Thermax Shares Plunge 16% Following 86% Decline in Net Profit

Shares of Thermax experienced a sharp decline of 16% following the announcement of its first-quarter financial results, which revealed an 86% drop in profit. The company also indicated expectations of weak quarters ahead, dampening investor sentiment.

Financial Performance Overview

Despite the steep decline in profitability, Thermax reported a 7% year-on-year increase in revenue. However, its earnings before interest, taxes, depreciation, and amortization (EBITDA) fell during the quarter, reflecting operational pressures.

On the operational front, the company's order inflow saw a modest increase of 2%, and its total order book registered growth during the period.

Factors Impacting Performance and Outlook

Thermax attributed the decline in profitability to several challenging factors, including higher input costs and weaker export sales. Additionally, geopolitical issues and currency fluctuations contributed to rising cost pressures, impacting the overall financial performance.