Q3FY21 Result Update - Thermax - ICICI Direct

Consolidated revenue came in at Rs. 1410.6 crore, which came in flat YoY (above our estimate of Rs. 1319 crore) aided by better execution in environment segment. Energy segment revenue (that contributes ~76% to revenue) fell 4.9% to Rs. 1065.8 crore YoY while environment segment revenue grew 28.4% to Rs. 253.4 crore and chemical segment revenue came in at Rs. 111.3 crore, marginally down 4.7%, YoY. EBITDA came in at Rs. 147.6 crore, up 30.4% YoY aided by cost control measures and favourable mix. Also, EBITDA margin came in at 10.5% registering an improvement of over 240 bps YoY. Reported PAT came in at Rs. 83.3 crore, down marginally by 2.0% on account of tax adjustments in base quarter and exceptional items. Consolidated adjusted PAT (after adjusting for exceptional items) comes to Rs. 103.8 crore, up 22.2% YoY.

Valuation & Outlook

Thermax's execution performance was a reflection of normalcy in operations across business segments. While order inflows witnessing broad based recovery in sectors ranging from cement, steel, food & beverages, refinery. Better operating margins were result of favourable execution mix and cost control measures. Strong balance sheet, prudent working capital management to provide a competitive advantage despite challenging environment. We expect adjusted revenue, EBITDA CAGR of 18.4%, 28.6%, respectively, over FY21-23E. We revise our target price toRs. 1310 (earlier TP at Rs. 810), which is at 34x on FY23E EPS and maintain our HOLD rating.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Thermax_Q3FY21.pdf

Shares of THERMAX LTD. was last trading in BSE at Rs.1171.15 as compared to the previous close of Rs. 1210.3. The total number of shares traded during the day was 64694 in over 5991 trades.

The stock hit an intraday high of Rs. 1285.3 and intraday low of 1137. The net turnover during the day was Rs. 78596563.

Source : Equity Bulls

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