Thermax Group reported an 82% year-on-year (y-o-y) growth in consolidated net profit to `109 crore for the April-June quarter, with revenue increasing by 13% y-o-y to `2,184 crore. Last year’s profit was adversely impacted by an exceptional charge of `51 crore related to litigation. The order booking for the June quarter stood at `2,569 crore, with the order balance as of June 30, up 2% to `10,681 crore.
Meher Pudumjee, chairperson of Thermax, said the company witnessed growth across all business segments in FY24. Thermax is positioning itself as a one-stop shop for industrial and commercial customers seeking decarbonization solutions, she added. The company has launched a range of energy transition products, services, and green energy projects.
Thermax is venturing into green hydrogen and has established a strategic unit for hydrogen EPC projects and localization of electrolyzer manufacturing. Pudumjee mentioned that a proposed venture with Australian green-energy company Fortescue Future Industries (FFI) to explore green hydrogen projects, including new manufacturing facilities in India, did not materialise. Consequently, Thermax will pursue this business independently for now.
Ashish Bhandari, CEO and managing director of Thermax, stated that the company and FFI could not agree on terms, and Thermax is now scouting for an alternative partner, with a new partnership expected to be finalised within 90 days. Bhandari emphasised that Thermax has the capabilities to execute EPC projects and operate Build-Own-Operate projects in this sector. He also noted that Thermax has secured a fuel cell project for submarines from the Indian Navy.
Regarding the flat order book for the June quarter, Bhandari explained that the industrial infrastructure business faced challenges, including a 12% decline in order bookings due to issues in Bio CNG projects, which required rectification and led to a `45 crore hit, and a slowdown in ethanol projects.
There were also setbacks in the sulfur recovery unit. However, Bhandari expressed optimism that the order book position would improve for the rest of the year, with a larger overall pipeline compared to the previous year. He also mentioned potential participation in thermal projects, with multiple projects expected to be awarded in Q3FY25. The chemical segment grew by 35%, green solutions by 19%, and industrial products by 6%.
During the quarter, Thermax unveiled a manufacturing factory in Pune for water and wastewater solutions. The company acquired a 51% stake in TSA Process Equipments to offer end-to-end solutions for highly purified water, ultra-pure water, and water for injectables across fast-growing industries. Additionally, Thermax established a wholly-owned subsidiary, Thermax Chemical Solutions, to expand its chemical business.