Thermax -- Dissappointing q1 result

Thermax Limited has announced the unaudited financial results for the quarter ended June 30th 2009.

It has posted a net profit of INR 464.901 million for the quarter ended June 30th 2009 as compared to INR 637.091 million for the quarter ended June 30th 2008. Total income has decreased from INR 7271.543 million for the quarter ended June 30th 2008 to INR 5478.852 million for the quarter ended June 30th 2009.


Thermax’ Q1FY2010 results have been disappointing on all fronts with its both revenue and profits sharply lower than expected.

The net income from its operations declined 25% year-on-year (y-o-y) to Rs537.6 crore during the quarter. Both the energy and the environment division have reported a decline in their revenues: a drop of 23.3% and 29.9% respectively.

On the operating profitability front, the operating profit of declined by 24.4% to Rs68.9 crore, translating into an operating profit margin of 12.8% (up ten basis points y-o-y). The profit before interest and tax (PBIT) margin of the energy division dipped 150 basis points to 12.4%.

The other income remained more or less flat (a growth of 1%) at Rs10.3 crore. The interest cost increased by 80.2% while the depreciation charge rose by 36.4% to Rs9.5 crore. Consequently, the net profit declined by 27% to Rs46.5 crore during the quarter.

The consolidated order book of the company increased to Rs3,426 crore in Q1FY2010 from Rs3,078 crore at the end of Q4FY2009.

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ABOUT
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Thermax Limited is a global solution provider in energy and environment engineering.

It offers products and services in heating, cooling, waste heat recovery, captive power, water treatment and recycling, waste management and performance chemicals.

The Company operates in two business segments: energy and environment.

The products covered under the energy segment include
boilers and heaters,
absorption chillers/heat pumps and power plants.

The products covered under the environment segment include

air pollution control equipments/ systems,
water and waste recycle plants,
ion exchange resins and performance chemicals.

The Company’s subsidiaries include

Thermax Sustainable Energy Solutions Ltd.,
Thermax Engineering Construction Co. Ltd. (TECC),
Thermax Instrumentation Ltd.,
Thermax Europe Ltd. and
Thermax International Ltd.

TECC undertakes and executes engineering construction projects mainly for the boiler and heater (B&H) business unit of the Company.