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Thermax: Consumption led industries bring in the orders - Views on News from Equitymaster
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  • Nov 14, 2016 - Thermax: Consumption led industries bring in the orders

Thermax: Consumption led industries bring in the orders
Nov 14, 2016

Thermax has announced its second quarter (2QFY17) results. During 2QFY17, while topline fell 15% YoY, bottomline grew by 33% YoY. Here is our analysis of the results.

Performance summary
  • Net sales fell by 15% YoY during 2QFY17.
  • Operating profits fell by 34% YoY during 2QFY17. Margins thus contracted to 5.9%.
  • Profit after tax grew by 33% YoY on the back of higher other income as well as higher profits from associates.

    Consolidated performance snapshot
    (Rs m) 2QFY16 2QFY17 Change 1HFY16 1HFY17 Change
    Income from operations 12,513 10,673 -14.7% 24,752 20,445 -17.4%
    Expenditure 11,546 10,038 -13.1% 22,833 19,256 -15.7%
    Operating profit (EBDITA) 967 635 -34.3% 1,919 1,189 -38.0%
    Operating profit margin (%) 7.7% 5.9% 7.8% 5.8%
    Other income 390 645 65.3% 704 1,126 60.0%
    Interest 38 24 -36.9% 66 55 -15.8%
    Depreciation 183 199 8.7% 367 393 7.2%
    Profit before tax 1,136 1,057 -7.0% 2,190 1,867 -14.8%
    Tax 394 350 -11.2% 725 627 -13.5%
    Profit after tax/(loss) 743 708 -4.8% 1,465 1,239 -15.4%
    Net profit margin (%) 5.9% 6.6% 5.9% 6.1%
    Share in profit of associates -152 75 -328 33
    Minority interest 0 -3 0 -3
    Profit after share of associates & minority interest 591 786 32.9% 1,138 1,275 12.1%
    Other comprehensive income 3 -152 23 -212
    Total income 594 634 1,161 1,063
    No. of shares 112.60
    Basic & Diluted earnings per share (Rs)* 25.7
    P/E ratio (x)* 34.2

    * On a trailing 12-months basis


    Segment-wise performance
    2QFY16 2QFY17 Change 1HFY16 1HFY17 Change
    Energy
    Revenue (Rs m) 10,410 8,665 -16.8% 20,597 16,819 -18.3%
    % share 80.9% 78.2% 81.4% 79.4%
    PBIT margin 8.0% 8.7% 8.5% 8.4%
    Environment
    Revenue (Rs m) 2,455 2,410 -1.8% 4,711 4,370 -7.2%
    % share 19.1% 21.8% 18.6% 20.6%
    PBIT margin 8.9% 9.2% 7.8% 6.7%
    Total
    Revenue (Rs m)* 12,865 11,075 -13.9% 25,308 21,189 -16.3%
    PBIT margin 8.2% 8.8% 8.4% 8.0%

    * Excluding others & inter-segment adjustments

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