Triveni Engineering and Industries Limited have declared their consolidated results for FY2024 ending Dec 31, 2023. The revenue from operations (Net of excise duty) is at ₹ 3918 crore and the Profit after Tax is at ₹ 234.1 crore.
In the Sugar & Alcohol (Distillery) Businesses, the company has reported better performance in terms of crush and recovery in the current sugar season. Crushing is higher by 6.7%, net Recovery is higher by 38 bps (after considering diversion of sugar in B-heavy molasses) and sugar production higher by 10.9%.
The company said that higher sugar realisations have helped sugar segment profitability and largely offset the impact of lower sales volume and increase in costs due to revision in State Advised Price (SAP) of sugarcane.
The company has reported alcohol sales of 13.8 crore litres till December 2023, an increase of 8.3% over corresponding previous period.
In the Engineering Businesses, the company has reported increase in both turnover and profitability in power transmission business, which has grown 33.9% and 44.8% year-on-year since April 2023 to December 2023.
The Board of Directors of the Company has declared an Interim Dividend of ₹ 2.25 per fully paid-up equity share of the face value of ₹ 1/- each for the financial year 2023-24 and a Special Dividend of ₹ 2.25 per fully paid- up equity share of the face value of ₹ 1/- each.
The company will be venturing into new business of manufacturing, marketing and selling own brands in the premium segment of Indian Made Foreign Liquor (IMFL) as a forward integration of the distillery operations. It would involve setting up a state-of-the-art bottling plant in Muzaffarnagar, Uttar Pradesh to produce high quality IMFL products at an estimated cost of about ₹ 25 crore, subject to receipt of necessary statutory clearances. The new facility is expected to be ready for commencement of production by end of Q1 FY 25.
Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said that the 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 ₹ 20 per quintal can be well absorbed by the prevailing sugar prices”, he said.
Sawhney further added that in view of restrictions to use B-heavy 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.
“The situation is under watch and we are hopeful that this may be a temporary situation as the Government of India is committed to Ethanol blending targets. In view of the present situation, as a measure of prudency, the Board of Directors have decided to put the distillery project at Sabitgarh on hold till the feedstock position gets normalised” he said.
