Triveni Engineering & Industries Ltd. (‘Triveni’), one of the largest integrated sugar & ethanol manufacturers & engineered-to-order turbo gearbox manufacturers in the country and a leading player in water and wastewater management business, today announced its financial results for the third quarter & nine months ended Dec 31, 2024 (Q3 & 9M FY 25). The Company has prepared the financial results based on the Indian Accounting Standards (Ind AS) and as in the past, has been publishing and analyzing results on a consolidated basis.
PERFORMANCE OVERVIEW: Q3/9M FY 25 (Consolidated Results)
In ₹ crore
| Q3 FY 25 | Q3 FY 24 | Change
% |
9M FY 25 | 9M FY
24 |
Change
% |
|
| Revenue from Operations (Gross) | 1,600.3 | 1,553.6 | 3.0 | 4,882.7 | 4,603.3 | 6.1 |
| Revenue from Operations (Net of excise duty) | 1,268.3 | 1,311.2 | -3.3 | 4,060.0 | 3,918.0 | 3.6 |
| EBITDA | 101.0 | 214.9 | -53.0 | 216.4 | 427.3 | -49.4 |
| EBITDA Margin | 8.0% | 16.4% | 5.3% | 10.9% | ||
| Share of income from Joint Venture | 0.1 | (0.2) | 0.1 | (0.4) | ||
| Profit Before Tax (PBT) | 57.6 | 182.1 | -68.4 | 69.1 | 312.3 | -77.9 |
| Profit After Tax (PAT) | 42.6 | 137.4 | -69.0 | 51.1 | 234.1 | -78.2 |
| Other Comprehensive Income (Net of Tax) | (1.6) | 0.0 | (6.3) | 0.5 | ||
| Total Comprehensive Income | 41.0 | 137.4 | -70.2 | 44.9 | 234.6 | -80.9 |
| EPS (not annualised) (₹/share) | 1.94 | 6.28 | -69.1 | 2.34 | 10.70 | -78.1 |
- Net turnover declined by 3.3% in Q3 FY 25 and increased by 3.6% in 9M FY 25: • Sugar revenues declined by 9.5% in Q3 FY 25 and 1.4% in 9M FY 25 due to lower sugar sales volume and lower realization price in Q3 FY 25.
- Alcohol revenues (net of excise duty) grew by 4.4% in Q3 FY 25 and 7.9% in 9M FY 25 mainly due to improved realisations driven by higher proportion of grain operations.
o Power Transmission business turnover grew by 3.3% and 13.1% in Q3 and 9M FY 25 respectively. The muted growth in Q3 was due to shifting of some large orders to the next quarter. o Water business turnover declined by 7.6% and 22.1% in Q3 FY 25 and 9M FY 25 respectively due to lower order booking in previous quarters along with challenges in certain projects under execution.
- The profitability was impacted in Q3 FY 25 and 9M FY 25 due to:
o Lower contribution margins as subdued sugar prices could not fully offset higher cost of sugar (due to increase in sugarcane price) produced in the preceding season SS 2023-24. o Lower initial recoveries in the ongoing SS 2024-25 which resulted in inventory write down in view of high cost of production. It is expected to moderate in the remaining period of the season. o Consolidation of the sugar results (losses) of the subsidiary, Sir Shadi Lal Enterprises Ltd (SSEL), which were impacted due to lower production in the SS 2023-24 and extensive repairs carried out. It includes loss of ₹ 13.3 crore and ₹ 21.0 crore in Q3 FY 25 and 9M FY 25 respectively, from June 21, 2024 i.e. for the period post becoming a subsidiary of the Company.
o Lower profitability of Alcohol business due to:
- a) Lower sales volume of high margin ethanol produced from molasses in Q3 FY 25 and 9M FY 25 due to shortage of molasses-based feedstock resulting from the policy decision of GoI restricting diversion of sugar to B-Heavy Molasses (BHM) and sugarcane juice in the SS 2023- 24. Apart from lower contribution, it also led to non-recovery of fixed expenses during the period the distilleries remained closed due to shortage of feedstocks.
- b) High margin FCI rice as a feedstock was substituted by maize in July 2023, consequent to a policy decision to stop supplies of FCI rice for the production of ethanol. Thus, there was a higher proportion of low margin maize operation in the overall grain operations – 97% in Q3 FY 25 and 89% in 9M FY 25.
- c) Consolidation of loss of ₹ 2.8 crore and ₹ 5.8 crore in Q3 FY 25 and 9M FY 25 pertaining to distillery operations of the subsidiary SSEL.
o The profitability of Power Transmission business increased by 9% in 9M FY 25 but declined by 10.6% in Q3 FY 25 mainly due to increase in infrastructure expenses as required for the proposed increased capacity.
o Profitability of Water business improved in Q3 FY 25 and 9M FY 25 by 67.3% and 24.5% respectively due to reversal of provisions made in the earlier years, upon receipt of favourable arbitration award.
The net debt, after considering operations surplus funds held as fixed deposits, on a standalone basis as on December 31, 2024 increased to ₹ 753.9 crore as compared to ₹ 145.5 crore as on December 31, 2023. Standalone debt at the end of the period under review, comprises term loans of ₹ 225.7 crore, almost all such loans are with interest subvention. On a consolidated basis, the net debt after considering surplus funds held is at ₹ 960.4 crore as on December 31, 2024 as compared to ₹ 233.9 crore as on December 31,
2023, including ₹126.3 crore pertaining to the subsidiary SSEL. Overall average cost of funds (standalone) is at 5.6% during Q3 FY 25 as against 5.3% in the previous corresponding period.
Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said:
“Overall profitability of the Company during the nine-month ended December 31, 2024 was subdued, mainly impacted by lower margins in Sugar and Alcohol businesses. Initial recovery trends in the ongoing sugar season are on the lower side due to inclement weather and inherent degeneration in Co0238 variety of sugarcane. We are intensifying our efforts to reduce the proportion of sugarcane variety Co0238 from 50-55% in the current season to 30-35% in the next season. Engineering businesses reported a combined closing order book of ₹ 2356.3 crore, which increased by 52.4% on year-on-year basis and reached an all time high for the Company.
On the sugar realisation and profitability front, we believe the recent announcement by the Government permitting sugar exports of 1 million tonne and a favourable domestic sugar balance sheet, should lead to improvement from current levels and for which early signs are already visible. The industry also keenly awaits revision to Minimum Selling Price (MSP) of Sugar which is vital for the sustainability of the industry. The MSP has remained unchanged since 2019, while input costs, particularly the Sugarcane Price (FRP and SAP), have risen significantly.
In the Alcohol business, we welcome the Government’s announcements pertaining to 1) procurement of rice through Open Market Sale Scheme (Domestic) (OMSS (D)) by distilleries for ethanol production at a fixed price of ₹ 2250/quintal, for the year 2024-25; 2) revision of ethanol price derived from C-Heavy Molasses (CHM) for the Ethanol Supply Year 2024-25 from ₹ 56.28 per litre to ₹ 57.97 per litre. Both these announcements are positive steps but more needs to be done in terms of ethanol price to make the grain operations viable for existing and future capacities to achieve Ethanol Blended Petrol (EBP) Programme on a sustainable basis.
In our Engineering businesses, the Power Transmission business continues to progress well with healthy demand from traditional segments and markets while making strides with new customers especially in global markets along with diversification of its solutions portfolio. In the Water business, we continue to selectively focus on projects with healthy returns, both in domestic and international markets. Water business has participated in many tenders and expects to receive orders of substantial value.
In December 2024, the Company announced the Scheme for amalgamation with SSEL and demerger of the Power Transmission business, which is expected to enhance value discovery and operational efficiencies. This development reflects an ongoing commitment to delivering sustainable growth and long-term returns to our stakeholders.”
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