Sugar company Triveni Engineering & Industries announced Q1FY23 results: Revenue from Operations (Net of excise duty) at Rs 1225.67 crore, a growth of 18.2% Profit before Tax at Rs 88.68 crore Profit after Tax at Rs 66.45 crore Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “We are pleased to note that in the recently concluded Sugar Season (SS) 2021-22, the Company registered good performance despite general trends of low yields and recovery in the state of Uttar Pradesh. Both the engineering businesses have also performed well with robust order booking, this trend is expected to continue and result in revenue growth in FY 23 and FY 24. We are enthused with the performance of the distillery segment. As against capacity of 320 KLPD operated in FY 2021-22, our capacity currently stands at 660 KLPD which will result in significant growth in the turnover and profitability of the distillery segment. We have decided to further expand the capacity by 450 KLPD so that it becomes a sizeable business and provides significant revenue streams. We have full confidence in the commitment of the Government of India (GoI) to the Ethanol Blended Petrol (EBP) programme and are augmenting capacities on dual feedstock basis to provide us flexibility to select the feedstock based on commercial economics. With expected production of 36.2 million tonnes of sugar and exports of 11 million tonnes in the Sugar Season (SS) 2021-22, closing inventories are expected at 6.09 million tonnes. Based on the current sowing, pattern of rainfall and crop condition, production of 35.5 million tonnes of sugar is estimated in the ensuing sugar season i.e. SS 2022-23. To maintain the balance, exports of around 8 million tonnes will be required and hence, it is imperative that clarity is provided on exports for the next season at the earliest to capitalize on the international price opportunities and INR depreciation. With respect to the Company’s sugar business, the previously announced debottlenecking and modernization plans at three of our sugar units are progressing well and we expect this activity to be 4 completed by October 2022 as communicated earlier. For the upcoming sugar season, with increase in cane area by 3% this year, better crop health, more focused crop surveillance plan and a good forecast of monsoon, we expect increase in yield and production and hence cane availability and consequently higher crush for the Company. On the engineering side, we believe both our Power Transmission and Water businesses are well placed for the long-term. In Power Transmission business, we believe the growth in domestic economy along with Atmanirbhar Bharat Abhiyan (Self-reliant India campaign) will drive capex across end user industries. This coupled with the Company’s strategy and plan to increase its global footprint will lead to growth at an accelerated pace in the coming years. In the Water business, the growing water scarcity is catalysing new opportunities in the areas of recycle, reuse and Zero Liquid discharge. We believe that the disruption caused by the pandemic has largely been over and normalcy in business environment is returning which will lead to floating of tenders for new projects as well as finalization of earlier tenders. With its leadership position and robust financials, Triveni is equipped to capitalize on these increased opportunities." Result PDF
Triveni Engineering & Industries declares Q4FY22 result: Revenue from Operations (Net of excise duty) at Rs 4,290.9 crore Highest ever profitability with Profit before Tax at Rs 573.75 crore, a growth of 24.8% Profit after Tax at Rs 424.06 crore, a growth of 43.9% Board recommends final dividend of Rs 2 per equity share (200%) for the Financial year 2021-22 Sugar Businesses: Crushing continues at three of seven units in Sugar Season (SS) 2021-22 with total sugarcane crushed at 8.2 million tonnes with gross recovery of ~ 11.67% as on May 13, 2022 Diversion of sugar to ethanol in SS 2021-22 is estimated at ~93000 tonnes against 75148 tonnes in the previous season Despite lower sales volumes, sugar profitability has been maintained in FY 22 due to better realizations Increase in net turnover and profitability of Alcohol business by 30% and 48% during FY 22, is driven by increased sales volumes along with higher realization prices and better efficiencies. On April 4, 2022, the Company commenced operations of its new multi-feed distillery with a capacity of 160 KLPD at its Milak Narayanpur sugar mill in U.P. Achieved overall capacity of 520 KLPD with enhancement of operations at Sabitgarh from 160 KLPD to 200 KLPD Engineering Businesses: Engineering businesses reported 16% increase in turnover driven by power transmission business Water business registered marked improvement in profitability and order booking during the year Power Transmission business reported highest ever annual revenues and record profitability Outstanding order book of Rs 1734.15 crore for combined Engineering Businesses Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “The Company has delivered extraordinary results for the year under review. All the businesses have contributed to improved profitability during the year. Increase in sugar realization prices by 7% largely compensated for the lower sales volumes by 23%. We estimate the country’s sugar production at 35.6 million tonnes after diversion of 3.4 million tonnes to ethanol. The increase in production during the season, will be largely absorbed by the increased levels of exports of 9.5 million tonnes. Closing inventories at the end of the SS 2021-22 are expected to be lower than the previous closing by approximately 1.5 million tonnes. It augurs well for the sugar prices. However, it is important that during the ensuing sugar season, additional diversion to ethanol and exports should take care of the additional production (over consumption) so that the closing inventories remain at reasonable levels. It is estimated that our crush level during the ongoing season will be almost at the same level as last year but the gross recoveries (including sugar diverted to ethanol) could be lower by about 20-25 basis points. The recoveries had been impacted due to excessive late rains and due to severe heat conditions since March’22." Result PDF
Sugar company Triveni Engineering & Industries declares Q3FY22 result: Gross Revenue from Operations at Rs 3501.92 crore Profit before Tax at Rs 430.34 crore, a growth of 32% Profit after Tax at Rs 314.89 crore, a growth of 50% Net turnover has declined by 1% in the current quarter and 8% in the nine-month period due to lower sugar sales volume by 18% and 22% in the aforesaid periods. No exports have taken place in respect of the Season 2021-22. All other segments registered increase in turnover except for 6% lower turnover in Water Business for nine-month period. Aggregate of Sugar & Distillery segments achieved 22% and 12% increase in profitability during the quarter and nine-month period. Substantial increase in sugar prices in the current quarter has helped sugar operations to maintain the profitability. In respect of distillery operations, both sales volumes and high realization prices have contributed to increase in profitability. Engineering business at an aggregate level reported strong revenue increase of 38% and 12% and increase in profitability by 114% and 76% during the quarter and nine-month period. Power Transmission and Water Business have achieved higher profitability of 91% and 54% during ninemonth period. The total debt on a standalone basis as on Dec 31, 2021 is Rs 525 crore as against Rs 550 crore as on Dec 31, 2020. It comprises term loans of Rs 385 crore, almost all such loans are with interest subvention or at subsidized interest rate. On a consolidated basis, the total debt is at Rs 592 crore with term loan at Rs 451 crore Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said: “Overall performance of the Company during the nine months ended December 31, 2021 has been satisfactory. The increase in cane prices by Rs 250 per tonne for the Sugar Season 2021-22 (SS 2021- 22) will be largely offset by recent increase in sugar prices. While the estimated stocks of 6.65 million tonnes at the end of the current sugar season are likely to support the domestic sugar prices, continuance of exports and / or substantial diversion of sugar for ethanol next year will be key to maintain the sugar prices. We hope that the Government addresses the long pending increase in Minimum Selling Price (MSP) of sugar to maintain viability of sugar mills and to preserve their cane price paying capacity. On the pricing side, even though sugar prices have come off their recent peaks both in domestic and global markets, they are higher than last year. With a global deficit anticipated yet again in SS 2021- 22, we expect international sugar prices to stay firm. It appears that without an export assistance programme/reintroduction of Maximum Admissible Export Quantity (MAEQ), northern millers may not participate in exports unless the international prices improve meaningfully from current levels. Nevertheless, exports may continue to be viable from Maharashtra and other coastal regions. We witnessed delayed start to the sugar season (SS) 2021-22 owing to extremely high rainfall especially in the crucial month of October. Certain regions of Uttar Pradesh have witnessed uncharacteristically high rainfall even in the last one month. All these climatic issues may have an impact on the yields and recovery. However, the improved weather conditions hereon will facilitate uninterrupted crush and improved recoveries. The Company continues to pursue change in varietal mix to reduce dependence on Co-0238 variety The distillery segment continued its strong performance driven by higher sales volumes and realization prices due to improved product mix. Owing to some approval delays, inclement weather and COVID related constraints, we are now expecting the first tranche of 220 KLPD distillery expansion of the our 340 KLPD expansion plans to commence by March 2022. The balance 120 KLPD is expected to be operational around Q1 FY 23. The Company’s overall capacity after both expansions will more than double from current levels of 320 KLPD to 660 KLPD. We remain excited about our engineering businesses, which has largely overcome the impact of COVID on its operations and those of its customers and has put up much better performance in terms of turnover and profitability. A broad-based economic recovery which is already underway is likely to 4 keep the demand strong for these businesses. Power transmission business is poised for strong growth in the coming years across the gamut of services such as Defence, Gears and Built to print. The Company has a strong order pipeline in its Water business and we continue to bid for many new projects to improve it further.” Result PDF