Thermax Q3 results miss estimates, net profit tanks 51% on lower margins, cost overruns

Energy and environment solutions provider Thermax Ltd on Tuesday (February 4) reported a 51% year-on-year (YoY) decline in net profit at ₹116 crore for the third quarter that ended on December 31, 2024, over ₹238 crore in Q3 FY24. The SRK NATION poll had predicted a profit of ₹180 crore for the quarter under review.

The company’s revenue from operations increased 8% to ₹2,508 crore against ₹2,324 crore in the corresponding period of the preceding fiscal. The SRK NATION poll had predicted revenues of ₹2,705 crore for the quarter under review.

At the operating level, EBITDA was up 0.5% to ₹189 crore in the third quarter of this fiscal over ₹188 crore in the year-ago quarter. The SRK NATION poll had predicted an EBITDA of ₹254 crore for the quarter under review.

The EBITDA margin stood at 7.5% in the reporting quarter compared to 8.1% year-on-year. EBITDA is earnings before interest, tax, depreciation, and amortisation. The SRK NATION poll had predicted a margin of 9.4% for the quarter under review.

Thermax’s Q3 FY25 performance was impacted by lower margins in certain industrial infrastructure and cost overruns in some orders. The chemicals segment also reported lower profitability due to changes in the product-mix. Industrial products saw improved performance, driven by higher revenue and better margins.

Additionally, the previous year’s profit after tax included an exceptional gain of ₹126 crore from the sale of a vacant plot of land, which was absent in the current quarter.

Despite these challenges, the company reported an order balance of ₹11,383 crore as of December 31, 2024, reflecting a 6% increase from ₹10,717 crore in the same quarter last year.

Order booking for the quarter stood at ₹2,296 crore, marking an 8% decline from ₹2,506 crore in Q3 FY24.

The absence of large orders in the current quarter affected the overall order book, particularly in the industrial infra and green solutions segments. However, order bookings for the quarter rose 43% to ₹1,647 crore compared to ₹1,154 crore YoY. The order balance for this segment increased 4% to ₹6,493 crore from ₹6,258 crore a year ago.

During the quarter, Thermax completed the acquisition of 100% of the equity share capital of Buildtech Products India Private Ltd, a company manufacturing admixtures, accelerators and capsules used in tunnels, infrastructure and railway projects.

Shares of Thermax Limited ended at ₹3,545.70, down by ₹30.35, or 0.85%, on the BSE.