Thermax Q4 Results Review - Healthy Performance; Order Pipeline Plateauing: Prabhudas Lilladher

Prabhudas Lilladher Report

Thermax Ltd. reported healthy performance, with consolidated revenue up 16% YoY and Ebitda margin expanding 186 basis points YoY, owing to stabilizing commodity prices and supply chain.

Domestic enquiry pipeline is plateauing from previous two quarters amid no major large orders in pipeline, which may affect medium term order inflows. Exports enquiry pipeline is witnessing improvement from segments such as waste heat recovery, waste to energy and biomass.

Within chemical segment Thermax has re-negotiated old contracts with clients on commodity and freight cost front, resulting in Ebit margins expanding to 19.2% in Q4 FY23 versus 2.8% in Q4 FY22 (14.1% in Q3 FY23).

Further Thermax has also reclassified its segments into - Industrial products (~41% of FY23 revenue), Industrial Infrastructure (~49%), green solutions (~4%) and chemicals (~8%).

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