Va Tech Wabag Limited · NSE:WABAG
Va Tech Wabag — Q3 FY2018 Earnings Presentation
31 slides from Va Tech Wabag's earnings presentation, 2018
Slide 1: Investor Update Presentation Q3 FY18
Water +ve VA TECH WABAG LTD. Investor Update Presentation Q3 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 Rajneesh Chopra – Global Head – Business Development 25 years experience across three diverse organizations including 13 30 years of work experience with more than 25 years in the Water years in Ford Motor company as CFO & Director
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: Key Highlights Q3 FY18
Key Highlights Q3 FY 18 20 Water +ve
Slide 21: Key Highlights – Q3 FY18
Key Highlights – Q3 FY 18 Highlights for the 9 months ended: Consolidated Revenue up by 17% Standalone Revenue up by 21% Consolidated EBITDA up by 21% Consolidated PAT at INR 736 Mio Waste Water Treatment Plant, Madinaty, Cairo 21 Water +ve
Slide 22: Quarterly Performance
Quarterly Performance 22 Water +ve
Slide 23: Results Overview – Consolidated Profit and Loss
RESULTS OVERVIEW – Consolidated Profit and Loss Rs. Millions Q3 FY18 Q3 FY17 YOY % YTD FY18 YTD FY17 YOY % Revenue from 8,647 7,183 20.4% 24,198 20,762 16.5% • Continued operations improvement in Cost of Sales 6,851 5,400 26.9% 19,211 16,330 17.6% top line aided by Total Cost of Operations execution
Slide 24: Results Overview – Standalone Profit and Loss
RESULTS OVERVIEW – Standalone Profit and Loss Rs. Millions Q3 FY18 Q3 FY17 YOY % YTD FY18 YTD FY17 YOY % Revenue from 4,609 3,808 21.0% 13,217 10,946 20.7% • Healthy growth in Operations revenue driven by Cost of Sales 3,532 2,690 31.3% 10,186 8,227 23.8% project execution Total Cost of Operations p
Slide 25: Revenue Breakup – YTD FY18
Revenue Breakup – YTD FY18 EPC O&M Rs. Millions EPC O&M Total 13% Municipal Industrial Municipal Industrial Wabag India 5,943 5,759 798 433 12,933 Wabag Overseas 3,794 5,429 1,087 760 11,070 87% Total 9,737 11,188 1,885 1,193 24,003 Municipal Industrial 52% 48% EPC [Rs. Bn.] O&M [Rs. Bn.] India Euro
Slide 26: Key Projects Contributing to Revenue – YTD FY18
Key Projects Contributing to Revenue – YTD FY18 Revenue recognized Project Details [Rs. Mn] Petronas RAPID, Malaysia - ETP 4,777 AMAS, Bahrain – STP 1,578 Koyambedu, Chennai – TTP 1,545 APGENCO – BOP with water management 1,413 Polghawela, Sri Lanka – WTP 1,276 Desal & STP Order, Saudi A
Slide 27: Order Book Analysis – YTD FY18
Order Book Analysis – YTD FY18 27 Water +ve
Slide 28: Order Intake Breakup
Order Intake Breakup EPC O&M Rs. Millions EPC O&M Total 22% Municipal Industrial Municipal Industrial Wabag India 4,041 1,589 1,862 315 7,807 78% Wabag Overseas 5,408 877 707 463 7,455 Municipal Industrial Total 9,449 2,466 2,569 778 15,262 21% Key Orders Received Order Value (Rs. Mn) 79% Tobruk 4 D
Slide 29: Order Book Composition
Order Book Composition EPC O&M Rs. Millions EPC O&M Total 21% Municipal Industrial Municipal Industrial Wabag India 21,675 11,198 12,625 169 45,667 79% Wabag Overseas 16,268 2,139 449 687 19,543 Municipal Industrial Framework 6,807 Contracts 22% Total 37,943 13,337 13,074 856 72,017 78% 12.7 13.9 In
Slide 30: Order Book of Rs. 65.2 Bn & Framework Contracts of Rs. 6.8 Bn
Order Book of Rs. 65.2 Bn & Framework Contracts of Rs. 6.8 Bn Key Contracts in Orderbook Key Framework Contracts * Project Details Amt [Rs. Mn] Dangote, Nigeria - ETP & RWTP 6,046 Libya STP of Rs. 6,114 Mn Polgahawela, Sri Lanka – WTP 5,151 Al Saad, Saudi Arabia BWRO of Rs. 693 Mn Koyambed
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