The combined new order inflow of Thermax Group was up 11 per cent in the first quarter (Q1: April to June) of FY24, on a year-on-year basis.
A company release observed that Thermax Group received new order inflows of Rs.2,567 crore during Q1 of FY24, up 11 per cent from Rs.2,310 crore in Q1 of FY23.
As of June 30, 2023, the order backlog stood at Rs.10,505 crore, 10 per cent higher than the comparable Rs.9,554 crore of June 30, 2022.
On a standalone basis (only Thermax Ltd), order bookings during Q1 of FY24, at Rs.1,627 crore were 5 per cent lower compared to those in Q1 of FY23.
The order backlog of Thermax Ltd, as of June 30, 2023, stood at Rs.6,746 crore, around 3 per cent lower than the corresponding Rs.6,981 crore of June 30, 2022.
Major developments
During the first quarter of FY24, Thermax concluded a major order of Rs.271.50 crore from India’s biggest oil refinery in the private sector. The company also commissioned a state-of-the-art wind-solar hybrid captive plant with a capacity of 45.8 mw in Gujarat. “These projects are aligned with the company’s commitment to developing innovative solutions that address the energy and environmental goals of customers,” the Thermax release said.
Provision for arbitral award
During the quarter, Thermax received an Arbitral Award against the Company for repair, payment of damages, etc. for breakdown of third party gas turbo – generators (GTGs) for a customer project. As per the award, the company was directed to repair and reinstate the GTGs under the defect liability obligation. Further, among other matters, the award also allowed the customer’s claim on additional expenditure along with interest which is currently estimated at Rs.245 crore. Pursuant to independent legal opinion, for the quarter ended June 30, 2023, the company has made a provision of Rs.50.63 crore and for the balance amount, no provision has been considered necessary
Also read: Thermax Enters The Green Hydrogen Market, Partners With Fortescue Future Industries
Thermax Group
As a group, Thermax operates 14 manufacturing facilities across India, Europe, and Southeast Asia; it has 37 Indian and international subsidiaries.
Featured photograph (source: Thermax) is for representation only.
