Thermax is on the rise after a strong Q4 perfomance

Thermax rose 7.31 percent to Rs 1511.05 after reporting a 175 percent increase in consolidated net profit to Rs 107 crore in Q4 FY21 from Rs 39 crore in Q4 FY20.

In the fourth quarter of FY 2020-21, the Group recorded consolidated operating revenue of Rs 1,575 crore, up 19 percent from Rs 1,323 crore in the same time the previous year (YoY).

In the fourth quarter, revenue from the energy business was Rs 1,175 crore (up 11.8 percent YoY), revenue from the environment business was Rs 302 crore (up 51.8 percent YoY), and revenue from the chemical business was Rs 119 crore (up 24 percent YoY).

Higher topline, cost reduction efforts executed across the business, and greater margins in the Energy division contributed to enhanced profitability in the quarter. The emergence of COVID-19 had a negative impact on earnings after tax in the previous quarter.

The firm received orders of Rs 1,497 crore in Q4 FY21, up from Rs 952 crore in Q4 FY20, thanks to a broad-based recovery.

In Q4 FY21, profit before tax was Rs 140 crore, up from Rs 59 crore in Q4 FY20. The firm recorded a 2.4 percent decline in consolidated net profit to Rs 207 crore in the year ended 31 March 2021, despite a 16.4 percent decline in sales to Rs 4,791 crore.

Thermax is a prominent provider of energy and environmental solutions. Products for heating, cooling, water and waste management, as well as speciality chemicals, are among the company’s offerings. Large boilers for steam and power generation, turnkey power plants, industrial and municipal wastewater treatment facilities, waste heat recovery systems, and air pollution control projects are among among the services provided by the organisation.

For 2020-21, the company’s board of directors has proposed a dividend of Rs 7 per share.

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