Don’t miss the latest developments in business and finance.

VA Tech scouts for overseas acquisitions

Image
BS Reporter Chennai
Last Updated : Jan 20 2013 | 3:44 AM IST

VA Tech Wabag Limited, a water and waste water management company, is looking at opportunities to acquire technology companies abroad.

“The company is in the process of analysing potential firms." Rajiv Mittal, managing director, VA Tech Wabag, said, adding that VA Tech had set a target of achieving consolidated revenues of Euro one billion in the next five years with the inorganic growth accounting for 30 per cent.

The company has restructured its business effective April 2012, by creating four product verticals, including municipal water, industrial water, desalination water and operations and maintenance (O&M) businesses, in order to increase the growth momentum.

“The company is expecting a 20 per cent growth for the financial year 2012-13, with a growth of 15-20 per cent in the top line and around 30 per cent in the bottom line. With cash reserves of around Rs 400 crore, it is looking at acquisitions and also will work on projects through the public-private-partnership route,” he added.

VA Tech has reported an increase of 31.36 per cent in its net profit to Rs 60.36 crore for the quarter ended March 31, 2012, as against Rs 45.95 crore during the same period of the previous year. Total income stood at Rs 674.37 crore for the quarter, as compared to Rs 509.92 crore, reflecting an increase of 32.25 per cent.

The company has received fresh orders of Rs 930 crore in the fourth quarter of FY12, of which Rs 517 crore was from India and Rs 413 crore from overseas, according to a company announcement.

As on March 31, 2012, VA Tech has an order backlog of Rs 3,731 crore, of which 66 per cent is related to India and 34 per cent related to the company’s overseas subsidiaries. The fresh order intake for the fiscal year 2011-12 was around Rs 1,862 crore. The company has crossed the Rs 1,000-crore revenue mark in FY12.

Also Read

First Published: May 28 2012 | 12:49 AM IST

Next Story