Pune: August 01, 2023: Thermax, a leading provider of energy and environment solutions, recorded a consolidated operating revenue of Rs. 1,933 crore in the first quarter of FY 2023-24, 17% higher as compared to Rs. 1,654 crore in the corresponding quarter of the previous fiscal year. The Company’s consolidated profit after tax (PAT) is Rs. 60 crore (Rs. 59 crore), an increase of 2% over Q1 FY ‘23. The results were adversely impacted due to an exceptional item of provision related to ongoing litigation of Rs. 51 crore. The profit before tax (PBT) and exceptional item is Rs. 142 crore (Rs. 81 crore), up 75%.
As of June 30, 2023, the order balance for the quarter was Rs.10,505 crore (Rs. 9,554 crore), up by 10% from the corresponding quarter. The order booking for the quarter was 11% higher at Rs. 2,567 crore (Rs. 2,310 crore).
On a standalone basis, Thermax Limited posted an operating revenue of Rs. 1,161 crore during the quarter, demonstrating a growth of 23% compared to Rs. 947 crore in the corresponding quarter last year. The profit after tax for the quarter stood at Rs. 44 crore (Rs. 24 crore), up 83%. The results were adversely impacted due to an exceptional item of provision related to ongoing litigation of Rs. 51 crore. The order booking for the quarter was lower by 5% at Rs. 1,627 crore (Rs. 1,707 crore) as compared to the previous year. Order balance on June 30, 2023 stood at Rs 6,746 crore (Rs.6,981 crore), down 3%.
During the quarter, Thermax concluded a major order of Rs 271.5 crore from India’s biggest oil refinery in the private sector. The company also commissioned a state-of-the-art wind-solar hybrid captive plant with a capacity of 45.8 MW in Gujarat. These projects are aligned with the company’s commitment to developing innovative solutions that address the energy and environmental goals of customers.
During the quarter, the Company received an Arbitral Award against the Company for repair, payment of damages, etc. for breakdown of third party Gas Turbo – Generators (GTGs) for a customer project. As per the Award, the Company was directed to repair and reinstate the GTGs under the defect liability obligation. Further, among other matters, the Award also allowed the Customer’s claim on additional expenditure along with interest which is currently estimated at Rs. 245 crores. Pursuant to independent legal opinion,
(a) For the quarter ended June 30, 2023, the Company has made a provision of Rs. 50.63 crores and for the balance amount, no provision has been considered necessary;
(b) The Company is in the process of filing an application before the Bombay High Court for setting aside the entire said Award and is reasonably confident of the issue being ultimately decided in its favour.
