Thermax rallies 9% in 2 days; hits new high on strong order book position

Thermax has a strong order book across diverse sectors, including refineries, steel, power, and chemicals

Shares of Thermax hit a new high of Rs 2,450, up 5 per cent on the BSE in Thursday's intra-day trade. The stock has surged 9 per cent in two days.

Thus far in the month of August, Thermax has rallied 19 per cent after the company reported 36 per cent year on year (YoY) growth in order booking at Rs 2,310 crore in the April-June quarter (Q1FY23), as against Rs 1,669 crore in Q1FY22. At the end of June, 2022, the order balance for the quarter was Rs 9,554 crore, up 56 per cent YoY from Rs 6,109 crore in the year-ago period. In comparison, the S&P BSE Sensex is up 2.8 per cent so far in the current month.

Further, Thermax reported a healthy 40 per cent YoY jump in profit after tax at Rs 59 crore in Q1FY23, as against Rs 42 crore in the corresponding quarter of FY22. Consolidated operating revenue jumped 57 per cent YoY to Rs 1,654 crore from Rs 1,052 crore.

The performance was driven by strong order inflow from diverse sectors, including refineries, steel, power, and chemicals. In addition, Thermax witnessed an upward trend in demand from sugar/distilleries and paper & pulp industries for green offerings, Thermax said.

Thermax, a leading energy and environment solutions provider, is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals. Thermax has manufacturing facilities in India, Europe and Southeast Asia.

Despite medium-term impediments, the management believes the company's business continues to be stronger than ever. The strength is a result of three key factors – positive momentum in the Indian economy, growing demand for green energy, and a keen focus on innovating and developing the company’s products and services.

As energy transition is gaining momentum, new technologies are coming into play, opening a world of possibilities for Thermax to become a champion in this transformation.

The Company has a large order pipeline in waste heat recovery for the cement and steel industries, besides orders for flue gas desulphurisations (FGDs), waste to energy and build-own-operate based solutions.

Thermax has benefitted from clients' increasing focus on energy efficiency and carbon footprint reduction. "The Company is investing in green and clean technology and expanding its product portfolio. The global and domestic shift in energy towards renewables is ideally suited to the Company’s solutions in waste to energy, waste heat recovery, and renewables for local and international enterprises," the company said in its FY22 annual report.