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Triveni Engineering and Industries Results: Latest Quarterly Results & Analysis

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Triveni Engineering & Industries Ltd. 21 May 2024 15:17 PM
Result PDF

Q4FY24 Quarterly & FY24 Annual Result Announced for Triveni Engineering & Industries Ltd.

Sugar company Triveni Engineering & Industries announced Q4FY24 & FY24 results:

  • Revenue from Operations (Net of excise duty) at Rs 5,220 crore
  • Profit before Exceptional items and Tax at Rs 529 crore
  • Profit after Tax at Rs 395 crore
  • Board recommended a final dividend of Rs 1.25 per equity share in addition to an interim dividend of Rs 2.25 per equity share and a special dividend of Rs 2.25 per equity share earlier paid during the year
  • Net turnover is lower by 7%, mainly due to lower sugar sales volume by 16%. However, Profit Before Tax (PBT) before considering share of profit of associates and exceptional income is lower by 3%
  • Sugarcane Crush during Sugar Season (SS) 2023-24 is 11% lower at 8.26 million tonnes over SS 2022-23 but the gross recovery is marginally higher at 11.49%. The decline in crush is due to heavy rains and water logging in certain regions and associated proliferation of red rot disease in plant cane of Co238 variety
  • In the Alcohol business, in view of feedstock restrictions on supply of Surplus Food Grains from Food Corporation of India (FCI Rice) and limitation of usage of B-heavy molasses, the production and sales volumes were less than earlier estimated. Overall margins declined in view of lower margins on maize operations.
  • Power Transmission Business reported record turnover and profitability – turnover increased by 30% and segment profits by 40%. An intensive capex programme is being executed currently
  • Turnover of Water business declined due to slow execution in certain projects but segment profits increased by 29% due to cost optimisation/savings in various projects executed during the year
  • The decline in turnover during FY24 is mainly due to Sugar (-12%) and Water business (-30%).
  • Profit before share of profits of associates and Exceptional items and Tax is 3% lower at Rs 528.8 crore.
  • Despite lower sales volumes by 16%, Segment profits of Sugar business are at the same level as the previous year due to higher contribution arising from 6% increase in sugar realization prices.
  • The gross debt on a standalone basis as on March 31, 2024 increased to Rs 1,324.7 crore as compared to Rs 825.0 crore as on March 31, 2023 due to higher sugar inventories held. Standalone debt at the end of the period under review, comprises term loans of Rs 277.8 crore, almost all such loans are with interest subvention or at subsidized interest rate.
  • On a consolidated basis, the gross debt is at Rs 1,411 crore as on March 31, 2024 as compared to Rs 913.8 crore as on March 31, 2023. Overall average cost of funds (standalone) is at 6.5% during FY24 as against 5.1% in the previous corresponding period. During the quarter, the Company’s long-term credit rating was upgraded to AA (Stable) by ICRA.

Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “The year gone by presented several operating challenges to the Company especially in the Sugar and Alcohol businesses while our Power Transmission business delivered another year of stellar performance. It is heartening to note that the Company has reported satisfactory results despite such challenges. The Company is hopeful of an improved performance in the coming year through a combination of policy decisions, and favourable macro environment while addressing challenges with agility.

The sugarcane crush in the just concluded Sugar Season (SS) 2023-24 was 11% lower to 8.26 million tonnes, well short of our initial expectations. The major decline in crush took place in four sugar units: Deoband in Western UP and Chandanpur, Rani Nangal and Milak Narayanpur in the Central UP. The chief reasons are the climatic factors, such as, heavy rainfall and water logging in certain regions, absence of sunshine for long spell in winter and spread of red rot disease, which reduced the yields considerably, mainly in the plant cane and higher diversion to kolhus/crushers. Such trend of lower sugarcane availability was witnessed across Central & Western UP regions. The sugarcane development teams have chalked out multi-pronged strategy to contain the damage by uprooting the diseased crop to limit the spread and to carry out comprehensive varietal substitution programme to reduce the proportion of vulnerable variety Co238, especially in low-lying/ water-logging prone areas and to substitute it by other high sucrose and high yield varieties. We hope to substantially improve our crush next season.

Sugar prices have remained at healthy levels both in FY 24 and more recently. We expect these trends to continue and believe that a continually increasing portfolio of refined sugar and pharmaceutical-grade sugar production, which now stands at 70% of overall sugar production, augurs well for sugar realisations for the Company. We continue to make judicious investment in our facilities to enhance crush rate, sugar quality and efficiencies.

In our Alcohol business, the Company faced several feedstock challenges during the year that led to disruption in planned production, such as abrupt stoppage of Surplus Rice by Food Corporation of India (FCI rice), restrictions with respect to usage of B-heavy molasses, introduction of Maize as feedstock, price volatility in feedstocks, etc. Accordingly, sugar operations were carried largely with C-heavy molasses as compared to Bheavy molasses in the previous year and the distillery operations were largely based on maize instead of FCI rice earlier. This has led to lower operating capacities and hence lower production and further, the margins on maize operations were relatively lower despite price corrections. We are hopeful the Government will address the feedstock and profitability challenges in FY 25 as it remains committed to Ethanol Blended Petrol (EBP) targets of 20% by 2025-26.

Our long-term strategy is to grow the Alcohol business by being an active partner in India’s EBP programme and self-reliance journey. To this end, we recently commissioned a 200 KLPD multi-feed distillery at our sugar unit at Rani Nangal which has resulted in an aggregate distillation capacity to 860 KLPD for the Company.

In our Engineering businesses, the Power Transmission business reported remarkable performance with new milestones achieved with respect to revenues, profitability and order booking in FY 24. The year also marked a period of extensive international customer outreach and continued investments in R&D and infrastructure aimed at enhancing the business’ market share to capitalize on the global opportunity landscape. Coupled with the strides made in Defence, the Power Transmission business is on a sustained growth path. In the Water business, the year went by was muted in terms of market activity and finalization of orders. We expect this to improve in the coming years and the business is well-placed in terms of bids and credentials. The long-term prospects for water and wastewater treatment solutions, both in India and in International markets, remain intact leading to a positive outlook on this business.”

Result PDF

Result PDF

Sugar company Triveni Engineering & Industries announced Q3FY24 & 9MFY24 results:

  • Net turnover declined by 10.4% and 2.9% respectively in Q3FY24 and 9MFY24:
    • Overall sugar sales volumes (including exports) were lower by 17.6% and 13.0% in Q3 and 9MFY24 respectively as compared to corresponding periods in the previous year which included substantial exports. It led to lower turnover in the Sugar business by 9.2% and 8.2% in Q3FY24 and 9MFY24 respectively, despite ~6% higher blended realisations both in the quarter and the nine-month period.
    • Alcohol business turnover (net of excise duty) increased by 7.6% and 16.0% in Q3 and 9MFY24 respectively, over the corresponding period last year, due to higher sales volumes driven by operational efficiencies and increased activities in Indian Made Indian Liquor (IMIL).
    • The Power Transmission business reported robust revenue growth of 17.5% and 33.9% in Q3 and 9MFY24 over the previous year driven by capacity augmentation (including exports)
    • Water business reported lower turnover of 48.8% and 24.2% in Q3 and 9MFY24 due to slower execution in some projects.
  • Profit before tax and exceptional items (PBT) declined 8.4% in Q3FY24 and was flat in 9MFY24 to Rs 182.1 crore and Rs 312.3 crore respectively.
    • Sugar business reported higher profitability due to higher sugar realisation prices offsetting the impact of lower sales volumes and increase in costs due to revision in State Advised Price (SAP) of sugarcane.
    • PTB also reported higher profitability commensurate with higher turnover.
    • Decline in the profitability of distillery operations is mainly due to a higher proportion of lower margin maize operations in substitution of FCI rice.
    • Segment profitability of the Water business during the current quarter is in line with the lower turnover whereas it has been able to maintain profitability during 9 months due to cost savings in various projects.
  • The gross debt on a standalone basis as of December 31, 2023, is Rs 514.5 crore as compared to Rs 389.1 crore as of December 31, 2022.
  • However, after considering surplus funds held as fixed deposit (FD) of Rs 369.0 crore, the net debt as of December 31, 2023, is at Rs 145.5 crore.
  • Standalone debt at the end of the quarter under review, comprises term loans of Rs 262.4 crore, almost all such loans are with interest subvention or at subsidized interest rates.
  • On a consolidated basis, the gross debt is at Rs 602.9 crore as of December 31, 2023, as compared to Rs 480 crore as of December 31, 2022, and the net debt as of December 31, 2023, is Rs 233.9 Crore.
  • Overall average cost of funds is at 5.25% during Q3FY24 as against 4.75% in the previous corresponding period.

Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman, and Managing Director, Triveni Engineering & Industries, said: “Overall performance of the Company during the nine-month ended December 31, 2023, has been satisfactory, with healthy performance in Sugar and Power Transmission businesses in particular. There were challenges in the Alcohol business due to feedstock constraints and the profitability of the Water business was impacted due to the slow execution of some projects due to problems relating to the customers.

We are witnessing improved operational results in the Sugar business in the ongoing SS 2023-24 in terms of crush, recovery, and sugar realisation price over the previous year/season. The current estimates of lower production in SS 2023-24 and SS 2024-25 are likely to maintain firm sugar prices. The recent increase in sugarcane price by Rs 20 per quintal can be well absorbed by the prevailing sugar prices. A higher proportion of refined sugar production post-conversion of our Milak Narayanpur sugar unit to refinery and a higher quantum of pharmaceutical-grade sugar production at Sabitgarh augur well for sugar realisations for the Company. We continue to make judicious investments in our facilities to enhance crush rate, sugar quality, and efficiencies.

While there may be a significant shortfall in production in Maharashtra and Karnataka, Uttar Pradesh (UP) is estimated to show higher production. The recent weather conditions in UP of dense fog with no sunshine for a longer duration may have some impact on the yields and recoveries. Further, in view of restrictions to use Bheavy molasses and sugarcane juice to limit sugar sacrifice for ethanol production, sugar operations are largely being carried out with C-heavy molasses, which will lead to higher sugar production but can also have some impact on recoveries."

 

 

Result PDF

Sugar company Triveni Engineering & Industries announced Q2FY24 & H1FY24 results:

  • Sugar & Alcohol (Distillery) Businesses:
    • Sugar sales volume is 10.6% lower during the half year whereas the blended sugar realisations have increased by 5.8% over the corresponding previous period due to high domestic and export realisations
    • Alcohol sales of 9.4 crore litres, an increase of 11.1% over the corresponding previous period resulting in an increase
      in net turnover of the Alcohol business by 20.5% during H1FY24
    • Overall sugarcane crop position seems healthy. Crushing for Sugar Season (SS) 2023-24 has already commenced in four of the seven units
  • Engineering Businesses:
    • Highest-ever quarterly revenue and profitability in Power Transmission business in Q2FY24, driving robust H1FY24 growth of 44.8% and 58.2% respectively over the previous corresponding period to reach Rs 132.55 crore and Rs 47.26 crore in half-year revenues and segment results
    • Order booking of Rs 154.85 crore in Power Transmission, an increase of 36.1% YoY with a closing order book of Rs 281.52 crore, up 14.8% YoY
    • During the quarter, the Water business has won the bid of RUDSICO Greater Jaipur and the Letter of Intent (LOI) has been received subsequently
    • Outstanding order book of Rs 1,572.6 crore for combined Engineering Businesses
  • Revenue from Operations (Net of excise duty) in H1FY24 at Rs 2,606.8 crore, an increase of 1.4%
  • Profit before Exceptional items and Tax for H1FY24 at Rs 130.2 crore, an increase of 15%
  • Profit after Tax for H1FY24 at Rs 96.7 crore
  • Net turnover increased by 4.7% and 1.4% respectively in Q2FY24 and H1FY24 primarily driven by higher turnover in the Alcohol and Power transmission business.
  • Profit before tax and exceptional items (PBT) increased by 60% and 15% in Q2FY24 and H1FY24 to reach Rs130.16 crore at the half-year milestone.
  • The gross debt on a standalone basis as of September 30, 2023, is Rs 295.66 crore as compared to Rs 824.96 crore as of March 31, 2023

Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries, said, “Overall performance of the Company during the half year ended September 30, 2023, has been satisfactory, given the fact that H1 is generally muted as the off-season expenses are expensed off. Our Alcohol business has grown well owing to the capacity expansions during FY23 and the stabilization of operations since then. Power Transmission business is charting new highs contributing in both size and growth to the Company as a whole.

We are all set for the new sugar season and on an overall basis, the crop seems healthier due to favourable climatic factors as well as due to rigorous sugarcane development activities undertaken by us. Sugar production for Sugar Season (SS) 2023-24 for the country is estimated to be lower as compared to 32.8 million tonnes in the recently concluded SS 2022-23 mainly on account of lower production in Maharashtra and Karnataka. However, the estimated production is still expected above the domestic consumption and we hope that the Government allows exports at an appropriate time to capitalize on high international sugar prices. Further, we would be closely reviewing the sugarcane price increase, if any, for the new season and hope that the Government allows an increase in sugar prices to offset the impact of the increase in sugarcane price. We have commenced sugarcane crushing at four sugar units for Sugar Season (SS) 2023-24.

Result PDF

Sugar company Triveni Engineering & Industries announced Q1FY24 results:

  • Net turnover has declined by 2.3% in Q1FY24 primarily driven by lower turnover in the sugar business while the alcohol and aggregate engineering turnover improved over Q1FY23.
    • Sugar turnover declined 15.2% over Q1FY23 after considering exports, driven by a 21.7% decline in domestic sales volumes due to lower domestic quota allocations. Sales volumes for Q1FY24 include exports of 14,531 tonnes of sugar at remunerative prices, while there were no exports in Q1FY23.
    • Alcohol business turnover (net of excise duty) increased by 21.4% due to higher sales volumes driven by higher distillation capacities and increased activities in Indian Made Indian Liquor (IMIL).
    • Combined engineering turnover increased by 24.2% boosted by a 77.8% increase in the Power Transmission business.
  • Profit before tax (PBT) increased by 2.6% in Q1FY24 to Rs 91 crore.
  • The total debt on a standalone basis as on June 30, 2023, is Rs 918.54 crore as compared to Rs 824.96 crore as on March 31, 2023, and Rs 1,541.53 crore as on June 30, 2022.
  • Standalone debt at the end of Q1FY24, comprises term loans of Rs 281.16 crore, almost all such loans are with interest subvention or at subsidized interest rate.
  • On a consolidated basis, the total debt is at Rs 1,011.07 crore as compared to Rs 913.83 crore as on March 31, 2023, and Rs 1,617.68 crore as on June 30, 2022.
  • Overall average cost of funds is at 6.71% during Q1FY24 as against 5.04% in Q1FY23.

Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman, and Managing Director, Triveni Engineering & Industries, said: “Overall performance of the Company during the quarter ended June 30, 2023, has been satisfactory. Alcohol and Engineering businesses contributed to 60% of the total segment results.

There had been general trends of low recovery in the just concluded Sugar Season 2022-23 but the Company has outperformed the state of Uttar Pradesh in the same, with a decline of 23 bps in recoveries (on a C-heavy molasses basis).

In the Sugar business, we continue to focus on yield improvement initiatives by making our farmers adopt the best agricultural practices, through continual engagement with them and showing them the results in the demonstration plots which have been set up in each key area. It will be accompanied by increasing crush capacities progressively in sync with increased sugarcane availability. The Company is also in the process of increasing its refined sugar production to ~70% (up from ~60% currently) by changing the manufacturing process at its sugar unit in Milak Narayanpur. Activities previously announced about modernisation, debottlenecking, and efficiency improvements are progressing well. The condition of the sugarcane crop and the rainfall so far has been satisfactory in the catchment areas of our sugar mills but the continuance of good climatic conditions in the subsequent period are critical for the performance in the forthcoming season. We are also embarking on the digitization of sugarcane activities to increase productivity and our response time to issues requiring immediate action.

In the Alcohol business, we have been a strong supporter of the Government's Ethanol Blended Petrol (EBP) program and have actively bolstered our capacities while keeping pace with the expanding range of feedstocks for bio-ethanol production. We successfully raised our distillation capacity from 320 KLPD in FY22 to an impressive 660 KLPD presently. Looking ahead, we are ambitiously planning to further expand our capacity to 1,110 KLPD.

Our Engineering businesses continue to perform well with healthy order books and inquiry pipelines. In the Power Transmission business, the demand for high-speed gear solutions is witnessing a significant upswing in recent times in industries across various sectors, such as steel, oil & gas, petrochemicals, etc. as these are seeking advanced and efficient power transmission solutions to optimise their operations. In the Water business, the demand for reliable water and wastewater treatment solutions is on the rise both in India and in International markets. Apart from participating in domestic projects, we are aiming to expand our global footprint, establish strategic partnerships, and foster mutually beneficial relationships with key stakeholders.

At Triveni, we have strategically positioned ourselves to capitalise on emerging opportunities in both domestic and international markets in our various businesses. And as we forge ahead, our unwavering dedication to delivering exceptional value to our stakeholders remains at the core of our business strategy”.

 

 

Result PDF

Sugar company Triveni Engineering & Industries announced Q4FY23 & FY23 results:

  • All businesses have contributed to the growth boosted by higher sales across businesses. Higher sales volumes in the Alcohol business were due to new distillation capacities commissioned during the year, a large multi-feed distillery at Milak Narayanpur and a grain distillery in Muzaffarnagar as well as due to the enhancement of capacities of the existing distilleries.
  • Profit before tax (PBT) before exceptional items declined marginally during FY23 to Rs 562.4 crore due to the recognition of an export subsidy of Rs 57 crore in FY22 pertaining to the previous year. PBT increased by 66.9% in Q4FY23 to Rs 250.6 crore.
  • Improved performance during FY23 and Q4FY23 has been due to substantial profitability contributed by sugar exports, higher sale volumes and increased realization prices for distillery products, and higher profitability of engineering businesses resulting from higher turnover and containment of finance cost/treasury income arising from surplus funds.
  • The total debt on a standalone basis as on March 31, 2023, is Rs 824.96 crore as compared to Rs 1,503.74 crore as on March 31, 2022. Standalone debt at the end of the quarter under review comprises term loans of Rs 301.08 crore, almost all such loans are with interest subvention or at subsidized interest rates.
  • On a consolidated basis, the total debt is at Rs 913.83 crore as compared to Rs 1,567.96 crore as on March 31, 2022. The overall average cost of funds is at 5.1% during FY23 as against 5.0% in FY22

Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman, and Managing Director, Triveni Engineering & Industries, said: “We are pleased with the performance of the Company during the year ended March 31, 2023, wherein several milestones were achieved – highest ever sugarcane crush in SS 2022-23, an increase of ~11% year-on-year; record overall gross and net turnover of Rs 6,310.1 and Rs 5,616.8 crore respectively with strong performance across the board; record alcohol production and sales following our capacity expansion to 660 Kilo Liters Per Day (KLPD) and aggregate engineering business revenues of over Rs 500 crore and segment results of over Rs 100 crore. It is a matter of satisfaction to see the diversification of our profitability: Alcohol and Engineering businesses have accounted for more than 50% of the total segment results. It indicates that our business risks are getting well spread, leading to improvement in our business risk profile".

 

 

Result PDF

Triveni Engineering & Industries announced Q3FY23 results:

  • Consolidated Q3FY23 & 9MFY23:
    • Profit before tax (PBT) before exceptional items during Q3FY23 increased by 7.4% and declined by 27.5% in 9MFY23 as compared to corresponding periods of previous year, to Rs 198.7 crore and Rs 311.9 crore respectively.
    • The profitability in sugar business is lower as the cost of sugar sold pertaining to the previous season includes the impact of sugarcane price increase for the Sugar Season.
    • 9MFY22 included export subsidy of Rs 57 crore relating to the previous period.
    • Higher profitability of the aggregate engineering businesses is owing to strong revenue increase of 45.8% and 35.8% during the current quarter and nine-month period under review over the corresponding periods last year.
    • The total debt on a standalone basis as on December 31, 2022 is Rs 389.09 crore as compared to Rs 525 crore as on December 31, 2021. Standalone debt at the end of the quarter under review, comprises term loans of Rs 334.39 crore, almost all such loans are with interest subvention or at subsidized interest rates. 
    • On a consolidated basis, the total debt is at Rs 480 crore as compared to Rs 592 crore as on December 31, 2021.
    • Overall average cost of funds is at 4.75% during Q3FY23 as against 4.15% in the corresponding period of previous year.
    • The company holds surplus funds through short-term fixed deposits of Rs 1,278 crore.
    • Our proposed buyback of Rs 800 crore is pending statutory approval.

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “Overall performance of the Company during the nine months ended December 31, 2022 has been satisfactory. In the current ongoing season, there is a declining trend of recoveries across the state of UP, for the ratoon crop, due to a variety of factors – mainly shortfall in rains in the grand growth period and thereafter, due to late rains in the month of October. However, in view of conducive weather, it is expected that there would be a catch-up in the balance part of the season for the plant crop and the gap will narrow down. We had addressed the issues relating to de-bottlenecking and modernisation in three of our sugar units and consequently, the crush during the quarter has increased by 25% over last year. However, the profitability of sugar operations has been impacted as cost of sugar sold in the current period includes the impact of the sugarcane price increase in the previous season, and it has not been fully offset by the increased sugar realization. We believe that it is the most appropriate time for the Government to reconsider the increase in the Minimum Support Price (MSP) of sugar to offset the impact of increased cane price. We have been able to get a remunerative export price having a substantial premium over the domestic sugar price, as a result of the Government making a timely announcement for the first tranche of exports of 6 million tonnes.

In view of our increased distillation capacities, our production and sales volumes have increased substantially. However, the profit has not increased commensurately due to increased transfer price of B-heavy molasses, initial stabilization period of new distilleries and relatively lower margins on grain operations. There is an urgent need for the Government to rectify the pricing of ethanol produced from sugarcane juice and grain to improve the viability and enhance investments. It will help in faster setting up of additional capacity and achieve the targets of ethanol blending.

The performance of engineering businesses is satisfactory with both turnover and profitability registering strong growth. In the Water business, we continue to selectively focus on projects with healthy returns, both in domestic and international markets. Water business has participated in many tenders and expects to received orders of substantial value. Orders in hand for Power Transmission are higher by 23% over corresponding previous quarter. In this segment, the Company’s high speed licence agreement with Lufkin Gears LLC expired in January 2023 and the business will now pursue the high-speed high-power segment independently with a focus on enhancing global market share in its identified target markets. We believe with an increased global presence, solid business model and strategy along with foray in defence will drive the Power Transmission business in the coming years.

Our proposed buyback of Rs 800 crore is presently under approvals. The sale of stake in Triveni Turbine Limited has infused substantial funds in the Company, which, even after the proposed buyback, will meet the expansion requirements of the businesses and reduce finance costs on working capital requirements.”

 

Result PDF

Sugar manufacturing company Triveni Engineering & Industries announced Q2FY23 results:

  • H1FY23 consolidated:
    • Revenue from operations (net of excise duty) at Rs 2571.56 crore, an increase of 22%
    • Profit before exceptional items and tax at Rs113.16 crore
    • Profit on the divestment of stake in Triveni Turbine Limited (TTL) at Rs1401.20 crore
    • Profit after tax at Rs1454.21 crore

Dhruv M Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “Overall performance of the company during the half year ending September 30, 2022, has been satisfactory. Sugar and distillery segments witnessed higher dispatches during Q2/H1FY23 with higher realisations. The profitability in the sugar business has been impacted by the higher cost of sugar produced in the SS 2021-22, owing to increase in sugarcane price, which could not be fully compensated by increased sugar realisation prices. Similarly, the profitability of the distillery segment is somewhat subdued due to increased transfer pricing of B-heavy molasses. We have commenced production of Ethanol/ENA from the grains and have now stabilised the operations. Both the engineering businesses have performed well with strong revenue growth and have robust closing order books coupled with healthy enquiry pipelines.

Like the previous season, there is an estimated surplus of around 9 million tonnes after meeting the domestic consumption. International prices are robust and it is important that the export policy for the SS 2022-23 is announced by the government at the earliest so that export contracts could be entered into, taking advantage of a favourable international pricing environment and currency depreciation.

We have commenced sugarcane crushing at six sugar units and the sugar unit at Ramkola is scheduled to commence during the second week of November. As a result of the debottlenecking and modernisation carried out at our three sugar units and based on the crop position presently prevailing, our performance, both in terms of crush and recovery, is likely to be better and the refined sugar may constitute approximately 60% of the total sugar production.

We presently have a total capacity of 660 KLPD under the distillery segment, which we have planned to increase to 1110 KLPD by setting up two more distilleries. As further capacity will mainly be operated on sugarcane juice and grains, it may be necessary for the government to continue to positively address the pricing of ethanol produced from these feedstocks to maintain viability and to ensure that adequate capacities are set up to meet the target of 20% EBP by 2025. It will be a game-changer for the sugar industry and the risk profile of the business will greatly improve. And it will be a win-win situation for the sugar industry, farmers and the Government. Considering the commitment of the government, we are quite optimistic that appropriate price corrections will take place in future.

The engineering business continue to perform well with healthy order books and enquiry pipelines. In the Power Transmission business, strong domestic economy and focus on growth in export markets is a key growth driver. In the Water business, the Company’s focus on both domestic and international markets is yielding results with many notable recent order wins and several bids under evaluation.

During the quarter, the company has divested its entire 21.85% stake in Triveni Turbine Limited for net consideration of Rs 1,593 crore unlocking significant value for shareholders. This has led to unbundling of businesses and monetisation of non-core assets. As indicated earlier, the proceeds from the divestment will be inter-alia utilised for growth and expansion of business as well as for rewarding shareholders. To this effect, the Board of Directors, subject to approval of shareholders, has approved a proposal to buy back from equity shareholders of the company upto 2,28,57,142 equity shares at a price of Rs 350 each for an aggregate amount not exceeding Rs 800 crore, through tender offer on proportionate basis in accordance with the provisions of SEBI (Buy back of Securities) Regulations, 2018, and Companies Act, 2013, and rules made thereunder.

We believe the company is well-positioned across its businesseses to leverage the market opportunities with its strong capabilities and strategic focus.”

Result PDF

Sugar company Triveni Engineering & Industries announced Q1FY23 results:

  • Revenue from Operations (Net of excise duty) at Rs 1225.67 crore, a growth of 18.2%
  • Profit before Tax at Rs 88.68 crore
  • Profit after Tax at Rs 66.45 crore

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “We are pleased to note that in the recently concluded Sugar Season (SS) 2021-22, the Company registered good performance despite general trends of low yields and recovery in the state of Uttar Pradesh. Both the engineering businesses have also performed well with robust order booking, this trend is expected to continue and result in revenue growth in FY 23 and FY 24.

We are enthused with the performance of the distillery segment. As against capacity of 320 KLPD operated in FY 2021-22, our capacity currently stands at 660 KLPD which will result in significant growth in the turnover and profitability of the distillery segment. We have decided to further expand the capacity by 450 KLPD so that it becomes a sizeable business and provides significant revenue streams. We have full confidence in the commitment of the Government of India (GoI) to the Ethanol Blended Petrol (EBP) programme and are augmenting capacities on dual feedstock basis to provide us flexibility to select the feedstock based on commercial economics.

With expected production of 36.2 million tonnes of sugar and exports of 11 million tonnes in the Sugar Season (SS) 2021-22, closing inventories are expected at 6.09 million tonnes. Based on the current sowing, pattern of rainfall and crop condition, production of 35.5 million tonnes of sugar is estimated in the ensuing sugar season i.e. SS 2022-23. To maintain the balance, exports of around 8 million tonnes will be required and hence, it is imperative that clarity is provided on exports for the next season at the earliest to capitalize on the international price opportunities and INR depreciation.

With respect to the Company’s sugar business, the previously announced debottlenecking and modernization plans at three of our sugar units are progressing well and we expect this activity to be 4 completed by October 2022 as communicated earlier. For the upcoming sugar season, with increase in cane area by 3% this year, better crop health, more focused crop surveillance plan and a good forecast of monsoon, we expect increase in yield and production and hence cane availability and consequently higher crush for the Company.

On the engineering side, we believe both our Power Transmission and Water businesses are well placed for the long-term. In Power Transmission business, we believe the growth in domestic economy along with Atmanirbhar Bharat Abhiyan (Self-reliant India campaign) will drive capex across end user industries. This coupled with the Company’s strategy and plan to increase its global footprint will lead to growth at an accelerated pace in the coming years. In the Water business, the growing water scarcity is catalysing new opportunities in the areas of recycle, reuse and Zero Liquid discharge. We believe that the disruption caused by the pandemic has largely been over and normalcy in business environment is returning which will lead to floating of tenders for new projects as well as finalization of earlier tenders. With its leadership position and robust financials, Triveni is equipped to capitalize on these increased opportunities."

Result PDF

Triveni Engineering & Industries declares Q4FY22 result:

  • Revenue from Operations (Net of excise duty) at Rs 4,290.9 crore
  • Highest ever profitability with Profit before Tax at Rs 573.75 crore, a growth of 24.8%
  • Profit after Tax at Rs 424.06 crore, a growth of 43.9%
  • Board recommends final dividend of Rs 2 per equity share (200%) for the Financial year 2021-22
  • Sugar Businesses: 
    • Crushing continues at three of seven units in Sugar Season (SS) 2021-22 with total sugarcane crushed at 8.2 million tonnes with gross recovery of ~ 11.67% as on May 13, 2022
    • Diversion of sugar to ethanol in SS 2021-22 is estimated at ~93000 tonnes against 75148 tonnes in the previous season
    • Despite lower sales volumes, sugar profitability has been maintained in FY 22 due to better realizations
    • Increase in net turnover and profitability of Alcohol business by 30% and 48% during FY 22, is driven by increased sales volumes along with higher realization prices and better efficiencies.
    • On April 4, 2022, the Company commenced operations of its new multi-feed distillery with a capacity of 160 KLPD at its Milak Narayanpur sugar mill in U.P.
    • Achieved overall capacity of 520 KLPD with enhancement of operations at Sabitgarh from 160 KLPD to 200 KLPD
  • Engineering Businesses:
    • Engineering businesses reported 16% increase in turnover driven by power transmission business
    • Water business registered marked improvement in profitability and order booking during the year
    • Power Transmission business reported highest ever annual revenues and record profitability
    • Outstanding order book of Rs  1734.15 crore for combined Engineering Businesses

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “The Company has delivered extraordinary results for the year under review. All the businesses have contributed to improved profitability during the year. Increase in sugar realization prices by 7% largely compensated for the lower sales volumes by 23%. We estimate the country’s sugar production at 35.6 million tonnes after diversion of 3.4 million tonnes to ethanol. The increase in production during the season, will be largely absorbed by the increased levels of exports of 9.5 million tonnes. Closing inventories at the end of the SS 2021-22 are expected to be lower than the previous closing by approximately 1.5 million tonnes. It augurs well for the sugar prices. However, it is important that during the ensuing sugar season, additional diversion to ethanol and exports should take care of the additional production (over consumption) so that the closing inventories remain at reasonable levels.

It is estimated that our crush level during the ongoing season will be almost at the same level as last year but the gross recoveries (including sugar diverted to ethanol) could be lower by about 20-25 basis points. The recoveries had been impacted due to excessive late rains and due to severe heat conditions since March’22."

Result PDF

Sugar company Triveni Engineering & Industries declares Q3FY22 result:

  • Gross Revenue from Operations at Rs 3501.92 crore
  • Profit before Tax at Rs 430.34 crore, a growth of 32%
  • Profit after Tax at Rs 314.89 crore, a growth of 50%
  • Net turnover has declined by 1% in the current quarter and 8% in the nine-month period due to lower sugar sales volume by 18% and 22% in the aforesaid periods. No exports have taken place in respect of the Season 2021-22. All other segments registered increase in turnover except for 6% lower turnover in Water Business for nine-month period.
  • Aggregate of Sugar & Distillery segments achieved 22% and 12% increase in profitability during the quarter and nine-month period. Substantial increase in sugar prices in the current quarter has helped sugar operations to maintain the profitability. In respect of distillery operations, both sales volumes and high realization prices have contributed to increase in profitability.
  • Engineering business at an aggregate level reported strong revenue increase of 38% and 12% and increase in profitability by 114% and 76% during the quarter and nine-month period. Power Transmission and Water Business have achieved higher profitability of 91% and 54% during ninemonth period.
  • The total debt on a standalone basis as on Dec 31, 2021 is Rs 525 crore as against Rs 550 crore as on Dec 31, 2020. It comprises term loans of Rs 385 crore, almost all such loans are with interest subvention or at subsidized interest rate. On a consolidated basis, the total debt is at Rs 592 crore with term loan at Rs 451 crore

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said:  “Overall performance of the Company during the nine months ended December 31, 2021 has been satisfactory. The increase in cane prices by Rs 250 per tonne for the Sugar Season 2021-22 (SS 2021- 22) will be largely offset by recent increase in sugar prices. While the estimated stocks of 6.65 million tonnes at the end of the current sugar season are likely to support the domestic sugar prices, continuance of exports and / or substantial diversion of sugar for ethanol next year will be key to maintain the sugar prices. We hope that the Government addresses the long pending increase in Minimum Selling Price (MSP) of sugar to maintain viability of sugar mills and to preserve their cane price paying capacity.

On the pricing side, even though sugar prices have come off their recent peaks both in domestic and global markets, they are higher than last year. With a global deficit anticipated yet again in SS 2021- 22, we expect international sugar prices to stay firm. It appears that without an export assistance programme/reintroduction of Maximum Admissible Export Quantity (MAEQ), northern millers may not participate in exports unless the international prices improve meaningfully from current levels. Nevertheless, exports may continue to be viable from Maharashtra and other coastal regions. We witnessed delayed start to the sugar season (SS) 2021-22 owing to extremely high rainfall especially in the crucial month of October. Certain regions of Uttar Pradesh have witnessed uncharacteristically high rainfall even in the last one month. All these climatic issues may have an impact on the yields and recovery. However, the improved weather conditions hereon will facilitate uninterrupted crush and improved recoveries. The Company continues to pursue change in varietal mix to reduce dependence on Co-0238 variety

The distillery segment continued its strong performance driven by higher sales volumes and realization prices due to improved product mix. Owing to some approval delays, inclement weather and COVID related constraints, we are now expecting the first tranche of 220 KLPD distillery expansion of the our 340 KLPD expansion plans to commence by March 2022. The balance 120 KLPD is expected to be operational around Q1 FY 23. The Company’s overall capacity after both expansions will more than double from current levels of 320 KLPD to 660 KLPD.

We remain excited about our engineering businesses, which has largely overcome the impact of COVID on its operations and those of its customers and has put up much better performance in terms of turnover and profitability. A broad-based economic recovery which is already underway is likely to 4 keep the demand strong for these businesses. Power transmission business is poised for strong growth in the coming years across the gamut of services such as Defence, Gears and Built to print. The Company has a strong order pipeline in its Water business and we continue to bid for many new projects to improve it further.”

Result PDF

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