Triveni Engineering & Industries (TRIVENI) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue from operations rose to INR 1,301 crore–₹1,534.03 crore, up 8.6–9% year-over-year, driven by higher sugar turnover and improved realizations; PAT stood at INR 31 crore–₹30.99 crore, with PBT down 54% to INR 41.8 crore.

• Segment profitability declined across most businesses except water, where cost savings improved margins; sugar profitability fell due to lower production and higher off-season expenses, while alcohol margins were hit by government feedstock restrictions and higher input costs.

• Record quarterly alcohol production achieved, with new distillery capacity commissioned; two IMFL brands launched and power transmission order bookings hit an all-time high.

• Acquisition of Sir Shadi Lal Enterprises Limited (SSLEL) completed, now a subsidiary with 61.77% stake; results consolidated from June 21, 2024.

• Unaudited standalone and consolidated financial results for Q1 FY25 were approved on August 1, 2024.

Financial highlights

• Revenue from operations (net of excise) rose 8.6% to ₹1,300.7 crore–₹1,534.03 crore in Q1 FY25.

• PAT was INR 31 crore–₹30.99 crore, and PBT was INR 41.8 crore, down 54% year-over-year; EPS at ₹1.42, down 54.2%.

• EBITDA dropped 29.2% to ₹97.1 crore; EBITDA margin fell to 7.5% from 11.4%.

• Gross debt increased to INR 1,281 crore as of June 30, 2024, from INR 1,011 crore a year earlier; cost of funds rose to 7.2% from 6.7%.

• Sugar inventory at quarter-end was 44.73 lakh quintals, valued at INR 35.2/kg.

Outlook and guidance

• Expecting robust performance in sugar and distillery segments, with anticipated improvements in pricing and raw material availability.

• Government may lift ethanol feedstock restrictions and revise ethanol and sugar MSP pricing, potentially benefiting both grain and sugarcane-based distilleries.

• Power Transmission and Water businesses anticipate strong domestic demand and new project awards, including a major European project.

• Company expects improved performance in the coming year, leveraging policy decisions and favorable macro environment.

• Performance may vary quarter to quarter due to the seasonality of the sugar business.