Thermax net profit declines to Rs 83.26 crore

Thermax on Wednesday reported a 2% y-o-y decline in consolidated net profit to Rs 83.26 crore for December 2020 quarter with revenues remaining flat at Rs 1,411.05 crore. The standalone profit before exceptional item grew by 37.65% to Rs 104.41 crore.

Resumption of normalcy in the company’s operations, improved performance of all business segments and cost control measures had led to rise in profit before tax of Rs 141 crore during the December 2020 quarter, the company said.

Exceptional items impacted the results on account of impairment of goodwill in Thermax Netherlands and reversal of part of the provision created earlier for claims arising from closure of a German subsidiary leading to an exceptional loss of Rs 28 crore during the quarter, the company said. Thermax’s profit before exceptional item was up 33.76 % y-o-y to Rs 141.09 crore.

The company’s standalone operating revenue rose by 6% y-o-y to Rs 903 crore during the December 2020 quarter.

The company attributed the loss to exceptional items on account of impairment of goodwill in Thermax Netherlands, impairment of investment in Indonesia via Thermax Engineering Singapore and reversal of the provision for closure of a German subsidiary, totalling Rs 90 crore.

Thermax Group order balance was down 4% y-o-y to Rs 5,208 crore. Order booking for the quarter was 2.6% lower at Rs 1,565 crore.