Thermax (THERMAX) Q4 03/04 earnings summary

Executive summary

• FY04 sales rose 9.8% to Rs. 563.88 crore and net profit rose 12.1% to Rs. 54.09 crore, both record results; record order intake reached Rs. 867 crore.

• Group revenue increased 11.9% to Rs. 829.35 crore; order intake reached a record Rs. 1,214 crore.

Financial highlights

• Total income was Rs. 603.81 crore vs. Rs. 552.53 crore; PBT before extraordinary items was Rs. 78.25 crore vs. Rs. 69.30 crore, and PAT was Rs. 54.09 crore vs. Rs. 48.24 crore.

• EPS was Rs. 21.99 vs. Rs. 20.24; consolidated EPS was Rs. 26.32 vs. Rs. 23.37.

• Consolidated PBT was Rs. 89.40 crore vs. Rs. 78.68 crore; PAT after minority interest was Rs. 62.86 crore vs. Rs. 55.70 crore.

• Standalone results include Rs. 5.80 crore of VRS expense; consolidated results include Rs. 6.38 crore of VRS expense.

Outlook and guidance

• Record order inflow is expected to provide a buffer for the current year and beyond; transformation priorities include cost leadership, quality, innovation, technology and customer solutions.

• Plans over the next two years include upgrading manufacturing facilities to pursue manufactured exports and global growth.

• Cogen orders totaling 77 MW are expected to contribute to revenue in FY05 and FY06; the enquiry pipeline was described as encouraging.

• Domestic absorption cooling prospects were favorable; Energy Systems prospects were bright, particularly for exports, and Water & Waste Solutions had a healthy order book and active enquiries.