Thermax Q3 FY25 Results: Net Profit Falls 51% to ₹116 Cr, Revenue Up 7.9% YoY, Strong Financials
Thermax Ltd: Overview
Thermax Ltd., headquartered in Pune, India, is a leading energy and environment solutions company. Established in 1966, it provides a wide range of products and services in heating, cooling, power generation, water and wastewater treatment, air pollution control, and waste heat recovery. Thermax has a strong presence in various industrial sectors, including chemicals, fertilizers, refineries, power, cement, and textiles. The company operates globally, with manufacturing facilities and sales offices in several countries. The industry outlook for Thermax is positive, driven by several factors. Growing environmental concerns and stringent regulations are increasing the demand for clean energy and pollution control solutions. The global focus on energy efficiency and sustainability is also creating opportunities for Thermax’s products and services. Additionally, the increasing industrialization and infrastructure development in emerging economies are driving the demand for power generation and water treatment solutions. Thermax’s diversified product portfolio, strong technological capabilities, and global presence position it well to capitalize on these industry trends.
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Thermax has been actively involved in various energy and environmental projects. A significant achievement was the commissioning of a 36 MW energy plant for a major particle board manufacturer in southern India. In Africa, a 350 TR ultra-low pressure VAM was recently commissioned for a leading snack manufacturer, enabling them to recover waste heat from potato chip frying. The company also commissioned a 500 m3/hr water treatment plant (WTP) incorporating algae treatment and organic removal using submerged ultrafiltration. Positive results continue at the Dhuri plant, with June ’24 gas yield performance repeating with oxygenation in January ’25. Thermax Babcock & Wilcox Energy Solutions (TBWES) secured a landmark order for two 80 TPH multi-biomass fired reciprocating grate boilers for a major textile company in central India, representing the first instance of 100% paddy straw firing in such a boiler. Despite foreign exchange and currency headwinds, a leading Indian oil company saw a 10% increase in order bookings for oil coalescer resin compared to Q3 of the previous year, contributing to an overall 19% increase in order bookings for the company. Thermax also acquired Buildtech Products India Private Limited. However, the absence of large orders during the current quarter resulted in a lower order book. Finally, it’s important to note that last year’s profit after tax included a one-time gain of Rs. 126 crore from the sale of a vacant plot.
Business Segments
- Energy: This segment offers a comprehensive range of solutions for heating, cooling, and power generation. It includes boilers, heaters, chillers, heat pumps, and power generation systems. Thermax’s energy solutions cater to diverse industrial applications, helping customers optimize energy efficiency and reduce operating costs.
- Environment: This segment focuses on providing solutions for water and wastewater treatment, air pollution control, and waste heat recovery. It offers water treatment plants, effluent treatment systems, air pollution control equipment, and waste heat recovery systems. Thermax’s environment solutions help industries comply with environmental regulations and achieve sustainability goals.
- Chemicals: This segment produces and markets a variety of specialty chemicals, including water treatment chemicals, construction chemicals, and performance chemicals. Thermax’s chemical solutions cater to various industries, providing specialized chemical formulations for diverse applications.
Subsidiary Information
- Thermax Babcock & Wilcox Energy Solutions Private Ltd: This subsidiary is a joint venture with Babcock & Wilcox, focusing on providing advanced technology solutions for power generation. It specializes in designing, engineering, and constructing power plants and offers a range of services, including project management, engineering, procurement, and construction.
- Thermax Sustainable Energy Solutions Ltd: This subsidiary focuses on renewable energy solutions, including solar, wind, and biomass-based power generation. It aims to promote sustainable energy practices and help customers transition to cleaner energy sources.
- Thermax Environment Co. Ltd: Based in China, this subsidiary specializes in providing environmental solutions for the Chinese market. It offers water and wastewater treatment, air pollution control, and waste heat recovery solutions.
- Thermax Engineering (Shanghai) Co. Ltd: This subsidiary, based in China, provides engineering and project management services for Thermax’s projects in the Asia Pacific region. It supports the company’s operations in the region and ensures efficient project execution.
Q3 FY25 Earnings
- Revenue of ₹2508 crore in Q3 FY25 up by 7.9% YoY from ₹2324 crore in Q3 FY24.
- EBITDA of ₹188 crore in this quarter at a margin of 8% compared to 8% in Q3 FY24.
- Profit of ₹114 crore in this quarter compared to a ₹237 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 2324 | 2508 | 8090 | 9323 |
| Expenses | 2137 | 2319 | 7489 | 8526 |
| EBITDA | 187 | 188 | 601 | 797 |
| OPM | 8% | 8% | 7% | 9% |
| Other Income | 185 | 32 | 156 | 307 |
| Net Profit | 237 | 144 | 451 | 643 |
| NPM | 10.2% | 5.7% | 5.6% | 6.9% |
| EPS | 20 | 9.7 | 37.8 | 54.2 |