Va Tech Wabag shares gain 11% on pact to use AI for water treatment

Shares of Va Tech Wabag Ltd zoomed nearly 11% today after the firm said it has joined hands with Pani Energy Inc.’s (Pani) to implement applied artificial intelligence (AI) for treatment plants. The new category of digital technology is called Operational Intelligence (OI) and delivered through their product Pani ZEDTM, in the plant operations.

VA Tech Wabag stock rose 10.90% to Rs 494.90 in the current session. Market cap of the water treatment firm climbed to Rs 3047 crore. A total of 1.96 lakh shares of the firm changed hands amounting to a turnover of Rs 9.47 crore on BSE. VA Tech Wabag stock has a one-year beta of 1, indicating average volatility during the period

The stock hit a 52 week low of Rs 256 on October 17, 2022 and a 52 week high of Rs 544.80 on August 1, 2023.

In terms of technicals, the relative strength index (RSI) of VA Tech Wabag stands at 39.4, signaling it's trading neither in the overbought zone nor in the oversold zone. VA Tech Wabag shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

The partnership by VA Tech Wabag aims to leverage Pani’s platform to optimise on OPEX in the plants by reducing downtime, energy consumption, and chemical usage. Additionally, it will expedite crucial decision making processes and enhance the longevity of critical equipment.

Late investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala held 8.04% stake or 50 lakh shares at the end of June 2023 quarter.

Shailesh Kumar, CEO-India Cluster at WABAG, said, “WABAG has always been a frontrunner in terms of innovation and implementing advanced technologies in the plants. We are excited about this collaboration with Pani Energy, the operational intelligence platform, powered by plant-specific models, artificial intelligence, and digital twins, will enable us to integrate world-class technology into our operations, significantly optimizing our water treatment processes. This aligns perfectly with our digitalization initiative and reinforces our commitment to providing sustainable solutions for a better life.”

Two promoters held 19.13 per cent stake in the firm and 94,017 public shareholders owned 80.87 per cent for the quarter ended June 2023. Of these, 88615 resident individuals held 2.09 crore shares or 33.63% stake with capital up to Rs 2 lakh. Only 16 resident individuals with 15.26% stake held capital above Rs 2 lakh for the quarter ended June 2023.

VA Tech Wabag reported a 65.33 percent rise in net profit to Rs 49.6 crore in the June 2023 quarter against a consolidated net profit of Rs 30 crore in the corresponding period of the previous fiscal. It posted a net loss of Rs 111.9 crore in the previous quarter. Revenue from operations slipped to Rs 552.8 crore in Q1 from Rs 631.7 crore in the year-ago quarter. Profit before tax (PBT) rose to Rs 64 crore in Q1 FY24 from Rs 39.20 crore in Q1 FY23.

VA Tech Wabag Limited is engaged in the water treatment field. The company's principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. It provides solutions for drinking water treatment, industrial and process water treatment, water reclamation, sea and brackish water desalination, municipal waste water treatment, industrial waste water treatment and sludge treatment.

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