VA Tech Wabag CEO confident of close to double digit EBITDA margins for FY24

economictimes.indiatimes.com:

Rajneesh Chopra, CEO, VA Tech Wabag, says: “We will definitely be able to achieve very close to a double digit EBITDA margins for FY24. Even if you see in the current quarter, it is at 9.8% which is not far from a double digit. Historically, also, our first quarter always has been a little muted.

As the year progresses, there will be growth both in top line and bottom line as I said before.It has been a little bit of a mixed set, revenues have been low on account of muted growth on the European business. What are the other reasons that led to the decline and what is the outlook on your top line growth?As far as our first quarter performance is concerned, there has been a small dip as far as the top line is concerned. But in our last three quarters, our focus has been purely on that bottom line and that is where there has been substantial growth.

Now, if I have to look forward, some of the key reasons for the small dip as far as the top line is concerned was on account of disinvestment of our two European entities. Second is our mix of order intake. We have been focusing more on EP.

So when we do not have EPC, it is more focused on margins and bottom line. Your main question was that how does it look going forward? In the recent past, we have had two EPC contracts. One is the largest desalination plant, which is 400 MLD in South Asia.

There the commencement of the execution will begin. The second one is Pabla STP, which is one of the biggest STPs as far as Bangladesh is concerned. Once the commencement of these two major EPC contracts begin, you will see a growth in top line as well as substantial growth in the bottom line as well.Your margins have seen a contraction on a sequential basis. Do you expect the margin