Thermax Limited has informed the Exchange about Investor Presentation
May 25, 2021
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,
In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable provisions, please find enclosed the Investor Presentation for Q4 FY 20-21.
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
Thermax Limited – Analyst Call Q4 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
Managing resurgence of COVID crisis
• More than 600 vaccinated in a two vaccination camp in
Pune for 45+ year old employees, workmen, contractors, and families
• Supported MCCIA’s ‘Mission Vayu’ to airlift 250
ventilators and 4,000 oxygen concentrators from Singapore for donating to hospitals in the Maharashtra’s worst affected areas
• Supporting contractors and migrant workers employed at Thermax factories and project sites in numerous ways
• All Thermax facilities operational in strict adherence with
COVID guidelines, albeit at reduced efficiencies
Energy | Environment | Chemical
www.thermaxglobal.com
Thermax Q4 FY2020-21 Results
Summary of group’s financial performance
Q4/2020-21 (in crore)
Q4/2020-21 vs Q4/2019-20 (%)
Operating Revenue
1,575
+ 19%
Profit Before Tax and exceptional item (PBT)
Profit After Tax and exceptional item (PAT)
140
+ 137%
107
+ 174.3%
Order Booking
1,497
+ 57.2%
Order Balance
5,227
-
Treasury Investments
1,886
+ 57.4%
Better performance in Q4 FY21 relative to COVID impacted Q4 FY20
Energy | Environment | Chemical
www.thermaxglobal.com
Q4 - Order Book Status
Others 7%
Chemical 20%
Paper/Rubber /Wood 3%
Pharma 3%
Sugar / Distillery 5%
Power 6%
Fertiliser and Agro 8%
• Strong order book in Q4 at Rs. 1,497 crore (Rs. 952 crore) aided by broad based industrial recovery
• Energy segment saw improved order
booking at Rs 1,173 crore with increased thrust on sustainability
•
Improved performance of the product businesses and channel business
Cement 19%
Food & Beverages 8%
Metals and Steel 10%
Refinery and Petrochemicals 11%
Energy | Environment | Chemical
www.thermaxglobal.com
Business Highlights Energy Segment
15 MW waste heat recovery power plant for a steel major in eastern India
Green steam supply to a tyre major under the Build-Own-Operate model using 18 TPH boiler
4 gas driven absorption chiller heaters (2 x 410 TR & 2 X 610 TR) for a wiring systems company in Tunisia
Two Closed Loop Cooling Towers (CLCT) for a global major in specialty films manufacturing
•
Large boilers and heater business (TBWES) booked 100% green order for the second consecutive quarter
• Strong quarter for the
packaged boiler business – First boiler order from
Turkey
– Order for a 31 MW energy
plant from a MDF manufacturer
• Highest quarterly output across manufacturing plants in the year
Energy | Environment
| Chemical
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Business Highlights Environment Segment
• First-of-a-kind order from a leading refinery in India for a
specialised resin-based unit for improving the performance of existing cycle-water treatment units in mono-ethylene glycol (MEG) plant
• Focus on desalination, installed a 2 MLD seawater desalination
plant at a distillery in a water scarce region in south India, making the industry water independent
• Introduced differentiated services programmes for focused
customer offerings in urban and industrial segments from the Water and Waste Solutions business
• Received first order for Flue Gas Desulphurisation system from
a leading sugar refinery in Saudi Arabia
Pre-treatment Demineralisation plant for a steel major
• First-of-its-kind air pollution control equipment orders for fuels
such as lignin and biofuel from oil & gas sector in India
Energy | Environment
| Chemical
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Business Highlights Chemical Segment
• Chemical segment continued its strong performance
with a 22% growth in PBIT vis-à-vis Q4 FY20
• Specialty resins saw a growth of 25.4% in Q4 and 62.8% annually, owing to strong demand from USA and Europe markets.
• Bagged new and repeat orders from Indian metal,
steel and refinery majors for performance chemicals
• Construction Chemicals business received brand approval to supply chemicals for a government infrastructure project in Gujarat
Maxshield®Swellbar - a hydrophilic construction joint water bar and sealant for creating an impenetrable barrier to prevent water ingress in old and new structures
Energy | Environment
| Chemical
www.thermaxglobal.com
Technology Update Waste to Energy
Representative image
Thermax Babcock & Wilcox Energy Solutions Private Limited (TBWES), a wholly-owned subsidiary of Thermax, signed a know-how transfer and license agreement with German-based Steinmüller Babcock Environment GmbH (SBE) for Waste to Energy technology
As a part of the agreement, TBWES will design, engineer, manufacture and sell Municipal Solid Waste (MSW) fired waste-to-energy solutions by incorporating SBE’s well-established grate and boiler technology
The tie-up will help enhance Thermax’s involvement in the waste to energy application for solving the dual challenge of urbanisation and deteriorating environment
Energy | Environment
| Chemical
www.thermaxglobal.com
Technology Update Solar
Thermax has announced an agreement with Power Roll, a developer of unique, low-cost and lightweight flexible solar film, to develop the market for solar films in India
Both the companies to jointly assess the market
potential for scale manufacturing and its deployment in the country
Flexible Solar PV manufacturing Image Courtesy – Power Roll
Energy | Environment
| Chemical
www.thermaxglobal.com
Technology Updates Fuel Cell
• Thermax partnered with Defence Research &
Development Organisation (DRDO) in developing homegrown Air Independent Propulsion (AIP) system for the Indian Navy’s Scorpene class submarines
• A crucial milestone of the programme was the
demonstration of a land-based prototype to the Indian Navy on 8th March, 2021, which was successfully completed
3D model of a fuel cell
Energy | Environment
| Chemical
www.thermaxglobal.com
Awards & Accolades
Thermax was recognised with the ‘Special Jury Citation’ award at the 7th edition of The India Risk Management Awards, conducted by CNBC-TV18. Thermax bagged the award for demonstrating exemplary execution capabilities for its largest export order from the African Oil Refinery
Thermax received two national level awards from the Confederation of Indian Industry (CII) for showcasing best practices in maintenance management at the National Maintenance Circle Competition organised by them
Energy | Environment | Chemical
www.thermaxglobal.com
Consolidated Performance Summary by Segment
Segment
Energy
Environment
Chemical
Total
Order Booking
Order Balance
Q4, 2021
1,173
204
120
1,497
YOY% Change 71%
YTD MAR 2021 3,717
YOY% Change 5%
22%
20%
57%
1,431
79
5,227
-11%
-1%
-0.2%
The order booking across segments have exceeded pre-COVID levels. However, the outlook seems clouded due to the second COVID wave
Energy | Environment | Chemical
Note: Values are in Rs. crore
www.thermaxglobal.com
Consolidated Performance Indicators
Q3, 2021 Performance Indicator
Q4, 2021 Q4, 2020 YTD MAR 21 YTD MAR 20
1,565 Order Booking
5,208 Order Balance
1,411 Revenue
1,497
952
5,227
5,238
1,575
1,323
141
Profit Before Tax and Exceptional ( PBT)
140
10.0% PBT before Exceptional %
(28)
113
Exceptional Item
Profit Before Tax (PBT)
8.0% PBT %
83
Profit After Tax (PAT)
5.9% PAT %
8.9%
-
140
8.9%
107
6.8%
59
4.4%
-
59
4.4%
39
3.0%
4,783
5,227
4,791
328
6.8%
(53)
275
5.7%
207
4.3%
5,498
5,238
5,731
375
6.5%
-
375
6.5%
212
3.7%
Energy | Environment | Chemical
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Note: Values are in Rs. crore and ratios are in %
Consolidated Segment Performance*
For Q4, 2021
For Q4, 2020
YTD MAR 21
YTD MAR 20
Segments
Revenue
PBIT
PBIT% Revenue
PBIT
PBIT% Revenue PBIT PBIT% Revenue PBIT PBIT%
Energy
1,175
109
9.3%
1,051
32
3.1% 3,627
218
6.0% 4,677
249 5.3%
Environment
Chemical
302
119
20
22
6.6%
18.5%
199
96
16
18
8.2%
18.6%
794
429
38
4.7%
103
24.1%
722
421
38 5.3%
78 18.5%
Energy | Environment | Chemical
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*PBIT Before exceptional items & unallocated overheads
Note: Values are in Rs. crore and ratios are in %
Quarterly Trend - Consolidated
Energy
OB
RR
e r o r C
. s R n
i
l
e u a V
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 -
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
PBT
160 140 120 100 80 60 40 20 - -20 -40
T B P
e r o r C
. s R n
i
l
e u a V
800 700 600 500 400 300 200 100 -
Environment
OB
RR
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
PBT 35 30 25 20 15 10 5 - -5 -10 -15
T B P
OB
RR
1,025
1,145
FY1819
1,153
1,135
903
815
980
799
686
1,718
1,121
1,341
1,121
1,051
FY1920
FY2021
412
500
-26
848
886
39
1,291
1,066
97
1,173
1,175
109
PBT
83
61
137
64
83
65
32
140 120 100 80 60 40 20 -
e r o r C
. s R n
i
l
e u a V
OB
RR
PBT
204
201
6
FY1819
212
213
15
172
267
31
286
197
4
Chemical
OB
RR
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
OB
RR
PBT
115
104
16
FY1819
115
112
17
FY1920
82
103
17
116
117
29
109
110
20
116
117
29
100
96
18
92
84
17
FY2021
111
115
35
102
111
29
120
119
22
FY2021
155
155
10
172
253
18
204
302
20
FY1920
691
197
10
167
199
16
104
84
-10
633
179
8
PBT 40 35 30 25 20 15 10 5 -
T B P
OB
Order Booking
RR
Revenue Recognition
PBT
Segment PBIT before exceptional & Unallocated Overheads
Energy | Environment | Chemical
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Domestic – Export Business Performance
FY2019-20
YTD MAR FY2020-21
Q4 FY2020-21
Energy
2,132
1,148
Energy
2,693
1,030
Energy
922
251
Order Book
Environment
1,695
82
Environment
555
80
Chemical
240
201
Chemical
252
172
Environment
179
25
Chemical
76
44
Energy
3,025
1,652
Energy
2,259
1,369
Energy
824
351
Revenue
Environment
634
88
Environment
735
60
Environment
288
14
Chemical
229
193
Chemical
247
183
Chemical
67
52
Energy
2,211
1,346
Energy
2,825
892
Order Balance
Environment
1,552
49
Environment
1,372
59
Chemical
48
32
Chemical
48 30
Domestic
Export
All values are in Rs. crore
Energy | Environment | Chemical
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Environment and Industry Outlook
• Relapse of COVID-19 cases in India and
South-East Asia is posing risks
• Post the impact of the pandemic, US, UK
and Europe markets are expected to grow in the coming quarters
Global Pandemic Effect
• Commodity costs are on increasing trend
• Steel price increase continues unabated
Input Cost
•
Inputs raw material costs to chemical has witnessed a surge – styrene and methanol prices on rise
•
India’s PMI for manufacturing dropped in March to 55.5 from 57.5, which is still considered good; COVID-19 is a key risk
• GDP forecasts is being relooked at due to the
second wave of COVID
Market Sentiments
Demand
• Select industrial sector such as steel, cement
continue to perform, some sectors were impacted with the recurrence of COVID-19
• Project completions to be delayed due the lockdown in some regions and may impact new investments
•
Indian Government Union Budget announcement for infrastructure & development and PLI package will support demand in coming quarters
Energy | Environment | Chemical
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Source: RBI, MOSPI, HIS Markit
Thank You