VA Tech Wabag Limited

Rajiv Mittal

CHAIRMAN AND MANAGING DIRECTOR

Bhupesh Chowdary Nagineni

DEPUTY MANAGING DIRECTOR

S. Varadarajan

DIRECTOR AND CHIEF GROWTH OFFICER

Skandaprasad Seetharaman

CHIEF FINANCIAL OFFICER

Shailesh Kumar

CHIEF EXECUTIVE OFFICER, INDIA CLUSTER

Rohan Mittal

HEAD – STRATEGY & BUSINESS

INR 127 crore

ght slowing of the growth specifically on the profitability part. The profits have come down from INR 127 crore to INR 60 crore in the last quarter. So it shows that the profitability has slowed a bit. And s

INR 60 crore

e growth specifically on the profitability part. The profits have come down from INR 127 crore to INR 60 crore in the last quarter. So it shows that the profitability has slowed a bit. And second question is

INR 1,800 crore

On the revenue fund, it has been quite flat, like if we consider for the entire year, it has been INR 1,800 crore plus versus INR 1,860 Crore for this year. So it has been quite flat, not even a 5% growth year-o

INR 1,860 Crore

been quite flat, like if we consider for the entire year, it has been INR 1,800 crore plus versus INR 1,860 Crore for this year. So it has been quite flat, not even a 5% growth year-on-year. So any concern on th

5%

INR 1,800 crore plus versus INR 1,860 Crore for this year. So it has been quite flat, not even a 5% growth year-on-year. So any concern on that or do we see that picking up soon as the projects adv

60%

e projects advance? Skandaprasad S: See, you've already seen our order book on India is about 60%, right? 58% to be precise. So these phases and cycles of geographies will be there. And now these

58%

advance? Skandaprasad S: See, you've already seen our order book on India is about 60%, right? 58% to be precise. So these phases and cycles of geographies will be there. And now these two project

rs,

nicipal, you're already seeing us booking a lot of orders. There was BWSSB, BPCL, two Chennai orders, you have DJB. All these orders will again start bringing in revenues. And that's why I'm saying do

35%

k at us from year-over-year because it's EPC, it's a lumpy business. I mean, next year I would be 35% higher. You could ask the same question to me, will you do 35% the next year? My answer will be

“So what is the revenue that we see from this project?”

“In terms of investment, in terms of revenue, it may not be very lucrative, but this is only one project what we have started and we intend to multiply at many other locations.”

“And with that, we will be aiming at volume.”

“But we have taken this first project taken off after lot of pursuance, after lot of convincing, and we are well-placed to give the output what we had planned.”

“So at an overall project level, if you compare us over say six to eight quarters over which the projects have come out, the Indian projects are still performing well, number one.”

“And one heavy construction project could mean that the margins are lower, but the project at an overall level is still producing a sufficiently good margin.”

“So these phases and cycles of geographies will be there.”

“And now these two projects have come which will start generating revenue, one is the Kodungaiyur project, other is the ring main project, plus we have BPCL, we have Reliance, we also announced the DJB project day before yesterday on Friday.”

“I mean, next year I would be 35% higher.”

“You could ask the same question to me, will you do 35% the next year?”

Shailesh Kumar

2

Rajiv Mittal

2

Yash Shah

2

Skandaprasad S

2

Moderator

1

Shailesh Kumar

Rightly pointed out, we started with our AI journey with Pani when some time six-eight months back. And we have gone through the complete journey. It was not for the notion of it or for the heck of AI. We had a very specific KPI whomsoever such partners we talk, we talk on outcome result oriented. So there is an expectation or what we are realizing: reduced chemical consumption, better utilization of water. There are very many other parameters on which result is positive, we are enthused. And now what we are talking with them is how do we expand to other plants? Not only on this, as a technology advanced organization or technology embracing organization, we are working on other AI prospects also where we can bring in operational efficiency. So definitely this intervention has worked well, we are seeing the advantage and we are planning to replicate to other installations beyond Coimbatore.

Yash Shah

First of all, congratulations on the good set of numbers. But I have two questions. First is on the financial part for Mr. Shailesh. The Indian business shows a slight slowing of the growth specifically on the profitability part. The profits have come down from INR 127 crore to INR 60 crore in the last quarter. So it shows that the profitability has slowed a bit. And second question is on the biogas CNG thing. So where do we have set up the first plant? I guess we are in the process of setting up the first plant and we are in the partnership for 100 plants that we have projected. So what is the revenue that we see from this project?

Shailesh Kumar

So second question I'll take first. This bio-CNG, yes, we have signed off and this is one of its kind and we have taken early advantage out of it. The volume what we are going to generate is going to serve per day around 3,500 homes can get their cooking gas or 400 vehicles. That's the magnitude we are talking. In terms of investment, in terms of revenue, it may not be very lucrative, but this is only one project what we have started and we intend to multiply at many other locations. And with that, we will be aiming at volume. But we have taken this first project taken off after lot of pursuance, after lot of convincing, and we are well-placed to give the output what we had planned. In terms of profitability Skanda will answer.

Skandaprasad S

I understand you're talking from the segment reporting, right? Yes. See, to look at it as only for the quarter will not be the right way to see because projects are at different phases, right? Today we have two or three large projects which are in construction phase. And you know construction is more or less a pass-through for us. So at an overall project level, if you compare us over say six to eight quarters over which the projects have come out, the Indian projects are still performing well, number one. Number two, you know the Middle East cluster and the India cluster are kind of joined at the hip. There are common resources which are getting used. Not everything would be very clearly allocatable between the two. There is an engineering team which works for both, there's a procurement centre, procurement team which works for both. So here this distribution of cost will also have to be seen. And that's why we say look at blended margins and look at it multi-annually instead of for a

Yash Shah

On the revenue fund, it has been quite flat, like if we consider for the entire year, it has been INR 1,800 crore plus versus INR 1,860 Crore for this year. So it has been quite flat, not even a 5% growth year-on-year. So any concern on that or do we see that picking up soon as the projects advance?

Skandaprasad S

See, you've already seen our order book on India is about 60%, right? 58% to be precise. So these phases and cycles of geographies will be there. And now these two projects have come which will start generating revenue, one is the Kodungaiyur project, other is the ring main project, plus we have BPCL, we have Reliance, we also announced the DJB project day before yesterday on Friday. So all these projects will start again generating revenue. There is no concern. If you would remember even two years back closer to the elections or post-elections, we said the market has not picked up as much as we thought and the resources were even earlier redeployed to the Middle East and Africa where we were able to reap returns. Now with the market opening up here both on industrial and municipal, you're already seeing us booking a lot of orders. There was BWSSB, BPCL, two Chennai orders, you have DJB. All these orders will again start bringing in revenues. And that's why I'm saying don't look at us