Thermax, on a 52% (YoY) drop in consolidated revenue at Rs.665 crore, the company ended Q1Fy21 with a net loss of Rs.15 crore v/s profit of Rs.63 crore. In Q4FY20, the company had posted a net profit of Rs.39 crore.
With order booking dropping by 50% this decline was expected. Majority orders received were from metal & steel sector and industries providing essential goods – pharma, chemical and food & beverage.
In terms of segment, Energy saw a 57% drop in revenue; Environment was a 42% decline and Chemical did slightly better with a 14% drop but it posted a 54% increase in EBIT at Rs.17 crore, while other two posted losses.
And Thermax Group Managing Director and Chief Executive Officer M S Unnikrishnan is scheduled to retire on August 31, 2020, after serving the company for 13 years in the capacity. Ashish Bhandari, who joined as the firm's joint MD on April 7, 2020, will succeed him as the new MD & CEO.
The stock price is reacting contrary to the earnings, which seems to be the trend today. It is just about holding onto the green currently at Rs.741 v/s yesterday’s close of Rs.740.15. From its high of Rs.1180 hit 11 months ago, the stock price is down over 37%.