Buzzing Stock: Thermax rises 14% on robust order inflows in Q2FY22

Thermax's order inflows rose 67% YoY to Rs 1,860 crore - its highest order booking in the last eight quarters.

Energy and environment solutions company, Thermax Limited was the top gainer on the BSE 500 today and was seen trading up by 14.47% after reporting an exceptional set of Q2FY22 numbers.

A key positive which has driven the stock price up today is the company's robust order inflows. Thermax's order inflows increased by 67% YoY to Rs 1,860 crore and the company’s order book improved 26% YoY to Rs 6,520 crore. According to the company's management, this is the highest order booking in the last eight quarters. The company received Rs 293 crore worth of orders for a refinery and petrochemical complex in India and the enquiry pipeline from refinery, cement and metal sectors continues to be strong.

Another highlight of its Q2FY22 earnings was its in-line operating performance. Strong operating leverage led to around a 43.73% rise in operating profit with operating margins at 7.49%, up 54 bps YoY. As for other earnings parameters, revenue at Rs 1,469.32 crore, up 28.75% y-o-y, largely met the street’s expectations. The company reported a 181.43% YoY rise in PAT at Rs 87.92 crore for the quarter ended September 30, 2021.

Regarding the demand outlook, the management said industrial sectors such as food, pharma, oil & gas refinery and chemical continues to perform well. On the other hand, the management noted that the commodity prices stayed high and remain a key concern for the industry. Steel prices continued to remain high thus increasing input costs. Also, raw material costs, including those of chemicals, have remained high.

Headquartered in Pune, Thermax Ltd engages in the provision of engineering solutions to the energy and environment sectors. It operates through the segments of Energy, Environment and Chemicals. The Energy segment comprises Process Heating, Absorption Cooling and Heating, Boiler and Heater and Power businesses and related services. The Environment segment consists of air pollution control and water and waste solutions. The Chemical segment comprises boiler and water chemicals, resins, performance chemicals, construction chemicals and oil field chemicals.

At 3.40 pm on Thursday, the stock is trading at Rs 1536, up by 14.47% or Rs 194.15 per share on BSE. The 52-week high of the scrip is recorded at Rs 1,569.70 and the 52-week low at Rs 765.70 on the BSE.