Thermax (THERMAX) Q4 06/07 earnings summary

Executive summary

• FY 2006-07 total income rose 47.5% to Rs. 2,210 crore; profit after tax reached a record Rs. 187.8 crore, up 52.4% YoY.

• Consolidated income was Rs. 2,362.6 crore, up 44.1%; consolidated PAT after minority interest rose 88.9% to Rs. 193.7 crore, with EPS of Rs. 16.26.

Financial highlights

• Standalone PBT before extraordinary items was Rs. 296.02 crore versus Rs. 192.53 crore; PAT was Rs. 187.80 crore versus Rs. 123.25 crore.

• Standalone EPS increased to Rs. 15.76 from Rs. 9.69; exports rose 30.6% to Rs. 401.7 crore.

• Consolidated PBT before extraordinary items was Rs. 303.83 crore versus Rs. 172.83 crore; extraordinary expense of Rs. 5.48 crore contributed to consolidated PAT of Rs. 193.72 crore.

• Cash generated from standalone operations rose to Rs. 426.72 crore before tax, including a Rs. 5.48 crore counter-guarantee provision; net operating cash flow after tax was Rs. 324.25 crore.

Outlook and guidance

• FY 2007-08 growth expected to exceed 40%, supported by a consolidated year-end order book of Rs. 3,672 crore and strong enquiry inflow.

• Capital-goods demand was expected to remain buoyant in FY 2007-08 and beyond, with industrial investment and infrastructure spending supporting prospects.

• Baroda boiler and heater plant expected to be fully commissioned by March 2008; China chiller plant planned to begin operations by March 2008, initially producing 200 chillers annually.