Key Framework Contracts *
Project Details
Amt [Rs. Mn]
BUIDCO, Digha & Kankarbagh – STP Network
UPJN, O&M of Agra & Ghaziabad
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
11,878
14,776
8,171
5,748
5,188
5,023
4,006
3,841
4,636
3,228
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
Mr. Sandeep Agrawal, Chief Financial Officer investors@wabag.in
Mr. Gaurang Vasani, Managing Director vgaurang@stellar-ir.com
www.wabag.com
www.stellar-ir.com
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