THERMAXNSE11 November 2022

Thermax Limited has informed the Exchange about Investor Presentation

Thermax Limited

November 11, 2022

To The Secretary BSE Limited PJ Towers, Dalal Street Mumbai: 400 001

Company Scrip Code: 500411

National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E) Mumbai – 400 051

Company Scrip Code: THERMAX EQ

Sub: Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements)

Regulations, 2015- Investor Presentation

Dear Sir/Madam,

In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable provisions, please find enclosed the Investor Presentation for Q2 FY 22-23.

You are requested to take note of the same.

Thanking you,

Yours faithfully, For THERMAX LIMITED

Janhavi Khele Company Secretary Membership No: A20601

Encl: As above

Email: cservice@thermaxglobal.com

Thermax Limited: Investor Presentation Q2 FY22-23

Conserving Resources, Preserving the Future.

To be a globally respected high performance organisation offering sustainable solutions in energy and the environment

Conserving Resources, Preserving the Future.

Disclaimer

This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for Thermax. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates”, “targets”, “plans”, “outlook” or similar expressions.

There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others:

• • • • •

Business risks associated with the volatile global economic environment and political conditions

Costs associated with compliance activities

Market acceptance of new products and services

Changes in governmental regulations and currency exchange rates, and

Such other factors as may be discussed from time to time in Thermax Ltd.'s filings with the Securities and

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Exchange Board of India (SEBI), including its Annual Report

Confidential and Internal Purpose only

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Thermax at a Glance

3,758 Employees Globally*

Installations in 90+ Countries

Sales and Service presence in 30+ Countries

$807 Million revenue

14 Manufacturing Locations (10 in India, 4 abroad)

Conserving Resources, Preserving the Future * - employees excluding workmen

Confidential and Internal Purpose only

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Business Highlights - Energy

Generating Green Steam and Power for a Metal Co.

Converting Waste to Energy in UK

Meeting Cooling Needs of a Beverages Co.

Supplying Green Steam to a Pharma MNC in Gujarat

Arial (Body) 14pt

Commissioned a boiler for a biomass based cogen plant at an aluminium and copper major in India.

TBWES received an order of 2 x150 TPH waste to energy boilers to be supplied in United Kingdom.

Commissioned a 500 TR vapour absorption chiller at a leading beverages multinational, working in tandem with an evaporative condenser in Chennai, India.

TOESL partnered with an American pharma Conserving Resources, Preserving the Future major to supply steam under its Build-Own- Operate model, deploying a 10 TPH biomass fired boiler.

Confidential and Internal Purpose only

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Business Highlights - Environment

Commissioning the First ESP in Turkey

Enhancing the Efficiency of an Indian Steel Company’s Blast Furnace

Ensuring Water Positivity for a F&B Major

First ETP Augmentation followed by Recycling for a Petrochemical Major

Commissioned an Electrostatic Precipitator (ESP) for the largest pellet producer in Turkey.

Commissioned an 80 TPH Coal Preparation Plant (CPP) for a leading steel producer in India.

Commissioned three effluent recycling plants and a ZLD system, resulting in 25% reduction in water consumption.

Conserving Resources, Preserving the Future Commissioned an ETP modification and a recycling plant on a turnkey basis, thus opening up the petrochemical market.

Confidential and Internal Purpose only

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Business Highlights - Chemical

Boost in Oil Field Chemical Orders

Growth in Construction Chemicals

Growth in Ion Exchange Resins in US, Europe and SEA

Oil field chemicals witnessed a 163% Y-O-Y growth.

72% Y-O-Y growth seen in construction chemicals business.

Received substantial orders for ion exchange resins for specialty and water applications from US, Europe, and SEA markets.

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Confidential and Internal Purpose only

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Thermax Q2 FY 2022-23 Results

Order book

Order balance

2,015 cr.

9,485 cr.

Operating revenue 2,075 cr.

PBT*

142 cr.

PAT

109 cr.

Cash and Investments

2,520 cr.

9 %

46 %

41 %

25 %

24 %

11 %

• The growth in order balance and revenue is attributed to better order bookings in the preceding

12 months. The increase in revenue led to an increase in PBT.

• The cash and investment balances have grown consistently over the last eight quarters

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Confidential and Internal Purpose only

* - Profit Before Tax and exceptional item

Note - % growth is with respect to Q2 FY 2021-22

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Q2 – Order Book Status

Others 17%

Metals and Steel 16%

Fertiliser 4%

Bioenergy 5%

Cement 6%

Power 9%

Sugar/Distillery 9%

Refinery and Petrochemical 11%

F&B/Agro based industries 11%

• Order bookings continue to be strong due to

major orders coming in from steel, chemical, and

refinery sectors

Chemical 12%

• Received major orders for waste heat recovery

and bioenergy applications

•

International order booking has improved

In the current quarter, the enquiry bank growth

has plateaued, however consistent demand is

seen across sectors

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Confidential and Internal Purpose only

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Consolidated Performance Indicators

Q1, 2023 Performance Indicator

Q2, 2023 Q2, 2022

2,310 Order Booking

9,554 Order Balance

1,654 Revenue

Profit Before Tax and Exceptional (PBT)

4.9% PBT before Exceptional %

Exceptional Item

Profit Before Tax (PBT)

4.9% PBT %

Profit After Tax (PAT)

3.6% PAT %

2,015

9,485

2,075

142

6.9%

142

6.9%

109

5.3%

1,856

6,516

1,469

114

7.8%

114

7.8%

6.0%

• This quarter’s profitability is better than Q1, 2023 because of increase in

revenue and input commodity costs has stabilised

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Note - Values are in Rs. crore

Confidential and Internal Purpose only

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Consolidated Performance Summary by Segment

Segment

Energy

Environment

Chemical

Total

Order Booking

Order Balance

Q2, 2023

YOY% Change YTD Sep 2022 YOY% Change

1,495

331

190

2,015

4 %

16 %

37 %

9 %

6,621

2,792

9,485

36%

82%

-36%

45.6%

Confidential and Internal Purpose only

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Note - Values are in Rs. crore

Business Performance Summary

For Q2, FY2022-23

For Q2, FY2021-22

YTD SEP FY2022-23

YTD SEP FY2021-22

Segments Revenue PBIT PBIT % Revenue PBIT PBIT % Revenue PBIT PBIT % Revenue

PBIT

PBIT %

Energy

1,465

5.5%

1,057

8.0%

2,693

155 5.8%

1,820

112

6.2%

Environment

449

Chemical

190

6.4%

312

2.0%

13.4%

129

15.5%

742

341

34 4.6%

31 9.1%

492

251

1.9%

16.5%

• Energy and chemical segments' profitability has been impacted by higher input costs over the last year

• The environment segment profitability has improved due to higher revenue and better margins

Confidential and Internal Purpose only

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PBIT - Segment PBIT before exceptional and unallocated overheads

Business Segment Wise - Quarterly Trend

Energy

Environment

e r o r c

. s R n

e u a V

3,000 2,500 2,000 1,500 1,000 500 -

120 100 80 60 40 20 - -20 -40

T B P

OB RR PBIT

412 500 -26

848 886 39

FY2021

FY2022 1,291 1,173 1,256 1,432 1,163 2,385 1,758 1,495 1,057 1,163 1,451 1,227 1,465 1,066 1,175 101 109

763 28

FY2023

e r o r c

. s R n

e u a V

1,200

1,000

800

600

400

200

35 30 25 20 15 10 5 - -5 -10 -15

T B P

FY2021

FY2022

FY2023

OB RR PBIT

104 84 -10

155 155 10

172 253 18

204 302 20

300 180 3

285 312 6

1,135 339 11

884 462 23

404 292 5

331 449 29

Chemical

200 180 160 140 120 100 80 60 40 20 -

e r o r c

. s R n

e u a V

OB RR PBIT

92 84 17

FY2021

111 115 35

102 111 29

FY2022

FY2023

120 119 22

139 123 22

139 129 20

163 155 17

127 132 4

147 150 6

190 190 25

40 35 30 25 20 15 10 5 -

T B P

Order Booking

Conserving Resources, Preserving the Future PBIT

Revenue Recognition

Segment PBIT before exceptional and unallocated overheads

Confidential and Internal Purpose only

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Domestic – Export Business Performance

Order Book

Revenue Revenue

Revenue

Order Balance

Chemical

Environment

Energy

Chemical

Environment

Energy

Chemical

Environment

Energy

FY 2021-22

268 300

2,517

4,747

1,490

YTD, FY 2022-23

Q2, FY 2022-23

123 213

633 102

Chemical

Environment

Energy

2,517 736

Chemical

Environment

Energy

46 144

286 45

1,083 411

2,000 4,000 6,000 8,000

1,000 2,000 3,000 4,000

500 1,000 1,500 2,000

264 275

1,204 90

3,177

1,256

Chemical

Environment

Energy

144 196

703 38

1,953 740

Chemical

Environment

Energy

73 117

421 28

1,106 360

2,000

4,000

6,000

1,000

2,000

3,000

500 1,000 1,500 2,000

54 74

2,728 61

4,608

1,287

Chemical

Environment

Energy

36 36

2,669

123

5,252 1,369

Domestic

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Export

2,000 4,000 6,000 8,000

All values are in Rs. crore

Confidential and Internal Purpose only

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Industry Outlook

Input Cost

• This quarter has seen a stabilisation in steel and chemical prices as compared to last quarter, and the outlook is the same for the remainder of the year

Market Sentiments

• The S&P Global India Manufacturing PMI increased to

55.3 in October 2022 i.e. > avg. of 53.7, showing growth in the industry

• The GDP forecast for FY 2022-23 was cut to 6.8% from previously declared 7.4% due to a broad-based and sharper-than-expected slowdown, along with high inflation in many countries

Demand

• Constant healthy mix of orders from various sectors

• Enquiries from international markets have been good

• Steel manufacturers are revising their capex plans

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Sources: MOSPI, WHO, IMF

Confidential and Internal Purpose only

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Environmental consciousness has been at the core of our products and services offerings. The focus will continue to strengthen our green portfolio as we chart the decarbonisation path.

Conserving Resources, Preserving the Future.

For more information about Thermax:

Thermax Limited Thermax House 14, Mumbai - Pune Road, Wakdewadi, Pune - 411 003, India

www.thermaxglobal.com

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