WPIL — Q4 FY25 earnings call

Call held 23 May 2025

Management summary

WPIL reported a mixed Q4 FY25, with strong operational performance in its core business but a consolidated net loss due to a one-off tax-related exceptional item. Full-year FY25 saw robust revenue and EBITDA growth, driven by both domestic and international segments. The company's order book remains healthy, particularly internationally, and management anticipates an improvement in domestic project execution and new order inflows following expected government fund disbursements for the Jal Jeevan Mission.

Highlights

  • Consolidated revenue for Q4 FY25 reached INR 5,719 million, with an EBITDA of INR 799 million (13.97% margin).

  • Consolidated PAT for Q4 FY25 was a loss of INR 237 million, primarily due to a one-off exceptional item.

  • For FY25, consolidated revenue grew 8.6% YoY to INR 18,069 million, with EBITDA of INR 2,925 million (16.19% margin).

  • FY25 consolidated PAT from continuous operations was INR 1,266 million (10.89% margin).

  • International order book stood at INR 6,670 million as of March 31, 2025, representing a 46% jump YoY.

  • Domestic project business order book was INR 23,430 million, and domestic product business order book was INR 3,500 million.

  • Domestic products business saw a growth of 24% YoY to INR 323 crores (3,230 million) in FY25.

  • Jal Jeevan Mission (JJM) receivables outstanding are approximately INR 350 crores (3,500 million), with funds expected in Q1 FY26.

Concerns

  • Delayed Payments for Jal Jeevan Mission (JJM) Schemes

  • Fund Crunch for JJM Projects

Key financials

3 periods

Headline

  • Consolidated Revenue
    5,719 Mn
  • Consolidated EBITDA
    799 Mn
  • Consolidated EBITDA Margin
    14%
  • Consolidated PAT (Total)
    -237 Mn

Q4 FY25

  • Standalone Revenue
    3,610 Mn
  • Standalone EBITDA
    645 Mn
  • Standalone EBITDA Margin
    17.9%
  • Standalone Net Profit
    461 Mn
  • Standalone PAT Margin
    12.8%

FY25

  • Consolidated Revenue
    18,069 Mn
    YoY +8.6%
  • Consolidated EBITDA
    2,925 Mn
  • Consolidated EBITDA Margin
    16.2%
  • Consolidated PAT
    1,266 Mn
  • Consolidated PAT Margin (Continuous Operations)
    10.9%
  • Standalone Revenue
    11,477 Mn
  • Standalone EBITDA
    2,008 Mn
  • Standalone EBITDA Margin
    17.5%
  • Standalone Net Profit
    1,438 Mn
  • Standalone PAT Margin
    12.5%

What they filed

Q1 FY27: revenue up 32.2%, net profit up 126.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue491 382 572 379 426 −13%539 +41%511 −11%501 +32%
EBITDA104 48 80 49 80 −23%113 +135%76 −5%75 +53%
Net profit70 37 -24 26 52 −26%76 +105%47 +296%59 +127%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue GrowthFY25 RevenueFY24 Revenue
Domestic Products Business24%——
Project Division—8,210 Mn8,160 Mn
International Business Operations13%6,680 Mn5,900 Mn

Order book

high confidence

Total value

₹33,600 Mn

as of 2025-03-31 quantified

46% YoY

Execution

Project execution momentum improved Q-on-Q to INR250 crores versus INR141 crores in third quarter as the company maintains its execution focus to achieve project milestones.

Composition

Mix 2 segments
  • Domestic Project Business 69.7%
  • Domestic Product Business 10.4%

Share of order book by segment· partial disclosure (80.2% of the book)

Pipeline

other

Healthy inquiry pipeline for product division

Cancellations & deferrals

  • deferred: Delayed payments for Jal Jeevan Mission schemes affected project execution momentum.
The company is confident in its order book and is focusing on matching execution with project milestones. New contracts are expected to pick up in the second half of the year.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    The interest cost is directly linked to our outstanding as soon as we receive this fund the interest costs will dry up.
  • M&A MISA Acquisition · Integrated

    Synergies expected to gain traction in FY26.

    Further, the acquisition and integration of MISA has been reasonably smooth, and the synergies should gain traction in FY '26.
  • M&A Eigenbau Acquisition · Integrated

    Steady performance in FY25 and good project wins since January, contributing to a strong order book for FY26.

    Partially consolidated, full impact expected this year.

    The acquisition of Eigenbau has also moved smoothly with a steady performance in FY '25 and with some good project wins since January as a strong order book for FY '26.
  • M&A PCI Africa Acquisition · Pending regulatory

    Expected to complete this quarter, allowing proportional consolidation.

    The completion of PCI Africa transaction is on course and expected to complete this quarter.
  • M&A Sterling Pumps and United Pump Australia Acquisition · Integrated

    Focus on margin improvement.

    Saw a large jump in revenues to INR116 crores.

    Both Sterling pumps and United pump Australia saw a large jump in revenues to INR116 crores and the companies are now focused on margin improvement.
  • M&A Australian Company (unnamed) Acquisition · Integrated

    Increased revenues and order book, focus on margin improvement.

    Revenues nearly doubled to about INR120 crores.

    Yes, we acquired a company, and that has increased our revenues. So our revenues have nearly doubled. So we have revenues of about INR120 crores roughly and good order book and now we are focusing on margin improvement.

Guidance & targets

Project Execution

  • JJM Fund Crunch Improvement Project Execution · from second quarter · Medium confidence Improved situation
    The company expects the situation for fund crunch to improve from second quarter as per the budget announcement on Jal Jeevan Mission.

    — Prakash Agarwal

Order Inflow

  • Pace of New Tenders Order Inflow · going forward · Medium confidence Pick up
    Similarly, the pace of new tenders is also expected to pick up going forward, and the company expects to see the situation improve in this fiscal.

    — Prakash Agarwal

Profitability

  • EBITDA Margin Profitability · ongoing · High confidence 15-20%
    I think you have seen our margins are consistent, and we focus, as we have said, at a range of 15% to 20% on an EBITDA level. And we are there. So I don't think margin is a challenge so much.

    — Prakash Agarwal

JJM Funds

  • Funds Disbursement JJM Funds · end of this month or by next month · High confidence Disbursed
    expect funds end of this month or by next month. And similarly, after next month, we expect that once the funds are disbursed, we should see a good improvement in new tenders also.

    — Prakash Agarwal

  • Funds Disbursement JJM Funds · next 4 to 6 weeks · High confidence Disbursed
    we are confident will happen in the next 4 to 6 weeks.

    — Prakash Agarwal

Project Business

  • New Contracts Project Business · second half of the year · Medium confidence Lot of prospects
    So we're waiting for this process to restart. And then we see a lot of prospects in the second half of the year.

    — Prakash Agarwal

Order Book

  • Visibility Order Book · Q1 · Medium confidence More visibility
    We should be having more we will be able to give more light once a few at the end of this quarter, this transaction for PCI is concluded and the Jal Jeevan issues are sorted out. So in the first quarter, we will have more visibility.

    — Prakash Agarwal

  • Uptick in Order Book Order Book · second half of the year · Medium confidence Uptick
    Yes, I think so. Visibility in the second half of the year, we should see an uptick in order book.

    — Prakash Agarwal

Domestic Project Business

  • Share of Company Domestic Project Business · future · Medium confidence Smaller part
    So firstly, the project -- domestic project business is going to become a smaller part of the company.

    — Prakash Agarwal

International Product Business

  • Growth Rate International Product Business · going ahead · Medium confidence Double-digit growth
    Yes, I think international is very prospective, as I mentioned, that you can see this year, already we have growth. We have order book growth, and all this should translate into growth going forward.

    — Prakash Agarwal

What to watch in Q1 FY26

JJM Fund Disbursement

next quarter
Current Funds expected end of May/next month, or within 4-6 weeks.
Target Actual receipt of funds.

Why it matters

Direct impact on working capital, interest costs, and project execution velocity.

expect funds end of this month or by next month.

Risks & concerns

  • Delayed Payments for Jal Jeevan Mission (JJM) Schemes

    high

    Delayed payments for JJM schemes led to increased outstanding receivables and impacted project execution momentum, affecting working capital.

    Management acknowledged

  • Fund Crunch for JJM Projects

    high

    A fund crunch situation for JJM projects has affected execution, but management expects improvement from Q2 FY26.

    Management acknowledged

  • One-off Negative Tax Ruling on Swiss Transaction

    medium

    A negative advanced ruling on tax provisions for a previous Rutschi business sale in Switzerland resulted in a provisional tax payment of INR 237 million, impacting Q4 PAT, but management is confident in recovery.

    Management acknowledged

  • Geopolitical Impact on MENA Region

    medium

    The Middle East, North Africa region has been affected by the Israel-Hamas issue for the last two years, impacting projects, though conditions are now improving.

    Management acknowledged

Q&A highlights

8 direct
JJM Receivables and Contractual Assets Direct
So regarding the JJM mission, we, as I mentioned in my speech was we kept going ahead with execution, though the payments were delayed because we wanted to gain match the project milestones and achieve sufficient progress in the projects. That led to our outstanding increasing, especially over the last 6 months. And same for the unbilled income because we need the payments to make the next bids. ... Roughly similar levels of about INR350 crores.

Clarifies the impact of delayed JJM payments on working capital and provides an update on the outstanding amount and expected resolution.

Asked by Deepak Purswani

South African Operations and Acquisitions Outlook Direct
South African operations are really looking up, two things. First is our present South Africa operation, which was APE pumps. They are doing well. ... Besides that, we have partially consolidated Eigenbau, which we bought in the second half of the year. And now this year, we should see the full impact of Eigenbau. ... And parallelly, the PCI South Africa acquisition, which is awaiting the Competition Commission and other regulatory approvals that should come through this quarter.

Provides a detailed update on the performance and integration status of key international acquisitions and their future impact.

Asked by Deepak Purswani

JJM Budget Cut News Impact Direct
No, it's not the budget which has been slashed. The projection from the states for financial support was slashed, but the budget allocation was already, I think, about INR60,000 crores to INR68,000 crores made this budget. So this will affect future projects, which will be tendered out. So it's not related to past projects.

Corrects a potential misconception about a significant government scheme, clarifying that the budget itself is intact, but state projections for support were adjusted.

Asked by Manjari Udecha

Exceptional Items and Future Profit Surprises Direct
No, of course, not. This is a provisional tax which we have paid on last when we sold the Rutschi business, then there is a special exemption given in Italy for capital gains. ... But when we went into the details and as advised by our advisers, we were cautiously approaching the transaction regarding Switzerland. And we first did a detailed review of the tax provisions, then we applied for an advanced ruling. And then when that ruling came negative, we have deposited the tax to avoid any penalties. And now we are proceeding to recover this tax. So it is a completely one-off event related to a previous transaction.

Explains the reason for the Q4 consolidated net loss, assuring investors it's a non-recurring, one-off event with a plan for recovery.

Asked by Aditya

Increasing Interest Costs and Debt Reduction Direct
The interest cost is directly linked to our outstanding as soon as we receive this fund the interest costs will dry up.

Directly links the rising interest costs to outstanding receivables, implying that resolution of JJM payments will alleviate this pressure.

Asked by Aditya

Long-term Growth Post-JJM Completion Direct
So firstly, the project -- domestic project business is going to become a smaller part of the company. Secondly, within the domestic project business, as I mentioned, the Jal Jeevan was a government initiative, which was a major focus for the state and central governments. And there are a lot of other work. ... Actually, the addressable market is very large for water projects to the tune of about INR1 lakh to INR1.25 lakh crores.

Outlines the company's strategic shift and future growth areas beyond the dominant JJM, emphasizing the broader water projects market.

Asked by Nishant

Q4 Consolidated Margin Decline Direct
The EBITDA margin on last year on our overseas is about 13%. And as I said, it's a bit affected by some of the transactional costs of these two acquisitions. So I think the business is not affected and you will see the margins above 15% going forward.

Explains the reason for the consolidated margin pressure in Q4, attributing it to acquisition-related transactional costs, and provides a positive outlook for future margins.

Asked by Shekhar

NSE Listing Plans Direct
It's in the pipeline, but not as of now, nothing concrete as of now.

Provides an update on the company's potential plans for listing on the National Stock Exchange.

Asked by Paresh Wani

2 min read 6 chapters

Detailed narrative

Q4 and Full Year FY25 Financial Performance Overview

WPIL reported consolidated revenue from operations of INR 5,719 million for Q4 FY25, with an EBITDA of INR 799 million, yielding an EBITDA margin of 13.97%. The quarter saw a consolidated PAT loss of INR 237 million, primarily due to an exceptional item. For the full fiscal year 2025, consolidated revenue grew 8.6% year-on-year to INR 18,069 million. Full-year consolidated EBITDA stood at INR 2,925 million (16.19% margin), and PAT from continuous operations was INR 1,266 million (10.89% margin).

Order Book and Segmental Performance

As of March 31, 2025, WPIL's international order book reached INR 6,670 million, marking a significant 46% year-on-year increase. The domestic project business order book was INR 23,430 million, while the domestic product business order book remained stable at INR 3,500 million. The domestic products business demonstrated strong growth, increasing 24% year-on-year to INR 3,230 million in FY25. Project division revenues for FY25 were steady at INR 8,210 million, despite challenges from delayed payments.

Jal Jeevan Mission (JJM) Challenges and Outlook

The company faced challenges with delayed payments for Jal Jeevan Mission (JJM) schemes, which led to an increase in outstanding receivables, currently around INR 3,500 million. Management expressed confidence that the 'fund crunch' situation for JJM projects would improve from Q2 FY26, with expected fund disbursements within the next 4-6 weeks. The government's extension of the JJM scheme until 2028 is anticipated to lead to a pick-up in new tenders going forward.

International Expansion and Acquisitions Driving Growth

International business operations revenue grew 13% to INR 6,680 million in FY25. WPIL highlighted the smooth integration of recent acquisitions like MISA and Eigenbau, with Eigenbau already contributing good project wins. The PCI Africa transaction is expected to be completed this quarter, further bolstering international presence. The acquisition of an unnamed Australian company nearly doubled its revenues to INR 1,200 million, and Sterling Pumps and United Pump Australia collectively saw a revenue jump to INR 1,160 million.

Q4 Profitability Impacted by One-Off Tax Item

The consolidated net loss of INR 237 million in Q4 FY25 was primarily due to a 'one-off event' involving a provisional tax payment. This payment resulted from a negative advanced ruling on tax provisions related to a previous Rutschi business sale in Switzerland. Management is confident in recovering this tax amount. Despite this, the company aims to maintain its EBITDA margins within the 15-20% range, expecting margins to be above 15% going forward.

Strategic Focus and Future Growth Drivers

WPIL is strategically focusing on its product division, which shows promising growth driven by a healthy inquiry pipeline and market development. For the project business, new contracts are expected to emerge in the second half of FY26, tapping into a large addressable market for water projects estimated at INR 1-1.25 lakh crores. The company is also actively exploring further acquisitions in Europe and North America to sustain its international growth trajectory and diversify its revenue streams.

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