Thermax Q1 profit jumps 28% to Rs 63 cr on strong growth in energy business

Engineering solution company Thermax has reported a 28 percent year-on-year (YoY) growth in the June quarter profit at Rs 62.76 crore, driven by strong energy business.

Profit in the same period previous year was Rs 48.97 crore.

Consolidated revenue from operations grew by 34.5 percent to Rs 1,392.45 crore compared to year-ago, as the energy business, which contributed 83 percent to total topline, registered a 45 percent year-on-year growth in Q1.

The order booking, however, was 26 percent lower at Rs 1,217 crore on account of slowdown in investment sentiment witnessed in both domestic and international markets, Thermax said in its BSE filing.

At the end of June 2019, Thermax Group had an order balance of Rs 5,250 crore, 18 percent lower compared to Rs 6,420 crore as of June last year.

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 43 percent to Rs 99.09 crore YoY in Q1 and margin improved 40bps to 7.1 percent YoY.

Numbers beat analyst expectations on all counts, barring margin. Profit was estimated at Rs 60 crore on revenue of Rs 1,190 crore and EBITDA was expected at Rs 86 crore with margin at 7.2 percent, as per a poll of analysts conducted by CNBC-TV18.

Thermax said pursuant to acquisition of shares in Thermax Babcock & Wilcox Energy Solutions (TBWES) and Thermax SPX Technologies (TSPX), its financial results were been consolidated as wholly owned subsidiaries as compared to ‘equity’ basis consolidation during Q1, last year. Hence, the results of the group are not comparable.

As a result of strong earnings, the stock gained 8.6 percent intraday. It was quoting at Rs 1,084, up Rs 34.05, or 3.24 percent on the BSE at 1510 IST.

News Source: MoneyControl

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