Thermax Limited has informed the Exchange about Investor Presentation
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
August 6, 2021
To The Secretary BSE Limited PJ Towers, Dalal Street Mumbai: 400 001
Company Scrip Code: 500411
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
Sub: Regulation 30 of SEBI (Listing Obligation & Disclosure Requiremen ts)
Regulations, 201~- 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 QI FY 21-22.
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
REGD. OFFICE : D 13, MIDC INDUSTRIAL AREA. R. D. AGA ROAD, CHINCHWAD, PUNE 411 019. INDIA CORPORATE IDENTllY NUMBER: L29299PN1900PLC022707
Thermax Limited – Analyst Call Q1 FY21-22
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 4500 vaccinated in a vaccination camp in Pune for employees, workmen, contractors, and families
• Under Thermax Care wellness initiative launched an employee assistance program – Santulan, a professional support system for employees emotional and mental well-being
• All Thermax facilities operational in strict
adherence with COVID guidelines, albeit at reduced efficiencies
Energy | Environment | Chemical
www.thermaxglobal.com
Thermax Q1 FY2021-22 Results
Summary of group’s financial performance
Q1/2021-22 (in crore)
Q1/2021-22 vs Q1/2020-21
Order Booking
1,696
+ 179 %
Order Balance
6,109
+ 17.2 %
• Highest order booking and back log in last
7 quarters
Operating Revenue
1,052
+ 58 %
• Export order booking higher by 107%
Profit Before Tax and exceptional item (PBT)
Profit After Tax and exceptional item (PAT)
Cash and Investments
56
Loss of Rs.22 crore
42
Loss of Rs.15 crore
2,261
+ 47 %
Energy | Environment | Chemical
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Q1- Order Book Status
• Highest Order booking in last 7 quarters
• Order book strengthened with finalizations in Refinery, Cement
and Steel sector
•
•
Increasing thrust on sustainability - TBWES bagged 97% green orders with single order value of 250 crore from a petrochemical giant
Improved performance of the products businesses and channel business during the quarter
• Strong pipeline of enquiries from Food and Beverages, Chemical
and Pharma sectors
Energy | Environment | Chemical
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Business Highlights Energy Segment
Process heating launched 3 new products virtually which was attended by 676 customers
TBWES successfully commissioned first waste-to-energy boiler in Thailand
•
•
•
First time in Q1, crossed order booking of Rs. 200 crore in our heating products. Additionally, we received our first-ever electrical boiler order from Bhutan
TBWES Thermax Group wins order for a greenfield refinery in Latin America worth Rs 250 crore
A major electronic giant in south India recently ordered a 1000KW closed-loop tower for precision cooling of an ammonia compressor
Thermax launched MaintWiz, a cloud-based maintenance management solution for assisting our Power & Utility Operation and Maintenance (O&M) and Thermax Onsite teams.
A leading edible oil company procured an Evaporative Condenser (EVC) for its plant in Tamilnadu. Satisfied customer applauded Thermax with letter of appreciation
Energy | Environment | Chemical
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Business Highlights Environment Segment
•
First orders from new geographies :
– Electrostatic precipitator (ESP) order for Pellet application
from largest steel maker in Turkey
– Fabric filter order for packing plant de-dusting application
from Germany
•
Strong business from Retrofit and Revamp:
– Major ESP retrofit and revamp order from a leading alumina
refinery in India
– Major order booking of Q1 has come from the retrofit
conversion orders
•
Air pollution control business bagged order for new application in Vertical shaft kiln from cement major thus opening the opportunities for small and medium cement manufacturing companies
• Water treatment business received a major order from a refinery
in Gujarat for a 7 MLD Desalination Plant
CFBC Boiler ESP for a leading cement company
Energy | Environment | Chemical
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Business Highlights Chemical Segment
•
•
•
•
Highest order booking of 139 crore with growth in international business of ion exchange resins and channel business of water treatment chemicals.
Bagged major order worth 7 crore for pour point depressant (an oil field chemical) from an esteemed oil and gas service provider in Russia
Secured order for construction chemicals business from prestigious residential project in Maharashtra and received brand approval to supply chemicals for infrastructure project in Gujarat
Remotely commissioned ion exchange resins for demineralization and sugar refining applications in Turkey and Philippines
Thermax Chemicals recently received a repeat order from a sugar industry customer, looking to lower Chemical Oxygen Demand (COD) and odour in their effluent treatment process at a reduced cost
Energy | Environment | Chemical
www.thermaxglobal.com
Awards & Accolades
Thermax Solar business was recognised as ‘EPC company of the year in the industrial segment’ in Maharashtra State Annual Solar e-Awards Show organised recently by EQ magazine. Thermax bagged the award for the 1266 kwp ground mount solar PV plant commissioned for a renowned edible oil manufacturer in Maharashtra
Thermax EPC business has received appreciation from GNAL, Dahej, a joint venture company of Gujarat Alkalies and Chemicals Limited (GACL) and National Aluminium Company Limited (NALCO) for its contribution in accomplishing 10 million safe man-hours
Energy | Environment | Chemical
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Consolidated Performance Summary by Segment
Segment
Energy
Environment
Chemical
Total
Order Booking
Order Balance
Q1, 2022
1,256
300
139
1,696
YOY% Change 205%
YTD June 2021 4,444
YOY% Change 26%
189%
52%
179%
1,568
97
6,109
-3%
11%
17.2%
Healthy order booking across segments, crossing Rs. 6000 crore of order backlog after December 2018
Energy | Environment | Chemical
Note: Values are in Rs. crore
www.thermaxglobal.com
Consolidated Performance Indicators
Q4, 2021 Performance Indicator
Q1, 2022 Q1, 2021
1,497 Order Booking
5,227 Order Balance
1,575 Revenue
140
Profit Before Tax and Exceptional (PBT)
8.9% PBT before Exceptional %
-
Exceptional Item
140
Profit Before Tax (PBT)
8.9% PBT %
107
Profit After Tax (PAT)
6.8% PAT %
1,696
608
6,109
5,212
1,052
56
665
(22)
5.3%
-3.4%
- 56
- (22)
5.3%
-3.4%
42
(15)
4.0%
-2.3%
Energy | Environment | Chemical
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Note: Values are in Rs. crore and ratios are in %
Consolidated Segment Performance*
For Q1, 2022
For Q1, 2021
Segments
Revenue
PBIT
PBIT% Revenue
PBIT
PBIT%
Energy
Environment
Chemical
763
180
123
28
3
22
3.7%
500
(26)
-5.3%
1.5%
17.6%
84
84
(11)
-12.6%
17
20.5%
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
PBIT
Environment
OB
RR
PBIT
e r o r C
. s R n
i
l
e u a V
1,600 1,400 1,200 1,000 800 600 400 200 -
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
OB
RR
815
1,121
PBIT
64
FY1920
980
1,341
83
799
1,121
65
686
1,051
32
412
500
-26
FY2021
1,291
1,066
97
1,173
1,175
109
FY2022
1,256
763
28
120 100 80 60 40 20 - -20 -40
T I B P
e r o r C
. s R n
i
l
e u a V
800 700 600 500 400 300 200 100 -
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
25 20 15 10 5 - -5 -10 -15
T I B P
OB
RR
PBIT
286
197
4
FY1920
633
179
8
691
197
10
FY2021
167
199
16
104
84
-10
155
155
10
172
253
18
204
302
20
FY2022
300
180
3
Chemical
OB
RR
PBIT
40 35 30 25 20 15 10 5 -
T I B P
Q1
92
84
17
Q2
Q3
Q4
Q1
FY2021
111
115
35
102
111
29
120
119
22
FY2022
139
123
22
OB
Order Booking
RR
Revenue Recognition
PBIT
Segment PBIT before exceptional & Unallocated Overheads
848
886
39
160 140 120 100 80 60 40 20 -
s ’ e r o r C
. s R n
i
l
e u a V
Q1
Q2
Q3
Q4
OB
RR
PBIT
116
117
29
FY1920
109
110
20
116
117
29
100
96
18
Energy | Environment | Chemical
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Domestic – Export Business Performance
FY 2020-21
YTD JUNE FY 2021-22
Chemical
172
252
Environment
555
80
Order Book
Chemical
67
73
Environment
275
25
Energy
2,693
1,030
Energy
807
449
-
1,000 2,000 3,000 4,000
-
500
1,000
1,500
Chemical
183
247
Revenue
Environment
735
60
Chemical
Environment
56
67
171
9
Energy
2,259
1,369
Energy
524
239
-
1,000
2,000
3,000
4,000
-
200
400
600
800
1,000
Chemical
30
48
Chemical
42
55
Environment
1,372
59
Environment
1,490
78
Order Balance
Energy
2,824
892
Energy
3,230
1,214
Domestic
Export
-
1,000
2,000
3,000
4,000
-
1,000 2,000 3,000 4,000 5,000
All values are in Rs. crore
Energy | Environment | Chemical
www.thermaxglobal.com
Environment and Industry Outlook
• Reducing COVID-19 cases in India, South- East Asia and lifting restrictions with the subsiding of the second wave of COVID- 19 is positive sign for business in coming quarters
• The increasing impact of the pandemic
in Europe, Africa, Eastern Mediterranean and Western pacific markets is expected to impact the business in these regions
•
India's PMI for manufacturing was in reducing trend after 55.5 in April to 48.1 in June but it has rebounded in July
• For FY 2022, the GDP growth is projected at 9.5% (source: IMF) and to remain strong and broad-based for future financial years
Global Pandemic Effect
Input Cost
Market Sentiments
Demand
• The commodity price stayed high and is a key
concern
• Steel price remained high
•
•
Inputs raw material costs to chemical stayed higher: Styrene, Polymer packaging materials, Phosphorous was high due to unavailability issues and other disruptions in supply chain
Industrial sectors such as Food, Pharma, Oil & Gas Refinery and Chemical continue to perform well, though some sectors were impacted with the regional lockdowns imposed
• After good recovery of Q4 in new project
investments, Q1- FY'22 remained close to the peak which gave optimistic outlook for coming quarters
• Government continues to provide various subsidies
to industries resulting increase in capex
Energy | Environment | Chemical
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Sources: RBI, MOSPI, WHO, IMF, Projects today
Let’s make way for a Greener Tomorrow
Energy | Environment | Chemical
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Thank You