VA Tech Wabag Limited has informed the Exchange regarding Investor Presentation. Sub: Presentation on Unaudited Financial Results for the quarter and nine months ended 31st December 2019Pursuant to Re...
WA BAG
An ISO 9001 Company
8th February 2020
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,
BSE Limited, Floor 25, P J Towers, Dalai Street, Mumbai — 400 001
Sub: Presentation on Unaudited Financial Results for the quarter and nine months ended
31St December 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 and nine months ended 31st December 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 WAB
ITED
R SWAMINATHA COMPANY SECRET MEMBERSHIP NO: A17696
& 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 : +91-44-6123 2323 : +91-44-6123 2324 Fax Email : wabag@wabag.in : www.wabag.com Web
VA TECH WABAG LTD.
RESULT UPDATE PRESENTATION
Q3 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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Key Highlights
Quarterly Performance
Order Book Analysis
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Business Overview
Tertiary Treatment Reverse Osmosis (TTRO) Plant at Koyambedu, Chennai, India
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Key Highlights Q3 FY 20
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Key Highlights
Consolidated Revenue at INR 17.7 Bn
Consolidated PAT at INR 604 Mio
Order Intake of over INR 40 Bn
Order Book of over INR 115 Bn
including framework orders
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Izmir Kavaklidere Water Treatment Plant, Turkey
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)
EBITDA
Q3 FY 20 Q3 FY 19
YOY % 9M FY 20 9M FY 19
YOY %
6,794
6,619
2.6%
17,721
21,017
(15.7%)
5,242
5,073
3.3%
13,277
16,184
(18.0%)
867
1,053
(17.7%)
2,731
3,298
(17.2%)
685
493
39.0%
1,713
1,536
11.5%
EBITDA margin
10.1%
7.4%
9.7%
7.3%
Net Finance Cost
267
183
45.8%
36
41
(12.9%)
132
149
(11.4%)
773
114
345
497
55.6%
126
(9.5%)
391
(11.8%)
57
34
70.3%
124
121
2.3%
308
154
100.4%
605
643
(5.9%)
PAT margin
4.5%
2.3%
3.4%
3.1%
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Depreciation & Amortization
Tax
Share of Profits from Associates / MI (Net) Profit After Tax (Owners)
• Project progress on new key projects on track and has picked up pace, driving better operating margins
• Lower YTD revenue driven by key overseas (AMAS and projects completed, RAPID) subdued Europe performance
• TCO reduction mainly AMAS, by driven RAPID completion and also cost optimization measures in Europe
RESULTS OVERVIEW – Standalone Profit and Loss
Rs. Millions
Q3 FY 20 Q3 FY 19
YOY % 9M FY 20 9M FY 19
YOY %
Revenue from Operations
4,881
4,516
8.1%
12,549
13,127
(4.4%)
Cost of Sales
3,712
3,403
9.1%
9,391
9,988
(6.0%)
Total Cost of Operations (TCO)
EBITDA
646
523
566
14.1%
1,681
1,773
(5.2%)
548
(4.5%)
1,477
1,366
8.1%
EBITDA margin
10.7%
12.1%
11.8%
10.4%
Net Finance Cost
193
127
52.3%
564
320
76.3%
Depreciation & Amortization
Tax
Profit After Tax
16
118
195
21
(23.3%)
141
(15.8%)
260
(24.7%)
51
289
574
64
(21.2%)
344
(16.2%)
637
(10.0%)
PAT margin
4.0%
5.8%
4.6%
4.9%
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• Revenue growth driven by project progress on new key projects which have picked up pace
• EBITDA margin driven by margin expansion in key projects offset by higher ECL provisions as per company policy
• Increase in net finance cost mainly driven by borrowing mix; higher BG & LC charges due to new projects
Revenue Breakup – 9M FY 20
Rs. Millions
EPC
O&M
Total
Municipal
Industrial Municipal
Industrial
Wabag India
6,432
4,667
1,038
194
12,331
EPC
O&M
14%
86%
Wabag Overseas
3,289
760
957
178
5,184
Municipal
Industrial
Total
9,721
5,427
1,995
372
17,515
33%
EPC [Rs. Bn.]
O&M [Rs. Bn.]
67%
(0.5%)
India
Europe MDUs*
IIUs
#
18.0
15.1
2.5
2.4
9M FY 19
9M FY 20
9M FY 19
9M FY 20
12%
18%
70%
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* Multi Domestic Units # India International Units
Key Projects Contributing to Revenue – 9M FY 20
Project Details
Dangote, Nigeria - ETP & RWTP
Expansion SWTP 9, Jubail, KSA – STP
Polghawela, Sri Lanka – WTP
MRPL, Karnataka – Desal
South Doha, Qatar – STP
HMEL, Bathinda – ETP & RWTP
Koyambedu, Chennai – TTP
La Mesa, Philippines – WTP
K&C Valley, Bengaluru – STP
Barmer, Rajasthan – Integrated Water Supply Project
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Revenue recognized [Rs. Mn]
1,768
1,454
1,134
1,103
1,048
1,044
987
559
504
372
Order Book Analysis
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Order Intake Breakup
Rs. Millions
EPC
O&M
Total
Municipal
Industrial Municipal
Industrial
Wabag India
14,538
1,436
17,627
45
33,646
Wabag Overseas
5,219
697
896
125
6,937
Total
19,757
2,133
18,523
170
40,583
EPC
O&M
46%
54%
Municipal 6%
Industrial
Key Orders Received
Water Supply System, Bhagalpur – India
Drinking Water Treatment II, Saint Sulpice – Switzerland
Thai Oil Refinery - Thailand
Drinking Water Treatment Plant, Coimbatore – India
Order Value (Rs. Mn.)
2,446
1,700
1,089
937
94%
India
Europe MDUs*
IIUs
#
4%
13%
83%
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* Multi Domestic Units # India International Units
Order Book Composition
Rs. Millions
EPC
O&M
Total
EPC
O&M
Municipal
Industrial Municipal
Industrial
29%
Wabag India
27,227
12,570
23,968
1,697
65,462
NMCG (SPVs) - EPC - HAM
7,947 5,959
- -
1,453 2,268
- -
9,400 8,227
71%
Municipal
Industrial
Wabag Overseas
20,698
2,925
1,217
329
25,169
16%
Framework Contracts
6,996
Total
61,831
15,495
28,906
2,026
115,254
84%
30.9
77.3
15.8
67.8
9M FY 19
9M FY 20
O&M
EPC
India
Europe MDUs*
3%
#
IIUs
20%
77%
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* Multi Domestic Units # India International Units
Order Book of Rs. 108 Bn & Framework Contracts of Rs. 7 Bn
Key Contracts in Orderbook
Key Framework Contracts *
Project Details
Amt [Rs. Mn]
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
14,730
11,878
7,147
5,748
5,120
4,242
4,426
3,184
2,580
2,521
Guidance for FY 20 Revenue : INR 30 Bn & Order Intake : INR 50 Bn
UPJN, O&M of Agra & Ghaziabad
BUIDCO, Digha & Kankarbagh – STP Network
Expansion SWTP 9, Jubail, KSA – STP
KMDA, Howrah – STP
50 MLD Zarat, Tunisia – Desal
South Doha, Qatar – STP
JAJMAU, Kanpur – CETP
MRPL, Karnataka – Desal
Dangote, Nigeria – ETP & RWTP
Polgahwela, Srilanka – WTP
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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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