Shares of VA Tech Wabag surged 6% in early trade on January 29 after the company secured a Rs 121 crore contract to operate and maintain a wastewater treatment plant in Bahrain for the next seven years.
The order, awarded by BAPCO Refining, expands VA Tech’s presence in Bahrain, where it has been managing a sewage treatment plant since November 2018. The company stated that its Industrial Wastewater Treatment Plant (IWTP) processes 4,400 US gallons per minute (USGPM) of wastewater using advanced Membrane Bioreactor (MBR) technology.
Impact of Saudi Arabia’s Cancellation to Desalination Project
VA Tech Wabag was under pressure since mid-December 2024 as the Saudi government cancelled a Rs 2,700 crore seawater desalination order owing to internal administrative procedures. The 300 MLD mega seawater reverse osmosis desalination plant order in the Yanbu region was an EPCC model.
Saudi authorities eventually suggested that the project was being recalibrated and a fresh revised tender would be floated. VA Tech Wabag confirmed it would reapply once the tender was issued. The company also said the previous tender was not part of its revenue projections, hence the financial impact was not significant.
Strong Order Book and International Growth Despite this, VA Tech Wabag is on course to reach its Rs 16,000 crore order book target in FY25, with an order book of Rs 14,500 crore in H1FY25. It has a strong global footprint, with over 60 desalination plants commissioned across 17 countries since 1995. Its international business continues to be the major revenue driver, with 54% of H1FY25 revenue coming from overseas projects while international orders contribute 39% of its order backlog.
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Source: Moneycontrol
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