Thermax says less optimistic of big orders going forward in power, steel segment

Pune-based Thermax on Monday said the company is less optimistic of big orders going forward in power and steel segment.

In an interview to CNBC-TV18, MS Unnikrishnan, managing director, said, "My intake of order last quarter from FMCG (fast moving consumer goods) and consumption oriented have been fairly robust. However, orders associated with heavy chemicals, auto ancillaries have been a bit muted.”

With regards to private capex, he said it's mixed and certain segments continue to invest without election fears and others are showing reduction in sentiment.

However, government oriented infrastructure projects are not happening right now, but in steel industry because of IBC (Insolvency and Bankruptcy Code) and NCLT (National Company Law Tribunal), the focus is more on consolidation than investment.

"The current sentiments prevailing across the board throughout the country maybe in the government side or private side may not be as good as it prevailed two months back. There are apprehensions, although, there is no need for apprehension. I am not seeing any medium and large size orders to be concluded in next two quarters” said Unnikrishnan, adding that there are many small to medium sized orders under finalisation.

On the margin front, Unnikrishnan said Thermax do not expect commodity prices to be increased and in fact could be less. So, future orders taken in by industry would be in better position in terms of margins. However, if market was to contract, then the competition would become severe and margins could get impacted."