• Financial performance: VA Tech Wabag posted a 22% increase in Q4 sales to Rs 1,414 crore and a 29% rise in net profit to Rs 128 crore, backed by a medium-term target of 15% to 20% annual growth.
• Order book mix: The order book exceeds Rs 17,000 crore, comprising Rs 11,000 crore in EPC and Rs 6,000 crore in O&M, with a balanced 50-50 domestic and international split across more than 25 countries.
• Margin and return targets: The company expects EBITDA margins to sustain within the 13% to 15% band on direct project margins of 22% to 23%, supported by an asset-light model targeting ROCE above 20% and ROE approaching 16%.
• Cash and capital allocation: Net cash stands at approximately Rs 950 crore against reduced debt of about Rs 220 crore, supporting a recommended dividend of Rs 5 per share and organic partnerships over inorganic acquisitions.