Thermax

The company was as such not expected to post very encouraging numbers for Q3FY14. And it did not disappoint. It posted a 3% (YoY) drop in operating revenue at Rs.1014 crore and net profit dropped 13% at Rs.67 crore. EBITDA came in at Rs.91 crore, down from Rs.112 crore in Q3FY14. Margins also showed the story of pressure, with operating margin coming in lower at 9% v/s 10.7% (YoY).

The company has stated that it improved its order intake at Rs. 1365 crore as against Rs. 1284 crore for the same quarter in 2012-13. Order backlog of the group is at Rs. 6445 crore, compared to Rs. 5191 crore last year, higher by 24%.  The company has to suspend the operations, which are not significant, at its Mundra SEZ plant pursuant to the order of the Gujarat High Court for closure of 12 units there. The company has approached the Supreme Court with Special Leave Petition against the High Court’s Order. The capital goods sector is not yet out of the woods and till them mere getting orders with no execution will not mean much. Once the economy bounces back, this is one sector which will zoom up first like a rocket. Hopefully, the slight relaxation in excise duty given yesterday would help shore up toplines and margins in coming months.