Now Reading: Thermax shares fall 16% after quarterly profit drops 83%
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Thermax shares fall 16% after quarterly profit drops 83%
Thermax shares fell as much as 16.08% to Rs 3,566.90 on the BSE on Friday after the company reported an 83.4% year-on-year fall in consolidated net profit for the June quarter. Profit…
The Story in Brief
Thermax shares fell as much as 16.08% to Rs 3,566.90 on the BSE on Friday after the company reported an 83.4% year-on-year fall in consolidated net profit for the June quarter. Profit dropped to Rs 25.2 crore from Rs 152.4 crore a year earlier, while revenue rose 6.7% to Rs 2,303 crore.
EBITDA fell 69.5% to Rs 68.6 crore, cutting the margin to 3% from 10.4%. Thermax attributed the decline mainly to a Rs 91 crore increase in the estimated cost of completing a project in its Industrial Infrastructure segment. Lower export sales and the absence of Rs 56 crore in earlier incentive income also weighed on results, The Hans India reports.
The Indian Opinion
The sharp sell-off reflects a real earnings problem, but claims that one quarter proves a permanent collapse would be premature. Revenue still grew, while the cost revision, weaker exports and missing incentive income explain much of the fall. The key test is whether Thermax contains the project overrun and restores margins above 3% in coming quarters. Investors should watch the next results for that evidence, not just the day’s share-price move.
Source: thehansindia.com
This story was synthesised by AI from the source linked above.
