Triveni Engineering & Industries Results Earnings Call for Q4FY24
Conference Call with Triveni Engineering & Industries Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.21-05-2024
21-05-2024
Q4FY24 Quarterly & FY24 Annual Result Announced for Triveni Engineering & Industries Ltd.
Sugar company Triveni Engineering & Industries announced Q4FY24 & FY24 results: Revenue from Operations (Net of excise duty) at Rs 5,220 crore Profit before Exceptional items and Tax at Rs 529 crore Profit after Tax at Rs 395 crore Board recommended a final dividend of Rs 1.25 per equity share in addition to an interim dividend of Rs 2.25 per equity share and a special dividend of Rs 2.25 per equity share earlier paid during the year Net turnover is lower by 7%, mainly due to lower sugar sales volume by 16%. However, Profit Before Tax (PBT) before considering share of profit of associates and exceptional income is lower by 3% Sugarcane Crush during Sugar Season (SS) 2023-24 is 11% lower at 8.26 million tonnes over SS 2022-23 but the gross recovery is marginally higher at 11.49%. The decline in crush is due to heavy rains and water logging in certain regions and associated proliferation of red rot disease in plant cane of Co238 variety In the Alcohol business, in view of feedstock restrictions on supply of Surplus Food Grains from Food Corporation of India (FCI Rice) and limitation of usage of B-heavy molasses, the production and sales volumes were less than earlier estimated. Overall margins declined in view of lower margins on maize operations. Power Transmission Business reported record turnover and profitability – turnover increased by 30% and segment profits by 40%. An intensive capex programme is being executed currently Turnover of Water business declined due to slow execution in certain projects but segment profits increased by 29% due to cost optimisation/savings in various projects executed during the year The decline in turnover during FY24 is mainly due to Sugar (-12%) and Water business (-30%). Profit before share of profits of associates and Exceptional items and Tax is 3% lower at Rs 528.8 crore. Despite lower sales volumes by 16%, Segment profits of Sugar business are at the same level as the previous year due to higher contribution arising from 6% increase in sugar realization prices. The gross debt on a standalone basis as on March 31, 2024 increased to Rs 1,324.7 crore as compared to Rs 825.0 crore as on March 31, 2023 due to higher sugar inventories held. Standalone debt at the end of the period under review, comprises term loans of Rs 277.8 crore, almost all such loans are with interest subvention or at subsidized interest rate. On a consolidated basis, the gross debt is at Rs 1,411 crore as on March 31, 2024 as compared to Rs 913.8 crore as on March 31, 2023. Overall average cost of funds (standalone) is at 6.5% during FY24 as against 5.1% in the previous corresponding period. During the quarter, the Company’s long-term credit rating was upgraded to AA+ (Stable) by ICRA. 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 operating challenges to the Company especially in the Sugar and Alcohol businesses while our Power Transmission business delivered another year of stellar performance. It is heartening to note that the Company has reported satisfactory results despite such challenges. The Company is hopeful of an improved performance in the coming year through a combination of policy decisions, and favourable macro environment while addressing challenges with agility. The sugarcane crush in the just concluded Sugar Season (SS) 2023-24 was 11% lower to 8.26 million tonnes, well short of our initial expectations. The major decline in crush took place in four sugar units: Deoband in Western UP and Chandanpur, Rani Nangal and Milak Narayanpur in the Central UP. The chief reasons are the climatic factors, such as, heavy rainfall and water logging in certain regions, absence of sunshine for long spell in winter and spread of red rot disease, which reduced the yields considerably, mainly in the plant cane and higher diversion to kolhus/crushers. Such trend of lower sugarcane availability was witnessed across Central & Western UP regions. The sugarcane development teams have chalked out multi-pronged strategy to contain the damage by uprooting the diseased crop to limit the spread and to carry out comprehensive varietal substitution programme to reduce the proportion of vulnerable variety Co238, especially in low-lying/ water-logging prone areas and to substitute it by other high sucrose and high yield varieties. We hope to substantially improve our crush next season. Sugar prices have remained at healthy levels both in FY 24 and more recently. We expect these trends to continue and believe that a continually increasing portfolio of refined sugar and pharmaceutical-grade sugar production, which now stands at 70% of overall sugar production, augurs well for sugar realisations for the Company. We continue to make judicious investment in our facilities to enhance crush rate, sugar quality and efficiencies. In our Alcohol business, the Company faced several feedstock challenges during the year that led to disruption in planned production, such as abrupt stoppage of Surplus Rice by Food Corporation of India (FCI rice), restrictions with respect to usage of B-heavy molasses, introduction of Maize as feedstock, price volatility in feedstocks, etc. Accordingly, sugar operations were carried largely with C-heavy molasses as compared to Bheavy molasses in the previous year and the distillery operations were largely based on maize instead of FCI rice earlier. This has led to lower operating capacities and hence lower production and further, the margins on maize operations were relatively lower despite price corrections. We are hopeful the Government will address the feedstock and profitability challenges in FY 25 as it remains committed to Ethanol Blended Petrol (EBP) targets of 20% by 2025-26. Our long-term strategy is to grow the Alcohol business by being an active partner in India’s EBP programme and self-reliance journey. To this end, we recently commissioned a 200 KLPD multi-feed distillery at our sugar unit at Rani Nangal which has resulted in an aggregate distillation capacity to 860 KLPD for the Company. In our Engineering businesses, the Power Transmission business reported remarkable performance with new milestones achieved with respect to revenues, profitability and order booking in FY 24. The year also marked a period of extensive international customer outreach and continued investments in R&D; and infrastructure aimed at enhancing the business’ market share to capitalize on the global opportunity landscape. Coupled with the strides made in Defence, the Power Transmission business is on a sustained growth path. In the Water business, the year went by was muted in terms of market activity and finalization of orders. We expect this to improve in the coming years and the business is well-placed in terms of bids and credentials. The long-term prospects for water and wastewater treatment solutions, both in India and in International markets, remain intact leading to a positive outlook on this business.” Result PDF21-05-2024
TRIVENI ENGINEERING & INDUSTRIES LTD. - 532356 - Announcement under Regulation 30 (LODR)-Newspaper Publication
Newspapers advertisement pertaining to audited financial results of the Company for the Q4 & FY2024 ended on March 31, 2024.21-05-2024
TRIVENI ENGINEERING & INDUSTRIES LTD. - 532356 - Announcement under Regulation 30 (LODR)-Investor Presentation
We send herewith a copy of Investors'' brief on the performance of the Company for the Q4 & FY2024 ended March 31, 2024.20-05-2024
TRIVENI ENGINEERING & INDUSTRIES LTD. - 532356 - Record Date For Final Dividend For FY Ended March 31, 2024
The Board fixed Friday, September 6, 2024 as the Record Date for the purpose of payment of final dividend for the FY ended March 31, 2024 if declared at the ensuing AGM.20-05-2024
TRIVENI ENGINEERING & INDUSTRIES LTD. - 532356 - Outcome Of The Board Meeting Held On May 20, 2024 Pursuant To Regulation 30 Of The SEBI (LODR) Regulations, 2015 ('SEBI LODR Regulations')
Approved the audited stand-alone and consolidated financial results of the Company for the fourth quarter and financial year ended March 31, 2024.20-05-2024
TRIVENI ENGINEERING & INDUSTRIES LTD. - 532356 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, this is to inform you that the Company will organize its Q4 & FY24 results conference call for analysts and investors on Tuesday, May 21, 2024 at 3:30 p.m. IST instead of 12:30 p.m. communicated earlier. Details of the revised conference call are enclosed.14-05-2024
TRIVENI ENGINEERING & INDUSTRIES LTD. - 532356 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, this is to inform you that the Company will organize its Q4 & FY24 results conference call for analysts and investors on Tuesday, May 21, 2024 at 12:30 p.m. IST. Details of the conference call are enclosed.13-05-2024
TRIVENI ENGINEERING & INDUSTRIES LTD. - 532356 - Board Meeting Intimation for Prior Intimation Under Regulation 29 Of The SEBI (LODR) Regulations 2015, As Amended ("SEBI Listing Regulations") Of The Meeting Of The Board Of Directors Of Triveni Engineering & Industries Limited ("Company").
TRIVENI ENGINEERING & INDUSTRIES LTD.has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 20/05/2024 ,inter alia, to consider and approve This is to inform you that a meeting of the Company''s Board of Directors will be held on Monday, May 20, 2024, inter-alia, to consider and approve the audited financial results of the Company for the 4" quarter and financial year ended on March 31, 2024, and recommendation of final dividend, if any, on the equity share capital of the Company for the financial year ended on March 3 I, 2024.13-05-2024