Thermax gains after Q2 PAT rises 22% YoY

Thermax rose 3.35% to Rs 779.65 after the company reported 21.6% jump consolidated net profit to Rs 31.24 crore on 28.9% decline in net sales to Rs 1141.20 crore in Q2 FY21 over Q2 FY20.

On the segmental front, revenue of the energy business was at Rs 886 crore (down 33.9% YoY), revenue of the environment business was at Rs 155 crore (down 13.4% YoY) and revenue of the chemical business was at Rs 115 crore (up 3.6% YoY) in the second quarter.

Profit before tax in Q2 September 2020 stood at Rs 44.09 crore, down 63.4% from Rs 120.44 crore in Q2 September 2019. Current tax expense declined by 21.7% year-on-year (YoY) to Rs 21.31 crore during the quarter.

Thermax said that exceptional items impacted the results on account of a voluntary retirement scheme, impairment of certain assets of Boilerworks Properties ApS (Denmark) and provision for closure of German subsidiary claims, totalling to Rs 24.65 crore.

As on 30 September 2020, Thermax Group had an order balance of Rs 5,190 crore as against Rs. 5,334 crore in the same period last year, declining 3% YoY0. Order booking for the quarter was 35% lower at Rs. 1,114 crore as compared to Rs. 1,723 crore in Q2 FY20.

The group's performance improved over Q1 due to partial resumption in industrial activities post COVID induced lockdown. However, muted capacity expansion in majority sectors continued to impact the company's revenue and order book.

In November, Thermax Group concluded a major order to set up a captive Combined Heat and Power (CHP) plant on an EPC basis for Assam Bio Refinery (ABRPL), a public private joint venture company. ARR PT, will develop India's first biorefinery to produce cellulosic ethanol from bamboo biomass.

Thermax, a leading energy and environment solutions provider 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. Thermax has manufacturing facilities in India, Europe and South East Asia.

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