Large order from Tanzania boosts VA Tech Wabag

VA Tech Wabag rose 1.96% to Rs 563 at 9:50 IST on BSEafter the company said it has bagged its first ever order worth $40 million from Dar Es Salaam Water & Sewerage Authority in Tanzania.

The company made the announcement before market hours today, 10 January 2014.

Meanwhile, the S&P BSE Sensex was down 28.22 points or 0.14% at 20,685.15.

On BSE, so far 580 shares were traded in the counter as against average daily volume of 8,407 shares in the past one quarter.

The stock hit a high of Rs 567.85 and a low of Rs 560 so far during the day. The stock had hit a 52-week high of Rs 589 on 11 January 2013. The stock had hit a 52-week low of Rs 380.65 on 30 July 2013.

The stock had outperformed the market over the past one month till 9 January 2014, advancing 0.48% compared with the Sensex's 2.87% fall.

The scrip had also outperformed the market in past one quarter, jumping 16.74% as against Sensex's 2.29% rise.

The small-cap company has equity capital of Rs 5.31 crore. Face value per share is Rs 2.

VA Tech Wabag said that the project bagged in Tanzania is funded by EXIM Bank of India under the Indian line of credit. The project is a design and build contract from Dar Es Salaam Water & Sewerage Authority (DAWASA) for a value of $40 million. The scope of the work comprises building of 130 MLD Upper Ruvu Water Treatment Plant in The United Republic of Tanzania.

Commenting on this development, Mr. Rajiv Mittal, Managing Director, VA Tech Wabag said, "We are delighted that our efforts in Sub-Sahara region have started yielding results. Wabag is already present in North African market and with this order we are further expanding our footprints into newer geographies".

VA Tech Wabag's consolidated net profit declined 1.5% to Rs 17.42 crore on 33.9% growth in net sales to Rs 464.55 crore in Q2 September 2013 over Q2 September 2012.

The WABAG Group acts as a systems specialist and full service provider with a focus on the planning, installation and operation of drinking and waste water plants for local government and industry in the growth markets of Asia, North Africa, Middle East, the Central and Eastern Europe states.