Va Tech Wabag bags Rs 750 crore order in UAE for water desalination
This small-cap stock closed up by 1.18% on the BSE today.
Va Tech Wabag Ltd, a leading water treatment player, made an announcement today that it has bagged a huge EPC order in UAE for a desalination project that is to be commissioned in phases by March 2024. The deal amount approximates nearly Rs 750 crore. The stock price has reacted quite positively to the news.
The project involves engineering and procurement activities with 120 Million Gallons Per Day (MiGD) from Hassyan Sea Water Reverse Osmosis (SWRO) in the United Arab Emirates (UAE). So far, it is the largest Independent Water Producer (IWP) plant in Dubai as the city has its sustainable goals in place for the future. To ensure maximum utilization of green energy to produce desalinated water, this is a big step for them as a part of Dubai’s Clean Energy Strategy 2050 initiative. The project will be solar-powered.
With this order win, Va Tech Wabag has strengthened its presence in the Middle east region. The company had reported net sales of Rs 684 crore in the quarter ended September which witnessed a modest growth of 4% on a sequential basis and 12.4% on a YoY basis. However, the company witnessed a jump in profit after tax as it soared by 35.5% sequentially to Rs 25.5 crore with a growth of 91.25% on a YoY basis. As of September end 2021, it had recorded an order book of over Rs 10,000 crore.
Va Tech Wabag provides solutions in the water engineering sector. It has made its presence felt by implementing water desalination projects, which can be the next big thing. It also treats wastewater and undertakes various projects for municipalities and industrial customers.
The order win today as of 17th January 2022 has led the stock to close at Rs 338.05, up by 1.18%. It has a 52-week high and low of Rs 404.25 and 183.20 respectively.
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