VA Tech Wabag, the Chennai-based water management company, will focus on new markets, acquisitions, and operation and maintenance contracts to expand its business, according to its Managing Director, Mr Rajiv Mittal.
The company, which has reported a 35 per cent growth in net profit for 2010-11 over the previous year, sees rising costs as a challenge that can be addressed through improved efficiencies, growth in new markets, and focus on O&M contracts which offer twice as much margin as EPC contracts.
For the fourth quarter ended March 31, 2011, VA Tech Wabag has reported a 11 per cent growth in net profit over the corresponding quarter previously. Its net profit was Rs 39.1 crore (Rs 35.3 crore) on revenue of Rs 356.3 crore (Rs 340.8 crore).
For 2010-11 it reported a net profit of Rs 55.3 crore (Rs 41 crore) on an income of Rs 733.5 crore (Rs 705.5 crore).
At a press conference today, Mr Mittal, said the company which has operations in 19 countries has bagged over Rs 1,802 crore firm orders taking its order backlog to Rs 3,402 crore.
It has bagged two build-own-operate-transfer (BOOT) projects in Maharashtra totalling over Rs 827 crore. In the overseas markets the company has bagged a Rs 360 crore contract in Sri Lanka and a Rs 45 crore sewage treatment project in the Philippines.
The board has announced a dividend of Rs 10 for every equity share of Rs 5. The Directors have also approved a proposal to subdivide each share to a face value of Rs 2 per share.
On the NSE the company's shares closed 2 per cent lower at Rs 1,253.95 (Rs 1,259.60).