Transcript of the ''Annual Investors Meet 2025 and Q4 & FY25 Results Conference Call'' held on May 23, 2025.
Awaiting price reaction for this filing.
VA Tech Wabag reported historic high performance for Q4 and FY25, achieving record order book, sales, EBITDA, PAT, and cash positions. Key numbers: PAT margin at 9% and EBITDA margin at 13% (in line with medium-term outlook), RoE at 15%, working capital days at 110, net cash of Rs. 705 crores (up 16x from Rs. 44 crores in March 2021), and free cash flow of Rs. 353 crores. Order intake stood at ~Rs. 6,000 crores with another Rs. 3,000 crores as preferred bidder, giving Rs. 7,000-8,000 crores of EPC backlog plus 43% O&M mix providing 3-4 years visibility. The Board declared a 200% dividend (first in 4-5 years), coinciding with the company's centenary year, and credit rating was upgraded to AA from A. Management highlighted strategy 'Wriddhi' execution progress (industrial at 28%, international at 41%, O&M scaling to 20% target), Rs. 35,800 crores market prospect, and growth opportunities in MEA cluster ($4.6 billion market) and Asia's largest Perur desalination project in Chennai.
Strong all-round performance with record cash generation, robust order visibility, and dividend reinstatement signals confidence in sustained profitability. The credit rating upgrade to AA and net cash position of Rs. 705 crores provide flexibility for growth investments and shareholder rewards, likely to be viewed positively by investors.