Stock Market Today: VA Tech Wabag, a technology company operating in the water sector, witnessed an over 19 per cent slide in its shares in early morning trade on Wednesday, December 18 after the company informed about an order cancellation that it bagged in September 2024 from Saudi Water Authority.
VA Tech Wabag on September 6, 2024, had announced an order from the Saudi Water Authority for ₹2,700 crore ($317 million) towards a 300 MLD Mega Sea Water Desalination Plant in the Kingdom of Saudi Arabia, which now stands cancelled.
“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 that the Customer has notified all tender participants on December 16, 2024, that the said tender stands cancelled pursuant to their internal administrative procedures,” the company informed via an exchange filing on Tuesday, December 17.
It further added that the company is currently in touch with the customer to understand and comprehend the reasons in detail.
Stock Price Trend
Following this development, the stock plummeted 19.17 per cent to the day’s low of ₹1522.30 on the BSE. Around 9.50 am, VA Tech Wabag share price was trading at ₹1,585.10, down 15.31 per cent.
Notwithstanding today’s slide, VA Tech Wabag shares have given multibagger returns to investors. In the last one year, the stock has surged a whopping 157 per cent while on a longer time frame of five years, it has rallied a staggering 825 per cent.
VA Tech Wabag: H1 FY25 Performance
The company posted a robust performance in the first half of the financial year 2024-25 (FY25), with consolidated revenue from operations at ₹1326.8 crore. Its profit after tax (PAT) rose 31 per cent year-on-year (YoY) to ₹125.6 crore in the same period.
The company’s order book at the end of H1 FY25 stood at ₹14,600 crore, including framework contracts.
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