WPIL Ltd (WPIL) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day and welcome to WPIL Limited Q2 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Taparia from Emkay Global. Thank you and over to you, sir.
Abhishek Taparia (Emkay Global): Good evening,
Abhishek Taparia (Emkay Global): everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Prakash Agarwal, Managing Director, and Mr. K.K. Ganeriwala, Executive Director. I shall now hand over the call to the management for their opening remarks. Over to you, gentlemen.
Prakash Agarwal (WPIL Ltd): Thank you. Good evening, everyone. It is a pleasure to welcome you all to our earnings conference call for the second quarter and first half of financial year 2027. Let me first take you through the financial performance of the company followed by the operational highlights. On a consolidated basis, revenue from operations for the quarter under review stood at 354 crores, a decline of 17% Y-on-Y. On a standalone basis, revenue for the quarter stood at 118 crores, down by 33% Y-on-Y. For the first half of financial year 2027, our consolidated revenue stood at 855 crores, a modest 6% increase Y-on-Y. EBITDA was at 123 crores, a decline of 5%. EBITDA margin stood at 14.33%, while PAT from continuing operations was at 93 crores, a marked increase of 20% Y-on-Y. PAT margin for the first half stood at 10.83. The domestic business continue to face near-term execution challenges, particularly in the project division. However, total domestic order book remains robust at 2,423 crores, providing a foundation for an improvement in financial performance during the second half of FY '27. The product division recorded revenues of approximately 62 crores in Q2 compared with 86 in the corresponding quarter last year. For H1, the revenues were 133 crores compared with 151 crores. The division's order backlog remains strong at approximately 500 crores, providing healthy business visibility. While a large number of dispatches to customers were deferred during the quarter, the overall outlook remains positive. We continue to focus on export growth alongside domestic opportunities, particularly in the power sector. The domestic project division remained subdued with revenues of approximately 57 crores in Q2 compared with 92 crores 90 crores in Q2 last year. Revenue for the first half was 100 crores versus 206 in the corresponding period. Our focus remains on commissioning on-going projects and commencing operation and maintenance activities. As more projects are commissioned, O&M revenues are expected to improve during the second half of the year. On our international business, it continued to demonstrate resilience and remains an important growth driver for the company, with total international order book of 2,686 crores. International revenue for the first half increased 38% to 626 crores 626 crores, compared with 458 crores in first half last year. The international business also continues to benefit from a healthy order pipeline across product and project platforms. On the international project side, the business continues to benefit product side, it continues to benefit from opportunities across the MENA region, Australia, and Southeast Asia. Grupo Aritur is expecting a significant order from Kuwait Water Supply, which will further strengthen its position in the international water market. In Australia, the consolidation of the business is contributing to an improvement in the margin profile. Meanwhile, WPIL Thailand continues to see growth opportunities following the introduction of new products in the Thai drainage sector. Our product division order backlog stood at approximately 1,000 crores at the end of first half, providing visibility for the coming quarters. International orders account for nearly 52% of this backlog. We remain focused on expanding our export presence and capitalizing on opportunities across key international markets. The international project business execution momentum continues to improve across our subsidiaries. Misa, Italy, has successfully completed all legacy projects and booked important orders during the quarter, providing a stronger foundation for future growth. PSI Africa has commenced execution of new projects, which are expected to gain further momentum towards the end of the financial year. We remain encouraged by the opportunities available in the South African water infrastructure market. Eigenbau has also strengthened its order book with repeat order from Riveting Water Works, reflecting continued customer engagement. The project division's order backlog stood at approximately 4,079 crores at the end of first half, providing substantial visibility for future ex- execution. International projects accounted for approximately 53% of this backlog, highlighting the growing contribution of overseas markets to our project business.
Prakash Agarwal (WPIL Ltd): project execution and opportunities across water infrastructure, drainage, and industrial applications. Looking ahead, our priorities remain focused on strengthening execution, converting the existing order book into revenues, and improving the performance of our domestic business. While domestic execution has remained subdued in the first half, we expect an improvement during the second half supported by project commissioning, commencement of O&M activities, and a recovery in the water infrastructure business. Our international operations continue to provide growth opportunities across both products and projects. Again, with a substantial order backlog and diversified global presence, we remain focused on improving execution and sustaining our growth momentum. With this, I'd like to take questions. Can we take questions now, please?
Moderator: Yes, sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jainam Doshi from CRISP PMS. Please proceed.
Jainam Doshi (CRISP PMS): Thank you for the opportunity. Sir, like Q2 of India is usually Q3 of Africa, and usually Q3 has a stronger execution in Africa, but here we have seen substantial dip in the project execution from the African business. So, like can you help us with the reasons for such decline? Like whether it was attributable to any delayed shortages or kind of sourcing payments from South African government, or there has been any spillover or delay in the execution?
Prakash Agarwal (WPIL Ltd): No, I think, you know, these projects are primarily, the big growth and jump in the last quarter came from the start of the projects, a large projects of PCI. PCI's project tenure is 48 months, four years. So, it is a bit lumpy initially, and we expect this first year to have say about 15% of you know, traction, and the main traction will pick up from next year. So, I think there is no, you know, it's just related to execution progress considering a project of four years. That's the typical timeline for them.
Jainam Doshi (CRISP PMS): Understood. But like, sir, like since two
Prakash Agarwal (WPIL Ltd): Another clarification is, the big business in South Africa is, January to March is their largest quarter typically because the financial budgeting happens in post-March.
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