Thermax (TMX) operational performance was below our expectations. While revenues increased by 18% yoy aided by strong order backlog, the EBITDAM declined by 72bps to 8.5% impacted by higher than expected rise in steel prices. APAT was up by 9%. While the order inflows increased by 19% yoy to Rs14bn (up by 45% for 9MFY18), the order backlog grew by 27% to Rs56 bn providing decent revenue visibility for FY19E and FY20E. However, the increasing steel prices could limit profit growth as most of the fixed price international orders were booked ~2-3 quarters ago. Thermax Babcock & Wilcox (TBW) JV has ceased operations and is in the process of...