Thermax Q4 Results Review - Order Inflow Growth Remains Weak: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Thermax Ltd. Q4 FY24 results beat our estimates, with in-line revenue and higher than-expected profit after tax on strong margins. Q4 revenue/Ebitda/profit after tax grew by 20%/37%/20% YoY. Order inflows stood at Rs 23 billion/Rs 101 billion in Q4/FY24 (up 2%/4% YoY), both lower than our estimates. Inflows lacked large-sized orders during the year. Though the working capital cycle is still comfortable, free cash flow was affected by large capex, primarily for Thermax Onsite Energy Solutions/First Energy. Borrowings jumped 55% YoY to Rs 12.5 billion. The company expects the finalization of largesized order inflows over the next few quarters. We raise our estimates by 4%/10% for FY25/26 to factor in better margins. We revise our target price to Rs 4,180, based on a higher multiple for core business to bake in expected revival in private capex as well as thermal ordering. We maintain our Neutral stance on Thermax as we believe that incremental investments in Thermax Onsite Energy Solutions Ltd./ First Energy Pvt. Ltd. will weigh on balance sheet strength and near- to medium-term return ratios..Click on the attachment to read the full report:.Air India-Vistara Merger: Employees To Be Deputed In Phases From June.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Thermax Q4 Results Review - Order Inflow Growth Remains Weak: Motilal Oswal

Segment-wise margin outlook is looking better

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Thermax Q4 Results Review - Order Inflow Growth Remains Weak: Motilal Oswal

Segment-wise margin outlook is looking better

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