The 6 reports from 3 analysts offering long term price targets
for Va Tech Wabag Ltd. have an average target of 160.00. The consensus estimate
represents a downside of -19.23%
from the last price of 198.10.
Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting...
Current order backlog at Rs.11,045cr (3.8x last 3-year average annual revenue) provides strong visibility for the next 4 years. However, a higher mix of municipal orders (85%) adds concerns on receivables. The debt level has gone up due to working capital issues. A slight recovery is seen in recent quarters. Even though an improvement is seen in revenue generation during H2FY20, company is expected to generate lower revenue in H1FY21 due to lockdown and other restrictions....
In our midcap universe of 11 companies, we expect Tata Chemical, VA Tech Wabag, Emmbi Industries and Kanpur Plastipack to be the most impacted stocks given that all these have revenue contribution in excess of 30-35% from the said geographies. We have envisaged the impact of Coronavirus (Covid-19) on our midcap coverage universe based on the revenue contribution from both the US as...
The order backlog of the company remains at | 10,826 crore excluding framework contracts against TTM revenues of | 2451 crore, representing TTM book-bill of 4.4x. The management believes the company would achieve its annual revenue guidance of | 3000 crore (9M revenues of | 1772 crore) but we expect the company to be able to execute contracts worth | 800-900 crore in the last quarter given that old receivables are already stuck at present and any large growth could distort balance sheet, going ahead. Further, delay in proceeds from old receivables such as TSGENCO, Tecpro...
Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting...
Sector: Engineering & Capital goods /Mid Cap | Earnings Update 2QFY20 Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting approval. As part of organizational...
sales declined 15% YoY to INR6.4b (v/s est. The sales disappointment was due to key overseas projects, such as AMAS and RAPID, getting completed, whereas Europe recorded subdued performance. EBITDA was up 23% YoY to INR615m, 13% below our est. EBITDA margin stood at 9.7% (+310bp YoY) and above our estimate of 8.5%. Margin expansion came in due to projects being in the engineering and procurement phase. PBT stood at INR363m, up 28% YoY but 14% below our est. Adj. PAT stood at INR271m, up 19% YoY and 8% below our est.
Healthy inflows in FY19, FY20E guidance at ~| 5200 crore Wabag witnessed order inflows of | 4878 crore in FY19. Key orders won include SWTP in Saudi Arabia (| 933 crore), desalination order in Tunisia (| 596 crore), STP order in Doha (| 555 crore) and Namami Gange orders worth | 1035 crore. The management has guided for order inflows of | 5000-5400 crore in FY20E. This is on the back of orders expected from large projects like the desalination and sewage treatment plants in Chennai, Mumbai (| 11000 crore) and Delhi (| 1500 crore). Wabag has already been declared...
Order backlog providing robust revenue visibility: Order backlog as on date stands at INR85.9b (+26% YoY in 4QFY19), with order inflow of INR13.1b (-21% YoY). VATW has also signed framework contracts worth INR7b, which will get converted into firm orders after receiving advance from customers. The current order backlog provides strong revenue visibility of INR3.1x its FY19 revenue. VATW won two orders under the Namami Gange scheme worth INR10b, which will entail equity investment of INR150m. Issues revenue and order inflow guidance for FY20: Management has issued...
ICICI Securities Ltd | Retail Equity Research VA Tech Wabag (Wabag) reported dismal Q3FY19 numbers Wabag's revenues fell 23.5% YoY to | 661.9 crore. Lower topline was due to muted execution in both domestic (down 2.3% YoY) & overseas segment (down 23.4%YoY). Overseas segment contributed ~66% whereas domestic segment contributed ~33% to the topline Absolute EBITDA declined 36.5% YoY to | 49.3 crore. EBIDTA margins came in at 7.4% vs. 9% YoY. Lower margins were mostly on...
sales declined 24% YoY to INR6.6b (below our expectation of INR9.5b). Standalone sales declined 2% YoY to INR4.5b, while subsidiary sales declined 48% YoY to INR2.1b. The revenue decline was on account of multiple projects reaching near-completion stage, while new projects are yet to pick up meaningfully. EBITDA declined 29% YoY to INR539m, with margin of 8.1% (-70bp YoY) below our estimate of 9.1%. Margins declined on account of operating de-leverage. Recurring profit of INR201m (-28% YoY) was below our estimate of INR409m. Forex loss of INR46m was booked during the quarter.
VA Tech (VAW) reported weak set of numbers which were lower than our estimates on revenue and profit front. EBITDA margin bore the brunt of lower revenues. On the positive side, order wins were strong in Q2FY19, thereby...
VA Tech Wabag (Wabag) reported weak Q2FY19 numbers as topline, EBITDA, PAT came in below our estimates. Revenues declined 15.2% YoY to | 752 crore. Lower-than-expected topline growth was due to muted execution in both domestic (fell 1.5% YoY) and overseas segment (fell 21.8%YoY). Overseas segment contributed ~65% whereas domestic segment contributed ~35% to the topline Absolute EBITDA declined 18.9% YoY to | 62.8 crore. EBIDTA margins came in at 8.4% vs. 8.7% YoY...
sales declined 15% YoY to INR7.5b (below our expectation of INR9.1b). Standalone sales grew 3% YoY to INR5.2b, while subsidiary sales declined 39% YoY to INR2.3b. Revenue decline was on account of multiple projects having reached near-completion stage, while new projects are yet to pick up meaningfully. EBITDA declined 40% YoY to INR498m, with margin of 6.6% (-270bp YoY) below our estimate of 9.2%. Margins declined on account of increase in provisioning for doubtful debts. Recurring profit of INR358m (-41% YoY) was below our estimate of INR393m. Forex gain of INR130m was booked during the quarter.
Namami Gange order wins, strong overseas outlook Under the Namami Gange action plan, Wabag has already won | 147 crore WWTP, | 253 crore sewage and related projects. With decisionmaking expected to improve over the next few months, Wabag is now expecting large orders integrated city management projects' summing up to | 5000 crore for cities of Kanpur, Allahabad, Patna and Kolkata. As these large projects are likely to follow the hybrid model, Wabag may also raise up to | 400 crore for meeting equity contribution criteria. All such projects are likely to be centrally funded to tune of 40%. The rest 60% is...
Background: VA Tech Wabag is a leading company in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 157 patents which include both products and process patents and Wabag...
ease, going forward. The management is expecting significant receivables in the next two to four months. Collections are now directly receivable FY20E from GENCOs. As the projects are now in advanced stage of completion, 12.0 Wabag is expecting receivables of | 400-500 crore by September 2018. 13.6 Order inflows remain muted in Q4FY18, FY18, due to finalisation of large...
