VA Tech Wabag Profit Rises More Than Three-Fold on Water Works

Aug 11, 2014 9:55 am ET

Aug. 11 (Bloomberg) -- VA Tech Wabag Ltd., India’s largest water-treatment company, reported first-quarter profit rose more than three-fold from a year earlier on higher sales at home and in such markets as Turkey.

Net income at the water and sewage-treatment plant developer climbed to 101.7 million rupees ($1.7 million) for the quarter ending June from 28.3 million rupees a year ago, it said today in a statement. That topped median estimates from six analysts for 76 million rupees of earnings.

“The new government in India has shown keen interest in the water sector and I am confident that Wabag with its inherent skills and executional capabilities is well-placed to capture a large share of the upcoming water-treatment business in the country,” Managing Director Rajiv Mittal said in the statement. Revenue in the quarter rose to 3.98 billion rupees from 2.86 billion rupees a year earlier.

Chennai-based VA Tech Wabag, a former unit of Siemens AG that operates from Tamil Nadu state, is building a drinking water-treatment plant in Izmir, Turkey.

The shares have surged 147 percent this year compared with an almost 21 percent gain by the benchmark S&P BSE Sensex index.