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Thermax -Healthy execution…
Thermax has reported its Q3FY11 results, which were in line with our
expectations. The company’s revenues grew to | 1,241 crore (I-direct
estimate: | 1,197 crore), implying a growth of 66% YoY and 37% QoQ.
EBITDA margins were maintained QoQ at 11.8% in Q3FY11 whereas
YoY the same declined by 15 bps. PAT grew 77% YoY and 12% QoQ to
| 100 crore (I-direct estimate: | 98 crore).
ƒ Topline growth driven by healthy execution in energy segment
The topline growth of the company was driven by strong performance of
the energy segment (up 77% YoY to | 990 crore) fuelled by robust project
execution. The energy segment continued to dominate Thermax’
revenues and order book with 77% and 82% share, respectively, in
Q3FY11. Environment segment revenues were | 294 crore in Q3FY11,
implying growth of 44% YoY and 19% QoQ. The company’s order book
stood at | 6,393 crore providing strong visibility (book-to-bill ratio of 1.5x
TTM revenues). During the quarter, the order intake was | 987 crore
taking the order inflow for 9MFY11 to | 4044 crore.
ƒ EBITDA margins maintained QoQ: Key positive
EBITDA margins at 11.8%were flat QoQ and down 15 bps YoY. This was
the key positive this quarter. In terms of volatility of raw material prices
Thermax has a well laid out input management policy and only 15-20% of
the overall input requirement is sensitive to volatility in input prices.
Going ahead, we believe robust execution and better RM management
will keep operating margins in the range of 11.8-12% over FY11E-FY13E.
Valuation
Though Thermax commands strong visibility over the next one or two
years and is also eyeing opportunities in the supercritical space through
its new JV, we believe near term concerns w.r.t pick-up in industrial
capex may compress P/E multiples amid robust revenue and PAT growth.
Hence, we have toned down our one year forward target P/E multiple
from 22x to 19x and arrived at a price target of | 730 on FY12E EPS
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Thermax -Healthy execution…
Thermax has reported its Q3FY11 results, which were in line with our
expectations. The company’s revenues grew to | 1,241 crore (I-direct
estimate: | 1,197 crore), implying a growth of 66% YoY and 37% QoQ.
EBITDA margins were maintained QoQ at 11.8% in Q3FY11 whereas
YoY the same declined by 15 bps. PAT grew 77% YoY and 12% QoQ to
| 100 crore (I-direct estimate: | 98 crore).
ƒ Topline growth driven by healthy execution in energy segment
The topline growth of the company was driven by strong performance of
the energy segment (up 77% YoY to | 990 crore) fuelled by robust project
execution. The energy segment continued to dominate Thermax’
revenues and order book with 77% and 82% share, respectively, in
Q3FY11. Environment segment revenues were | 294 crore in Q3FY11,
implying growth of 44% YoY and 19% QoQ. The company’s order book
stood at | 6,393 crore providing strong visibility (book-to-bill ratio of 1.5x
TTM revenues). During the quarter, the order intake was | 987 crore
taking the order inflow for 9MFY11 to | 4044 crore.
ƒ EBITDA margins maintained QoQ: Key positive
EBITDA margins at 11.8%were flat QoQ and down 15 bps YoY. This was
the key positive this quarter. In terms of volatility of raw material prices
Thermax has a well laid out input management policy and only 15-20% of
the overall input requirement is sensitive to volatility in input prices.
Going ahead, we believe robust execution and better RM management
will keep operating margins in the range of 11.8-12% over FY11E-FY13E.
Valuation
Though Thermax commands strong visibility over the next one or two
years and is also eyeing opportunities in the supercritical space through
its new JV, we believe near term concerns w.r.t pick-up in industrial
capex may compress P/E multiples amid robust revenue and PAT growth.
Hence, we have toned down our one year forward target P/E multiple
from 22x to 19x and arrived at a price target of | 730 on FY12E EPS
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