With VA Tech Wabag announcing an international order win after market hours yesterday, the stock moved up by 4 per cent earlier today. An order worth Rs 1,500 crore for EPC (Engineering, Procurement, Construction) and commissioning work of an effluent treatment plant has been awarded to a consortium of VA Tech Wabag and Muhibbah Engineering in Malaysia.
The order is from Malaysia’s national oil and gas company Petronas. This is a continuation of the trend of overseas order wins by the company in recent times. In 2014-15, overseas orders constituted about 45 per cent of the total order intake of Rs 2,977 crore.
Earlier in the first quarter (April–June 2015), the major orders won by the company included a Rs 580-crore worth sewage treatment plant order in Bahrain, Rs 220-crore worth raw water treatment plant order in Nigeria, and orders worth Rs 85 crore and Rs 65 crore in Saudi Arabia and Egypt respectively.
The company has guided for an order intake of Rs 3,500-Rs 3,700 crore in 2015-16. With the current order wins already adding up to over Rs 2,000 crore, it appears to be on track to achieve its target.