Thermax Q1 net profit down 17% y-o-y

Quarter results impacted due to loss in subsidiaries & fall in order book

Pune headquartered capital goods manufacturers Thermax reported a drop of 17 per cent in its net profit at Rs 41.4  crore for the first quarter of the financial year 2014-15, from Rs 50.25 crore last year. The company’s order book too dipped by 5.9 per cent on year-on-year basis.

Thermax’ also witnessed a drop of 2.7 per cent in the total income at Rs 839.4 crore as compared to Rs 862.8 crore last year.

The impact was evident on the stock price of the company which was down 8.5 per cent at Rs 867.5 per share on the Bombay Stock Exchange.

The company said that profits were impacted largely due to its subsidiaries making losses during the quarter.

Add to this its order book also declined by 5.9 per cent hinting that spends are yet to return to key sector like power.

Meher Pudumjee, chairperson, Thermax said, “The profits are mainly down because our subsidiaries have suffered losses. Also, our order book has gone down during the quarter. Also, the power and coal sectors have still not revived yet and this lull continue for at least a year or more. The policy paralysis in last few years has suffered the business."

 

The total losses made by these subsidiaries amounted to Rs 24 crore. The company's order balance on June 30, 2014 stood at Rs 5,206 crore, down 5.9 per cent from Rs 5,530 crore for the corresponding quarter last year. "During the quarter, the company booked orders worth Rs 662 crore, significantly lower than the corresponding figure for last year, Rs 2,123 crore, which included a big order of Rs 1,350 crore from a petrochemical company," said the company.

 

At the consolidated level, Q1 revenue was down 3.9 per cent at Rs 1,010.1 crore compared to Rs 1,051.7 crore. Net profits however plunged to Rs 17.3 crore, down 67 per cent from Rs 52.9 crore year-on-year. The Group had an order balance of Rs 5,948 crore, compared to Rs 6,322 crore for the corresponding period last year.