Rajiv Mittal, Managing Director and S Varadarajan, Executive Director addressed the call.

Highlights of the call:

For the quarter ended December 2018, Va Tech Wabag reported a 23% fall in its consolidated sales to Rs 661.90 crore. OPM fell 150 basis points to 7.4% which saw OP fall 37% to Rs 49.31 crore.

PBT fell 55% to Rs 26.93 crore. Net profit fell 49% to Rs 15.42 crore.

For the nine months, Va Tech Wabag reported a 13% fall in its consolidated sales to Rs 2101.71 crore. OPM fell 90 basis points to 7.4% which saw OP fall 23% to Rs 156.53 crore.

PBT fell 37% to Rs 91.03 crore. Net profit grew 13% to Rs 64.25 crore.

Order intake stood at Rs 3566.6 crore out of which Rs 2340.4 crore was in Wabag India and Rs 1226.2 crore in Wabag Overseas.

New orders received are yet to pick up momentum.

It has order Book of Rs 8360 crore & Framework Contracts of Rs 7000 crore.

Out of the order book, Rs 6779.70 is from EPC segment and the rest Rs 1581 is from the O&M.

Key overseas projects like AMAS and RAPID are in completion stage which resulted in lower sales and margin compared to previous year.

The company incurred Forex losses due to translation.

Interest grew due to higher working capital requirement.

Execution progress was impacted by delay in realization and consequent start up on new orders.

The company had Total Cost of Operations (TCO) under control during the quarter. The increase in TCO was driven by prudent provisioning for doubtful debts.

During the quarter PAT of previous fiscal includes Dividend earned from overseas projects.

Guidance for FY 19: Revenue to be in the range of Rs 3500 crore – 3700 crore & Order Intake to be in the range of Rs 5300 crore-Rs 5700 crore.

Sales guidance for FY 2019 has been reduced from Rs 4000-4200 crore given earlier.

During the quarter the company was awarded a major EPC order worth half a Billion Saudi Riyals from Power and Water Utility Company for Jubail and Yanbu (MARAFIQ), Kingdom of Saudi Arabia. The scope of this Engineering, Design and Build contract is towards the expansion of Sewage Water Treatment Plant in Jubail.

This second large order win of Rs 1,000 crore is in immediate succession to its Rs 555 crore order win in Qatar.

The management sees continued traction in order booking.

The management expects healthy order book by the end of FY 2019.

Expect to receive the outstanding APGENCO money in this quarter itself.

Outstanding Receivables from APGENCO stood at Rs 600 crore at the start of the year which now stands at Rs 580 crore. This is expected to come down to Rs 400 crore by the end of FY 2019.

The company expects 35-40% of its total revenue in Q4. Q4 is the best quarter for the company.

Billed receivables stand at Rs 1485 crore. It was Rs 1463 in the previous quarter.The company does not have any long term debt in the company. It has only working capital loan.

New CFO is expected to be appointed very soon.

The company is expecting nanami gange order from Kanpur, and Howara. It is expecting drinking water order from Patna. It is also expecting a large international order. All these are expected in the next couple of months.