Sugar company Triveni Engineering & Industries announced Q3FY24 & 9MFY24 results: Net turnover declined by 10.4% and 2.9% respectively in Q3FY24 and 9MFY24: Overall sugar sales volumes (including exports) were lower by 17.6% and 13.0% in Q3 and 9MFY24 respectively as compared to corresponding periods in the previous year which included substantial exports. It led to lower turnover in the Sugar business by 9.2% and 8.2% in Q3FY24 and 9MFY24 respectively, despite ~6% higher blended realisations both in the quarter and the nine-month period. Alcohol business turnover (net of excise duty) increased by 7.6% and 16.0% in Q3 and 9MFY24 respectively, over the corresponding period last year, due to higher sales volumes driven by operational efficiencies and increased activities in Indian Made Indian Liquor (IMIL). The Power Transmission business reported robust revenue growth of 17.5% and 33.9% in Q3 and 9MFY24 over the previous year driven by capacity augmentation (including exports) Water business reported lower turnover of 48.8% and 24.2% in Q3 and 9MFY24 due to slower execution in some projects. Profit before tax and exceptional items (PBT) declined 8.4% in Q3FY24 and was flat in 9MFY24 to Rs 182.1 crore and Rs 312.3 crore respectively. Sugar business reported higher profitability due to higher sugar realisation prices offsetting the impact of lower sales volumes and increase in costs due to revision in State Advised Price (SAP) of sugarcane. PTB also reported higher profitability commensurate with higher turnover. Decline in the profitability of distillery operations is mainly due to a higher proportion of lower margin maize operations in substitution of FCI rice. Segment profitability of the Water business during the current quarter is in line with the lower turnover whereas it has been able to maintain profitability during 9 months due to cost savings in various projects. The gross debt on a standalone basis as of December 31, 2023, is Rs 514.5 crore as compared to Rs 389.1 crore as of December 31, 2022. However, after considering surplus funds held as fixed deposit (FD) of Rs 369.0 crore, the net debt as of December 31, 2023, is at Rs 145.5 crore. Standalone debt at the end of the quarter under review, comprises term loans of Rs 262.4 crore, almost all such loans are with interest subvention or at subsidized interest rates. On a consolidated basis, the gross debt is at Rs 602.9 crore as of December 31, 2023, as compared to Rs 480 crore as of December 31, 2022, and the net debt as of December 31, 2023, is Rs 233.9 Crore. Overall average cost of funds is at 5.25% during Q3FY24 as against 4.75% in the previous corresponding period. Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman, and Managing Director, Triveni Engineering & Industries, said: “Overall performance of the Company during the nine-month ended December 31, 2023, has been satisfactory, with healthy performance in Sugar and Power Transmission businesses in particular. There were challenges in the Alcohol business due to feedstock constraints and the profitability of the Water business was impacted due to the slow execution of some projects due to problems relating to the customers. We are witnessing improved operational results in the Sugar business in the ongoing SS 2023-24 in terms of crush, recovery, and sugar realisation price over the previous year/season. The current estimates of lower production in SS 2023-24 and SS 2024-25 are likely to maintain firm sugar prices. The recent increase in sugarcane price by Rs 20 per quintal can be well absorbed by the prevailing sugar prices. A higher proportion of refined sugar production post-conversion of our Milak Narayanpur sugar unit to refinery and a higher quantum of pharmaceutical-grade sugar production at Sabitgarh augur well for sugar realisations for the Company. We continue to make judicious investments in our facilities to enhance crush rate, sugar quality, and efficiencies. While there may be a significant shortfall in production in Maharashtra and Karnataka, Uttar Pradesh (UP) is estimated to show higher production. The recent weather conditions in UP of dense fog with no sunshine for a longer duration may have some impact on the yields and recoveries. Further, in view of restrictions to use Bheavy molasses and sugarcane juice to limit sugar sacrifice for ethanol production, sugar operations are largely being carried out with C-heavy molasses, which will lead to higher sugar production but can also have some impact on recoveries." Result PDF
Sugar company Triveni Engineering & Industries announced Q2FY24 & H1FY24 results: Sugar & Alcohol (Distillery) Businesses: Sugar sales volume is 10.6% lower during the half year whereas the blended sugar realisations have increased by 5.8% over the corresponding previous period due to high domestic and export realisations Alcohol sales of 9.4 crore litres, an increase of 11.1% over the corresponding previous period resulting in an increase in net turnover of the Alcohol business by 20.5% during H1FY24 Overall sugarcane crop position seems healthy. Crushing for Sugar Season (SS) 2023-24 has already commenced in four of the seven units Engineering Businesses: Highest-ever quarterly revenue and profitability in Power Transmission business in Q2FY24, driving robust H1FY24 growth of 44.8% and 58.2% respectively over the previous corresponding period to reach Rs 132.55 crore and Rs 47.26 crore in half-year revenues and segment results Order booking of Rs 154.85 crore in Power Transmission, an increase of 36.1% YoY with a closing order book of Rs 281.52 crore, up 14.8% YoY During the quarter, the Water business has won the bid of RUDSICO Greater Jaipur and the Letter of Intent (LOI) has been received subsequently Outstanding order book of Rs 1,572.6 crore for combined Engineering Businesses Revenue from Operations (Net of excise duty) in H1FY24 at Rs 2,606.8 crore, an increase of 1.4% Profit before Exceptional items and Tax for H1FY24 at Rs 130.2 crore, an increase of 15% Profit after Tax for H1FY24 at Rs 96.7 crore Net turnover increased by 4.7% and 1.4% respectively in Q2FY24 and H1FY24 primarily driven by higher turnover in the Alcohol and Power transmission business. Profit before tax and exceptional items (PBT) increased by 60% and 15% in Q2FY24 and H1FY24 to reach Rs130.16 crore at the half-year milestone. The gross debt on a standalone basis as of September 30, 2023, is Rs 295.66 crore as compared to Rs 824.96 crore as of March 31, 2023 Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries, said, “Overall performance of the Company during the half year ended September 30, 2023, has been satisfactory, given the fact that H1 is generally muted as the off-season expenses are expensed off. Our Alcohol business has grown well owing to the capacity expansions during FY23 and the stabilization of operations since then. Power Transmission business is charting new highs contributing in both size and growth to the Company as a whole. We are all set for the new sugar season and on an overall basis, the crop seems healthier due to favourable climatic factors as well as due to rigorous sugarcane development activities undertaken by us. Sugar production for Sugar Season (SS) 2023-24 for the country is estimated to be lower as compared to 32.8 million tonnes in the recently concluded SS 2022-23 mainly on account of lower production in Maharashtra and Karnataka. However, the estimated production is still expected above the domestic consumption and we hope that the Government allows exports at an appropriate time to capitalize on high international sugar prices. Further, we would be closely reviewing the sugarcane price increase, if any, for the new season and hope that the Government allows an increase in sugar prices to offset the impact of the increase in sugarcane price. We have commenced sugarcane crushing at four sugar units for Sugar Season (SS) 2023-24. Result PDF
Sugar company Triveni Engineering & Industries announced Q1FY24 results: Net turnover has declined by 2.3% in Q1FY24 primarily driven by lower turnover in the sugar business while the alcohol and aggregate engineering turnover improved over Q1FY23. Sugar turnover declined 15.2% over Q1FY23 after considering exports, driven by a 21.7% decline in domestic sales volumes due to lower domestic quota allocations. Sales volumes for Q1FY24 include exports of 14,531 tonnes of sugar at remunerative prices, while there were no exports in Q1FY23. Alcohol business turnover (net of excise duty) increased by 21.4% due to higher sales volumes driven by higher distillation capacities and increased activities in Indian Made Indian Liquor (IMIL). Combined engineering turnover increased by 24.2% boosted by a 77.8% increase in the Power Transmission business. Profit before tax (PBT) increased by 2.6% in Q1FY24 to Rs 91 crore. The total debt on a standalone basis as on June 30, 2023, is Rs 918.54 crore as compared to Rs 824.96 crore as on March 31, 2023, and Rs 1,541.53 crore as on June 30, 2022. Standalone debt at the end of Q1FY24, comprises term loans of Rs 281.16 crore, almost all such loans are with interest subvention or at subsidized interest rate. On a consolidated basis, the total debt is at Rs 1,011.07 crore as compared to Rs 913.83 crore as on March 31, 2023, and Rs 1,617.68 crore as on June 30, 2022. Overall average cost of funds is at 6.71% during Q1FY24 as against 5.04% in Q1FY23. Commenting on the Company’s financial performance, Dhruv M. Sawhney, Chairman, and Managing Director, Triveni Engineering & Industries, said: “Overall performance of the Company during the quarter ended June 30, 2023, has been satisfactory. Alcohol and Engineering businesses contributed to 60% of the total segment results. There had been general trends of low recovery in the just concluded Sugar Season 2022-23 but the Company has outperformed the state of Uttar Pradesh in the same, with a decline of 23 bps in recoveries (on a C-heavy molasses basis). In the Sugar business, we continue to focus on yield improvement initiatives by making our farmers adopt the best agricultural practices, through continual engagement with them and showing them the results in the demonstration plots which have been set up in each key area. It will be accompanied by increasing crush capacities progressively in sync with increased sugarcane availability. The Company is also in the process of increasing its refined sugar production to ~70% (up from ~60% currently) by changing the manufacturing process at its sugar unit in Milak Narayanpur. Activities previously announced about modernisation, debottlenecking, and efficiency improvements are progressing well. The condition of the sugarcane crop and the rainfall so far has been satisfactory in the catchment areas of our sugar mills but the continuance of good climatic conditions in the subsequent period are critical for the performance in the forthcoming season. We are also embarking on the digitization of sugarcane activities to increase productivity and our response time to issues requiring immediate action. In the Alcohol business, we have been a strong supporter of the Government's Ethanol Blended Petrol (EBP) program and have actively bolstered our capacities while keeping pace with the expanding range of feedstocks for bio-ethanol production. We successfully raised our distillation capacity from 320 KLPD in FY22 to an impressive 660 KLPD presently. Looking ahead, we are ambitiously planning to further expand our capacity to 1,110 KLPD. Our Engineering businesses continue to perform well with healthy order books and inquiry pipelines. In the Power Transmission business, the demand for high-speed gear solutions is witnessing a significant upswing in recent times in industries across various sectors, such as steel, oil & gas, petrochemicals, etc. as these are seeking advanced and efficient power transmission solutions to optimise their operations. In the Water business, the demand for reliable water and wastewater treatment solutions is on the rise both in India and in International markets. Apart from participating in domestic projects, we are aiming to expand our global footprint, establish strategic partnerships, and foster mutually beneficial relationships with key stakeholders. At Triveni, we have strategically positioned ourselves to capitalise on emerging opportunities in both domestic and international markets in our various businesses. And as we forge ahead, our unwavering dedication to delivering exceptional value to our stakeholders remains at the core of our business strategy”. Result PDF