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Thermax: Dull environment continues to prevail - Views on News from Equitymaster
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Thermax: Dull environment continues to prevail
Feb 16, 2016

Thermax has announced its third quarter (3QFY16) results. During 3QFY16, both topline and bottomline fell by 11% YoY. Here is our analysis of the results.

Performance summary

  • Income from operations grew by over 30% YoY in 3QFY16 and 9mFY16. Aided by a slower rise in interest expenses, Net interest Income grew in excess of 60% YoY in each of 3QFY16 and 9mFY16.
  • Net sales fell by 11% YoY during 3QFY16.
  • Operating profits fell by 53% YoY during 3QFY16. Margins thus contracted from 10.8% to 5.6%.
  • Profit after tax fell by 11% YoY due to the fall in operating profit.

Standalone performance snapshot

(Rs m) 3QFY15 3QFY16 Change 9mFY15 9mFY16 Change
Income from operations 11,140 9,964 -10.6% 30,663 30,239 -1.4%
Expenditure 9,937 9,401 -5.4% 27,827 27,810 -0.1%
Operating profit (EBDITA) 1,203 562 -53.3% 2,836 2,429 -14.3%
Operating profit margin (%) 10.8% 5.6%   9.2% 8.0%  
Other income 181 557 206.8% 771 895 16.1%
Interest 19 2 -89.6% 73 5 -92.7%
Depreciation 156 160 2.3% 488 474 -2.8%
Profit before tax 1,209 957 -20.8% 3,046 2,845 -6.6%
Tax 447 279 -37.7% 1,010 901 -10.8%
Profit after tax/(loss) 762 679 -11.0% 2,036 1,944 -4.5%
Net profit margin (%) 6.8% 6.8%   6.6% 6.4%  
No. of shares         119.16  
Basic & Diluted earnings per share (Rs)*         27.4  
P/E ratio (x)*         28.0  

* On a trailing 12-months basis

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