Triveni Engineering Q4 Results: Shares jump over 10% as profit surges 16%; EBITDA rises too but margins decline

Following the release, shares of the company rallied as much as 10.27% to ₹468.10 apiece on the NSE in the early trade on Wednesday, May 28. Last seen, the scrip was ruling at ₹457.45 on the NSE, up 7.76%.

The company during the March quarter reported a 16.2% year-on-year (YoY) rise in its net profit at ₹187.1 crore against ₹161 crore logged in the year-ago period.

Its revenue from operations (gross) came in at ₹1,925.3 crore, up 24.4% YoY from ₹1,548.1 crore seen in the corresponding quarter of the previous fiscal year.

Revenue from operations (net of excise duty) jumped 25.1% YoY to ₹1,629.3 crore.

The company's EBITDA, or earnings before interest, taxes, depreciation, and amortisation, surged by 21.5% YoY to ₹317.4 crore. However, EBITDA margin slipped to 19.5% from 20.1% in Q4 FY24.

Earnings per share (EPS) for the quarter stood at ₹8.55 against ₹7.36 in the year-ago period.

FY25 Numbers

The company's revenue from operations (net of excise duty) increased by 9% YoY to ₹5,689.2 crore, while EBITDA slipped 22.5% to ₹533.8 crore. EBITDA margin also slipped to 9.4% from 13.2% in FY24.

PAT fell 39.7% YoY to ₹238.3 crore.

Key Highlights

• The company said that its net turnover for FY 25 is higher by 9%, driven by higher revenues across Sugar, Alcohol and Power Transmission businesses. Sugar business reported 2.8% increase in turnover over the previous year mainly due to higher realisation prices.

• The net turnover of Alcohol business increased 15.7% due to commissioning of a new multi-feed distillery at Rani Nangal and improved average realisations. Power Transmission business reported strong growth of 26.8% in its turnover. The turnover of water business declined marginally by 4.9%.

• Segment profits (PBIT) of sugar business declined by 12.8% over the previous year due to higher cost of sugar sold during the year resulting from

(a) a higher cost of sugar produced in SS 2023-24 factoring in an increased sugarcane price, and

(b) higher cost of production of sugar produced in Sugar Season (SS) 2024-25 on account of lower recovery.

• The profitability of the Alcohol business was adversely affected due to higher sales volume of ethanol produced from maize where margins were lower that substituted Surplus Food Grains (SFG), which was available till July 2023 at ₹20 per kg; lower sales volume of ethanol produced from molasses due to lower sugarcane crush and higher operations with C-heavy molasses and non-recovery of fixed expenses during the period the distilleries remained closed due to a shortage of feedstocks and an increase in the internal transfer price of molasses.

• Further, the segment profits are net of the segment loss of Sir Shadi Enterprises Limited (SSEL).

What Management Said

Commenting on the company’s financial performance, Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said, “The year gone by presented several profitability challenges to the company, especially in the sugar and alcohol businesses, while our power transmission business delivered another year of stellar performance in revenues, profitability and order booking. The company is hopeful of an improved performance in the coming year through proactive measures in our sugar and alcohol businesses."

The MD added, "Sugar prices have remained at healthy levels during FY 25, particularly in Q4 FY 25. We expect these trends to continue given the lower sugar stocks in the country on a year-on-year basis. We believe that a continually increasing portfolio of refined sugar and pharmaceutical-grade sugar production, which now stands at 73% of overall sugar production, augurs well for sugar realisations for the company. We continue to make judicious investments in our facilities to enhance sugarcane crush rate, sugar quality and efficiencies."

Triveni Engineering Q4: Dividend Update

The company's board has recommended a final dividend of 250% (₹2.50 per equity share of the face value of ₹1 each) for FY 2024-25, which is subject to the shareholder's approval in the ensuing annual general meeting.