Thermax Faces Profit Decline Amid Strategic Growth Moves

Thermax reported a 52% drop in consolidated net profit for the December quarter, attributing the decline to lower margins and product mix changes. Despite this, the company saw a revenue increase and continued strategic expansions, including an acquisition in the construction chemicals sector.

Energy and environment solutions giant Thermax announced a significant 52% decline in consolidated net profit for the December quarter, amounting to Rs 114 crore, compared with Rs 237 crore a year prior.

This drop, the company noted, was due to lower margins in particular Industrial Infra orders and changes in the product mix of the Chemicals segment. However, the company reported a rise in consolidated operating revenue to Rs 2,508 crore, marking an 8% increase from the previous fiscal year.

Strategically, Thermax is bolstering its market position by securing corporate guarantees for its subsidiary, First Energy Private Limited, and acquiring Buildtech Products India Pvt. Ltd, enhancing its footprint in the construction chemicals industry.

(With inputs from agencies.)