Shares of VA Tech Wabag are higher by nearly 6% in early trade on January 29 after the company announced a seven-year contract worth Rs 121 crore to run a wastewater treatment plant in Bahrain.
The order from Kingdom of Bahrain's BAPCO Refining adds to VA Tech's operations and maintenance portfolio in the country, where it has a sewage treatment plant already running since November 2018.
VA Tech Wabag said its "IWTP treats 4,400 US gallons per minute (USGPM) of Wastewater and is based on advanced Membrane Bioreactor (MBR) technology."
Shares of VA Tech have been in a downtrend since mid-December 2024, after Saudi Arabia cancelled tender for a Rs 2,700 crore seawater desalination plant over 'internal administrative procedures'. The order was on a engineering, procurement, construction & commissioning (‘EPCC’) basis, for a 300 million litre per day (MLD) mega sea water reverse osmosis desalination plant in the Yanbu region of Saudi Arabia.
The Saudi authorities later clarified that the order was being 'recalibrated' in size and scope, and a fresh tender was to be floated again. VA Tech Wabag said it will participate in the revised tender from the Saudi Water Authority once its floated. While the order cancellation resulted in an adverse market reaction, it was not factored into the revenue projections of the company.
The company had set out a target over Rs 16,000 crore order book by the end of the fiscal, and at the end of H1FY25, VA Tech's order book position stood at Rs 14,500 crore. Globally since 1995, VA Tech Wabag has constructed over 60 desalination plants in 17 countries, for various municipalities and industries.
The international business of VA Tech has remained robust with 54% of H1FY25 revenue from overseas projects, and international projects constitute 39% of the company's order backlog.
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