Thermax (THERMAX) Q4 02/03 earnings summary

Executive summary

• FY03 marked a sustained turnaround: standalone sales rose 15.68% and net profit doubled to a record Rs 4,824 lacs.

• Energy businesses drove stronger results, while environmental businesses faced subdued demand; the focus shifted to profitable growth, customer satisfaction, and cost competitiveness.

• Consolidated revenue increased 18% to Rs 77,125 lacs, with profit after tax and minority interest up 102% to Rs 5,570 lacs.

Financial highlights

• Standalone sales were Rs 53,858 lacs, up 15.68%; sales and other income reached Rs 57,745 lacs versus Rs 50,158 lacs in FY02.

• Standalone PBT before extraordinary items rose to Rs 6,930 lacs from Rs 3,816 lacs; PAT was Rs 4,824 lacs versus Rs 2,402 lacs.

• Standalone EPS increased to Rs 20.24 from Rs 10.32; consolidated EPS rose to Rs 23.37 from Rs 11.87.

• Consolidated revenue was Rs 77,125 lacs, up 18%; PBT increased 121% to Rs 7,868 lacs and PAT after minority interest rose 102% to Rs 5,570 lacs.

• Standalone cash from operations was Rs 5,530 lacs versus Rs 5,112 lacs; lower working capital and improved collections supported cash generation.

Outlook and guidance

• Growth priorities include stronger operating margins, customer focus, quality, cost leadership, knowledge management, and higher human-resource productivity.

• Exports rose 9% to Rs 11,554 lacs and export order booking increased 26% to Rs 12,106 lacs, supported by new South East Asian markets and niche solutions.

• Service revenue grew 17%; new service offerings were piloted, with plans to scale the service business.

• Process Heat outlook was promising on dealer-channel renewal and MNC focus; Cogen enquiries were advancing amid stronger captive-power prospects.

• Water and waste management, recycling, waste-to-energy, and international operations were identified as growth opportunities.