Are Thermax latest results good or bad?

Thermax has released its financial results for the quarter ending June 2025, showcasing a mix of operational trends. The company reported a Profit Before Tax (PBT) of Rs 145.84 crore, reflecting a year-on-year growth of 88.86%. Additionally, the operating cash flow reached Rs 1,042.79 crore, marking the highest level in three years, indicating strong cash generation from its operations. The Profit After Tax (PAT) also saw a notable increase, reported at Rs 152.38 crore, which represents a year-on-year growth of 31.6%.
However, the company is facing certain challenges. Net sales have declined to Rs 2,150.18 crore, the lowest figure recorded in five quarters, with a year-on-year change of -1.57%. Furthermore, the debt-equity ratio has risen to 0.35 times, suggesting an increase in borrowing to support operations. The debtors turnover ratio has also slowed to 4.30 times, indicating a decrease in the efficiency of collecting receivables.

Overall, while Thermax has demonstrated significant growth in profitability and cash flow, it is also contending with declining sales and rising debt levels. The company saw an adjustment in its evaluation based on these results.