Triveni Engineering tanks over 5% as Q1 net profit falls 54% YoY; check details

Shares of Triveni Engineering and Industries Ltd dropped over 5% in trade on Friday, August 2, after the company reported weak numbers for the quarter ended June 2024 (Q1FY25).

The Triveni Engineering stock lost as much as 5.5% on Friday to hit an intraday low of ₹393 apiece on the NSE. Year-to-date, the stock is up nearly 16%.

Triveni Engineering, in its Q1 results filed with stock exchanges on Thursday, reported a 7.1% year-on-year rise in consolidated revenue from operations to ₹1,534 crore in Q1FY25 compared to ₹1,432.3 crore in Q1FY24.

The increase in turnover was mainly due to a 12% higher sugar turnover due to an increase in sales volumes and a 5% increase in the realisation prices.

However, despite the jump in revenue, the company’s profit took a hit. Operating profit, or EBITDA (earnings before interest, tax, depreciation and amortisation), dropped 29.2% to ₹97.1 crore in the June quarter compared to ₹137.1 crore in the year-ago period.

EBITDA margins also deteriorated to 7.5% in Q1FY25 from 11.4% in Q1FY24.

Consequently, Triveni Engineering’s consolidated profit after tax (PAT) declined by 54.2% to ₹31 crore in the June quarter compared to ₹67.6 crore a year ago.

The company said that the sugar business's profitability was lower due to lower production and higher charges of off-season expenses owing to the early closure of the season. Meanwhile, the alcohol business's profitability was adversely affected by restrictions imposed by the government on grain feedstocks, as a result of which surplus rice operations were substituted by maize.

Dhruv M Sawhney, chairman and managing director of Triveni Engineering, said that in the company’s engineering business segment, the power transmission business continued its strong performance by achieving new milestones, including winning international orders in line with its export-focused growth strategy. Meanwhile, the water business continued to be muted in terms of market activity and finalisation of orders.

Triveni Engineering Limited shares closed 4.2% lower at ₹398 apiece on the NSE.