VA Tech Wabag delivered exceptional financial performance in the third quarter, reporting significant growth across key metrics including profitability and operational efficiency. The water treatment solutions provider demonstrated robust business fundamentals with substantial improvements in revenue, net profit, and EBITDA performance.

Comprehensive Financial Performance

The company's consolidated financial results showed impressive year-on-year growth across all major parameters:

Revenue and Profitability Growth

VA Tech Wabag achieved revenue of ₹9.6 billion in Q3, marking an 18.52% increase from ₹8.1 billion recorded in the same quarter of the previous year. The company's consolidated net profit reached ₹913 million, representing a substantial 30.06% growth compared to ₹702 million in the corresponding quarter of the previous year.

EBITDA Performance Enhancement

The company reported strong EBITDA performance with earnings reaching ₹1.3 billion compared to ₹1 billion in the previous year, reflecting a 30% year-on-year growth. More significantly, the EBITDA margin improved to 13.63% from 12.38% in the previous year, indicating enhanced operational efficiency and better cost management.

Operational Efficiency Indicators

The quarterly results demonstrate VA Tech Wabag's strong operational fundamentals with profit growth outpacing revenue growth, indicating improved margin management. The EBITDA margin expansion of 125 basis points reflects the company's effective cost optimization strategies and operational leverage during the quarter.

VA Tech Wabag Limited has announced that India Ratings & Research has reaffirmed the credit ratings for its debt instruments, maintaining the 'IND AA-/Stable' rating across both Non-Convertible Debentures and Bank loan facilities. The rating reaffirmation was communicated to stock exchanges through a regulatory filing under Regulation 30 of SEBI listing requirements.

Credit Rating Details

The credit rating agency has affirmed ratings for two key financial instruments, though both have seen reductions in facility sizes. The rating action demonstrates continued confidence in the company's credit profile while reflecting adjustments in borrowing requirements.

Facility Size Adjustments

The reaffirmation comes with notable changes in facility sizes across both instruments. The Non-Convertible Debentures facility has been reduced by INR 333.33 million, bringing it down to INR 666.67 million from the previous INR 1,000 million. Similarly, the Bank loan facilities have seen a marginal reduction of INR 149.80 million, adjusted to INR 49,505.20 million from INR 49,655 million.

Rating Implications

The 'IND AA-/Stable' rating indicates high credit quality with very low credit risk, while the stable outlook suggests that rating changes are unlikely in the near term. For bank loan facilities, the additional 'IND A1+' rating reflects the highest degree of safety regarding timely payment of short-term debt obligations. The rating rationale and detailed analysis are available through India Ratings & Research's official communication channels.

The company has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this rating reaffirmation, ensuring transparency for investors and stakeholders regarding its credit standing.