Thermax Reports 40% Profit Decline Amid Revenue Challenges

Thermax, the energy and environment solutions provider, announced a 40% year-on-year drop in net profit to Rs 119 crore for Q2 FY25, attributing the decline to decreased revenues and project cost overruns. The company's operating revenue also fell by 5%, influenced by previous fiscal incentives.

Thermax, a leading provider in energy and environmental solutions, reported a significant downturn in its financial performance for the September quarter. The company saw a consolidated net profit of Rs 119 crore, marking a steep 40% decline from Rs 198 crore in the same period of the previous year.

The reduction in profits was largely due to project cost overruns within the industrial infrastructure segment, compounded by additional cost provisions of approximately Rs 42 crore. In comparison to the past year, Thermax faced lower revenues, impacted by a 5% drop in consolidated operating revenue to Rs 2,474 crore.

Nevertheless, the order balance at the end of September showed a 6% increase, with the order booking for the quarter rising by the same percentage. Despite challenges, Thermax continues to operate with a substantial order backlog and extensive manufacturing facilities globally.

(With inputs from agencies.)