Thermax
Order book lower by 15%
Energy & Environment management major Thermax has turned in a standalone revenue growth of 13% (to Rs 922.11 crore) on a higher base for the quarter ended Mar '08. As operating profit margin improve by 130 basis the operating profit expanded by 24% to Rs 127.04 crore. Upside at revenue and operating level came largely on account of energy segment whose segment revenue as well as segment profits seen steady growth. However impacted by lower other income and lower write back of provisions towards possible financial obligations of erstwhile step down subsidiary at UK that got liquidated the net profit stood higher by 15% to Rs 80.53 crore.
On consolidated basis the sales grew by 19% for the quarter to Rs 1017.31 crore. However with OPM decline by 40 bps to 13.4% the operating profit stood restricted to Rs 136.39 crore, a rise of just 15%. The growth at net profit level finally was 35% to Rs 82.88 crore.
Order on hand as on Mar 31 '08 was Rs 2637 crore compared to Rs 3100 crore in the corresponding previous year. Given the fact of the company starting FY '09 with an lower order on hand compared to FY '08, the company currently expects lower rate of growth for FY '09.
Quarterly standalone performance
- Sales growth on a higher base was 19% to Rs 1017.31 crore. Segment sales of energy division was higher by 12% to Rs 723.42 crore (or 77% of total sales) where as the environment division registered 7% jump in segment revenue to Rs 218.46 crore (or 23% of total sales).
- Operating margin on yoy basis improved by 130 basis points to 13.8%. Sharp fall in material cost as well as staff cost were the chief architect for expansion in OPM. On segment basis the segment margin of energy business has expanded by 150 basis points to 15.7% however that of environment business it has came down by 140 bps to 13.9%. Better margin in energy business its seems combination of better order/ product mix as well as the company manage to pass on the higher commodity prices to customers.
- Upside at operating level came from energy business with its segment profit grew by 24% to Rs 113.36 crore (or 79% of PBIT). But that of environment declined by 3% to Rs 30.36 crore (albeit on a higher base) with its segment margin erode by 140 bps.
- Other income stood declined by 6% to Rs 12.55 crore. And interest cost was lower by 14% (to Rs 44 lakh) and depreciation was higher by 16% (to Rs 6.10 crore). As result the PBT was higher by 21% to Rs 133.05 crore.
- EO (gross of tax) for the quarter as well as corresponding previous quarter was nil. Taxation for the quarter was higher by 23% to Rs 54.62 crore. Consequently the PAT was higher by 20% to Rs 78.43 crore. EO income (net of tax) for the quarter stood at Rs 2.10 crore (against Rs 4.14 crore) comprise of provisions towards possible financial obligations on account of counter guarantee to ME of UK. Finally the net profit stood higher by 15% to Rs 80.53 crore.
Sales for the year ended Mar '08 grew by 47% to Rs 3204.17 crore. However the OPM stood eroded to 12.8% compared to 13.7% as result the OPM stand restricted to Rs 409.58 crore, a rise of 38%. After accounting for higher other income (up 13% to Rs 41.77 crore), lower interest (Rs 1.27 crore down by Rs 3 lakh) and higher depreciation (up 16% to Rs 21.80 crore), the PBT stood higher by 36% to Rs 428.28 crore. EO (gross of tax) was nil compared to Rs 18.07 crore towards provision on diminution in value of investment in overseas subsidiary and provision for debts of overseas subsidiary amounting Rs 17.29 crore and Rs 78 lakh respectively. On a deflated base, the PBT after EO stood higher by 45% to Rs 428.28 crore. Taxation was higher by 46% to Rs 149.60 crore and thus the PAT was higher by 44% to Rs 278.68 crore. EO income (net of tax) for the quarter stood at Rs 2.10 crore (against Rs 5.48 crore of provision) comprise of provisions towards possible financial obligations on account of counter guarantee to ME of UK. Net profit finally was higher by 50% to Rs 280.78 crore.
Segment revenue of energy division for the year ended Mar '08 was higher by 53% to Rs 2620.67 crore (or 80% of total sales) and segment profit of the same grew by 45% to Rs 370.45 crore (or 82% of total PBIT). Whereas the segment revenue of environment division was higher by 24% to Rs 651.30 crore (or 20% of total sales), its segment profit was higher by 19% to Rs 79.16 crore (or 18% of total PBIT).
FY '08 consolidated result
On consolidated basis the revenue for the year ended Mar '08 was higher by 50% to Rs 3481.52 crore. Operating profit margin eroded by 60 bps to 12.3% thus restricting operating profit to Rs 426.67 crore, a rise of 42%.The PBT stood higher by 41% to Rs 445.72 crore, as other income up by 22% to Rs 43.90 crore and no major damage coming from interest and depreciation cost. EO expenses was nil for the fiscal compared to RS 12.35 crore towards provision on diminution in value of investment in overseas subsidiary and provision for debts of overseas subsidiary. Thus the PBT after EO was higher by 47% to Rs 445.72 crore. After providing for taxation (up 50% to Rs 157.10 crore), PAT was higher by 45% to Rs 288.62 crore. Minority interest during the fiscal as well as corresponding previous period was nil thus the PAT after minority interest was higher by 50% to Rs 290.72 crore.
Consolidated quarterly performance
On deducting FY '08 consolidated results with that of nine month results the consolidated revenue for the quarter ended Mar '08 was higher by 19% to Rs 1017.31 crore. Operating profit margin eroded by 40 bps to 13.4% (on yoy basis) thus restricting operating profit to Rs 136.39 crore, a rise of 15%.The PBT stood higher by 14% to Rs 142.21 crore, as other income up by 7% to Rs 13.22 crore and depreciation up by 26% to Rs 6.76 crore. EO expenses was nil for the quarter compared to RS 12.35 crore towards provision on diminution in value of investment in overseas subsidiary and provision for debts of overseas subsidiary. Thus the PBT after EO was higher by 26% to Rs 142.21 crore. After providing for taxation (up 34% to Rs 61.43 crore), PAT was higher by 21% to Rs 80.78 crore. After accounting for EO (net of tax) on account of write back of provision made towards possible financial obligation of step down overseas subsidiary was Rs 2.10 crore and minority interest (nil) the net profit stood higher by 35% to Rs 82.88 crore.
Other developments
To pay a final dividend at 400% (Rs 8 per equity share of Rs 2 face value each) for FY '08.
The stock hovers around Rs 463.60
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