Strong headwinds continue to hamper the growth of the capital good industry as major players continue reporting lower revenue. The first quarter results of Pune-based Thermax saw the company reporting a revenue of Rs 1,002 crore—18.6 per cent lower as compared to the same quarter last fiscal.
Meher Pudumjee, chairperson of the board, attributed the depleted revenues to lack of orders from the domestic market. “The capital goods industry is yet to see recovery. Government spending would help revive the industry as the domestic demand otherwise is low,” she said. The company hoped that investment in the road sector would kickstart the capital goods industry.
As on June-end, the group has an order balance of Rs 4,440 crore, which for the first quarter of the last fiscal was Rs 5,537 crore. During the last quarter, order booking stood at Rs 824 crore, down by 19.2 per cent compared to Rs 1,020 crore last year.
The company posted an operating revenue of Rs 814 crore, 20 per cent lower compared to Rs 1,017 crore in the previous year. Profit after tax for the quarter was 19.6 per cent down to Rs 45 crore from last year’s Rs 56 crore. Order booking for the quarter had declined to Rs 698 crore compared to Rs 877 crore of the first quarter last year.
Exports for the financial year 2015-16 constituted 35 per cent of Thermax Group’s sales which was one of the highest. South East Asia, Africa and South America are some of the markets where the company has seen acceleration of orders. SAARC countries have also generated business.
The company has plans to invest Rs 150 crore to set up a manufacturing facility for absorption chillers, for which 40 acres have been procured in Sri City in Andhra Pradesh. MS Unnikrish-nan, MD, said Brexit did not affect the company much.