- 09 Feb 2024
- ICICI Securities
DECENT PERFORMANCE, PAT BUOYED BY ONE OFF EXCEPTIONAL GAIN
THERMAX - 3551 Change: -19.80 (-0.55 %)News: Thermax registered modest performance in Q3FY24. Consolidated revenues were up 13% YoY at Rs 2324 crore vs. Rs 2049 crore in Q3FY23. From a segmental perspective, the industrial products division performed well at 19.5% YoY growth in revenues at Rs 1023 crore while the industrial infra segment grew by 9.5% YoY at Rs 1097 crore. Chemical segment declined in revenues by 2% YoY at Rs 161 crore. Order inflows for Q3FY24 grew by 14% at RS 2506 crore whereas order backlog stood at Rs 10717 crore, up 9% YoY. EBITDA margins for Q3FY24 stood at 8.1% in Q3FY24 vs. 7.9% YoY an improvement of 20 bps YoY on account of better growth in the industrial products division. PBT grew by 11% YoY to Rs 183 crore. However, one off exceptional gain of Rs 126 crore (profit of sales of leased land) buoyed profit to Rs 309 crore, up 88% YoY.
Views: We like the management of the company in terms of choosing profitable growth and efficient management of the balance sheet and working capital cycle. We believe Thermax is seeding a host of products which will be required in the green value chain in the long run. However, rich valuations limit upside at the current level.
Impact: Neutral