Thermax Q2 Results Review - Better Execution; Margins Likely To Improve: Prabhudas Lilladher
With revival in energy segment margin, chemical segment margins stabilising, we expect overall margins to improve.
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Prabhudas Lilladher Report
Thermax Ltd. reported a healthy quarterly performance, with consolidated revenue growth of 41.2% YoY and order inflow growth of 8.6% YoY.
Margins were impacted due to higher input cost in energy and chemical segment. Going forward, with revival in energy segment margins (on account of commodity softening) and chemical segment margins stabilizing, we expect overall margins to improve in coming quarters.
Traction is being witnessed in base orders (Rs 2-10 billion orders) from sectors such as oil and gas, refinery, petrochemicals, steel etc., while large orders are witnessing slowdown.
Though demand scenario continues to remain strong, growth in enquiry generation has witnessed moderation during the quarter, which may affect the order inflows in near term.
Thermax highlighted that it will be selective in taking orders with focus on profitability.
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