Thermax reported disappointing Q1FY17 results on all counts. This was on the back of lower carry of order backlog from FY16, which led to execution decline thereby impacting margins and profitability. Order inflows for Q1FY17 were below expectations as well • Revenues declined 18.6% YoY to | 815 crore vs. our estimate of | 881.9 crore. The disappointment stems from the lower carry of order backlog from FY16. On a consolidated basis, revenues declined 18.6% YoY to | 1002 crore . Order inflows continue to disappoint as they declined 20.4% YoY to | 698 crore whereas order backlog witnessed 14.5% YoY decline at | 3653 crore. However, the company is witnessing some pick-up in domestic enquiry for orders in industry like food processing, beverages, pharma, paints and textile industry. ICICI Securities Limited value the stock on an SOTP basis and assign a target price of | 814 with a HOLD recommendation.