VA Tech Surges to Record on Sales at India Water-Plant Developer

May 26, 2014 7:55 am ET

May 26 (Bloomberg) -- VA Tech Wabag Ltd., a water and sewage-treatment plant developer, surged the most in three years to a record close in India after sales and profit rose.

The shares climbed as much as 13 percent, the most since March 2011, and ended the day up 8 percent to 1,053.25 rupees, the highest since India’s largest water-treatment company made its Oct. 13, 2010, market debut.

Fourth-quarter sales advanced 33 percent to almost 9 billion rupees ($150 million) as profit at Chennai-based VA Tech rose 18 percent, it said today in a stock exchange filing. The former unit of Siemens AG that operates from Tamil Nadu state will pay a 8 rupee a share dividend.

The earnings “surprised positively,” Nitin Bhasin and Tanuj Mukhija, analysts at Mumbai-based Ambit Capital Pvt., wrote in a report. The company won 33.5 billion rupees of project orders in the year ended March, its highest ever, according to the statement.

VA Tech will sustain its order momentum because of a higher presence in emerging markets that include Oman and the Philippines and increased orders from India, according to the Ambit report. The brokerage raised its revenue forecast for this year by 7.5 percent.