Shares of Thermax advanced 20 per cent to Rs 1,218.50 in intra-day trade on the BSE on Thursday after the company said that order inflows witnessed a broad based recovery in sectors ranging from cement, steel, food & beverages during the October-December quarter (Q3FY21). The stock hit a 52-week high, surpassing its previous high of Rs 1,075, touched on February 5, 2020.
In Q3FY21, Thermax reported flat consolidated revenues at Rs 1,411 crore. Ebitda earnings before interest, taxes, depreciation, and amortisation) came in at Rs 147.6 crore, up 30.4 per cent year on year (YoY) aided by cost control measures and improved performance in key business segments.
Resumption of normalcy in the company's operations, improved performance of all business segments and cost control measures have improved the profit before tax by 34 per cent to Rs 141 crore from Rs 105 crore in Q3FY20. The reported profit after tax however, declined marginally 2 per cent YoY at Rs 83.30 crore due to tax adjustments in base quarter and exceptional items.
“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 closure of a German subsidiary, net Rs 28 crore,” Thermax said in press release.
As on December 31, 2020, Thermax Group had an order balance of Rs 5,208 crore, down 4 per cent from Rs 5,439 crore in year ago. Order booking for the quarter was 2.6 per cent lower to Rs 1,565 crore from Rs 1,606 crore.
“The energy segment showed higher growth over Q3FY20, bagged Rs 320 crore biorefinery order. The lower order booking of environment segment is on account of the Rs 430 crore flue gas desulphurisation order bagged in the same quarter last year,” Thermax said.
Sectors such as steel, cement, chemical, pharma and food processing are likely to continue witnessing demand in the coming quarters. The project completions forecasted and new investments expected to accelerate, the company said.
Thermax’s execution was a reflection of normalcy in operations across business segments. Operating margins came in better-than-expected owing to operating cost control measures. However, order inflows and order books continue to remain key concerns amid muted private capex, ICICI Securities said in a note.