Thermax in streamline mode, disposes electronic unit - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Feb 21, 2000 - Thermax in streamline mode, disposes electronic unit

Thermax in streamline mode, disposes electronic unit

Feb 21, 2000

Heat engineering major, Thermax Ltd., has outlined plans to dissolve Thermax Fuji Electric, its loss-making joint venture. Also on the anvil are plans to sell off its electronic division and sell 70% equity of Thermax Software Systems to Novasoft of USA. Thermax Ltd. is engaged in the businesses of (manufacturing) packaged boilers and heaters, heat recovery systems, chilling and air-conditioning systems, water treatment systems, air pollution control systems and chemicals.

According to a news report appearing in a leading financial daily, Thermax is in the midst of a restructuring process and will group its businesses under four heads - energy, environment, power and chemicals. It is therefore dissolving/selling other businesses that do not fit into these four areas.

Thermax has decided to dissolve its 50:50 joint venture with Fuji - Thermax Fuji Electric as the business was getting unwieldy, and accumulated losses at Rs 140 m (over the last 3 years) showed no signs of abating. The situation worsened with the strengthening of the Japanese Yen and weak demand for its transmitters in the domestic market.

The company is showing a lot of focus in its operations and has shown the will to discard businesses that are unrelated. At the same time the company is willing to go along with core businesses, even if they are loss-making. For instance, it is going to pursue its water JV with Culligan of USA - Thermax Culligan, although the business has suffered a loss of Rs 50 m, as water constitutes one of its core businesses.

These moves will have a positive impact on its bottomline (net profit) over the long run, although revenues will decline. But profitability is more important for the company and its seems to have realised that.


Equitymaster requests your view! Post a comment on "Thermax in streamline mode, disposes electronic unit". Click here!

  

More Views on News

THERMAX Announces Quarterly Results (1QFY21); Net Profit Down 124.3% (Quarterly Result Update)

Sep 15, 2020 | Updated on Sep 15, 2020

For the quarter ended June 2020, THERMAX has posted a net profit of Rs 153 m (down 124.3% YoY). Sales on the other hand came in at Rs 7 bn (down 52.2% YoY). Read on for a complete analysis of THERMAX's quarterly results.

THERMAX Announces Quarterly Results (3QFY20); Net Profit Up 12.2% (Quarterly Result Update)

Feb 6, 2020 | Updated on Feb 6, 2020

For the quarter ended December 2019, THERMAX has posted a net profit of Rs 850 m (up 12.2% YoY). Sales on the other hand came in at Rs 14 bn (down 1.8% YoY). Read on for a complete analysis of THERMAX's quarterly results.

THERMAX 2018-19 Annual Report Analysis (Annual Result Update)

Sep 19, 2019 | Updated on Sep 19, 2019

Here's an analysis of the annual report of THERMAX for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of THERMAX. Also includes updates on the valuation of THERMAX.

Garden Reach Shipbuilders and Engineers Ltd: Is This PSU Shipbuilder Worth Betting On? (IPO)

Sep 24, 2018

Should you apply for the IPO of Garden Reach Shipbuilders and Engineers Ltd?

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)

Sep 7, 2020

Things are not often what they seem in the market and how you can take advantage of this.

The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)

Sep 7, 2020

The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

THERMAX SHARE PRICE


Sep 18, 2020 (Close)

TRACK THERMAX

  • Track your investment in THERMAX with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

THERMAX - HONEYWELL AUTOMATION COMPARISON

COMPARE THERMAX WITH

MARKET STATS