Thermax Q2 Results: Net profit increases 46% to Rs 159 crore

Thermax on Friday posted a nearly 46 per cent rise in its consolidated net profit to Rs 159 crore in the September quarter, mainly due to higher revenues.

"The company's consolidated profit after tax (PAT) is Rs 159 crore (Rs 109 crore in July-September 2022), an increase of 46 per cent over Q2 FY23," a company statement said.

According to the statement, the growth is a reflection of improved operational performance across all segments i.E. Industrial products, industrial infra, green solutions and chemicals.

Thermax, a leading provider of energy and environment solutions and a trusted partner in energy transition, recorded a consolidated operating revenue of Rs 2,302 crore in the second quarter of FY 2023-24, an 11 per cent higher as compared to Rs 2,075 crore in the year-ago period, it stated.

As of September 30, 2023, the order balance for the quarter was Rs 10,264 crore up by 8 per cent from Rs 9,485 crore in the corresponding quarter.

The order booking for the quarter was 2 per cent lower at Rs 1,973 crore as against Rs 2,015 crore a year ago. On a standalone basis, the company posted an operating revenue of Rs 1,444 crore during the quarter, marking a 5 per cent growth as compared to Rs 1,373 crore in the corresponding quarter of the last year.

The profit after tax (PAT standalone) for the quarter stood at Rs 64 crore, lower by 31 per cent from the previous year.

The exceptional item of impairment of the investment related to the subsidiary in Indonesia, amounting to Rs 73 crore, has impacted the standalone result.

The management continues to review this subsidiary. The order booking for the quarter was higher by 19 per cent at Rs 1,347 crore as compared to Rs 1,132 crore in the previous year. 

The order balance on September 30, 2023, declined 1 per cent to Rs 6,636 crore from Rs 6,736 crore.During this quarter, Thermax announced the appointment of Shyamak R Tata as an Additional Non-Executive Independent Director of the company.

The company also recently established a new office space dedicated to green hydrogen in Pune. The board also approved the issuance of additional support letter/corporate guarantee/letter of surety(s) on behalf of the company's wholly-owned step-down subsidiary, Danstoker A/S, to Citi Bank Europe plc, to enable Danstoker A/S, set up non-fund based credit facility up to USD 6 million in addition to earlier facility.

Further, it approved additional investment of up to USD 2 million in share capital of Thermax Engineering Singapore Pte. Ltd (TESPL), a wholly-owned subsidiary of the company, for further investment in PT Thermax International, Indonesia, a wholly-owned subsidiary of TESPL.

It has given the nod to avail loan of up to Rs 400 crore from Thermax Babcock and Wilcox Energy Solutions (TBWES), a wholly-owned subsidiary of the company, in one or more tranches.