Triveni Engineering & Industries (TRIVENI) Q3 24/25 earnings summary

Executive summary

• Consolidated revenues for the nine months ended December 31, 2024, rose 3.6% to ₹4,060 crore, with profit after tax at ₹51.1 crore, down 78.2% year-over-year, as profitability was subdued due to lower margins in sugar and alcohol businesses.

• Engineering businesses achieved a record closing order book of ₹2,356.3 crore, up 52.4% year-over-year.

• Board approved a composite scheme of arrangement, including amalgamation of Sir Shadi Lal Enterprises and demerger of Power Transmission business, and a ₹60 crore capex for Power Transmission capacity enhancement.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved, showing a decline in quarterly profits but growth over the nine-month period.

• Reappointment of the Chairman & Managing Director for five years and appointment of a new Secretarial Auditor were confirmed.

Financial highlights

• Q3 FY25 consolidated revenue from operations was ₹1,600.3 crore; consolidated net profit was ₹42.57 crore, down from ₹137.40 crore YoY.

• 9M FY25 EBITDA was ₹216.4 crore, down 49.4% year-over-year; PAT at ₹51.1 crore, down 78.2%.

• Sugar revenues for Q3 declined 9.5% year-over-year due to lower sales volumes and realizations.

• Alcohol business revenues grew 4.5% in Q3 and 7.9% for the nine months, but profitability was impacted by lower high-margin ethanol sales and feedstock shortages.

• Net-debt as of December 30, 2024, stood at INR 960 crores, with a cost of funds at 5.6%.

Outlook and guidance

• Sugar prices are expected to remain buoyant, with no anticipated declines as the industry enters higher consumption months, supported by lower production estimates and export quota allocation.

• The company is optimistic about margin expansion in ethanol as new feedstock pricing and FCI rice availability improve.

• Power Transmission and Water businesses see robust order pipelines and positive demand outlook, driven by infrastructure investments and export market growth.

• Water business sees emerging opportunities in recycle, reuse, and zero liquid discharge, especially in the thermal power sector.

• Capex of ₹60 crore approved for Power Transmission business to enhance capacity to ₹700 crore by September 2026, funded through internal accruals and bank funds.