Thermax net marginally down 2% at Rs 83 crore in December quarter

Thermax on Wednesday reported a marginal decline of 2 per cent in its consolidated net profit at Rs 83 crore for the December quarter, mainly due to certain exceptional items.

"Profit after tax and exceptional items for the quarter was Rs 83 crore, down 2 per cent compared to Rs 85 crore in the corresponding quarter of FY2019-20," the company said in a regulatory filing.

It explained that the exceptional items impacted the results on account of impairment of goodwill in Thermax Netherlands B V and reversal of part of the provision created earlier for claims arising from the closure of a German subsidiary.

The total income of the company rose to Rs 1,438.82 crore in the quarter from Rs 1.435.80 crore in the same period of previous fiscal.

"During the quarter, the Group's operations recovered further from the economic slowdown caused by the COVID-19 pandemic. Based on its assessment of business/ economic conditions as on date, the Group expects to recover the carrying value of its intangible assets, trade receivables, contract balances and inventories," the company said.

As on December 31, 2020, Thermax Group had an order balance of Rs 5,208 crore against Rs 5,439 crore a year ago, down 4 per cent.

Order booking for the quarter was 2.6 per cent lower at Rs 1,565 crore. This includes a major EPC order from a biorefinery in Assam for setting up captive a combined heat and power plant.

Thermax's order book witnessed broad-based recovery with momentum in sectors ranging from food & beverage to cement and steel.

A leading energy and environment solutions provider, it is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals.

It has manufacturing facilities in India, Europe and South-East Asia.