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Jun 19, 2017 01:47 PM IST | Source: Moneycontrol.com

VA Tech Wabag hits 1-year high on ambitious plan for Africa & Latin America biz

VA Tech has received 2 bids for Haridwar & Varanasi in this month, and also has bid for the initial two projects under Namami Gange project.

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VA Tech Wabag shares hit new 52-week high of Rs 746.10, up 4.6 percent intraday Monday after company's ambitious plan with respect to Africa & Latin America businesses.

"The company is extending its reach to sub-Saharan Africa and strategy is to focus on key emerging markets such as Latin America that will contribute 10 percent to total revenue over next 2-3 years," Rajneesh Chopra, global head-business development of the water technology company said in an interview with CNBC-TV18.

It has been successful in bagging first project in Latin America.

Domestic market has been sluggish over last 2 years but exports contributed to 35-40 percent revenue currently and that is expected to go up to 50 percent of total revenue, he said.

"We will look to grow overall revenue by over 20 percent over next 2-3 years. We expect margin to improve, given higher contribution from exports," Chopra said, adding the company will decide on fundraising plans in next 2 quarters.

He said, "The company is waiting for Namami Gange project to take off meaningfully. We expect robust business due to Namami Gange project over next 12-18 months."

VA Tech has received 2 bids for Haridwar & Varanasi in this month, and also has bid for the initial two projects under Namami Gange project.

VA Tech Wabag, one of the world's leading companies in the water treatment field, reported a 21.5 percent growth in consolidated profit at Rs 79 crore and a 32.8 percent growth in revenue at Rs 1,132 crore for the quarter ended March 2017, year-on-year.

In May, it had received repeat order from Dangote Oil Refining Company in Nigeria for a value of about USD 105.5 million.

At 13:19 hours IST, the stock price was quoting at Rs 738.65, up Rs 25.70, or 3.60 percent on the BSE.

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