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Q1 Results: Thermax’s Profit Jumps; Expects Tepid Order Book For Next Two Quarters

The ‘real pickup’ will happen from the fourth quarter, says Chief Executive Officer MS Unnikrishnan.



An employee walks past a SolPac D160 solar field, comprising of parabolic solar concentrating reflector dishes developed by Thermax Ltd. Photographer: Dhiraj Singh/Bloomberg
An employee walks past a SolPac D160 solar field, comprising of parabolic solar concentrating reflector dishes developed by Thermax Ltd. Photographer: Dhiraj Singh/Bloomberg

Thermax Ltd.’s profit rose in the first quarter even as orders are expected to remain tepid for up to one and a half year, according to its Managing Director and Chief Executive Officer MS Unnikrishnan.

“We had capacity available, so our execution really supported the entire company, ensuring that we have a 33 percent growth in the top line,” Unnikrishnan told BloombergQuint. “We had opened the year with fairly decent carry forwards.”

The underutilisation of everything from consumer to capital goods has come at a time of deceleration in the economy, the industrial equipment maker’s CEO said.

Unnikrishnan expects order booking to be tepid for up to two quarters and the “real pickup” to happen from the fourth quarter. Considering the stress that banks and non-bank lenders are under, a full revival of the capex cycle could take up to six quarters, he said.

Key Earnings Takeaways (Year-On-Year)

  • Revenue up 34 percent at Rs 1,392 crore versus Rs 1,035 crore.
  • Net profit up 28 percent at Rs 62.7 crore versus Rs 48.9 crore.
  • Ebitda up 42 percent at Rs 98 crore versus Rs 69 crore.
  • Margin at 7 percent versus 6.6 percent.

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