WPIL hosted a conference call on Aug 8, 2024. In the conference call the company was represented by Prakash Agarwal - Managing Director &    K.K Ganeriwala - Executive Director.

Key takeaways of the call

Domestic order book of Projects was Rs 2914 crore [Construction Rs 2384 crore; O&M Rs 530 crore] and product business is about RS 400.1 crore as end of Jun 2024 compared to Rs 3054 crore and Rs 347.7 crore as end of Mar 2024.

The International business order book as end of Jun 2024 stood at Rs 484 crore [48% Italy, 28% Australia, 24% South Africa] and the outlook remains strong across all businesses.

Of the Q1FY25 revenue about 66% is domestic and 34% is International. Domestic/Standalone operating revenues grew 30% YOY in Q1 FY25 to Rs 239 crore with revenue of Projects division grew 40% YoY (to Rs 184 crore) and that of product stable at Rs 55 crore.

The outlook for the Product division is improving based on product portfolio expansion and strong market presence.

Project execution momentum remains strong and good growth is expected post the Monsoon season in the second half of the current fiscal. A large number of projects are planned for commissioning over the next 4 months which will strengthen the company''s position in the sector.

Water space is wide consisting of irrigation, industrial, rural drinking water distribution and urban drinking water.  The company is not only dependent on Jal Jeevan Mission.   The growth of each vertical depends on the policy of the government from time to time.

Of the domestic project construction order book mix is approx Irrigation 40%, Industrial 30% and Municipal/Sewerage 30%. Today the focus is on Jal Jeevan mission and about 80% of it is water distribution orders. Irrigation is to grow going forward.

 New contract for water transfer pumps for Gruppo Aturia strengthens year end outlook. Bagged large order by Gruppo Aturia and this large order will be executed starting from H2FY25.

International business will report significant growth in FY25.  WPIL South Africa performance remains steady with new opportunities in the water sector post South Africa elections. Both Sterling Pumps and United Pumps Australia have record order books and are expected to post strong revenue growth in FY25. WPIL Thailand continues its strong performance.

Navy order execution is on track with the start of type testing for various models.

Good revenues have been achieved in the 8 projects of Madhya Pradesh Jal Nigam and 3 projects are planned for commissioning over the next 4 months

In Q1FY25 the domestic EBITDA margin was about 16.7% with that of Project EBITDA margin being 16% and product is about 18%.   

Project revenue in FY24 was Rs 800 crore and the current project order book is about Rs 2350 crore, almost 3 times of the FY24 revenue. 

The execution time of domestic product and international order book is about 6-8 months.

The company is selective in taking project orders.