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BL Research Bureau

Thermax has won an order worth Rs 450 crore for setting up of a 60-MW captive power plant for a green-field integrated steel complex plant in Andhra Pradesh. This order, which involves the entire array of activities under building, commissioning and balance of plant equipment marks the second such order win in the captive power generation space for Thermax this year.

It had previously won an order worth Rs 415 crore for a captive power plant project for another steel company. The growing order inflows in the captive power space from the steel sector appears in line with the company’s growth outlook as it had earlier indicated that tender enquiries from companies in the steel sector had been on the uptrend.

But most importantly, this order win may alleviate concerns regarding the slackening trend in order inflows for Thermax, the reason primarily attributed to its recent downgrades in the market. That the company’s outstanding order book now stands at over Rs 4,400 crore may also assuage sentiments.

Further, Thermax may also benefit at the margin front from the recent cooling in steel and other raw material prices since most of its orders are contracted at a “fixed price” only.

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