Triveni Turbine lost 2.9% to Rs 51.95 at 11:28 IST on BSE after net profit fell 24% to Rs 13.20 crore on 1% decline in net income from operations to Rs 110.60 crore in Q1 June 2013 over Q1 June 2012.
The Q1 result was announced on Saturday, 27 July 2013.
Meanwhile, the S&P BSE Sensex was down 96.32 points or 0.49% at 19,651.87.
On BSE, 1,380 shares were traded in the counter as against average daily volume of 59,317 shares in the past one quarter.
The stock hit a high of Rs 54.45 and a low of Rs 51.25 so far during the day. The stock had hit a 52-week low of Rs 41.25 on 3 September 2012. The stock had hit a record high of Rs 64 on 23 July 2013.
The stock had underperformed the market over the past one month till 26 July 2013, rising 4.9% compared with the Sensex's 6.45% surge. The scrip had, however, outperformed the market in past one quarter, gaining 2.88% as against Sensex's 2.39% rise.
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The small-cap company has equity capital of Rs 32.99 crore. Face value per share is Re 1.
Triveni Turbine's (TTL) earnings before interest, taxation, depreciation and amortization (EBITDA) declined 24% to Rs 22.90 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin dropped to 20.7% from 27% a year ago.
TTL said that profitability has been affected during the quarter on account of two factors. There was a mark-to-market charge of Rs 2.40 crore. It is a transitional charge and this impact should be reversed during the year, TTL said. Also, the annual employee incentive was paid in Q1 resulting in a higher personnel charge of Rs 2.90 crore during the quarter. In the previous year, the incentive was paid in Q2. This charge will get evened out in the coming quarters, TTL said.
The outstanding order book for the company as on 30 June 2013 was Rs 480 crore which includes about Rs 34 crore from the aftermarket segment. Bulk of the orders received during the quarter has been from the domestic market, but the company expects the export market order booking to rapidly catch up in the coming quarters.
Commenting on the company's Q1 performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Turbine said: "The slow-down in the capital goods industry, which started a couple of years ago has got worse in the last nine months. We do not see signs of a turnaround in the near future though we feel we have reached the bottom. This has impacted our business, but owing to diversification of markets in the past year, the repercussions are less. The company's strategy to accelerate its efforts on going global was to mitigate the risk of this slowdown in the domestic market and has yielded results in FY 2013. We believe, we will get an increased volume of business from the international market this year. However, despite a high level of enquiries, the finalisation of orders is taking more time than we envisaged. This may have a short term impact, but we are reinforcing our resources and efforts to mitigate the effect. Overall, we are bullish about the prospects of our business, but due to the nature of challenges, such as continuing of the slowdown in the domestic and international economy, and characteristics of the power generating business, the results and the order book may be uneven in the short term. The quarter under review has been more or less in line with our sales plan. The overall margins are also in accordance with the trends after adjusting for the impact of some items whose effect will even out during the year".
During the quarter, GE Triveni (GETL) received one more order for a 45 megawatts (MW) turbo generator from a leading cement manufacturing company in India. With this, the joint venture (JV) has three turbines under execution apart from one turbine already delivered and under commissioning. Further, with a healthy enquiry pipe line, the business is expected to bag its first order from the international market in the coming quarters, TTL said.
GETL is a JV of TTL with General Electric (GE) to manufacture and market steam turbines from above 30 MW to 100 MW for the global market.
On future business outlook, TTL said that once the overall economic sentiments and the industrial and financial markets pick up, the company believes the demand for steam turbines would go up strongly. With the company's focus on research & development, and its ability to access new markets, it expects good business growth in the future, TTL said.
Triveni Turbine's (TTL) core competency is in the area of steam turbines manufacturing upto 30 MW size.
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