BENGALURU: Water treatment firm VA Tech Wabag, which had secured a contract worth Rs 2,700 crore from the Saudi Water Authority in September, has announced the cancellation of the major tender, following which, shares plunged over 18% in the morning trade and settled at Rs 1,672.95, down 11.18% on the BSE on Wednesday.
"With reference to our above intimation dated September 06, 2024 relating to 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 said in the exchange filing. "We are currently in touch with the Customer to understand and comprehend the reasons in detail," the statement added.
In its H1 FY25 earnings conference call, Rajiv Mittal, chairman and MD of VA Tech Wabag had said that looking ahead, the company is further enhancing its presence and efforts in emerging markets like the Middle East, Africa, Indian subcontinent, Southeast Asia and CIS countries.
"With a promising order pipeline, we are confident in sustaining our growth momentum through the second half of the financial year and in line with our medium-term outlook. Our focus business development efforts are yielding remarkable results as demonstrated by the order inflow of over Rs 4,600 crore secured in H1 with 57% coming from international clients and 31% coming from the industrial sector," Mittal added.