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

Executive summary

• Q1 FY25 revenue from operations rose 8.6% year-over-year to INR 1,301 crore, driven by higher sugar sales and improved realizations, while PAT stood at INR 31 crore and PBT fell 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, and alcohol margins were hit by government feedstock restrictions and higher input costs.

• Record quarterly alcohol production of 5.5 crore liters (+8.3% YoY) was achieved, though sales volumes declined 4.3%; two IMFL brands were launched in Uttar Pradesh in July 2024.

• Power Transmission business saw an 11.9% increase in order booking and a record closing order book of INR 306 crore, with strong demand from OEMs and end-user industries.

• Sir Shadi Lal Enterprises Limited became a subsidiary from June 20, 2024, with results consolidated from June 21, 2024.

Financial highlights

• Net turnover rose 8.6% year-over-year, with sugar segment revenues up 12% to just under INR 1,000 crore, driven by higher dispatches and improved realizations.

• PAT was INR 31 crore, and PBT was INR 41.8 crore, down 54% year-over-year; EBITDA fell 29.2% to INR 97.1 crore, with margin at 7.5%.

• Gross consolidated 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%.

• Net profit margin for the quarter was 2.38%, down from 5.64% a year ago; EPS (not annualised) was INR 1.42, down 54.2% year-over-year.

• 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 continued growth, with several project awards expected soon and positive sector outlook due to infrastructure investments.

• Focus on restoring normalcy in sugar operations, including crop management and disease control.

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