Further diversifications, if any, will be only into related areas, Ms Pudumjee said.
Industry experts stress on the need for companies to grow, both organically and inorganically. Commenting on the same, Ms Pudumjee said that Thermax was not averse to mergers or acquisitions, but the company would not undertake M&A for the sake of it.
Ms Pudumjee said that Thermaxs problems coincided with the bad patch in the economy. The net profit of Rs 7.15 crore (Rs 2.70 crore) in the first quarter of 2003-04 was primarily due to prudent equity investments, when the stock market was buoyant, she clarified.
Nevertheless, the share price of Thermax on BSE has increased from a 52-week low of Rs 123 on November 12, 2002, to Rs 316 as on November 4, 2003, showing a growth of 157 per cent. This is quite close to its 52-week high of Rs 330. However, Ms Pudumjee said that share price can be only one indicator of a companys performance, adding the company believes in quality production and expertise in the entire supply chain.
Ms Pudumjee said that the ongoing power sector reforms are in the right direction, even as Thermax plans to stick to co-generation and not get into IPP business. Currently, 20 per cent of the companys turnover comes from exports and it has plans for venturing into more countries.