- 09 Aug 2024
- ICICI Securities
WABAG REPORTED DECENT RESULTS FOR Q1FY25
WABAG - 1546 Change: -12.70 (-0.81 %)News: Wabag reported decent results for Q1FY25. Revenue came in at ₹627 crore up 13.3% YoY. On a segmental basis revenue grew 14.4% to ₹503 crore and 8.77% to ₹122 crore for EP&C and O&M segments, respectively. From a geographical perspective, global business grew ~35% on a YoY basis. Whereas the domestic business contracted 22.3% due to general elections. Wabag reported EBITDA of ₹81.3 crore up 24% YoY and EBITDA margin at 12.98% up 111 bps. Consequently, PAT came in at ₹54.80 crore up 31% YoY from ₹35.5 crore PAT Margins expanded 233 bps on a YoY basis to 8.75%. The order book backlog was ₹10,000 crore.
Views: Wabag is a well-placed leader in the water management business. With multiple tailwinds in the water sector, a robust order book of 2.5 times revenue and a preferred bidder in ₹6000 crore projects in MEA & India region, providing healthy revenue visibility along with Wabag's focus at improving overall return ratios with aspiration of 15% EBITDA Margins will drive good financial performance. Makes Wabag our top pick in Water space.
Impact: Positive