THERMAXNSE3 February 2021

Thermax Limited has informed the Exchange about Investor Presentation

Thermax Limited

THERMAX LIMITED THERMAX HOUSE, 14 MUMBAI - PUNE ROAD, WAKDEWADI, PUNE 411 003, INDIA D TEL.: +91 20 25542122, 25542263 D FAX: +91 20 25541226 Website : www.thermaxglobal.com D IT PAN - AAACT 391 OD Customer Care: 18002090115 (India Toll Free)

Corporate Finance

THERMAX

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

February 3, 2021

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

Company Scrip Code: 500411

Sub: Investor Presentation

Dear Sir,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable provisions, please find enclosed Investor Presentation for the quarter ended December 31, 2020.

You are requested to take note of the same.

Thanking you,

Yours faithfully, For THERMAX LIMITED

Kedar P. Phadke Company Secretary Membership No: F3349

Encl: As above

REGO. OFFICE : D 13, MIDC INDUSTRIAL AREA. R. D. AGA ROAD, CHINCHWAD. PUNE 411 019. INDIA CORPORATE IDENTllY NUMBER : L29299PN1980PLC022787

Thermax Limited – Analyst Call Q3 FY20-21

Energy | Environment | Chemical

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

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

Energy | Environment | Chemical

www.thermaxglobal.com

Thermax Q3 FY2020-21 Results

Summary of group’s financial performance

Q3/2020-21 (in crore)

Q3/2020-21 vs Q3/2019-20

Operating Revenue

1,411

Profit Before Tax and exceptional item (PBT)

Profit After Tax and exceptional item (PAT)

141

+ 34%

(-) 2.0%

Order Booking

1,565

(-) 2.6%

Order Balance

5,208

(-) 4.2%

Cash and Investments

1,686

+ 50.3%

•

Thermax Group’s revenue remained flat for Energy and Chemical segments while Environment segment registered growth over Q3 last year

• Resumption of normalcy in the company’s operations, improved profitability of all segments and cost control measures have resulted in improved Profit Before Tax and Exceptional Items from Rs. 105 crore to Rs. 141 crore, 34% higher

• Exceptional items impacted the results on account of impairment of goodwill in Thermax Netherlands B.V. and reversal of part of the provision created earlier for claims arising from closure of a German subsidiary, net Rs. 28 crores

Energy | Environment | Chemical

www.thermaxglobal.com

Order Book Status

Fertilizer and Agro 4%

Rubber and Related Products 3%

Sugar / Distillery 3%

Chemical 4% Power 5%

Cement 8%

Others 20%

•

Thermax’s order book witnessed broad based recovery with momentum in sectors ranging from food & beverage to cement and steel

This includes the major EPC order from a biorefinery in Assam for setting up captive Combined Heat and Power plant mentioned in last quarter’s presentation

Increasing thrust on sustainability - TBWES bagged 100% green order, TOESL witnessed traction for green utilities etc.

Improved performance of the products businesses and channel business during the quarter

**Refinery And Petrochemical 31%

Metals & Steel 12%

Food/Beverage & packaging 10%

**Includes the biorefinery order

Energy | Environment | Chemical

www.thermaxglobal.com

Business Highlights Energy Segment

First time synchronisation of 33 MW plant with national grid for an African cement major

Remote commissioning of 125 TPH FM boiler at Indorama, Nigeria

• Major order from an Indian chemical company for their new cogen plant bagged in January 2021

• First order for cogen plant on a Build-

Own-Operate model from an aluminum major

• Secured first gasification order from a

mining company

• Major order for waste heat recovery

boiler from Mexican refinery

• Received order from a tyre major in India

for two medium pressure saturated boilers

• Novel method of optimising gas

separation process deployed for India’s leading refinery

• Capacity utilisation of plants improved

over Q2

320 TR chiller commissioned remotely for a leading flour producer in the Middle East

1.25 MW ground mounted solar PV power plant for a leading edible oil manufacturer

Energy | Environment

| Chemical

www.thermaxglobal.com

Business Highlights Environment Segment

• First breakthrough order for atoM (Thermax’s newly launched

compact sewage recycle system) from an e-commerce giant for their data center

• Water and waste solutions commissioned at landmark facilities in India – WTP for world’s largest mobile factory and a pharma major’s new facility

• Unique Learning and Development collaboration with a food & beverage major to deliver training module for the customer’s operational team

• Commissioning of first-of-its-kind flue gas cleaning system at a

paper mill for tackling complex airborne pollutants that emanate by firing 100% Non-Recyclable Solid Waste

3.75 MLD Zero Liquid Discharge plant for a textile major

Energy | Environment

| Chemical

www.thermaxglobal.com

Business Highlights Chemical Segment

•

Chemical segment continued its strong performance on profitability

• Major order for specialty resins from a USA customer for ground

water remediation application

•

Resins order from sugar refineries in India and the Philippines for sugar decolourisation application

• Mixed bed resins orders from the USA for drinking water cartridge

and industrial water demineralisation applications

• Water treatment resins order from Europe OEMs and power plant in

Russia

•

Performance chemicals show strong growth with improvement in market demand

Construction chemical business receives opportunities for retrofit and repair applications from Bangladesh

Resins order for Demineralisation plant

Energy | Environment

| Chemical

www.thermaxglobal.com

Awards and Recognition

•

Thermax Babcock and Wilcox Energy Solutions (TBWES), Shirwal factory won a runner up position in the ‘Environment, Health & Safety Practices’ competition organised by CII- Centre of Excellence for Competitiveness

The TBWES Services team received an award for ‘Best On Time Performance for Refinery Supplies’ in December 2020 from a leading oil and gas company

• Water & Waste Solutions O&M team received an award for the ‘Best Performance at Site’ from a pharma customer in Gujarat and award for best performer at a beverages customer site

TBWES receives ‘Capacity & Productivity Improvement Category’ award at CII National Competition on Low-Cost Automation

Energy | Environment

| Chemical

www.thermaxglobal.com

Consolidated Performance Summary by Segment

Segment

Energy

Environment

Chemical

Total

Order Booking

Order Backlog

Q3, 2021

YOY% Change

Q3, 2021

YOY% Change

1,291

172

102

1,565

62%

-75%

-12%

-3%

3,596

1,532

5,208

-4%

-6%

15%

-4%

• Energy segment showed higher growth over Q3 FY2020, bagged Rs. 320 crore biorefinery order •

Lower order booking of Environment segment is on account of the Rs. 430 crore Flue Gas Desulphurisation order bagged in the same quarter last year

Energy | Environment | Chemical

www.thermaxglobal.com

Consolidated Performance Indicators

Q2, 2021 Performance Indicator

Q3, 2021 Q3, 2020 YTD DEC 20 YTD DEC 19 FY 19-20

1,114 Order Booking

5,190 Order Balance

1,141 Revenue

1,565

1,606

5,208

5,439

1,411

1,410

Profit Before Tax and Exceptional ( PBT)

141

6.0% PBT before Exceptional %

(25)

Exceptional Item

Profit Before Tax (PBT)

3.9% PBT %

Profit After Tax (PAT)

2.7% PAT %

10.0%

(28)

113

8.0%

5.9%

105

7.5%

105

7.5%

6.0%

3,286

5,208

3,217

187

5.8%

(53)

135

4.2%

3.1%

4,546

5,439

4,408

316

7.2%

316

7.2%

173

3.9%

5,498

5,238

5,731

375

6.5%

375

6.5%

212

3.7%

Note: Values are in Rs.Cr & ratios are in %

Energy | Environment | Chemical

www.thermaxglobal.com

Consolidated Segment Performance*

For Q3,2021

For Q3,2020

YTD DEC 20

YTD DEC 19

Segments

Sales

PBIT

PBIT%

Sales

PBIT

PBIT% Sales

PBIT PBIT% Sales

PBIT PBIT%

Energy

1,066

Environment

Chemical

253

111

9.1%

7.1%

26.1%

1,121

197

117

5.8%

5.2%

24.7%

2,452

109

4.4% 3,626

217

492

310

3.6%

26.2%

523

325

6.0%

4.2%

18.5%

FY 19-20

Segments

Sales

PBIT

PBIT%

Energy

4,677

249

Environment

Chemical

722

421

5.3%

18.5%

Energy | Environment | Chemical

www.thermaxglobal.com

*Before exceptional items

Note: Values are in Rs.Cr & ratios are in %

Quarterly Trend - Consolidated

Energy

PBT

Environment

R N

I . r C n

I e u a V

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 -

% n

T B P

160 140 120 100 80 60 40 20 - -20 -40

FY1920

PBT

1,153

1,135

903

1,718

137

815

1,164

980

1,341

799

1,121

686

1,051

412

500

-26

FY2021

848

886

1,291

1,066

R N

I . r C n

e u A V

800 700 600 500 400 300 200 100 -

FY1920

PBT

212

213

172

267

286

146

633

179

691

197

167

199

104

-10

PBT

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

% n

T B P

FY2021

155

172

253

R N

I . r C n

I e u a V

140 120 100 80 60 40 20 -

PBT

Chemical

115

112

103

116

109

110

FY1920

116

117

100

FY2021

111

115

102

111

PBT 40

% n

T B P

Order Booking

Revenue Recognition

PBT

Profit Before Tax

Energy | Environment | Chemical

www.thermaxglobal.com

Domestic – Export Business Performance

FY2019-20

YTD Dec FY2020-21

Q3 FY2020-21

Energy

2,132

1,148

Energy

1,771

779

Energy

908

383

Environment

1,695

Environment

376

Chemical

240 201

Chemical

177

128

Environment

158

Chemical

52 50

Order Book

Energy

3,025

1,652

Energy

1,434

1,018

Energy

553

512

Sales

Environment

634

Chemical

229 193

Environme nt

Chemical

447

180 130

Environment

237

Chemical

Order Backlog

Energy

2,211

1,346

Energy

2,388

1,208

Environment

1,552

Chemical

Environment

1,475

Chemical

43 37

Domestic

Export

All values are in Rs. crore

Energy | Environment | Chemical

www.thermaxglobal.com

Environment and Industry Outlook

•

Increasing cases in US, Europe and Africa have further impacted the global economy • Situation in India and China has improved and set the markets on a growth track

Global Pandemic Effect

Input Cost

• Steel price increase •

Inputs raw material costs to Chemical has witnessed a surge – styrene and methanol price

•

Improved consumer sentiments reflected in Purchase Managers Index India GDP contraction forecasts revised upwards between 7.4-10.6%

• Gross fixed capital formation in India increased by 60% over Q2, nearing pre-COVID levels IMF GDP growth projection for FY22 at 11.5%

•

Energy | Environment | Chemical

Market Sentiments

Demand

• Sectors such as steel, cement, chemical, pharma and

food processing are likely to continue witnessing demand in the coming quarters

• Project completions forecasted and new investments

expected to accelerate

Source: MOSPI, CMIE

www.thermaxglobal.com

Thank You

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