VA Tech Wabag bets on strong order pipeline; expects to sustain margin

VA Tech Wabag expects to sustain margin based on orders, Rajneesh Chopra, global head-business development, told CNBC-TV18.

The water treatment company reported a mixed set of earnings for the December 31, 2021-ended quarter. Revenue is subdued but the margin has expanded to around 10 percent. The company has also seen an order inflow of Rs 2,800 crore in this quarter and with this, the total orderbook stands at Rs 10,000 crore.

“The quality of the orderbook has changed. In Rs 2,800 crore order intake, Rs 2,100 crore is pure EPC, overseas, better cash flows and margins. So with a change in orderbook composition, going forward we will be able to, not just sustain margins but at the same time better interest component with working capital management,” said Chopra.