Va Tech Wabag Limited · NSE:WABAG
Va Tech Wabag — Q1 FY2018 Earnings Presentation
31 slides from Va Tech Wabag's earnings presentation, August 2017
Slide 1: VA Tech Wabag Ltd. Investor Presentation August 2017
Water +ve VA TECH WABAG LTD. Investor Presentation August 2017
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by VA TECH WABAG LIMITED (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Business Overview
Business Overview BATNA Waste Water Treatment Plant, ALGERIA 3
Slide 4: Complete Water Treatment Solution Provider
Complete Water Treatment Solution Provider… Provides a complete range of Water and Waste Water Treatment solutions Offering spanning across Municipal Drinking Water, Municipal Sewage, Industrial Water, Industrial Effluents, Desalination and Recycle Technology focused company - Owns more than 1
Slide 5: Offering a complete range of solutions across project lifecycle
Offering a complete range of solutions across project lifecycle Pureplay water company Design Catering to both Municipal & O&M Procure- Industrial customers ment Offerings span across segments of water treatment Commiss- Construction ioning Range of services from Installation concept / desig
Slide 6: Led by ambitious professionals
Led by ambitious professionals Independent Directors Promoter Group B D Narang – Non Executive Chairman of the Board Rajiv Mittal (Promoter) – Managing Director & Group CEO Veteran Banker with over 32 years of banking experience who retired Visionary, entrepreneur & a sound water technologist ha
Slide 7: Led by ambitious professionals
Led by ambitious professionals Parthasarathy Gopalan –Group CFO Ravi Shankar –Global Head, Human Resources 23 years experience across three diverse organizations including 13 More than 34 years of industry experience in HR, Organization years in Ford Motor company as CFO & Director. Development,
Slide 8: Management Buyout followed by Acquisition of erstwhile Parent
Management Buyout followed by Acquisition of erstwhile Parent… Austrian Group Siemens VA Tech Wabag (India) VA Tech acquired VA listed on NSE & BSE acquired Tech Group “Wabag” part of 2010 Business from (Oct) DB in 1999 VA Tech Wabag Held by (Austria) 2007 Deutsche Babcock (DB) 2005 Group VA Tech Wa
Slide 9: Strengthen the Positioning in Water Treatment Sector
… Strengthen the Positioning in Water Treatment Sector Wabag Austria acquisition brought along… …. facilitated to Achieve Technical Know-how – Access to over 100 Patents & Experienced Manpower Growth in India Business Revenue grew around 5 times From Rs. 332 Crs to Rs. 1,798 Crs Perennial Rights to
Slide 10: Current Business Structure
Current Business Structure VA Tech WABAG WABAG INDIA WABAG Austria Domestic Business International Business International Business Exports European Countries Austria Czech Republic Desalination Sri Lanka Indonesia Switzerland Romania Tanzania Turkey Municipal Subsidiaries Sub Saharan / North African
Slide 11: Our Key Strengths
Our Key Strengths 100 MLD Desalination Plant, Chennai, INDIA 11
Slide 12: Use of Advanced Technology & R&D
Use of Advanced Technology & R&D… High quality treated water – Advanced Technology & Patented Products/Processes Technology is the deciding factor Biological Sludge Anaerobic Aerobic Coagulation Flocculation Treatment Digestion Treatment Alternate Demine- Reverse Source of Complex Disinfection Filtr
Slide 13: Asset Light Business Model
Asset Light Business Model Design Civil Operation & Technology Construction & Engineering (Outsourced) Maintenance Critical for cost In-house to ensure Mostly outsourced to In-house to ensure optimization compliance with designs dedicated Contractors quality performance ― Combination of ― Hi
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Waste Water Treatment Plant, Turkey 14
Slide 15: Yearly Order Intake
Yearly Order Intake 5,140 3,620 3,354 2,977 2,155 FY 13 FY 14 FY 15 FY 16 FY 17 Rs. Crs. 15
Slide 16: Robust Revenue Growth
Robust Revenue Growth 3,208 2,542 2,428 2,239 1,619 FY 13 FY 14 FY 15 FY 16 FY 17 Rs. Crs. 16
Slide 17: Working Capital Cycle
Working Capital Cycle • Why are the Receivables & Clients 5 Payables higher on 1 Balance Sheet date? Receives Payment based on vendor Places an Order as contracted Raise Invoice – invoice Q4 generally accounts for term 35-40% of annual turnover 4 – Invoice raised & recognized as Revenue that appear
Slide 18: Dividend Pay-out
Dividend Pay-out Adjusted for Bonus Issue of 1:1 in FY 2015 EPS DPS 21 20 19 17 17 3.5 4 4 4 4 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Earning Per Share 17 21 20 17 19 (Rs.) Dividend Per Share 3.5 4 4 4 4 (Rs.) Dividend Payout 24% 22% 24% 29% 26% (including tax) 18
Slide 19: Strategic Geographical Spread
Strategic Geographical Spread Europe Middle East • R&D Centre – over 100 patents • >50% of Desal market in Saudi • Low working capital • High potential for advanced • References for global business technologies • Technology Centre for advanced • Competitiveness through Indian technologies in waste w
Slide 20: Quarterly Performance
Quarterly Performance 20
Slide 21: Results Overview – Standalone Profit and Loss
RESULTS OVERVIEW – Standalone Profit and Loss Rs. Millions Q1 FY18 Q1 FY 17 YOY % FY 17 Revenue from Operations 3,545 2,602 36% 17,984 Cost of Sales 2,676 1,941 38% 13,980 • Robust growth in topline Total Cost of Operations (TCO) 501 425 18% 1,984 aided by a healthy order backlog and speed of EBITDA
Slide 22: Results Overview – Consolidated Profit and Loss
RESULTS OVERVIEW – Consolidated Profit and Loss Rs. Millions Q1 FY18 Q1 FY 17 YOY % FY 17 Revenue from operations 6,686 5,803 15% 32,079 Cost of Sales 5255 4,634 13% 25,388 • Robust execution from Total Cost of Operations (TCO) 1012 894 13% 3,725 the Standalone ramped up the topline growth by EBITDA
Slide 23: Results Overview – Balance Sheet
RESULTS OVERVIEW – Balance Sheet INR Millions Mar ’17 Mar ’16 Mar ’17 Mar ’16 Consolidated Standalone Total Equity (Net Worth) 10,104 9,285 8,241 7,755 Non-Current Liabilities 2,695 2,224 1,942 1,534 Trade Payables 12,574 10,287 8,300 6,325 Short Term Borrowings 2,459 3,272 1,199 2,389 Other Current
Slide 24: Results Overview – Working Capital Highlights
RESULTS OVERVIEW – Working Capital Highlights Rs. Millions Mar’17 Mar ’16 Inventories 385 976 Trade Receivables 21,238 16,565 Loans and Advances 408 273 Other Current Assets 2,163 1,887 Total Current Assets (A) 24,194 19,701 Trade Payables 12,574 10,287 Other Current Liabilities and Provisions 5,673
Slide 25: Revenue Breakup – Q1 FY18
Revenue Breakup – Q1 FY18 EPC O&M Rs. Millions EPC O&M Total 16% Municipal Industrial Municipal Industrial Wabag India 1,783 1,381 257 124 3,545 Wabag Overseas 1,115 1,318 450 258 3,141 84% Total 2,898 2,699 707 382 6,686 Municipal Industrial 46% 54% EPC [Rs. Bn.] O&M [Rs. Bn.] India Europe MDUs* II
Slide 26: Key Projects Contributing to Revenue – Q1 FY18
Key Projects Contributing to Revenue – Q1 FY18 Revenue recognized Project Details [Rs. Mn] Petronas RAPID, Malaysia – ETP 1488 AMAS, Bahrain – STP 563 Polgahawela, Sri Lanka – WTP 443 APGENCO – BOP with Water Management 351 Koyambedu, Chennai – TTP 290 Long Phu 1, Vietnam – WTP 267 San
Slide 27: Order Book Analysis – Q1 FY18
Order Book Analysis – Q1 FY18 27 Water +ve
Slide 28: Order Intake Breakup
Order Intake Breakup EPC O&M Rs. Millions EPC O&M Total 28% Municipal Industrial Municipal Industrial Wabag India 2,973 1,411 1,097 315 5,797 72% Wabag Overseas 664 25 185 360 1,234 Municipal Industrial Total 3,637 1,436 1,282 675 7,030 30% 70% Key Orders Received Order Value (Rs. Mn) K&C Valley,
Slide 29: Order Book Composition
Order Book Composition EPC O&M Rs. Millions EPC O&M Total 19% Municipal Industrial Municipal Industrial Wabag India 24,759 16,443 12,305 543 54,050 81% Wabag Overseas 13,774 4,928 492 874 20,068 Municipal Industrial Framework 8,659 Contracts 31% Total 38,533 21,371 12,797 1,417 82,777 69% O&M, O&M,
Slide 30: Order Book of Rs. 74.1 Bn & Framework Contracts of Rs. 8.7 Bn
Order Book of Rs. 74.1 Bn & Framework Contracts of Rs. 8.7 Bn Key Contracts in Orderbook Key Framework Contracts * Project Details Amt [Rs. Mn] Libya STP of Rs. 6,114 mn Petronas RAPID ETP, Malaysia 6,923 6,942 Tobruk, Libya Desal of Rs. 1,181 mn Dangote ETP & RWTP, Nigeria Polgahawela, Sr
Slide 31: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : VA Tech Wabag Ltd. Stellar IR Advisors Pvt. Ltd. CIN - L45205TN1995PLC030231 CIN - U74900MH2014PTC259212 Mr. Parthasarathy G, Chief Financial Officer Mr. Gaurang Vasani, Managing Director investors@wabag.in vgaurang@stel