Several companies in the wastewater management sector are actively planning for capital expenditure to improve their operational capabilities. These companies aim to invest in infrastructure projects that focus on sewage treatment and water supply systems.
VA Tech Wabag Ltd
Va Tech Wabag Ltd, based in Chennai, specializes in water treatment solutions, including the design and management of water and wastewater plants. Established in 1995, it has completed over 6,500 projects globally. The company focuses on sustainability and innovation to address global water challenges and enhance resource conservation.
In Q1 FY25 VA Tech Wabag Ltd reported a 13.33 percent year-over-year increase in revenue from operations to Rs.626 crore and a 10 percent increase in net profit to Rs.55 crore, in the same period.
The company focuses on expanding its project portfolio which includes a 400 million liters per day desalination project in Chennai and a 200 MLD sewage treatment plant in Bangladesh. Wabag aims to ramp up construction resources to ensure timely project delivery, with peak activities expected in the coming fiscal year.
Additionally, the company is prioritizing O&M services by targeting a balanced order book with 55% from EPC and 45% from O&M with an order book of Rs. 10,676.30 crores out of which 91% are related to Municipal and 9% for Industrial. Wabag also seeks to capitalize on emerging market opportunities, particularly in Southeast Asia and the Middle East, while maintaining a pipeline of preferred bids valued over Rs. 6,000 crores.
In Thursday’s trading session, the company’s share price was closed at Rs.1,682 per share, a 1.33 percent down from its previous close.
EMS Limited
EMS Ltd, formerly known as EMS Infracon, is a EPC company based in Delhi, specializing in water and wastewater management. Founded in 1998, it offers comprehensive services, including design, construction, and maintenance of treatment plants and sewerage systems. EMS Ltd focuses on sustainable solutions, ensuring compliance with environmental standards while serving government bodies and municipal corporations across India.
In Q1 FY25 EMS Ltd reported a 49.51 percent year-over-year increase in revenue from operations to Rs.206 crore and a 21 percent decrease in net profit to Rs. 37 crore, in the same period.
The company has identified a robust pipeline of projects worth over Rs. 4,000 crores while focusing primarily on water supply and sewage systems. They aim to execute these projects efficiently and leverage their capabilities to maintain high margins of 24% to 26%.
Additionally, EMS has secured three substantial contracts recently, including projects in Vikas Nagar and Dehradun, totalling over Rs. 791 crores. The company also plans to diversify into road EPC projects while maintaining its primary focus on water infrastructure.
To help this expansion, they have acquired a manufacturing facility in Fatehpur, UP, which will serve as collateral for banking facilities necessary for project execution.
In Thursday’s trading session, the company’s share price closed at Rs.764 per share, a 2.85 percent down from its previous close.
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Ion Exchange (India) Ltd
Ion Exchange Ltd, established in 1964, specializes in water and wastewater management solutions. Based in Mumbai, the company provides comprehensive services, including design, construction, and operation of treatment plants. With a global presence, Ion Exchange focuses on sustainability and innovation to meet diverse client needs across industries and communities.
In Q1 FY25 Ion Exchange Ltd reported an 18.44 percent year-over-year increase in revenue from operations to Rs.568 crore and a 37.5 percent decrease in net profit to Rs. 45 crore, in the same period.
The company is executing a Rs. 400 crore resin project at Roha, which will start commercial operations in the next FY26. Out of this, Rs. 125 crores is allocated for a new technology intervention that could improve overall profitability, while Rs. 275 crores are for capacity expansion.
Ion expects to reach optimal capacity utilization in 3-4 years with an asset turnover of over 2 times on the Rs. 275 crore investment. Ion Exchange is also planning an expansion in Orissa for other chemicals and backward integration, though specific details are not yet disclosed. The Orissa expansion aims to support the company’s growth aspirations in both domestic and international markets.
In Thursday’s trading session, the company’s share price closed at Rs.639.75 per share, a 1.14 percent down from its previous close.
Written by Santhosh
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