Triveni Turbine hits new high; zooms 41% in 18 days post Q4 results

Shares of Triveni Turbine hit a new high of Rs 499.40, as they surged 7 per cent on the BSE in Thursday's intra-day trade in an otherwise range-bound market. The stock surpassed its previous high of Rs 498.30 touched on Wednesday. Since February 6, in the past 18 trading days, the stock has zoomed 41 per cent after the company reported healthy December quarter (Q3FY24) results and robust outlook.

At 03:03 pm; Triveni Turbine was quoting 6 per cent higher at Rs 495, as compared to 0.02 per cent decline in the S&P BSE Sensex. The average trading volumes at the counter jumped 4-fold today. A combined 8.98 million equity shares representing 2.8 per cent of total equity of the company changed hands on the NSE and BSE.

The BSE said the Exchange has sought clarification from Triveni Turbine on February 29, 2024, with reference to movement in volume. The reply is awaited.

Triveni Turbine had posted 30 per cent year-on-year (YoY) rise in consolidated net profit at Rs 68.30 crore in Q3FY24, aided by higher income. It had clocked a net profit of Rs 52.60 crore in the year-ago period.

The company posted highest-ever revenue for the quarter of Rs 432 crore, an increase of 33 per cent YoY as well as the highest EBITDA at Rs 101 crore in Q3 up 35 per cent and a margin of 23.4 per cent, an increase of 35 basis points. The order booking for the quarter stood at Rs 531 crore, which was an increase of 26 per cent YoY.

The company has a robust order booking for the nine months at Rs 1,443 crore, which is an increase of 27 per cent, and the closing order book is at Rs 1,575 crore, which is an increase of 28 per cent.

The company said it is witnessing strong order flows from the Middle East, North Africa, Europe, Turkey, and Americas. However, in the East Asia market, the company is witnessing slight weakness. The company's enquiry book in the export market is in the region of ~7.5 GW to 8 GW.

The management said the company has both growths in domestic as well as international markets, and is optimistic going into both Q4 as well as into FY25 of an increase in the company's order booking to at possibly the same growth rate that it has seen in the last couple of years, which will allow the company to maintain growth momentum. The outlook for all the segments, be it in terms of renewable energy, industrial markets, aftermarket are all quite robust, the management said.

Triveni Turbine is expected to be on a high-growth trajectory, led by strong order inflows and a promising inquiry pipeline. Increasing traction in aftermarket services and exports is a healthy sign as this would also lead to better profitability. Further, climate change mandate in its key export markets will drive growth for its products, said analyst at Sharekhan.

The increasing share of the export order book would aid profitability in the coming quarters. Analyst at Geojit Financial Services expect the product business to continue to witness healthy traction, while an increasing share of the aftermarket mix will drive revenue growth. However, expensive valuations remain a deterrent to near term performance, the brokerage firm said in result update.