• Your Company returned to the growth path in 2017-18 with standalone revenues increasing to 443.68 crores against 296.16 crores in 2016-17 and higher profitability amidst slow economic activities partially due to GST roll out from second quarter of the year and slowing private investments. Similarly, standalone profit after tax was 47.56 crores against 20.28 crores in 2016-17. The Company has achieved major landmarks in designing and supplying large critical pumps using improved technologies. Your company remains committed to focus on growth strategies and organizational architectures to aggressively drive growth and increase profitability across all its business verticals. The Annual results for the financial year 2017-18 demonstrates your Company’s ability to identify, nurture and accelerate growth opportunities. With the strong order book, increased availability of infrastructural resources and access to global markets, the Company stands committed to strengthen its position in the market by providing greater value for its Customers and other stakeholders.
  • The consolidated revenues of the Company also registered growth at Rs. 869.33 Crores for the year ended 31st March, 2018 as against Rs.723.06 crores in the previous year. This is commendable despite the closure of the UK operations. This was largely supported by good performance at Gruppo Aturia and inline performance at WPIL South Africa and Sterling Australia.
  • Series of measures initiated during the year comprising productivity improvement, aggressive market share acquisition and expansion of products range within existing business is expected to lead to further growth in the market share, performance and profitability of your Company. This is supported by a strong order book.
  • On the positive side enhanced public expenditure on the municipal and irrigation sectors helped the company to grow. Further, the Company policy of growing its International business helped to achieve record exports and greatly aided the bottom line. The Company aims to continue its focus on export and development of its International business to protect it from the fluctuating domestic economic environment.
  • The domestic operations of the company were very strong with growth across all three business verticals especially promising was the Infrastructure division which finally gained traction with revenues of 170 crores. The major achievement of the Infrastructure division was in its execution on large water distribution projects in Madhya Pradesh and Rajasthan and an Irrigation system in Africa. Similar achievements were there in the two product divisions with both achieving record revenues. The major focus remains to maintain this growth which is well supported by a strong order book. In parallel, the company is enhancing its manufacturing infrastructure to enhance output as well as focusing on design and product developments to increase competitiveness.
  • The performance of Engineered Pump division was very good with record revenues and major achievements like supply of firewater pump package to ONGC, large axial flow submersibles to Thailand, metallic volute pumps to Telengana Irrigation. The division has built up a strong repertoire of products over the years and now is aggressively working on products enhancement. The primary focus being on energy efficiency. With a good order backlog the division expects to maintain this performance in the coming year. It is working on enhancing infrastructure facilities to better serve the demand for its products.
  • Conventional pump division also achieved major milestones in revenues and successful execution of a major package for Telengana Water Grid, large order for Royal irrigation Dept., large number of high horsepower submersibles for irrigation and water supply. Throughout the year, the division developed and strengthened its product lines to cover all applications in the water sector with emphasis laid on design and manufacturing. Its comprehensive products range makes it a very strong player in the business allowing it to cater to changes in sectoral performance. This division has a good order book and is confident of its performance going forward.
  • Infrastructure division has finally gained traction with a strong order book and commencement of execution of its large Irrigation projects. Further the company booked large water distribution projects in Madhya Pradesh and is partnering Gruppo Aturia in an Irrigation project in Africa. With strong order in irrigation and Rural water distribution aligned with Government’s initiative to provide water to all, this division is confident to growth further in near term with its competence.
  • Gruppo Aturia performance was good with finally achieving its potential. Both its Industrial division and Rutschi nuclear division performed well. The Industrial division is seeing good growth in Irrigation pumps and Firefighting applications, whereas the nuclear business has a strong order book of both new projects and after sales. The business should maintain its performance in the coming year.
  • WPIL Thailand had an excellent performance this year with sizable hike in revenues and profits and it expects to continue this momentum. Simultaneously, the market penetration has radically increased and large number of opportunities are developing.
  • The company continues to leverage newer applications- led technology to penetrate new markets and increased demand for its products. The Company is also working on technology to derive benefit of customers experience and choice of customers to company’s products.
  • The Company being one of the leaders in the pump industry foresees good growth in both domestic and international operations and continues to strengthen its business by diversifying across geographies and product categories to both de-risk and grow business. All divisions are well equipped to deal with their growing order book and provide good quality and delivery of products to continue enhanced market share. The Company feels it has achieved a good balance by developing its international business and creation of Waste Water Pump division which along with the Infrastructure division would be the major drivers going forward. WPIL looks to cement its position in the various geographies and markets it operates going forward.
My note: On face of it, it seems that the company is set for a great year ahead. But management has been guiding positively in previous years’ annual reports as well without delivering sometimes. This time they are backed with superior quarterly numbers and significant increase in promoter shareholding. Let’s see if they deliver.

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