Thermax shares crash 16% after Q1 profit plunges 83%

Shares of Thermax Limited fell as much as 16.08 per cent to Rs 3,566.90 on the BSE on Friday after the company reported an 83.4 per cent drop in consolidated net profit to Rs 25.2 crore for the June quarter, compared with Rs 152.4 crore a year earlier. Revenue from operations rose 6.7 per cent to Rs 2,303 crore.

The company attributed the weak performance to a Rs 91 crore increase in the estimated cost to complete a project in its Industrial Infrastructure segment. EBITDA fell 69.5 per cent to Rs 68.6 crore, and the margin narrowed to 3 per cent from 10.4 per cent. Thermax also noted that the year-ago quarter had benefited from Rs 56 crore of incentive income.

The board approved a scheme of arrangement involving Thermax Bioenergy Solutions and Thermax Cooling Solutions. The stock was trading near Rs 3,680 in noon trade, down 13.43 per cent.