(Reuters) -Indian engineering firm Thermax posted a bigger-than-expected drop in second-quarter profit on Tuesday, as an extended monsoon slowed the execution of backlog orders.
The Pune-based firm's consolidated net profit fell 39.3% to 1.20 billion rupees ($13.7 million) for the quarter ended September 30. Analysts expected profit to drop to 1.79 billion rupees, according to data compiled by LSEG.
Thermax is a key player in India's capital goods space - firms that manufacture and supply industrial equipment and systems - with a focus on power, transport and clean energy.
An extended monsoon was expected to hinder the progress of executing existing order backlogs, according to analysts at HDFC Securities.
However, analysts at Elara Capital anticipate a rebound in order activity during the latter half of the fiscal year.
The industrial products segment, Thermax's largest, which delivers equipment for core industrial operations, such as boilers, chillers, and heating equipment, rose 12.5%.
Thermax's revenue from operations fell 5.4% to 24.74 billion rupees, as revenue from its industrial infra segment, its second largest, dropped 24%.
The segment includes large-scale infrastructure and energy projects.
The industrial machine maker's order booking rose 6% to 35.51 billion rupees for the reported quarter.
Sector leader and larger rival Larsen & Toubro posted higher profit on strong execution of overseas projects, while ABB India's profit dropped on higher expenses and fewer orders.
($1 = 87.8950 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Harikrishnan Nair)
