Latest news with #Thermax
Time of India
12-05-2025
- Business
- Time of India
Stocks in news: Tata Steel, Swiggy, Dr Reddy's, Cyient DLM, Thermax, Adani Power
Following a period of consolidation, Indian equity benchmarks experienced a sharp correction last week. In today's trade, shares of Tata Steel , Swiggy , Dr Reddy's Cyient DLM, Thermax , Adani Power among others will be in focus due to various news developments and fourth quarter results today. Tata Steel, UPL, SRF Shares of Tata Steel , UPL and SRF will be in focus as the companies will announce their fourth quarter results today. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Modern and Economic Container Houses in the Philippines: 2025 Prices and Models LocalPlan Learn More Undo Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Dr Reddy's Dr Reddy's Laboratories reported a consolidated net profit growth of 22% to Rs 1,594 crore in Q4FY25 versus Rs 1,307 crore reported in the year ago period. Swiggy Food delivery company Swiggy has reported nearly doubling of its losses in the fourth quarter to Rs 1081 crore, compared with Rs 554 crore in the same quarter of last year. Canara Bank Live Events Faced with challenges on deposit growth, state-owned Canara Bank asked each of its 82,000-strong staff to go out to garner funds, and mobilised Rs 16,700 crore in ten weeks. TVS Motor The domestic two-wheeler industry is expected to sustain growth momentum this fiscal, aided by income tax relief, enhanced spending on infrastructure and expectations of a normal monsoon, TVS Motor Company CEO KN Radhakrishnan has said. Adani Power Adani Power said it has secured a contract to supply 1,500 MW of thermal power to Uttar Pradesh at a levelised tariff of Rs 5.383 per unit, emerging as the lowest bidder in a competitive tender process. Raymond Lifestyle Raymond Lifestyle said Sameer Shah resigned as the Chief Financial Officer of the company due to personal reasons with effect from July 31. Thermax Energy and environment solutions provider Thermax reported an 8.1% YoY increase in its fourth quarter net profit at Rs 206 crore, up from Rs 190.33 crore in Q4FY24. Cyient DLM Cyient DLM said Anthony Montalbano has resigned as Chief Executive Officer (CEO) of the company with effect from May 8.
Business Standard
10-05-2025
- Business
- Business Standard
Thermax Q4 PAT jumps 8% YoY to Rs 206 cr; declares dividend of Rs 14/sh
Thermax's consolidated net profit jumped 8.09% to Rs 205.90 crore in Q4 FY25 as against Rs 190.33 crore posted in Q4 FY24. Revenue from operations grew by 11.62% to Rs 3,084.93 crore in the quarter ended 31 March 2025. Profit before tax (PBT) was at Rs 300.64 crore in Q4 FY25, up 19.84% as against Rs 250.86 crore posted in Q4 FY24. On the segmental front, revenue from industrial products stood at Rs 1,430.41 crore (up 18.47% YoY), revenue from industrial infra stood at Rs 1,415.19 crore (up 4.32% YoY), revenue from green solutions stood at Rs 151.87 crore (up 4.14% YoY) and revenue from chemical segment stood at Rs 210.10 crore (up 36.32% YoY) during the quarter. As of 31 March 2025, the order balance stood at Rs 10,693 crore, reflecting a 6% increase from Rs 10,111 crore in the corresponding quarter of the previous year. Order booking for the quarter was Rs 2,119 crore, representing an 8% decline compared to Rs 2,309 crore in the same quarter of the previous fiscal year. The quarterly results were affected by the recognition of higher technology intervention costs amounting to Rs 66 crore in Bio-CNG projects under the industrial infra segment. On standalone basis, the companys net profit zoomed 113.96% to Rs 275.05 crore in Q4 FY25 as against Rs 128.55 crore posted in Q4 FY24. Revenue from operations added 13.46% YoY to Rs 1,971.65 crore posted in Q4 FY25. The order booking for the quarter declined by 6% to Rs 1,526 crore, compared to Rs 1,623 crore in the same period last year. The order backlog as of 31 March 2025 stood at Rs 6,026 crore, a decrease of 3% from Rs 6,213 crore. Meanwhile, the board has recommended a dividend of Rs 14 per share for FY 2024-25. The record date for payment of dividend is fixed as Friday, 4 July 2025. Further, the board has approved the re-appointment of Ashish Bhandari as managing director, chief executive officer, and key managerial personnel of the company for a further term of five years, effective from September 1, 2025, to 31 August 2030. Thermax, a leading energy and environment solutions provider, is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals. Thermax has manufacturing facilities in India, Europe and Southeast Asia. Shares of Thermax advanced 2.47% to Rs 3,234.75 on Friday, 9 May 2025.
Business Standard
10-05-2025
- Business
- Business Standard
Thermax consolidated net profit rises 8.09% in the March 2025 quarter
Sales rise 11.62% to Rs 3084.93 crore Net profit of Thermax rose 8.09% to Rs 205.73 crore in the quarter ended March 2025 as against Rs 190.33 crore during the previous quarter ended March 2024. Sales rose 11.62% to Rs 3084.93 crore in the quarter ended March 2025 as against Rs 2763.68 crore during the previous quarter ended March 2024. For the full year,net profit declined 1.68% to Rs 634.47 crore in the year ended March 2025 as against Rs 645.28 crore during the previous year ended March 2024. Sales rose 11.43% to Rs 10388.69 crore in the year ended March 2025 as against Rs 9323.46 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 3084.932763.68 12 10388.699323.46 11 OPM % 9.719.88 - 8.748.54 - PBDT 345.98300.74 15 1042.98941.55 11 PBT 300.64250.86 20 884.47793.47 11 NP 205.73190.33 8 634.47645.28 -2
Reuters
09-05-2025
- Business
- Reuters
India's Thermax misses profit estimates on weak demand for industrial machines
May 9 (Reuters) - India's Thermax ( opens new tab reported fourth-quarter profit below expectations on Friday, hurt by weak demand for its industrial machines and higher raw material costs. Capital goods companies, which depend heavily on government orders, have seen a slowdown in such inflows in recent quarters. Analysts say government capex remained subdued across most segments in the reporting quarter as well. Thermax's order booking dropped 8% to 21.19 billion rupees and a spike in raw materials costs pushed up the company's expenses by 11%. The industrial machine maker's consolidated net profit rose 8% to 2.06 billion rupees ($24 million)in the quarter ended March 31, from 1.9 billion rupees a year ago. Analysts had expected a profit of 2.08 billion rupees, as per data compiled by LSEG. Thermax's revenue grew about 12% to 30.85 billion rupees for the March-quarter, below analysts' expectation of 31.22 billion rupees. Revenue from Thermax's industrial products segment grew 18.5%, while that from division that sets up bio-CNG and power plants rose 4%. The quarterly results were affected by 660 million rupees cost related to the company's bio-CNG projects, it said in a statement. Peer ABB India ( opens new tab reported higher first-quarter profit on Friday on steady demand for its electrification products. ($1 = 85.3070 Indian rupees)
Mint
28-04-2025
- Business
- Mint
Thermax is losing steam. Can the company make investors happy again?
Mumbai: Arnavaz Anu Aga, the octogenarian matriarch of Thermax Ltd's promoter family, never planned to run the engineering company her father, A. S. Bhathena, started in 1966. Bhathena had found a worthy successor in his son-in-law Rohinton Aga, who took over as the chairman and managing director of Thermax in 1981 and led it to its public market debut in 1995. But Rohinton's sudden demise in 1996 forced Anu to hold the reins of the enterprise. With no experience in heading a large corporation, nor deep understanding of engineering, Anu Aga's earnest efforts to steady the ship yielded little result in the face of the macroeconomic headwinds of the 1997 Asian financial crisis. The shares of the newly listed company more than halved in value between 1996 and 1998. That's when an anonymous shareholder letter arrived, which has since become a part of the Indian corporate folklore. The shareholder allegedly told Aga that she had let the shareholders down. 'Letting down, for us, is a dirty word. I couldn't sleep," Aga told Mint during a meeting last December, at Thermax's head office in Pune. She hired the Boston Consulting Group to script a turnaround. What followed is a well-documented reinvention story that is still referenced in business conferences and taught in management schools. Cut to 2025. It's time to make sulking shareholders happy again. During the post-covid bull-run, as investors chased themes around sustainability , the conglomerate's stock grew over five-fold between 2021 and 2024. It hit a 52-week high of ₹ 5,835 in July 2024. However, the stock has fallen over 40% since, and closed at ₹ 3416 on 28 April as growth slowed down to a crawling pace while losses mounted in its new ventures. Brokerages across the board have trimmed price targets. In this period, Thermax's shares have also underperformed market index Nifty 500. 'The weakness in earnings in the past few quarters, and losses in large projects, have led to earnings downgrades and the stock correction. This period also coincided with a slowdown in private capex , so order growth for Thermax tapered. Due to this, the euphoric froth in the stock got washed away," said Renu Baid Pugalia, senior vice president, research, at IIFL Institutional Equities, a brokerage. The big questions: By when can the company turnaround its fortunes, cheering its shareholders yet again? And can the legacy company, known to be conservative, find its footing in a fast-changing economy? Traditionally known for making industrial boilers (they produce steam for power needs, among other applications), Thermax has pegged its reinvention around energy transition and emissions reduction. From selling steam made from renewable energy to making industrial-scale biogas plants that offer a cleaner alternative to crop burning, the company, for the past five years, has been diversifying into several new businesses. Thermax clocked sales revenue of ₹ 1,626 crore in FY06 with a profit of ₹ 103 crore. Revenue more than tripled by FY11 to ₹ 5,213 crore. There was a similar growth in profit over these five years to ₹ 377 crore. But a decade later in FY20? Revenue stood at ₹ 5,731 crore. Profit declined to ₹ 212 crore. With stagnating revenue and declining profit, Thermax had to reinvent, or it risked obsolescence. When M.S. Unnikrishnan, the long-term chief executive (CEO) and managing director (MD) of Thermax was retiring in June 2020, after 38 years at the company, the company opted for an outsider. Ashish Bhandari, the incumbent CEO and MD, was a career General Electric employee when he was hired in 2020. Bhandari had his task cut out. 'Thermax was not growing. Things that got us here, were not going to get us ahead," he said. 'Meanwhile, a whole host of new opportunities were coming up, which, if we were able to capture, would create a future that was very exciting." At a board retreat in November 2021, the company chalked out a roadmap for the next decade. Thermax would bet on its domain expertise in the energy space and help customers in energy transitions. It set a target to triple its revenue to ₹ 18,500 crore by 2030, with more than half of that coming from new businesses incubated during the decade. The company got deeper into the solutions business—offering steam, water or clean power as a service on a per unit basis. To be sure, it toyed with the idea of selling steam as a service more than 15 years ago, but only now has it started scaling the business. Thermax operates close to 50 plants on this 'build-own-operate' model. Other opportunities on the company's radar include green hydrogen , advanced biofuels, supercritical boilers and carbon capture technologies. However, capitalizing on new opportunities meant taking on risk and doing things differently than the company was used to, Bhandari said. For instance, the build-own-operate model meant taking on debt for the first time in years. 'I am more conservative and not a big risk taker. I would like our balance sheet not to be leveraged. So, if tomorrow Ashish (Bhandari) says there is a big opportunity, but it needs us to leverage our balance sheet, that would make me stay up at night," said Meher Pudumjee, the non-executive chairperson of Thermax and daughter of Aga. In typical Thermax fashion, the company insisted on keeping the debt limited to special purpose vehicles (SPVs) set up to own these assets, with no corporate guarantees from the parent company. 'We expect these businesses to have their own financial models that are stable. We don't want to subsidize the risk of an asset through Thermax. Every asset, every SPV, should be able to raise money, make its own business case," Bhandari said. Like Meher Pudumjee, her husband, Pheroz Pudumjee, also holds a non-executive board position. Their children have joined Thermax and are learning the ropes. Son Zahaan is executive assistant to the CEO, while daughter Lea is a product manager. But Thermax's conservative approach—its averseness to taking on debt, judicious pace of expansion, being picky about its customers and only entering businesses with a clear path to profitability—may put it at a disadvantage in a market that values snazzy headlines and giga-scale promises, experts said. Case in point: First Energy Pvt Ltd (FEPL), which is part of Thermax's green solutions portfolio. It supplies renewable electricity to industrial clients on a build-own-operate model. The client pays a flat tariff for the green power. Since its inception in 2021, the business has scaled to about 300 megawatts of renewable energy capacity. The project is running behind schedule and is bleeding capital as Thermax treads at a judicious pace. Meanwhile, O2 Power, a renewable power platform set up by private equity investors EQT and Temasek in 2020, has managed to scale to 1.3 gigawatts of operational assets when it was acquired by a subsidiary of JSW Energy this year at an enterprise valuation of ₹ 12,468 crore. Other venture-capital backed renewable energy platforms have also scaled at a comparable pace, with investors making profitable exits in recent months. For Thermax, land acquisition proved to be more difficult than anticipated. The returns from the business too weren't what the company had expected. 'In FEPL, we have had quite a few losses this year. We expect those losses to come down substantially next year, though even next year would be loss making…with breakeven the year after," Bhandari said during an analyst call on 7 February. Thermax has invested about ₹ 20 crore in equity and about ₹ 300 crore in debt in FEPL so far this fiscal, he said. The target is to invest another ₹ 500 crore to scale the business to 1 gigawatt capacity. Similarly, Thermax Bioenergy Solutions Pvt Ltd, part of Thermax's industrial infra portfolio, has been haemorrhaging capital. It makes bio-compressed natural gas (CNG) plants that use agricultural waste as feedstock and offer a commercially viable alternative to crop burning . Thermax has invested over ₹ 100 crore in the business in just the last one year as it struggles to translate its laboratory successes to industrial scale plants. However, it booked this investment as a revenue expense rather than a research and development spend that can be capitalized on the balance sheet and amortized over a longer period. This means a hit on the company's financials in the short term—and unhappy investors. Apart from green solutions and industrial infra, Thermax operates in two other segments—industrial products and chemicals. However, industrial products and industrial infra account for about 85% of the company's revenue and a similar share of its profit. The industrial products segment, which includes the sale of boilers, heaters, waste heat recovery systems, air and water purification systems, has been going strong. Its revenue grew 9% year-on-year for the first nine months of FY25 to ₹ 3,099 crore, with ₹ 323 crore in profit before interest and tax (PBIT). PBIT margin expanded 1.4 percentage points to 10.4%. The industrial infra segment, which houses several engineering, procurement and construction (EPC) businesses, is where the company is facing a challenge. Revenue grew 6% to ₹ 3,299 crore during the first nine months. But new orders have dried up while cost overruns in existing projects led to PBIT margins halving to a measly 2.2% in the first nine months. The segment's order inflow halved during the October-December quarter compared to the preceding year to ₹ 669 crore, dragging the company's consolidated order booking during the quarter down by nearly a tenth, despite a healthy growth in the industrial products segment. 'It was a difficult quarter, and the results were below our expectations," Bhandari said in the analyst call on 7 February. 'That said, I expect a strong quarter 4, potentially even a very strong quarter 4," he stressed. But as Thermax takes on debt to fund the build-own-operate steam projects, it also changes the nature of its balance sheet, which has historically been flush with cash, said Amit Anwani, vice president and lead analyst for capital goods, industrials and defence at Prabhudas Lilladher Pvt Ltd, a brokerage. 'The steam supply business, where Thermax does the capital investment, exposes the company's balance sheet to the business cycles of its customers. It is also investing in solar power generation assets. Historically, these businesses take a lot of time to firm up and give returns," he said. What is also not helping Thermax's case is that its Ebitda margins have remained range bound between 7.5-8.5%, Anwani said, adding that the market had priced in higher margins. Meanwhile, there has been an execution and order intake challenge. The company's book-to-bill ratio—a measure of its order book versus trailing-twelve-months revenue—is at a measly 1.1, indicating lower growth, he said. 'All this is reflected in the stock price correction." IIFL's Pugalia is unconvinced by Thermax's efforts to reinvent itself. Her premise: Thermax is not really about 'projects'; it is a 'products' company. 'They (Thermax) do not have the DNA to execute projects. Somewhere or the other, they go wrong on execution, cost estimation, etc," she said. In other words, solutions such as steam as a service, where the company first leverages its balance sheet to build the solution and then sell it as a service, isn't really its forte. In the late 2000s, Thermax struggled to execute utility scale boiler projects, Pugalia said. Then the company faced challenges executing large captive power projects, flue-gas desulphurization projects and now, the bio-CNG plants and refinery projects. 'Every company has an inherent strength. Thermax's strength lies in products. In a sense, how they get over this is the test of how they evolve," she said. Kavil Ramachandran, professor of family business and entrepreneurship at the Indian School of Business, recently co-authored a case study on Thermax. He said that while the company's financials will take short-term hits as it transitions, its performance must be benchmarked over longer horizons. 'The long-term investments will pay off only when the performance is not measured quarter to quarter or by stock price. The problem with many companies is that a CEO is judged by profits or stock price," he said. Moreover, Thermax is in the renewable energy sector, where changes are not as rapid, compared to a sector like electronics, Ramachandran added. This allows the company the liberty to be conservative with its investments. 'Not to run, versus not knowing how to run, are two different things," he further said. Thermax knows to run but investors would like the company to win the race.
