Thermax, a prominent player in the energy and environmental solutions industry, has reported a significant boost in its consolidated net profit during the second quarter of FY 2023-24. The noteworthy increase, which reflects improved operational performance across various segments, highlights the company’s resilience and continued growth in the ever-evolving energy landscape.
Thermax’s Q2 FY 2023-24 Financial Performance
The latest financial report from Thermax reveals a consolidated operating revenue of Rs 2,302 crore during the second quarter of FY 2023-24. This figure demonstrates a substantial 11% growth when compared to the Rs 2,075 crore reported during the same period in the previous year. Such an upswing in operating revenue underscores the company’s prowess in providing energy and environmental solutions in a world transitioning towards cleaner and more efficient energy sources.
A Remarkable 46% Increase in Net Profit
One of the most striking highlights of Thermax’s Q2 performance is the remarkable 46% rise in consolidated net profit. The company reported a consolidated profit after tax (PAT) of Rs 159 crore for this quarter, a significant increase from the Rs 109 crore reported during July-September 2022. This boost can be attributed to a combination of factors, including higher revenues, improved operational efficiency, and a strong focus on enhancing profitability.
Segment-Wise Growth
The impressive growth isn’t confined to one aspect of Thermax’s operations. The company’s diversified portfolio, which encompasses industrial products, industrial infrastructure, green solutions, and chemicals, has all contributed to this significant surge in net profit. By enhancing operational performance across various segments, Thermax has managed to bolster its financial health.
Order Balance and Booking
As of September 30, 2023, Thermax’s order balance stood at Rs 10,264 crore, marking an 8% increase compared to the corresponding quarter. While the order booking for the quarter was 2% lower at Rs 1,973 crore as compared to a year ago, the company continues to maintain a healthy order book.
A Glimpse of Standalone Performance
On a standalone basis, Thermax reported an operating revenue of Rs 1,444 crore during the quarter. This signifies a commendable 5% growth when compared to the Rs 1,373 crore achieved in the same quarter the previous year. The profit after tax (PAT standalone) for the quarter was Rs 64 crore, which was 31% lower than the previous year. This decrease can be attributed to an exceptional item involving an impairment of investment related to a subsidiary in Indonesia, amounting to Rs 73 crore.
Continued Review of Subsidiary
The management continues to review its subsidiary operations, particularly the one impacted by the impairment of investment in Indonesia. This subsidiary remains under scrutiny as the company evaluates its strategic relevance.
Future Investments and Nod to Loan Availment
During the quarter, Thermax approved additional investment of up to USD 2 million in the share capital of Thermax Engineering Singapore Pte. Ltd (TESPL), a wholly-owned subsidiary of the company, for further investment in PT Thermax International, Indonesia, another wholly-owned subsidiary of TESPL. Furthermore, the company has approved a loan of up to Rs 400 crore from Thermax Babcock and Wilcox Energy Solutions (TBWES), a wholly-owned subsidiary of Thermax, in one or more tranches.
Appointment of Shyamak R Tata
Notably, during this quarter, Thermax welcomed Shyamak R Tata as an Additional Non-Executive Independent Director, reinforcing its commitment to strong governance and leadership.
The results for Q2 FY 2023-24 demonstrate Thermax’s resilience and robust business performance, positioning the company as a key player in the energy and environmental solutions sector.
