This story is from August 3, 2022

Cannot de-club India from global economy, energy transformation business improving: Thermax

Cannot de-club India from global economy, energy transformation business improving: Thermax
Pune: The chairperson of the city-based engineering conglomerate Thermax, Meher Pudumjee, said after the company’s annual general meeting and the announcement of its Q1 FY23 results that the Indian economy is linked with the rest of the world, and the possibility of a recession cannot be ruled out, as other economies fear for the same.
Pudumjee’s statement comes even as key figures, including the finance minister Nirmala Sitharaman, asserting in Parliament that India is unlikely to be in a “technical recession”, as is being feared in the United States and other major economies, due to inflation and a looming energy crisis.

“We are linked to the rest of the world’s economy, and we cannot be de-clubbed from them. If there is a recession going on in other countries, there will be some impact on our economy as well,” Pudumjee said, in an interaction.
She also added that the company is staying away from greenfield projects due to the economic situation, and is focusing instead on helping existing projects and clients transform to sustainable energy sources. For FY22, Pudumjee added that 75% of its order book was in the sustainable or green energy vertical of the company.
For Q1 FY23, Thermax reported a standalone income of Rs 947 crore, 33% higher than the same quarter in the previous fiscal, with its profits for the quarter being at Rs 24 crore, down by 23% over the same period. Thermax’ MD, Ashish Bhandari, added that the margin pressures have been primarily caused due to high commodity prices in the chemicals segment, as well as high freight charges.
Pudumjee added that the entry of a large number of startups in the clean air and clean energy business is having an impact on attrition rates, albeit temporarily, while the company is also investing in some startups that are allied to the business.
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