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Thermax stock price up by 9% in the past two days on the back of strong order book position

Thermax has a substantial backlog of orders from a variety of industries, including refineries, steel, electricity, and chemicals

August 26, 2022 9:27 IST | India Infoline News Service

On the BSE, Thermax shares reached a record high of Rs2,450 on Thursday during intraday trading, rising 5%. The stock has increased 9% in the last two days.


Thermax has increased by 19% so far this month of August after reporting a 36 % year-over-year (YoY) increase in order booking at Rs2,310 crore in the April-June quarter (Q1FY23), as opposed to Rs1,669 crore in Q1FY22. The order balance for the quarter was Rs9,554 crore at the end of June 2022, up 56% YoY from Rs6,109 crore in the same quarter last year. In contrast, the S&P BSE Sensex has gained 2.8% so far this month.


Additionally, Thermax recorded a solid 40% YoY increase in profit after tax, coming in at Rs59 crore in Q1FY23 as opposed to Rs42 crore in the same quarter of FY22. Operating income across the board increased by 57% year over year to Rs1,654 crore from Rs1,052 crore.


Strong order inflows from a variety of industries, including refineries, steel, electricity, and chemicals, drove the success. Thermax has seen an increase in the demand for green products from the paper and pulp industry as well as from sugar and distilleries.


One of the few businesses in the world that provide comprehensive, creative solutions for heating, cooling, electricity, water and waste management, air pollution control, and chemicals is Thermax, a leading provider of energy and environmental solutions. Thermax has production sites in Southeast Asia, Europe, and India.


The management thinks the firm is still stronger than ever, despite short-term obstacles. Three important aspects contribute to the strength: the booming Indian economy, the rising demand for green energy, and the company's intense focus on innovation and product development.


New technologies are being implemented as the energy revolution picks up steam, creating a wealth of opportunities for Thermax to lead this change. The company has a sizable order pipeline for waste heat recovery for the steel and cement sectors in addition to orders for flue gas desulphurization (FGDs), waste to energy, and build-own-operate-based solutions.


The growing emphasis on energy efficiency and lowering carbon footprints among clients has been advantageous for Thermax. "In addition to growing its product line, the company is investing in clean, green technologies. Waste to energy, waste heat recovery and renewable energy solutions offered by the Business is perfectly adapted to the domestic and worldwide transition in energy toward renewables "In its annual report for FY22, the company stated.

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