Va Tech WABAG (WABAG), a known name in the water technology sector, anticipates a compound annual growth rate (CAGR) of 15-20% and aims to maintain EBITDA margins between 13-15% over the next 3-5 years. The growth is expected to be driven by favourable prospects in India, the Middle East, and African markets.
With a strong order book of approximately ₹11,400 crore, the ₹2,856-crore company has a solid revenue outlook for the next three years. WABAG expects the order book to expand to around ₹16,000 crore by the end of the current fiscal year, anticipating further robust growth in the upcoming months.
WABAG is also focusing on international expansion. During the Q4FY24 earnings call, Chairman and Managing Director Rajiv Mittal highlighted key growth regions, including the Middle East, Africa, South-East Asia, and CIS countries.
He emphasized the Middle East’s potential as a growth hub not only in the water sector, but also in various industries, with Saudi Arabia and the UAE driving increased orders. Mittal noted that these projects often do not require multilateral funding due to the region’s ample oil-derived resources.
Saudi Arabia has allocated $28 billion for new wastewater projects, aiming to reuse 35% of treated wastewater by 2030. WABAG expects significant order growth in the Middle East over the next 12-18 months, with bids totalling $1 billion in the Gulf region, and individual projects ranging from $100 million to $200 million each.
In Egypt, WABAG has pre-qualified for significant projects, such as a 1,000 MLD desalination plant, highlighting its capability to handle large-scale projects. Egypt plans 21 projects totalling 3,300 MLD, with a $3-billion investment, and the World Bank has approved about $1.4 billion for water projects in Africa.
In Asia, countries like Singapore, the Philippines, Vietnam, Indonesia, and Thailand have announced large-scale wastewater treatment and desalination projects under EPC and BOOT models.
As reported by businessline, WABAG aims to leverage these opportunities, capitalizing on its strong track record in the Asia Pacific region. Over the past four years, international markets have contributed about 40% of WABAG’s revenue on average.
