Thermax Ltd's Q3FY19 Adjusted consolidated net profit rises 165% yoy to Rs155cr : In-line with Estimates

Thermax Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

***EBITDA margin change is bps
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Thermax Ltd reported results in-line with consensus estimates in Q3FY19. Revenue grew by 28.6% yoy to Rs1,437cr (expectation Rs1,343cr). EBITDA stood at Rs107cr, up 12.4% yoy against estimates of Rs116cr. EBIDTA margin declined 108bps yoy to 7.5%. Adjusted Net Profit stood at Rs155cr, up 165% yoy, against an expectation of Rs78cr.

• Segmental Revenue for the quarter stood at:
  • Energy    Rs1,135cr (up 30.2% yoy)
  • Environment   Rs213cr (up 22.9% yoy)
  • Chemical   Rs112cr (up 23.3% yoy)
• Segmental EBIT for the quarter stood at:
  • Energy    Rs61cr (down 14.9% yoy)
  • Environment   Rs15.5cr (up 209% yoy)
  • Chemical   Rs17.3cr (up 32.7% yoy)
• The company recorded an exceptional item of Rs88cr related to the impairment of goodwill at a subsidiary, Thermax Denmark ApS and recognition of deferred tax asset at another subsidiary, Thermax Babcock & Wilcox Energy Solutions Private Limited (TBWES).
• The Board has also approved the transfer of the Boiler & Heater business from Thermax to TBWES via a slump sale, pending shareholder approval.
• As on December 31, 2018, the Thermax Group had an order balance of Rs6,475cr (up 16.5% yoy). Order booking for the quarter (at the consolidated level) was marginally higher at Rs1,480cr due to ongoing sluggishness in new investments in several sectors of the economy.

Technical View:

Thermax Ltd ended at Rs. 1,087.75, up by 1.4 points or 0.13% from its previous closing of Rs. 1,086.35 on the BSE.
The scrip opened at Rs. 1,109.20 and touched a high and low of Rs. 1,120 and Rs. 1,077.80 respectively. A total of 8,217 (NSE+BSE) shares were traded on the counter. The stock traded above its 50 DMA.