June 2015 consolidated quarter results

For the quarter ended June 2015, Va Tech Wabag reported a 14% rise its consolidated sales to Rs 456.62 crore. OPM crashed from 6.2% to 2.6% which pulled OP down 51% to Rs 12.07 crore.

Interest cost grew 23% to Rs 7.17 crore and depreciation jumped 53% to Rs 5.11 crore. Thus loss at PBT level stood at Rs 21 lakh against a profit of Rs 15.64 crore.

Depreciation for June 2014 quarter includes a reversal of Rs 2.76 crore which represents the impact of change in accounting policy from WDV method to SLM method.

Provision for taxation jumped 103% to Rs 9.70 crore, after which loss at PAT stood at Rs 9.91 crore against a profit of Rs 10.87 crore.

Minority interest and share of profit/loss of associate companies stood at Rs 3 lakh against loss of Rs 70 lakh.

Finally loss at consolidated net profit level stood at Rs 9.88 crore against a profit of Rs 10.17 crore.

FY 2015 results

In FY 2015, consolidated sales grew 9% to Rs 2436.16 crore. OPM stood at 8.6% which saw OP grow 11% to Rs 209.47 crore.

Interest cost jumped 155% to Rs 31.45 crore and depreciation was down 27% to Rs 10.92 crore. Thus PBT rose 4% to Rs 167.10 crore.

Depreciation for FY 2015 includes a reversal of Rs 10.61 crore which represents the impact of change in accounting policy from WDV method to SLM method. The c ompany also revised useful life of the of fixed assets. Thus depreciation for the year is higher to the extent of Rs 4.51 crore.

EO gains stood ant nil against Rs 5.06 crore. Thus PBT after EO grew 1% to Rs 167.10 crore.

Provision for taxation grew 8% to Rs 56.64 crore, after which PAT fell 3% to Rs 110.46 crore.

Minority interest and share of profit/loss of associate companies stood at Rs 36 lakh against Rs 27 lakh.

Finally consolidated net profit was down 3% to Rs 110.10 crore.

Consolidated Segmented Performance

During the quarter Indian business contributed 45% of the total revenue. Revenue grew 121% to Rs 209.49 crore. PBIT grew 103% to Rs 62.84 crore and accounted for 45% of total

During the quarter Rest of the World business accounted for 55% of the total revenue. Revenue fell 20% to Rs 258.11 crore. PBIT stayed at Rs 75.83 crore almost same as last year's and accounted for 55% of total

In FY 2015 Indian business contributed 36% of the total revenue. Revenue grew 10% to Rs 908.15 crore. PBIT fell grew 7% to Rs 160.09 crore and accounted for 27% of total

In FY 2015 rest of the World business accounted for 64% of the total revenue. Revenue grew 7% to Rs 1618.63 crore. PBIT went up 14% to Rs 435.53 crore and accounted for 73% of total.

Management comments

Commenting on the results, Rajiv Mittal, Managing Director, VA tech Wabag said "I am delighted that right at the beginning of the year we have won good orders of over Rs. 1,000 crores.  All the orders secured are from International geographies which would be serviced by Indian manpower contributing to increased margins."

Strong order book

The company said it has order book of Rs 7631 crore including framework contracts of Rs 1542 crore

Valuation

The share price trades at Rs 743.