The pre-goods and services tax (GST) slowdown impacted Thermax's performance in Q1 as expected as energy EBIT margins declined while profitability shrinks.
In an interview to CNBC-TV18, MS Unnikrishnan, MD of Thermax spoke about the results and his outlook for the company.
A lot of customers delayed taking delivery because there was an ambiguity prevailing in the market over GST. So we had an impact of near Rs 100 crore on the topline which would mean that we would have possibly reported little more (on the topline) than the last year if we could be selling all the material, he said.
Also, revenue worth Rs 35 crore got delayed due to malware attack on ports and shipping companies, he added.
According to him, these two were the main reasons otherwise the quarter was good.
Order inflow has been steady in Q1, said Unnikrishnan.
He further said that the company has seen a significant order inflow from oil companies.
Thermax has just commissioned its new factory in Indonesia which would cater to the countries, like Indonesia, Malaysia, Thailand, Philippines, Vietnam and Cambodia put together.
Entire July had been a loss month for majority of the Indian industry but we are all recouping right now. Companies like us have come back to almost normalcy level. My expectation is in a month or two, everything will come back to normalcy, he said.For full interview, watch accompanying video...