27 Dec , 2024 By : Debdeep Gupta
Shares of VA Tech Wabag were higher by more than 4% on December 27 after the company announced an order in Zambia for a wastewater treatment project worth Euro 78 million, or around Rs 700 crore.
The order came from Lusaka Water Supply and Sanitation Company and marked VA Tech's entry into Zambia. As part of the order, VA Tech will execute the Engineering, Procurement,
and Construction (EPC) of two wastewater treatment plants (WWTPs) in Zambia over 36 months. Guhan Kandasamy, Head - of Sales and Marketing (Africa), for VA Tech Wabag, said this is one of Zambia’s largest and most advanced sanitation projects in recent decades.
The order has been funded by the European Investment Bank (EIB) and KfW of Germany.
The company has been attempting to further enhance its presence in the Middle East, Africa, Southeast Asia, and CIS countries. "With promising order pipeline, we are confident in sustaining our growth momentum through the second half of the financial year and in line with our medium-term outlook," VA Tech said during the September quarter earnings.
VA Tech was recently in the news after a Rs 2,700 crore tender awarded by the Saudi Water Authority was canceled, leading to a sharp fall in the share price. The order was nearly 20% of VA Tech's H1FY25 order book value of Rs 14,500 crore. However, the authority later clarified that a fresh tender would be floated again in a couple of weeks.
VA Tech Wabag has been present in Saudi Arabia and working on water treatment projects for over four decades.
The international business of VA Tech has remained robust with 54% of H1FY25 revenue from overseas projects, and international projects constitute 39% of the company's order backlog. H1FY25 saw a total order inflow of over Rs 4,600 crore for VA Tech Wabag, with 57% coming from international clients and 31% from the industrial sector. VA Tech is anticipating an order book position of over Rs 16,000 crore by the end of FY25.
Shares of VA Tech are higher by 155% so far in 2024.
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