Thermax Expects Higher Order Inflow In Second Half

Thermax Ltd. reported a solid second quarter, surpassing estimates on revenue, margins, and net profit, driven by a higher order book and large projects in the infrastructure and energy sectors. Ashish Bhandari, chief executive officer and managing director of the company, told NDTV Profit that he expects larger order inflows in the next two quarters.

In the July-September period, Thermax's consolidated revenue from operations jumped 13.4% year-on-year to Rs 2,611.6 crore. The bottomline rose 25% YoY to Rs 198 crore.

Thermax's revenue gains were bolstered by an exceptional one-time benefit under the Maharashtra government's packaged incentive scheme, which contributed over Rs 60 crore to margin expansion. However, profitability was restricted due to ongoing challenges in executing larger projects.

"Executing large orders better is where we need to improve," Bhandari said, acknowledging that delays in project execution, particularly due to labour and construction-related hurdles, have impacted timelines.

Despite these obstacles, he described the delays as manageable. Bhandari also noted that commodity prices, including steel and oil, have remained stable, which should help maintain cost stability.

The Thermax CEO highlighted the company's international business, which outperformed its Indian segment in the second quarter as major orders came from the overseas markets. While the first half of fiscal 2025 was relatively flat for the India segment, Bhandari expects a rebound in domestic performance during the second half.

The third and fourth quarters are poised to undo the flattening seen in the first half of the year," he said, expressing optimism for the remainder of the fiscal.

Bhandari pointed out that while the quarter ended September fell below internal expectations, the company remains focused on enhancing its execution capabilities for large orders, which will be key to sustaining the growth momentum.