Triveni Engineering & Industries (TRIVENI) Q2 24/25 earnings summary

Executive summary

• H1FY25 revenues rose 7.1% year-over-year to INR 2,792 crores, with PBT at INR 11.5 crores and PAT at INR 8.6 crores; profitability was impacted by seasonality, policy-driven feedstock shortages, and new business investments.

• Engineering businesses (Power Transmission, Water) achieved record order books and strong margins, while sugar and alcohol segments faced headwinds from off-season expenses, feedstock shortages, and high maize costs.

• Commercial launch of two IMFL brands in Uttar Pradesh and completion of the open offer for Sir Shadi Lal Enterprises Limited, now a majority-owned subsidiary.

• Board approved INR 20 crores CapEx for IMIL capacity enhancement, aiming to improve market share in the liquor segment.

• A 12.4 crore loss was recorded from the newly acquired Sir Shadi Lal Enterprises due to no production in the quarter.

Financial highlights

• H1FY25 revenue from operations (net of excise) at INR 2,791.7 crore, up 7.1% year-over-year; standalone revenue at INR 3,262.11 crore, consolidated at INR 3,282.36 crore.

• PAT for H1FY25 at INR 8.6 crore, down from INR 96.7 crore in H1 FY24; standalone net profit after tax at INR 16.69 crore, consolidated at INR 8.57 crore.

• EBITDA for H1FY25 at INR 115.4 crore, down 45.7% year-over-year; EBITDA margin at 4.1%.

• Net debt increased to INR 418.8 crores as of September 30, 2024, up from INR 101 crores a year ago.

• Highest-ever quarterly alcohol sales at 5.62 crore liters, up 9% year-over-year.

Outlook and guidance

• Sugar season 24/25 expected to be strong with healthier crops and improved yields; branded sugar segment projected to grow at double-digit CAGR over next five years.

• Awaiting government revision of sugar MSP and ethanol prices, which are expected to positively impact profitability.

• Ethanol blending target for 24-25 is 18%, with some states expected to reach 20%; guidance for ethanol sales remains at 21 crore liters for FY25, with a possible 5% variance.

• Engineering businesses anticipate continued growth, supported by infrastructure investments, new product applications, and robust domestic/export orders.

• Water business expects H2 FY25 to outperform H1 FY25, with strong order book and new project bids.