26 May , 2021 By : Kanchan Joshi
MUMBAI: Energy and environment solutions provider Thermax Ltd reported solid results for the March quarter with key earnings parameters ahead of estimates.
Net profit grew 175% year-on-year (YoY) to Rs110 crore partly due to lower tax rate and higher other income. Revenue grew 19% YoY to Rs1,570 crore aided by strong performance across segments - energy solutions, environmental solutions, and chemicals.
Low base and better performance of the energy solutions vertical boosted the company's operating performance. Ebitda surged 120% YoY to Rs140 crore.
Consequently, operating margin expanded 407 basis points (bps) to 8.9%. One basis point is one hundredeth of a percentage point. The company management said it took tight cost control measures during the quarter.
Further, the company's order inflow of Rs1,497 crore improved by 57% y-o-y. However, order backlog of Rs5,227 crore was flat compared to the same quarter year ago. It should be noted that order inflows have improved after declining for three previous quarters. Among verticals, the energy segment saw improved order booking at Rs1,173 crore given the company's increased thrust on sustainability. According to the company's management, while the order booking across segments have exceeded pre-Covid levels, the outlook seems clouded due to the second wave.
Meanwhile, in FY21, the company's cash from operation rose to Rs770 crore from Rs330 crore a year ago. Net cash position improved to Rs1,750 crore in FY21 from Rs1,060 crore in the last fiscal.
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