VA Tech Wabag shares surged over 5 per cent on Tuesday after it informed stock exchanges that the company in consortium with IDE Technologies has won a Rs 594 crore contract from Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB), for construction and operation & maintenance (O&M) of a 45 MLD Tertiary Treatment Plant at Koyambedu.
The scrip closed 5.72 per cent up at Rs 465.75.
Under the project, CMWSSB, a statutory body responsible for Water Supply and Sewerage Works under Chennai Metropolitan will construct a 45 million litres per day Water Reclamation Plant at Koyambedu, Chennai. The project will adopt a state-of-the-art ultra-filtration and reverse osmosis technology to treat the secondary domestic waste water to provide a consistent quality of water to various industries and the scope includes supply, laying and maintenance of MS Transmission main for conveying this reclaimed water to various industries.
The value of the EPC and O&M portion (for a period of 15 years) of the contract is Rs 396 crore and Rs 198 crore respectively. The consortium will be responsible for execution of the complete plant and transmission pipeline where WABAG would act as the leader.
In the past one year, the share price of VA Tech Wabag fell 48.71 per cent to Rs 440.55 till March 4, whereas the BSE Sensex slid 16.11 per cent during the same period.
For the quarter ended December 2015, the company posted a consolidated net profit of Rs 18.90 crore, up 36.66 per cent, against Rs 13.83 crore in the corresponding quarter a year ago.
VA Tech Wabag is a leader in the Indian water technology market and currently holds a market share of around 14 percent. The company has consolidated its’ specialist reputation through a number of innovative and path-breaking projects in the fields of water treatment and waste water recycling.