Thermax Q1 profit flat at Rs 60 crore despite 18.5% rise in revenue

Thermax has manufacturing facilities in India, Europe and Southeast Asia.

The net profit of energy and environment solutions provider Thermax Ltd remained flat at Rs 59.95 crore in the June quarter due to an exceptional item of provision related to litigation, the company said in a statement on August 1. Thermax posted a profit of Rs 58.95 crore in the corresponding quarter last year.

Revenue, however, increased 18.5 percent to Rs 1,986.02 crore in Q1 from Rs 1,675.02 crore a year earlier. The company posted an operating revenue of Rs 1,932.96 crore in the quarter compared to Rs 1,654.48 crore in the same period a year ago - a jump of 16.8 percent.

"Increased revenue has resulted in increased profit before tax (PBT). Last year, PBT was lower due to the impact of input commodity costs in the industrial products and chemical segments. Profit after tax (PAT or net profit) is impacted due to exceptional item of provision related to litigation of Rs 51 crore," the company said in a statement.

In the first three months of this financial year, Thermax Ltd had an order balance of Rs 10,505 crore. The order booking for the quarter was 11 percent higher at Rs 2,567 crore compared to Rs 2,310 crore in the same period a year ago.

The company said its order balance from the industrial infrastructure and chemical segments is marginally lower due to the execution of orders in Q1. In terms of revenue, industrial products earned the company a revenue of Rs 836 crore, which is 26 percent higher than Rs 663 crore during the same quarter last year.

"Improved performance seen in the industrial products and chemical segments has been on account of increased revenue. Last year's margins were impacted by higher commodity costs which are stabilised now," the company said.

Industrial Infra margins are lower due to lower margins in projects under execution, it added.

Thermax offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals. It has manufacturing facilities in India, Europe and Southeast Asia.