- 03 Aug 2022
- ICICIdirect Research
Thermax reports mixed Q1FY23 numbers
THERMAX - 4373 Change: 12.80 (0.29 %)News: Thermax reported a mixed set of Q1FY23 numbers, registering substantial growth in revenue owing to better execution in energy segment. Consolidated revenue came in at Rs 1654.5 crore, up 57.2% YoY (above our estimate of Rs 1564.8 crore) aided by better execution in energy segment followed by environment. The consolidated order inflow for the quarter came in decent at Rs 2310 crore (vs. Rs 1696 crore in Q1FY22). EBITDA came in at Rs 96 crore, up 52.2% YoY. Consequently, EBITDA margin came in at 5.8% (vs. our estimates of 7%). Even gross margin also declined by 801 bps to 41.3% on YoY basis. Adjusted PAT came in at Rs 58.9 crore, grew by 39% YoY.
Views: Thermax reported a strong execution performance amid challenges. Energy segment revenue (which contributes ~74.2% to revenue) grew 60.9% to Rs 1227 crore, YoY. Environment segment revenue grew 47.5% YoY to Rs 427 crore and chemical segment revenue came in at Rs 150.11 crore, up 22.3%, YoY. From demand per se, improved prospects of orders from steel, chemical and refinery and petrochemical sector but at the same time weakening of rupee against US$ has put pressures on input cost.
Impact: Positive.