Triveni Engineering & Industries, a leading manufacturer of sugar and mechanical equipment, today announced demerger of its steam turbine business and reported a three-fold jump in profit after tax (PAT) at Rs 72.94 crore for the October-December quarter as against Rs 23.90 crore in the year-ago period.
Announcing the decision after a board meeting that approved the demerger scheme, company's Executive Director Nikhil Sawhney said, "It (demerger) will unlock value for our shareholders." The company might take a month to finalise the details of the demerger, he added.
While the steam turbine business will be demerged, he said, the gears and water segments will remain with sugar. He indicated that the company would separate all engineering products from the sugar business in future. "Our objective is to stear clear of sugar business from the engineering."
The company's accounting year is on the basis of sugar season that runs from October to September.
The net sales of the company stands at Rs 487.24 crore for Q1 2009-10 against Rs 365.45 crore in the corresponding quarter in the previous year, a growth of over 33 per cent.
