Energy and environment solutions company Thermax Group on Tuesday reported a 40% year-on-year (y-o-y) jump in net profit to Rs 58.9 crore for the quarter ended June.
Revenues grew by 57% to Rs 1,654 crore driven by strong order inflow from diverse sectors, including refineries, steel, power, and chemicals. Thermax witnessed an upward trend in demand from sugar, distilleries, paper and pulp industries for green offerings.
Thermax’s order book was up 36% to Rs 2,310 crore. As of June 30, the order balance for the quarter was Rs 9,554 crore, an y-o-y increase of 56%.
On a standalone basis, Thermax posted a 23% fall in net profit and a 33% growth in revenue to Rs 947 crore during the quarter.
The company said profitability was impacted due to the increased commodity and freight costs in the chemical segment.
Meher Pudumjee, chairperson, Thermax, said they had seen big ticket wins on the back of a broad-based recovery across segments with growth in demand for energy and transition to green energy. The only concern was that margins were under pressure due to an increase in freight and raw material prices, Pudumjee said.
Ashish Bhandari, managing director, Thermax said the worst could be behind with April ’22 seeing a peak of commodity prices and on average prices going up by 7%. They had to renegotiate price with customers and had passed on the cost to the customers, Bhandari said. While it was difficult to produce how the second half would be, they had been seeing a softening of commodity prices, he said.
Around 75% of their orders were for the non-fossil fuel segment, Pudumjee said. Thermax solutions now included solar, hybrid, bioCNG, gasification and hydrogen solutions.
The company successfully completed a one tonne per day pilot in Pune for high ash coal gasification to produce methanol. The company worked with IIT-Delhi on this project.
They also developed an electric steam boiler and supplied the first of these boilers to Bhutan. During the quarter, Thermax concluded a major order of Rs 522 crore for utility boilers and associated systems for a petrochemical complex in Rajasthan.