Rekha Jhunjhunwala-Backed Small Cap Stock Plunges 6% As Profit Fell 30% In Q4

VA Tech Wabag shares on Wednesday took a hit as the company reported flat revenue figures for the final quarter of FY24, despite some areas of growth.

What Happened: The company’s net sales slightly increased to ₹934.20 crore, up by 0.79% from ₹926.86 crore in the corresponding quarter of the previous year. The quarterly net profit came in at ₹72.40 crore from a loss of ₹111.10 crore reported in March 2023.

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EBITDA showed an improvement, rising by 6.56% to ₹123.70 crore. The quarter also witness the highest sales and operating profit (PBDIT) in the past five quarters at ₹934.20 crore and ₹115.50 crore respectively, indicating a positive trend in sales and profitability.

Nonetheless, the company’s profit after tax fell sharply, and interest costs surged by 30.54% quarter-on-quarter, reflecting increased borrowings.

Price Action: VA Tech Wabag share price was down 5.54% to trade at ₹942.90 on Wednesday midday. Rekha Jhunjhunwala owns an 8% stake in the company.

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