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VA Tech Wabag Ltd (WABAG), a leading player in the water technology space, has said its profitable growth journey continued in FY22 and for the second year in a row, it has reported net cash positive.
The company generated a positive operational cash flow of ₹11.2 crore in FY22 on a consolidated basis. “The group continues its turnaround from net debt to net cash of ₹9.6 crore,” said its investor document.
Growth drivers
For FY22, the company reported a consolidated PAT of ₹132 crore as against ₹110 crore in FY21, recording an increase of 209 per cent. Its Ebitda grew 13.5 per cent to ₹248 crore as against ₹219 crore. Total income increased by 6 per cent to ₹3,012 crore (₹2,843 crore in FY21), driven by the sustained execution momentum.
The growth was driven by the project mix of industrial and international orders and execution pace. Despite cost headwinds, the company managed to improve its margin. Also, continued cash focus ensured that net interest cost and bank charges stayed under control amid topline growth, it said.
Order book
The company has an order book of more than ₹10,000 crore, including framework contracts – providing revenue visibility of more than three years. Projects (through EPC and O&M contracts in municipal and industrial segments) in the domestic market make up about 80 per cent of the order book, while Europe accounts for 19 per cent.
“We continue to maintain our order book position of over ₹10,000 crore along with our steady revenue growth. As has been our commitment, once again, we deliver profitable growth this year as well. We continue to remain cash positive,” said Rajiv Mittal, Chairman, MD & Group CEO, VA Tech Wabag.
For the quarter ended March 31, 2022, the company reported a flat consolidated net profit of ₹46 crore, while its total income fell 10 per cent to ₹902 crore. Meanwhile, the company has appointed Shailesh Kumar as CEO-India Cluster as the successor to Pankaj Sachdeva, who has superannuated. The new appointment will be effective from October 1, 2022.
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