Thermax Ltd's Q2FY19 consolidated net profit rises 31.13% yoy to Rs74.52cr: Beats Estimates

The company’s consolidated revenue stood at Rs1,427.64cr, up 38.19% yoy and 37.9% qoq.

Nov 14, 2018 10:11 IST India Infoline Research Team

Thermax Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 1,427.64 38.2
EBITDA 110.03 15.6
EBITDA Margin (%) 7.7 [150]
Net Profit (adjusted) 74.52 31.1
***EBITDA margin change is bps
Thermax’s consolidated revenue from operations witnessed a strong growth of 38.2% yoy to Rs1427.6cr in Q2FY19, beating the consensus estimate by 18.6%. EBITDA came almost in-line with estimates registering a growth 15.6% yoy to Rs110cr vs. Rs95.2cr in Q2FY18. However, the company's EBITDA margin contracted 150bps yoy to 7.7% for the quarter under review. Net profit for the September quarter grew 31.1% yoy to Rs74.5cr as compared to Rs56.8cr for the same quarter last year, 3.5% above the consensus estimate.
  • EBITDA margin was muted owing to higher operating expenses during the quarter. Other expenses jumped 49.5% yoy to Rs326.5cr and employee cost increased by 24.2% yoy to Rs213.7cr for the current quarter.
  • Strong net profit for the quarter was driven by higher revenues coupled with rise in other income (up 51% yoy to Rs35.6cr) and fall in interest cost (down 23.6% yoy to Rs3.9cr) during the quarter.
  • Energy segment, which contributed 79% to the top-line during Q2FY19, witnessed a strong growth of 45.7% yoy to Rs1,144.8cr vs. Rs785.7cr in Q2FY18. EBIT for the segment surged 75.9% yoy to Rs82.6cr, while EBIT margin increased from 6% in Q2FY18 to 7.2% in Q2FY19.
  • Sales from Environment segment increased by 32.1% yoy to Rs200.7cr for the current quarter. EBIT surged 86% yoy to Rs5.6cr and corresponding EBIT margin stood at 2.8% (vs. 2% in Q2FY18). The segment contributed 13.8% to the top-line.
  • Growth in the Chemical business softened by 4% yoy to Rs104cr during Q2FY19. However, EBIT suffered more as it nearly halved from Rs29.7cr in Q2FY18 to Rs15.6cr in Q2FY19. EBIT margin slumped from 27.4% in Q2FY18 to 15% in Q2FY19. The segment contributed 7.2% to the total revenue of the company.

Technical View:

Thermax Ltd is currently trading at Rs. 1,034.25, down by 5.05 points or 0.49% from its previous closing of Rs. 1,039.30 on the BSE.
The scrip opened at Rs. 1,050.20 and has touched a high and low of Rs. 1,050.20 and Rs. 1,016 respectively. So far 7,403 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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