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- 12 Nov 2022
- ICICIdirect Research
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THERMAX REPORTED DECENT Q2FY23 NUMBERS REGISTERED SUBSTANTIAL GROWTH IN REVENUE
THERMAX - 3423 Change: -112.70 (-3.19 %)News:
Consolidated revenue came in at Rs 2075.3 crore which grew by 41.2% on YoY (above our estimate of Rs 1752.4 crore) aided by better execution in both segments. Energy segment revenue (which contributes ~70.6% to revenue) grew by 38.6% to Rs 1465 crore, YoY. Environment segment revenue grew by 44.1% YoY to Rs 449.3 crore and chemical segment revenue came in at Rs 190.3 crore, which grew by 48%, YoY
· The consolidated order inflow for the quarter came in decent at Rs 2015 crore (Vs. Rs 1856 crore in Q2FY22). Order booking was spread across multiple industries with core sectors such as metal & steel, chemical, refinery & petrochemical continuing to show strength. Consolidated order book as on Q2FY23 stood at Rs 9485 crore, up 46% on YoY basis
· EBITDA came in at Rs 140.6 crore, increased by 27.8% on YoY. Consequently, EBITDA margin came in at 6.8% (Vs. our estimates of 7.1%). Gross margins contracted by 440bps to 40.6% on YoY basis
· Adjusted PAT came in at Rs 109.1 crore, grew by 24.2% YoY
· In the current quarter, the enquiry bank growth has plateaued, however consistent demand is seen across sectors
View:
Thermax reported strong execution performance amid challenges. It reported decent order inflows witnessing broad based recovery in multiple industries with core sectors such as metal & steel, chemical, refinery & petrochemical continuing to show strength. While operating margins started to stabiles as commodity prices cooled off.
Impact:
Positive