Va Tech Wabag Limited · NSE:WABAG
Va Tech Wabag — H1 FY18 Earnings Presentation
33 slides from Va Tech Wabag's earnings presentation, 2017
Slide 1: Investor Update Presentation H1 & Q2 FY18
Water +ve VA TECH WABAG LTD. Investor Update Presentation H1 & Q2 FY 18
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: Key Highlights – H1 FY18
Key Highlights – H1 FY 18 Consolidated Revenue up by 15% Consolidated EBITDA up by 44% Consolidated PAT at INR 418 Mio up by 43% Standalone Sales up by 21% Water Treatment Plant, Standalone EBITDA up by 29% Melamchi, Nepal 21 Water +ve
Slide 22: Quarterly Performance
Quarterly Performance 22 Water +ve
Slide 23: Results Overview – Standalone Profit and Loss
RESULTS OVERVIEW – Standalone Profit and Loss Rs. Millions Q2 FY18 Q2 FY17 YOY % H1 FY18 H1 FY17 YOY % • Good growth in Revenue from topline aided by a 5,064 4,536 12% 8,609 7,138 21% Operations healthy order Cost of Sales 3,978 3,596 11% 6,654 5,537 20% backlog Total Cost of Operations 491 429 15%
Slide 24: Results Overview – Consolidated Profit and Loss
RESULTS OVERVIEW – Consolidated Profit and Loss Rs. Millions Q2 FY18 Q2 FY17 YOY % H1 FY18 H1 FY17 YOY % Revenue from 8,865 7,776 14% 15,551 13,578 15% • Top line and operations bottom line Cost of Sales 7105 6296 13% 12,361 10,929 13% increase driven by Total Cost of Operations robust progress in 9
Slide 25: Results Overview – Balance Sheet
RESULTS OVERVIEW – Balance Sheet Rs. Millions Sep ’17 Mar ’17 Sep ’17 Mar ’17 Consolidated Standalone Total Equity (Net Worth) 10,443 10,104 8,478 8,241 Non-Current Liabilities 2,406 2,695 1,782 1,942 Trade Payables 12,728 12,574 8,211 8,300 Short Term Borrowings 4,973 2,459 3,391 1,199 Other Curren
Slide 26: Results Overview – Working Capital Highlights
RESULTS OVERVIEW – Working Capital Highlights Rs. Millions Sep ‘17 Mar ’17 Inventories 467 385 Trade Receivables 24,282 21,238 Loans and Advances 347 408 Other Current Assets 2,806 2,163 Total Current Assets (A) 27,902 24,194 Trade Payables 12,728 12,574 Other Current Liabilities and Provisions 5,70
Slide 27: Revenue Breakup – H1 FY18
Revenue Breakup – H1 FY18 EPC O&M Rs. Millions EPC O&M Total 13% Municipal Industrial Municipal Industrial Wabag India 3,569 4,086 504 235 8,394 Wabag Overseas 2,790 2,958 714 540 7,002 87% Total 6,359 7,044 1,218 775 15,396 Municipal Industrial 51% 49% EPC [Rs. Bn.] O&M [Rs. Bn.] India Europe MDUs*
Slide 28: Key Projects Contributing to Revenue – H1 FY18
Key Projects Contributing to Revenue – H1 FY18 Revenue recognized Project Details [Rs. Mn] Petronas RAPID, Malaysia – ETP 3,563 APGENCO – BOP with Water Management 1,336 AMAS, Bahrain – STP 1,176 Koyambedu, Chennai – TTP 967 Polgahawela, Sri Lanka – WTP 913 Desal & STP Order, Saudi Arabi
Slide 29: Order Book Analysis – H1 FY18
Order Book Analysis – H1 FY18 29 Water +ve
Slide 30: Order Intake Breakup
Order Intake Breakup EPC O&M Rs. Millions EPC O&M Total 18% Municipal Industrial Municipal Industrial Wabag India 3,819 1,589 1,127 315 6,850 82% Wabag Overseas 4,018 450 347 410 5,226 Municipal Industrial Total 7,837 2,039 1,474 725 12,076 23% 77% Key Orders Received Order Value (Rs. Mn) La Mesa WT
Slide 31: Order Book Composition
Order Book Composition EPC O&M Rs. Millions EPC O&M Total 19% Municipal Industrial Municipal Industrial Wabag India 23,725 13,793 12,140 356 50,014 81% Wabag Overseas 16,102 4,162 418 856 21,538 Municipal Industrial Framework 7,988 Contracts 27% Total 39,827 17,955 12,558 1,212 79,540 73% O&M O&M 13
Slide 32: Order Book and Framework Contracts; Guidance for FY18
Order Book of Rs. 71.6 Bn & Framework Contracts of Rs. 8 Bn Key Contracts in Orderbook Key Framework Contracts * Project Details Amt [Rs. Mn] Libya STP of Rs. 6,114 Mn Dangote ETP & RWTP, Nigeria 6,587 Polgahawela, Sri Lanka – WTP 5,515 Tobruk, Libya Desal of Rs. 1,181 Mn Petronas RAPID ET
Slide 33: 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