THEMAX LTD

The economic and industrial slowdown has left a telling effect on the financial performance of Q4 and FY16. For the quarter, the company posted a 14% (YoY) drop in net sales at Rs.1262 crore. Costs were down 13% due to fall in overall costs. Operating profit was at Rs.105 crore, down 28%. Tax outgo was down 32% but that did not help the company post a higher bottomline. Thermax ended the quarter with a net profit at Rs.111 crore, down 16%.

The performance for Fy16 was better. Consolidated net sales rose 3% at Rs.5425 crore and net profit for the year was at Rs.275 crore, up 31%. Consolidated order backlog for the year was at Rs.4660 crore, down 18%. The good news here is that the company’s debt is coming down and so is its interest outgo. Borrowings for the fiscal was at Rs.174 crore, down 72% and consequently, interest outgo has come down 23% at Rs.63 crore for FY16 and for the quarter it was at Rs.8 lakh v/s Rs.20 lakh in Q4FY16.

The company’s equity stands at Rs.24 crore and EPS for the year came in at Rs.23 (FV of Rs.2/share). Reserves is at Rs.2331 crore and cash stands at Rs.400 crore.