Thermax has gone into red with a net loss of Rs 13 crore in 2000-01, as against a net profit of Rs 32.3 posted in the previous year. The board has decided to slash the dividend to 10 per cent compared with 35 per cent declared last year.
Thermax has made a provision of Rs 31 crore for extraordinary items of expenses during the fiscal. The company made an operating profit of Rs 8 crore, as against an operating loss of Rs 21 crore registered in the previous year.
Sales increased from Rs 406 crore in the previous year to Rs 473 crore this fiscal, a growth of 16 per cent. Export income increased by 32 per cent to Rs 101 crore.
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For the last one year, Thermax has been in a turnaround mode. The business portfolios of the group have been streamlined and the group has exited non-core businesses; namely transmitters, fans, lease financing, software and electronics. The company is now fully focused on its businesses in energy and environment.
Correcting the organisational imbalances and rightsizing of operations have been the major thrust during the year with top level changes made in the organisation.
Global sourcing, upgradation of information technology systems, business process improvements, knowledge management and human resource development are some of the other major initiatives undertaken by the company to enhance its competitiveness.