Triveni Engg drops after Q1 PAT slides 54% YoY to Rs 31 cr

Triveni Engineering & Industries declined 2.28% to Rs 405.90 after the company's consolidated net profit declined 54.16% to Rs 30.99 crore in Q1 FY25 as compared with Rs 67.61 crore posted in Q1 FY24.

Revenue from operations (excluding Excise duty) increased 8.58% YoY to Rs 1,300.68 crore during the quarter.

Profit before tax stood at Rs 41.76 crore, down 54.11% YoY.

In Q1 FY25, EBITDA stood at Rs 97.1 crore, recording de-growth of 29.2% from Rs 137.1 crore posted in same quarter last year. EBITDA margin contracted to 7.5% in Q1 FY25 from 11.4% posted in Q1 FY24.

The increase in turnover during Q1 FY25 is mainly due to higher Sugar turnover by 12% due to a similar increase in sales volumes and 5% increase in the realisation prices.

 

Revenue from sugar business jumped 12% to Rs 999.5 crore in Q1 FY25 from Rs 892.3 crore in Q1 FY24. Segment profit declined 26.4% y-o-y to Rs 36.5 crore, despite higher contribution on sugar sold, due to lower production and higher charge of off-season expenses owing to early closure of the season. The sugar inventory as on June 30, 2024 was 44.73 lakh quintals, which is valued at Rs 35.2/kg.

Alcohol (distillery) business reported revenue (net of excise duty) of Rs 289 crore during the quarter, down 2.2% as compared with Rs 295.5 crore in Q1 FY24. Production increased 8.3% YoY to 54,621 KL from 50,446 KL while sales volumes fell 4.3% to 40,626 KL from 42,457 KL in Q1 FY25 over Q1 FY24.

The profitability has been impacted due to substitution of superior margin surplus rice (FCI) based ethanol by maize, internal transfer pricing of molasses, and due to overall lower sales volumes (including lower dispatches of ethanol from molasses).

Revenue from power transmission business increased 1.3% to Rs 54.8 crore in Q1 FY25 from Rs 54.1 crore posted in same quarter last year. The company said that it saw good demand for its products including high technology compressor gearboxes, high power small hydro turbine applications, high power API gearboxes, integrally geared compressor gears etc.

Order book stood at Rs 73.1 crore during the quarter as compared with Rs 65.4 crore in Q1 FY25, Order booking during the quarter included breakthrough new international orders with eminent customers.

Further, revenue from water business dropped 21.1% to Rs 51.1 crore in Q1 FY25 from 64.7 crore in Q1 FY24, due to delay in execution in certain projects and delay in award of new orders wherein we had submitted lowest bids.

The outstanding order book as on June 30, 2024 stood at Rs 1,185.9 crore, which includes Rs 867.5 crore towards O&M contracts for a longer period of time.

Dhruv M. Sawhney, chairman and managing director, Triveni Engineering & Industries, said, During the quarter, we commissioned the Rani Nangal distillery which led to highest-ever quarterly alcohol production of 5.46 crore litres, placing us amongst the leading ethanol manufacturers in the country. The Power Transmission business closing order book achieved a new milestone of crossing Rs 300 crore at the end of quarter under review and we believe the business is on a sustained growth path.

In our Engineering businesses, the Power Transmission business continues its strong performance by achieving new milestones including winning breakthrough international orders in line with its export focused growth strategy. The Water business continues to be muted in terms of market activity and finalization of orders. We expect this to improve in the coming quarters and the business is well-placed in terms of bids and credentials.

Triveni Engineering & Industries (TEIL) is a diversified industrial conglomerate having core competencies in the areas of sugar, alcohol, power transmission and water. The company is one of India's largest integrated sugar manufacturers and one of the largest ethanol manufacturers, while making significant contributions in Power Transmission and in Water & Wastewater treatment solutions.

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