Thermax Headquartered in Pune incorporated in 1980 is a leading Company in the energy and environment space and a trusted partner in energy transition. Company has 4 business segments i.e. Industrial products, Industrial Infra, Green Solutions and Chemical.

Company offers solutions in heating, cooling, power generation, water & wastewater treatment & recycling, pollution inhibition, and chemicals, prioritizing clean air, energy, and water. Company has also introduced many new products in line with the strategy to innovate for energy transition which include an electric heater, a reciprocating grate biomass-fired boiler, an enhanced multi-fuel fired solution, a hybrid heat pump, solid fuel fired thermic fluid heater, upgraded oil & gas fired steam boiler, multi-fuel flexible steam boiler, ultrafiltration membrane system, mechanical vapor recompression-based ZLD, and gas purification and upgradation technology. These products are not just environmentally compliant but also aesthetically designed, compact and modular, offering a reduced footprint, lower operating costs, and improved efficiency.

Company serves to various industries such as Agriculture and Allied Industries, Automobile and Auto Components, Aviation, Biotechnology, Cement, Chemicals, Construction, Engineering and Capital Goods, Food and Beverages, FMCG, Healthcare, Hospitality, Infrastructure, IT & Data Centre, Manufacturing, Medical Devices, Metals, Oil & Gas, Paper & Pulp, Pharmaceuticals, Power, Renewable Energy, Rubber, Telecommunications, Textiles and Wood.

Company has sales and service presence in 30+ countries including India such as Bangladesh, Brazil, Denmark, Egypt, Germany, Indonesia, Kenya, Malaysia, Mauritius, Myanmar, Netherlands, Nigeria, Philippines, Poland, Singapore, Sri Lanka, Tanzania, Thailand, UK, USA, UAE, Vietnam, and Zambia. It has 20 Indian subsidiaries and 20 international subsidiaries along with 14 manufacturing facilities, 10 in India at Maharashtra, Andhra Pradesh and Gujarat and 4 overseas at Denmark, Poland, Germany and Indonesia.

Thermax is a pioneer in setting up captive power plants on EPC basis and its installed base of captive power plant is more than 3,300 MW spread over 125 projects.

As of FY24 company’s Total order book stood at 9355 with 14%, 5-year CAGR including international order bookings of 2087 with 5%, 5-year CAGR and Order balance of 10,111 at 18%, 5-year CAGR.

Fundamentals

Financial Results:

Company’s Net Sales was at Rs 2,184.41 crore in June 2024 up by 13.01% from Rs. 1,932.96 crore in June 2023. Its Quarterly Net Profit was at Rs. 115.81 crore in June 2024 up 96.69% from Rs. 58.88 crore in June 2023. EBITDA stands at Rs. 225.24 crore in June 2024 up 21.58% from Rs. 185.26 crore in June 2023. Thermax EPS has increased to Rs. 10.28 in June 2024 from Rs. 5.23 in June 2023.

The Industrial Products segment accounted for 41.9% (40.2% in FY 2023) of the Group’s gross operating revenue. The operating revenue (net) stood at Rs. 4,055 crore (Rs. 3,338 crore), while segment profit was at Rs. 397 crore (Rs. 274 crore) for the same period. In FY 2023-24, the order booking was Rs. 4,329 crore, up from Rs. 4,172 crore in the previous year.

The Industrial Infra segment accounted for 46% (47.3% in FY 2023) of the Group’s gross operating revenue. The operating revenue (net) stood at Rs. 4,455 crore (Rs. 3,928 crore), while segment profit was Rs. 209 crore (Rs. 217 crore) for the same period. The growth in revenue is attributable to carry-forward orders in the project business and new orders received by TBSPL. In FY 2024, order booking stood at Rs. 4,100 crore, growing from Rs. 3,779 crore in the previous year.

The Green Solutions segment accounted for 5.2% (4.4% in FY 2023) of the Group’s gross operating revenue. The operating revenue (net) stood at Rs. 507 crore (Rs. 363 crore), while the segment’s profit was Rs. 45 crore (Rs. 15 crore) for the same period. In FY 2024, the order booking was Rs. 241 crore, growing from Rs. 195 crore in the previous year. The increase in revenue was mainly due to the income generated by new sites under Thermax Onsite Energy Solutions Limited (TOESL) and First Energy Private Limited (FEPL).

The Chemical segment accounted for 6.9% (8.1% in FY 2023) of the Group’s gross operating revenue. The business posted an operating revenue of Rs. 663 crore (Rs. 673 crore), while the segment’s profit was Rs. 124 crore (Rs. 86 crore) for the same period. Thermax is also setting up an ion exchange resin manufacturing plant at Jhagadia, Gujarat, and will be investing an additional Rs. 45 crore into the Rs. 250 crore plant.

Key Updates:

1. Thermax has recently participated at PALMEX Thailand 2024 – a premier exhibition showcasing the latest developments in the palm oil industry. Addressing the challenge of palm waste, the company presented a range of boilers that offer best-in-class solutions for processing this waste into valuable energy, including Thermax’s EFB (empty fruit bunch) fired boilers. Another unique solution is FlexiSource™, which can fire different types of palm waste along with other fuels depending on availability. These solutions provide fuel flexibility, reduce disposal costs and lower greenhouse gas emissions.
2. Company has recently showcased Thermax’s latest innovations and green solutions at REDISCOVER edition of Chattisgarh, which also included its legacy solutions for steam and power generation, air pollution control, as well as the latest technologies for bio-CNG, coal gasification, solar and water & wastewater treatment, including the in-house developed MVR (mechanical vapour recompression) based zero liquid discharge (ZLD).
3. Thermax Babcock & Wilcox Energy Solutions Limited (TBWES), a wholly owned subsidiary of Thermax has concluded an order of Rs. 513 crore from a leading industrial conglomerate, setting up a 600 MW greenfield energy project in Botswana, Southern Africa. TBWES will supply two 550 TPH CFBC (circulating fluidised bed combustion) boilers over a period of 23 months.
4. Thermax recently unveiled its new state-of-the-art manufacturing facility in Pune for water and wastewater treatment solutions. This new facility is spread across two acres wihich can also be scaled to double capacity in future. This will implement and cater to Thermax’s new technologies to offer softener and filter vessels, tubular membrane modules, and Capacitive Deionisation (CDI) solution.
5. Company has also showcased its latest advancements in green technology and water management tailored for Karnataka's industrial sector at its REDISCOVER Roadshow in Bengaluru.
6. It has also showcased its latest innovations and green offerings for industries in Kolkata, Chandigarh, Gujarat, Lucknow and Hyderabad during the roadshow.
7. Thermax has recently signed an agreement to acquire a 51% stake in TSA Process Equipments, a strategic addition to Thermax’s portfolio that will enable the company to offer a one-stop solution for high-purity water requirements of its customers in sectors such as pharma, biopharma, personal care, and food & beverages.
8. First Energy Private Limited (FEPL), a wholly owned subsidiary of Thermax Limited has commissioned a 45.80 MW wind-solar hybrid (WSH) captive power plant in the state of Gujarat, India. The state-of-the-art facility has an installed capacity of 24.3 MW of wind energy and 21.50 MW of solar energy. This plant is estimated to reduce 1,11,700 tonnes of carbon equivalent per year.
9. Thermax Limited has recently concluded an order of Rs. 271.50 crore from India’s biggest oil refinery in the private sector for mechanical balance of plant (MBoP) works for the captive power plant (CPP) at their new oil-to-chemical (O2C) facility in the western part of India. The proposed CPP is expected to meet the incremental power demand of upcoming projects at the customer’s premise as part of O2C expansion and the establishment of a mega factory.
10. Company has also bagged an order for Rs. 251.7 crore from an Indian public sector power company for the renovation and modernisation of the electrostaticprecipitator (ESP) package of its 3x210 MW thermal power station in Bankura, West Bengal, India.
11. Thermax Limited and Fortescue Future Industries (FFI), an Australia-based green energy and green technology company, have signed a Memorandum of Understanding (MoU) to explore green hydrogen projects – including new manufacturing facilities – in India. Under the MoU, Thermax and FFI plans to explore opportunities to jointly develop fully integrated green hydrogen projects for commercial and industrial customers in India.
12. Thermax has also concluded an order of Rs. 522 crore for utility boilers and associated systems for a grass root refinery and petrochemical complex in Rajasthan, India. The order includes two units of 260 TPH high pressure utility boilers along with allied auxiliaries to be designed and manufactured by Thermax Babcock & Wilcox Energy Solutions (TBWES), a whollyowned subsidiary of Thermax. The package will be a part of the customer’s Captive Power Plant (CPP), and will facilitate their steam and power requirements.
13. Company has also concluded an order of Rs. 1,176 crore from an Indian public sector refinery to set up their Sulphur Recovery Block on LSTK basis. The Sulphur Recovery Block includes 2 x 240 TPD Sulphur Recovery Unit (SRU) along with Tail Gas Treatment Unit (TGTU), 690 TPH Amine Regeneration Unit (ARU), 200 TPH Sour Water Stripper – phenolic and 95 TPH Sour Water Stripper non-phenolic. This landmark project is being pursued as a part of the Government of India's North East Hydrocarbon Vision 2030. The project will significantly contribute to the country’s growth as well as the economic development of the entire North-Eastern region.
14. It has also concluded an order of Rs. 545.6 crore from an Indian power public sector company to set up flue gas desulphurisation (FGD) systems for their two units of 500 MW capacity each in the state of Uttar Pradesh, India. The FGD systems will be installed at their plant to cut down SOx emissions and comply with the air quality standards set for the power plants.
15. Company’s subsidiary in Denmark has bagged its biggest-ever order from a packager in France for a biomass-fired boiler with a capacity of 25 tonnes per hour, operating at 45 bar pressure and 450 degrees Celsius temperature. It has also Supplied the first-ever RDF (refuse derived fuel) fired hot water boiler with a capacity of 9.6 MW, operating at 16 bar pressure, for a project in Senja, Norway and Delivered another RDF fired hot water boiler of 17.5 MW capacity, operating at 10 bar pressure for a project in Kvitebjorn, Norway.
16. PT Thermax International, Jakarta, Indonesia, company’s subsidiary bagged an order from one of the largest multinational corporations in the food and beverages sector for three boilers equipped with a reciprocating grate combustor. These boilers feature multi-fuel capability, including the ability to incinerate in-house process waste. This project represents a noteworthy fuel shift in the process industry and will serve as a flagship project for PT Thermax International Indonesia. It has also Secured a first-of-its-kind order for the supply of bag filters from an EPC partner for a government power plant project.
17. Thermax Europe, Bletchley, United Kingdom another subsidiary in UK recently Supplied a 6 MW steam-driven heat pump to Fyn district heating plant in Denmark, 2 MW hot water-driven chiller delivering chilled water at 2 degrees Celsius to a lettuce grower in the UK, a 1 MW chiller with a special design for hazardous areas for one of the world’s leading suppliers of chemicals, plastics, synthetic fibres, and agricultural products in the Netherlands and a 3.6 MW steam-driven chiller custom-made for a large refinery in Saudi Arabia.

Green energy transition:

Thermax’s unwavering commitment to reducing carbon emissions by 25% by 2025, from the base year of 2019, has driven focused action across key areas of operational efficiency, renewable energy adoption, and fuel transition initiatives. These steps include successful procurement of renewable electricity for major manufacturing plants, the installation of solar rooftop systems at critical locations like Solapur and Bhosari plants in Maharashtra, and the strategic switch from natural gas to biomass fuel in the boiler at the Dahej plant. These specific initiatives have translated into a substantial 30.6% reduction in absolute emissions, exceeding the 2025 target well ahead of schedule reacting to which company has revised its targets from 25% to 35% reduction in carbon emissions for FY‘25.

In last 3 Years the stock gave a return of 254.82% as compared to the rise of Sensex and Nifty in the same period.

Thermax is the leading player in EPC solution sector with diversified portfolio of various offerings catering to almost all industries and sectors across the globe. Company’s global presence helps it to carter to bag orders from across the globe and provide cutting edge solutions and services to its clients. Company has also diversified itself into growing sectors of Power and Energy by marking entry into Green Hydrogen and Bio Mass segment. Considering company’s order book positions, proven performance record over the years, healthy financials, growth of various sectors in India in upcoming years and company’s years of experience in various sectors, investors can invest in this company for long term period.

HET ZAVERI

IFNO@SMARTINVESTMENT.IN

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