Thermax Q2 Profit Slumps 39% as Extended Monsoon Delays Order Execution
Pune-based engineering firm Thermax Ltd (THMX.NS) reported a sharper-than-expected decline in its second-quarter profit, citing delays in project execution caused by an extended monsoon season. The company’s consolidated net profit fell 39.3% year-on-year to ₹1.20 billion for the quarter ended September 30, missing analyst estimates of ₹1.79 billion, according to data from LSEG. Revenue from operations also slipped 5.4% to ₹24.74 billion, as sluggish activity in key segments weighed on performance.
Thermax, a leading player in India’s capital goods and clean energy sectors, said its industrial infrastructure segment—which handles large-scale energy and infrastructure projects—saw a steep 24% drop in revenue, offsetting gains from its industrial products segment, which rose 12.5%. Analysts at HDFC Securities noted that the extended monsoon hindered the execution of the company’s backlog orders, while Elara Capital expects order activity to recover in the latter half of the fiscal year.
Despite the slowdown, Thermax’s order bookings rose 6% to ₹35.51 billion, signaling steady demand ahead. The company’s performance contrasts with sector peer Larsen & Toubro, which reported higher profits driven by overseas projects, and ABB India, which saw profits dip due to increased expenses and fewer orders.
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