VA Tech Wabag (WABAG) Q3 24/25 earnings summary

Executive summary

• Achieved a long-term credit rating upgrade to IND AA- with a stable outlook, reflecting strengthened market perception and stakeholder confidence.

• Achieved record order intake of INR 50,750 Mn for 9M FY25, up 188.1% YoY, and INR 27,813 Mn in Q3 FY25, up 525.4% YoY.

• Consolidated revenue for the nine months ended December 31, 2024, reached INR 21,378 Mn, with PAT up 13.2% YoY and EBITDA up 10.8% YoY.

• Maintained a net cash positive position for the eighth consecutive quarter, with net cash at INR 2,625 Mn.

• Celebrated the company's 100th anniversary with global events, reinforcing its legacy and commitment to innovation in water technology.

Financial highlights

• Consolidated revenue for nine months ended Dec 2024 was INR 21,378 Mn, up 11.2% YoY; standalone revenue was INR 18,353 Mn.

• Consolidated EBITDA for nine months FY25 reached INR 2,894 Mn, up 10.8% YoY; PAT was INR 1,958 Mn with a 9.2% margin, up 13.2% YoY.

• Like-to-like (excluding European divestments), consolidated EBITDA grew 14.3% and PAT 17.2% YoY.

• Net cash position as of Dec 2024 was INR 2,625 Mn (excluding HAM debt); gross cash at INR 6,590 Mn.

• ROCE at 17.7% and ROE at 14.5% for 9M FY25.

Outlook and guidance

• Confident in sustaining revenue and profit growth, maintaining net cash positive status.

• Medium-term revenue growth guidance of 15%-20% CAGR, EBITDA margin of 13%-15%, and ROE above 15%.

• Fourth quarter expected to be the strongest, with guidance maintained.