Thermax may close operations in Chinese subsidiary, says CEO SS Unnikrishnan
Unnikrishnan said that their subsidiary in Europe bore losses last year, but this year profit will come and expectations are that overall it would positive.
Finance Minister Nirmala Sitharaman has already started her pre-budget discussions with representatives of different sectors to include their proposals in the General Budget 2019-20 which will be presented in the next month. Zee Business TV in its Corporate Radar programme is trying to know expectations of the captains of India Inc, and in this context, it speaks to SS Unnikrishnan, Managing Director and CEO, Thermax Group.
Since Thermax Group has a global presence, when asked about the company's energy trade, Unnikrishnan said that their subsidiary in Europe bore losses last year, but this year profit will come and expectations are that overall it would positive.
"We started our subsidiary in In Indonesia last year only, but we are expecting 100% growth this year. Although we had expected the break even in 5 years but effort is made Ebitda neutral in 2-3 years," said Unnikrishnan, adding that the company will close operations in Chinese subsidiary.
As the company's business is spread in different areas, when asked where it expects the best growth in FY20, he said that in FY20 maximum growth would be in medium size projects as talks are on for projects worth $10mn to $30mn and of these, some are in the final stages. "But in normal standard product, enquiry is stable this year, and expectations are that the company will get adequate orders for its standard products from international market next year," he added.
#CorporateRadar | बजट से इंडस्ट्री और कैपिटल गुड्स सेक्टर की क्या हैं उम्मीदें? देखिए थर्मैक्स के MD&CEO एम एस उन्नीकृष्णन से खास बातचीत..@ThermaxGlobal @AnilSinghviZEE @SwatiKJain #Budget2019 pic.twitter.com/D4ga34TEwf
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On the company Capex plan, he said that for FY20 there is no major capital expenditure, but there will be some infusion in digitisation, but for FY21 plan is being chalked out but not finalised yet.
When asked about launching new products, Unnikrishnan said that within the verticals, new products are likely to come but in the new areas. He, however, added that through the company's R&D new products would be launched next year.
For Q4, Thermax Group had revenue of Rs 2074 crore (Rs 1443 crore) and registered a net profit of Rs 127 crore (Rs 76 crore), higher by 67%. On a stand-alone basis, for the quarter, the company posted revenues of Rs 1328 crore (Rs 894 crore) and a net profit, including discontinued operation, of Rs 113 crore (Rs 86 crore), according to the company statement. The company board also recommended a dividend of Rs 7 per share (350%) for 2018-19.
A leading energy and environment solutions provider, Thermax Limited is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals. The company has manufacturing facilities in India, China, Europe and South East Asia.