Thermax - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 1408; MCap: Rs. 16,778 crore)

Thermax reported reasonable Q4FY21 numbers on revenue front owing to better execution in environment segment. While EBITDA margins came in at 8.9%, impacted by material costs despite operating cost control initiatives. However, order inflows and order book continues to remain key concern amid muted private capex.

Q4FY21 Earnings Summary

- Consolidated revenue came in at Rs. 1574.5 crore which grew by 19% on YoY and by 11.6% on QoQ basis (above our estimate of Rs. 1552.9 crore) aided by better execution in environment segment. Energy segment revenue (which contributes ~74% to revenue) grew by 11.8% to Rs. 1175.3 crore, YoY while it was up 10.3% on QoQ basis. Environment segment revenue grew by 51.6% to Rs. 301.8 crore and chemical segment revenue came in at Rs. 119 crore, which grew by 23.6%, YoY

- The consolidated order inflow for the quarter came in at Rs. 1497 crore (Vs. Rs. 1565 crore in Q3FY21). While order inflows for FY21 came in at Rs. 4784 crore, down 12.8% on YoY basis. Consolidated order book as on FY21 stood at Rs. 5227 crore, almost flat on YoY basis.

- EBITDA came in at Rs. 139.6 crore level, which grew by 120% on YoY basis and declined by 5.4% on QoQ basis aided by cost control measures and better execution in key business segments while it got impacted by higher raw material cost. Consequently, EBITDA margin came in at 8.9% (Vs. our estimates of 9.9%) registering a decline of 160bps on QoQ basis. Gross margins declined by 310bps on YoY basis to 47.8%

- Adjusted PAT came in at Rs. 107.3 crore which grew by 3.4% on QoQ basis partly aided by higher other income and lower effective tax rate

Thermax' execution performance was reflection normalcy in operations across business segments. While order inflows witnessing broad based recovery in sectors ranging from cement, steel, food & beverages. While operating margins partly impacted by higher material costs despite operating cost control measures amid challenging environment.

We would be coming out with a detailed report post the conference call.

Shares of THERMAX LTD. was last trading in BSE at Rs.1413.45 as compared to the previous close of Rs. 1409.35. The total number of shares traded during the day was 3618 in over 702 trades.

The stock hit an intraday high of Rs. 1448.9 and intraday low of 1400.15. The net turnover during the day was Rs. 5164921.

Source : Equity Bulls

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