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.

See also: PNC Infra Shares Soar 11% After Bagging ₹4,994 Cr Order

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.

Read next: Suzlon Shares Rocket 5% After Bagging Repeat Order From Juniper Green Energy

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EarningsEquitiesNewsMarketsMoversTrading IdeasVa Tech Wabag