Thermax' Q1 net falls 17%, co to improve margins in FY13

Moneycontrol Bureau

Thermax Limited has reported a 17% decline in its June quarter profit to Rs 67 crore. Total income of the company was also lower by 6% to Rs 983 crore due to a fall in order inflow. Also, the company did not bag any significant order during the quarter under review

 The company in a statement said that its power related businesses of Thermax faced a crunch due to a tight economic environment, but nevertheless it is fine tuning its strategies to beat the slowdown in order bookings.

During the quarter, the company bagged fresh orders worth Rs 1,258 crore. The company’s order balance improved by 6% to Rs 4474 crore, quarter-on-quarter, but was lower, YoY, said the company in a statement without mentioning the quantum of decline in orders.

In a recent interview to CNBC-TV18, the company's chairman and managing director had said that margins have been under pressure, but he was hopeful to sustain it going forward. "Since the number of orders on finalisation table are under stress and less in numbers, one can't expect margin improvement. Retaining the margins or within a maybe 100-200 basis points in comparison to what we have done in the earlier year would be the right assumption," he had said.

Post the result announcement, the co stock declined marginally to Rs 505.35.