Thermax has reported a net profit of Rs 79.9 crore for the quarter ended June 30, 2011, growing 21 per cent year-on-year.
Income from operations rose 32 per cent to stand at Rs 1,044 crore in the same period.
However, the company's order booking was down 16 per cent at the end of the quarter, reflecting the global trend, Ms Meher Pudumjee, Chairperson, Thermax, told shareholders at the AGM held here today.
“India is no longer insulated from global problems,” she said, adding that tough market conditions were making it difficult to convert enquiries to orders. “There will be a pressure on margins, and the growth rate will fall.”
Pointing out that there was a slowdown in the domestic power sector, and fuel was also a concern, Ms Pudumjee said that the company is looking at international markets for growth. “It will take time to build that,” she said.
Nearly 77 per cent of Thermax's revenue comes from the energy sector and environment solutions account for the remaining.
During the 15 months ending September 2012, Thermax will invest Rs 430 crore in new facilities and expansion of plants — including Rs 200 crore on building the Thermax Babcock Wilcox plant at Shirwal where the joint venture company will make supercritical boilers.
“Land has been acquired, construction has begun and production will start by September 2012,” Mr Unnikrishnan, MD and CEO, Thermax, said.
He added that installed capacity here will be 3,000 MW and the plant will initially make boilers in two sizes – 660 MW and 800 MW.
Among the focus areas will be power and renewable energy. Thermax is also looking at acquisitions in the renewable energy, water and sourcing technology space as India will be a big market in these areas.
The company declared a dividend of Rs 9 (450 per cent) a share with face value of Rs 2 for 2010-11.