Triveni Turbine fell 3.80% to Rs 58.20 at 12:20 IST on BSE after net profit fell 31.80% to Rs 20.80 crore on 19.53% decline in net sales to Rs 140.90 crore in Q3 December 2013 over Q3 December 2012.
The company announced results after market hours on Thursday, 23 January 2014.
Meanwhile, the BSE Sensex was down 191.51 points, or 0.90%, to 21,182.15.
On BSE, so far 11,000 shares were traded in the counter, compared with an average volume of 20,483 shares in the past one quarter.
The stock hit a high of Rs 58.50 and a low of Rs 56.95 so far during the day. The stock hit a record high of Rs 68.70 on 14 January 2014. The stock hit a 52-week low of Rs 45 on 1 August 2013.
The stock had outperformed the market over the past one month till 23 January 2014, rising 18.40% compared with the Sensex's 1.29% rise. The scrip had outperformed the market in past one quarter, rising 14.26% as against Sensex's 2.92% rise.
More From This Section
The mid-cap company has an equity capital of Rs 32.99 crore. Face value per share is Rs 1.
Triveni Turbine's (TTL) EBITDA (earnings before interest, taxes, depreciation and amortization) fell 34.90% to Rs 31.90 crore in Q3 December 2013 over Q3 December 2012.
EBITDA margin stood at 22.7% in Q3 December 2013, lower than 28% in Q3 December 2012.
The company said that the overall year on year performance has been lower than its expectations primarily due to the macroeconomic situations. Even though the domestic market showed some improvement in Q3 December 2013 over Q3 December 2012, the overall domestic market for the first nine months of the current year has been at more or less at the same level as in the last financial year. Even though the overall performance for the quarter and nine months under review has been below the corresponding periods of last year, there has been a consistent improvement in performance quarter over quarter during the current financial year, the company said.
On the booking front also, due to the uncertain macro market conditions, order intake has been lumpy, the firm said. During the first six months of the current financial year, the company's product order intake was approx Rs 140 crore, while the order intake in Q3 alone was Rs 170 crore. The outstanding carry forward order book as on 31 December 2013 has been Rs 520 crore. The pipeline enquiries which are expected to be closed in Q4 March 2014 are also quite good and with all these the company believes that the carry forward order book at the end of the financial year ending March 2014 (FY 14) will be healthy. This should ensure a good growth in revenue and profitability in the financial year ending March 2015 (FY 15). The year on year order inflow from the export market has also been lower as many finalisations of orders got pushed into the coming quarters, which the firm believes will help it in building a good export order book in the coming quarters.
Commenting on the company's financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Turbine, said: "The performance of the business for the quarter and nine months under review from the turnover and profitability point of view has been lower than our expectations. Oct-Dec 2013 quarter saw significant order intake as many enquiries which were in the pipeline got concluded during this period. The product order intake exceeded the H1 figures by over 25%. However, the macroeconomic factors - economic slowdown, currency depreciation, lower credit etc., both domestically and in the addressable markets globally still continue, which has impacted both the order booking and revenue.
Even though the enquiry books for both domestic and overseas markets remain strong, delays in order finalisation as well as delay in taking deliveries by customers are some of the challenges being faced. The company continued its focus on export markets and during the last nine months, established customer contacts in many more countries and built a strong enquiry book. We expect, in the coming quarters, many of these enquiries could be converted into orders. The aftermarket business has also been affected, though to a lesser extent.
On account of the slowdown mentioned above, we believe the year end results would not be as per our estimates and are expected to register a decline. However, with a strong order intake in Q3 and a reasonable visibility of order finalization in Q4, we believe, we should be able to carry a healthy order book for FY 15. This should help us in getting the business back on the growth path on turnover and profits. The quarter under review saw a break-through in the order booking from the international market for our joint venture with GE, GE Triveni (GETL). After securing two orders in the current year from the domestic market, GETL secured its first international order for the supply of a 38 MW steam turbine to a South East Asian customer. Further, the JV is in the final stages of receiving several more orders, some of which are for even higher capacities, from both the domestic and international markets. We are confident that these orders will be concluded by the year end. Having successfully commissioned its first turbine, and having five turbines for execution in the domestic and international market, we believe GETL is well positioned to get more orders from both the domestic and international markets."
TTL is the domestic market leader in steam turbines up to 30 megawatts. It has maintained its dominance consistently over the years and is one of the largest manufacturers worldwide in high and low pressure turbines in this range.
Powered by Capital Market - Live News