Thermax Q2 profit seen down 3%, order inflow may be subdued

Thermax, the energy and environment engineering company, is expected to report weak set of earnings on Tuesday. Profit is likely to fall 3 percent year-on-year to Rs 83 crore and revenue may be flat at Rs 1,200 crore against Rs 1,191 crore in same period, according to analysts polled by CNBC-TV18.

Operating profit (earnings before interest, tax, depreciation and amortisation) is likely to decline marginally to Rs 121 crore from Rs 123 crore and margin may contract to 10.2 percent from 10.3 percent on yearly basis.

Analysts expect low order backlog and no significant order inflow during the quarter. Subdued order inflow may be due to overcapacity in industry and constrained demand in energy sector.

They feel revenue growth of Q1 may not sustain in September quarter, given that the execution on Reliance Industries order will be over soon.

Order intake growth from international markets may be a key monitorable.