Nearly 200% returns in one year and then a jolt! Va Tech Wabag shares crash today as big order gets cancelled; check details

The stock of the company has jumped 195% so far in the calendar year 2024 (YTD) and 194% in the past 12 months (as of Tuesday's close). 

However, the stock nosedived on Wednesday, December 18, as the company informed exchanges on Tuesday that its order from the Saudi Water Authority worth ₹2,700 crore, which it informed about in September, stands cancelled. 

Shares of the company slid as much as 17% to ₹1,560 apiece on the BSE in the opening deals.

The company's filing read, "With reference to our above intimation dated September 06, 2024, relating to the 300 MLD Mega Sea Water Desalination Plant Order in the Kingdom of Saudi Arabia, we hereby inform you that the customer has notified all tender participants on December 16, 2024, that the said tender stands cancelled pursuant to their internal administrative procedures. We are currently in touch with the customer to understand and comprehend the reasons in detail."

The water treatment player registered a consolidated profit of ₹70.3 crore for the July-September 2024 quarter (Q2 FY25), driven by a focused strategy on technology and international projects. 

The company had registered consolidated profits of ₹60.1 crore during the corresponding period of the last financial year.

For the six months ending September 30, 2024, the consolidated profits stood at ₹125.1 crore, as compared to ₹109.7 crore registered during the corresponding period of last year.

"This quarter (July-September 2024) has marked another period of profitable growth for Wabag, driven by a focused strategy on technology, industrial, and international projects." said company Chairman and Managing Director Rajiv Mittal.

For the half-year period ending September 30, 2024, the consolidated total income grew to ₹1,346 crore from ₹1,258.9 crore registered in the corresponding six months of last financial year, the company said.

"Our order book stands at over ₹146 billion, the highest in our history, and comprises a balanced mix of EPC and Operations and Maintenance projects, both in India and internationally. This strong backlog enhances the visibility of future revenues, robust cash flows, and a solid margin profile, positioning us well as we enter the second half of the financial year," Mittal added.