Synopsis: WPIL’s overseas subsidiary has secured a major water infrastructure project in South Africa, strengthening its international presence and providing long-term execution visibility through a multi-year utility-focused contract.
The shares of this small cap company majorly engaged in the business of commissioning and execution of water supply projects on a turnkey basis for industrial units, power utilities, irrigation departments and many more were in focus after securing orders worth Rs. 1172 Crores.
With the market capitalization of Rs. 4285 Crores, the shares of WPIL Ltd reached an intraday high of Rs. 446 per share rising nearly 5 percent from its previous day close of Rs. 423 per share and is trading at a P/E of 36 whereas industry P/E stands at 32.9
What is the NEWS
WPIL announced that its South African subsidiary, PCI Africa, has received an official order as part of a consortium for the Lower Umkhomazi Bulk Water Supply Scheme Phase 2 project in South Africa. The overall project is valued at around 7.583 billion Rand, while PCI Africa’s share in the contract is approximately 2.017 billion Rand, which is nearly Rs. 1,172 crore.
The work involves construction of water works infrastructure and will be executed over a period of 36 months, excluding the defects notification period. The order has been awarded by Umgeni-Uthukela Water, a public water utility in South Africa. This development is important for WPIL because it strengthens the company’s international business presence and adds a large overseas project to its order book. The company also clarified that the transaction is not related-party in nature.
About the Company and Financials
WPIL Limited is a leading pump manufacturing and water infrastructure company with operations across domestic and international markets. The company provides pumping solutions and executes large-scale water management projects for sectors such as irrigation, municipal water supply, power, and industrial applications. WPIL operates 12 manufacturing facilities and serves customers in more than 48 countries, reflecting its strong global presence.
Its revenue mix is geographically diversified, with India contributing 41 percent , South Africa 25 percent , Italy 28 percent , and Australia 6 percent to the business. The company also maintains a healthy order book of around Rs. 2,721 crore, of which nearly 27 percent comes from product-based business while around 78 percent is project-based, providing long-term execution visibility. Over the years, WPIL has expanded through overseas subsidiaries and international project execution, strengthening its position in the global water infrastructure segment.
Year on year analysis: Revenue from operations has increased from Rs. 382 Crores to Rs. 539 Crores, up 41 percent. Operating profit has increased from Rs. 48 Crores to Rs. 113 Crores, up 135 percent and net profit has increased from Rs. 37 Crores to Rs. 76 Crores, up 105 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 426 Crores to Rs. 539 Crores, up 26 percent. Operating profit has increased from Rs. 80 Crores to Rs. 113 Crores, up 41 percent and net profit has increased from Rs. 52 Crores to Rs. 76 Crores, up 46 percent.
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