India's Thermax beats Q2 profit view on steady demand for industrial products
Nov 13 (Reuters) -India's Thermax THMX.NS reported a bigger-than-expected second-quarter profit on Wednesday, helped by steady demand for its industrial products.
The industrial machine maker's consolidated net profit rose 25% to 1.97 billion rupees ($23.35 million) in the July-September quarter.
Analysts, on average expected a profit of 1.76 billion rupees, as per data compiled by LSEG.
During the second quarter, capital goods companies, such as Thermax, benefited from increased orders from sectors like power generation, transmission and distribution, and defense, as well as from easing raw material costs, according to analysts.
Additionally, the execution of backlog orders was also expected to drive revenue growth for these firms, they said.
Thermax's revenue rose 13.5% to 26.12 billion rupees for the September quarter, above analysts' expectation of 25.87 billion rupees.
The growth was primarily driven by revenue from its industrial products segment and the division that sets up bio-CNG and power plants, which contribute to about 88% to the company's total revenue.
Its order booking for the quarter rose 70% to 33.53 billion rupees, helped by large orders in the infra energy segment.
Peer ABB India ABB.NS posted a higher quarterly profit last week.
Thermax's shares closed 4% lower ahead of results.
($1 = 84.3610 Indian rupees)
Reporting by Aleef Jahan in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala
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