VA Tech Wabag bags ₹2,700 Crore order from SWA

6 Sep 2024 , 10:37 AM

VA Tech Wabag Ltd. shares increased by 9% on Friday after receiving a ₹2,700 Crore order from the Saudi Water Authority for a desalination plant.

The project is anticipated to be completed in 30 months.

The EPCC contract covers the design, engineering, supply, construction, and commissioning of the 300 MLD Mega Desalination Plant, which will be built on a greenfield site on Saudi Arabia’s west coast, south of Yanbu al-Bahr, which faces the Red Sea.

The plant will be developed with cutting-edge desalination technologies, intended for maximum energy efficiency, and will generate high-quality water that meets Saudi Arabia’s environmental laws.

For more than four decades, Wabag has built and operated water and waste-water treatment plants in Saudi Arabia.

Skandaprasad Seetharaman, the company’s Chief Financial Officer, expressed confidence that the order book will expand this fiscal year. He anticipates the company’s order book to reach ₹16,000-17,000 Crore by the end of the year.

He further highlighted that VA Tech Wabag is the chosen bidder for contracts worth ₹6,000 Crore in the Middle East, Africa, and India region. International projects often have higher margins, which might vary depending on the project.

At around 10.14 AM, VA Tech Wabag was trading 3.93% higher at ₹1,338.60 per piece, against the previous close of ₹1,287.95 on NSE. The counter touched an intraday high and low of ₹1,394, and ₹1,331.55, respectively.

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