Thermax Limited , a leading provider of energy and environment solutions, has announced its financial results for the first quarter, showcasing a mixed performance with significant profit growth despite a slight revenue decline.

Profit Soars Amid Revenue Challenges

The company reported a consolidated profit after tax (PAT) of Rs. 151.00 crore for Q1, marking a substantial 39% increase from Rs. 109.00 crore in the corresponding quarter of the previous year. This impressive bottom-line growth was achieved despite a marginal 2% decrease in consolidated operating revenue, which stood at Rs. 2,150.00 crore compared to Rs. 2,184.00 crore in the same period last year.

Key Financial Highlights

• Consolidated profit before tax (PBT) rose by 31% to Rs. 211.00 crore, up from Rs. 161.00 crore year-over-year.
• The company's EBITDA improved to Rs. 225.00 crore from Rs. 141.00 crore, with the EBITDA margin expanding to 10.47% from 6.46%.
• Order booking for the quarter increased by 7% to Rs. 2,748.00 crore, compared to Rs. 2,569.00 crore in the same period last year.
• The order balance as of June 30 stood at Rs. 11,376.00 crore, up 7% from Rs. 10,681.00 crore in the previous year.

Segment Performance

Thermax's financial results were broken down into four main segments:

Factors Influencing Performance

The company's profitability was boosted by an accrual of Rs. 55.82 crore as income towards incentives receivable under the Package Scheme of Incentives (PSI) 2007 from the Government of Maharashtra. This contrasts with the previous year's Q1, which included Rs. 27.00 crore received as interest on an income tax refund.

Thermax attributed the slight revenue decline to delayed customer clearances and execution challenges. However, the company's order book remains robust, indicating potential for future growth.

Standalone Performance

On a standalone basis, Thermax Limited experienced a more pronounced impact on its top line:

• Operating revenue decreased by 10% to Rs. 1,183.00 crore from Rs. 1,311.00 crore in the same quarter last year.
• Profit after tax declined by 47% to Rs. 46.00 crore from Rs. 86.00 crore in the same period.
• Order booking, however, showed strong growth, increasing by 20% to Rs. 1,752.00 crore.

Looking Ahead

Thermax's strong order book position, with a 7% increase in order balance, provides a positive outlook for future quarters. The company's ability to improve profitability in a challenging environment demonstrates its resilience and adaptability in the energy and environment solutions sector.

As Thermax continues to navigate market dynamics, its performance in the coming quarters will be closely watched by investors and industry observers alike.

Thermax Limited , a leading energy and environment solutions provider, has made a significant move in strengthening its renewable energy portfolio. The company has invested ₹102 crore in its wholly-owned subsidiary, First Energy Private Limited (FEPL), as part of its ongoing green energy initiatives.

Investment Details

According to a recent corporate filing, Thermax has acquired 10,20,00,000 equity shares of First Energy at ₹10 each, totaling ₹102 crore. This capital infusion is aimed at supporting new projects proposed to be undertaken by FEPL through its Special Purpose Vehicles (SPVs).

About First Energy Private Limited

First Energy Private Limited, incorporated on November 5, 2008, is engaged in the renewable energy sector. The company is strategically positioned to assist customers in their transition towards green energy by offering sustainable solutions, including solar, wind, wind-solar hybrid, and storage batteries in the commercial and industrial segments.

Financial Performance

The investment comes on the heels of First Energy's strong financial performance over the past few years. The company's turnover has shown significant growth:

Impact and Objectives

This substantial investment represents Thermax's commitment to expanding its renewable energy operations. The capital infusion is expected to facilitate FEPL's growth and enable it to undertake new projects in the renewable energy sector.

Regulatory Compliance

Thermax has confirmed that the investment falls under related party transactions and has been conducted on an arm's length basis. The company has also stated that no governmental or regulatory approvals were required for this acquisition.

This strategic move by Thermax aligns with the growing focus on sustainable and clean energy solutions in India's industrial sector. As companies increasingly seek to reduce their carbon footprint, investments in renewable energy subsidiaries like First Energy are likely to play a crucial role in shaping the future of the energy landscape.