Thermax expects 3-4 segments to open up in Q4 and Q1 of FY18 supporting medium and large projects, which had gone dry in this financial year. In an interview to CNBC-TV18, MS Unnikrishnan, MD of Thermax says the Q4 of FY17 is likely to be better on-year.
Demonetisation hit the company’s performance as customers in the cash-oriented sectors deferred taking deliveries, he said, adding, Thermax also cut production in December to maintain inventory and is working to trim operatiing expenses to lift margins.
He expects GST implementation to lead to inflationary pressure.
The company is a strong contender on six oil and gas projects that are coming up for Bharat VI implementation, he said.
Thermax currently sits on cash of Rs 780 crore at the end of Q3 after having paid the debt of the joint venture.
The company reported a mixed set of earnings for Q3 FY17 with revenue coming at Rs 888.9 crore versus Rs 973 crore against a CNBC-TV18’ poll of Rs 949 crore. Profit was at 54.8 crore lower than the CNBC-TV18’ poll of Rs 63 crore.
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