Bonus, results fail to cheer VA Tech
Shares of water solutions major VA Tech Wabag are down 1% or Rs 16 and are currently ruling at Rs. 1,496 a piece. Company announced good Q3 results along with 1:1 bonus issue on Saturday. However, share price is ruling in tandem with the broader markets, which are also soft by about 1%.
For third quarter ended 31st December 2014, company reported 22% QoQ jump in consolidated revenue to Rs. 619 crore and 29% QoQ surge in EBITDA to Rs. 42.3 crore, thanks fresh orders of Rs 664 crore from India, Philippines and Turkey. But for the forex loss of Rs. 3.7 crore in Q3, as against forex gain of Rs. 1.7 crore in Q2, December quarter net profit declined to Rs. 13.8 crore from Rs. 15.6 crore in September quarter.
EPS for 9 months ended 31st December 2015 stands at Rs. 14.62 and the company is on track to report 28% rise in earnings for FY15. Its current order book stands at an impressive Rs. 6,973 crore, representing nearly 3.25 times of annual sales. In addition to the healthy set of earnings, company has announced 1:1 bonus issue to reward shareholders and improve liquidity on the counter.
However, the market seems to have shrugged these earnings and bonus issue, as all eyes are on the Delhi poll outcome.