Thermax Q1 net profit plunges 85% shares fall over 16%
Business
Thermax just had a rough Friday. Its shares dropped over 16% after the company reported an 85% plunge in net profit for the first quarter.
Profit fell to ₹22 crore (from ₹151.45 crore last year), mostly because of a cost overrun in its industrial infrastructure segment and rising expenses.
Thermax revenue up 7% gains erased
Even though Thermax's revenue actually grew 7% this quarter (₹2,303 crore vs. ₹2,158 crore last year), higher costs and fewer export sales wiped out those gains.
The company also missed out on government incentives it got last year.
On the bright side, Thermax's board has approved a scheme to merge two subsidiaries (Bioenergy Solutions and Cooling Solutions).