Triveni Engineering and Industries Limited posted its fiscal first quarter profit at Rs 67.61 crore, up 1.7 per cent in comparison to Rs 66.45 crore during the corresponding quarter of last year. It posted revenue from operations at Rs 1432.26 crore, up 5.2 per cent on-year as against Rs 1361.48 crore during Q1FY23. Triveni Engineering clocked a total income of Rs 1444.47 crore, up 5.3 per cent as against Rs 1371.34 crore during the corresponding quarter of FY23. However, total expenses during the quarter came in at Rs 1353.44 crore, up 4.8 per cent from Rs 1291.03 crore a year earlier.
“Overall performance of the Company during the quarter ended June 30, 2023 has been satisfactory. Alcohol and Engineering businesses contributed to 60 per cent of the total segment results,” said Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd. The company also announced the appointment of Siraj Azmat Chaudhry as an Additional Director of the Company for a period of five consecutive years with effect from 25 July, 2023.
Triveni Engineering’s Q1 performance across business verticals
Triveni Engineering said that its net turnover has declined by 2.3 per cent in Q1FY24 primarily driven by lower turnover in the sugar business while the alcohol and aggregate engineering turnover improved over the previous corresponding period.
The sugar turnover was down 15.2 per cent on-year after considering exports, driven by a 21.7 per cent decline in domestic sales volumes due to lower domestic quota allocations. Sales volumes for the current quarter includes exports of 14,531 tonnes of sugar at remunerative prices, while there were no exports in the previous corresponding period. “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 with increasing crush capacities progressively in sync with increased sugarcane availability,” said Dhruv M. Sawhney. The Company is also in the process of increasing its refined sugar production to ~70 per cent (up from ~60 per cent currently) by changing the manufacturing process at its sugar unit in Milak Narayanpur.
Alcohol business turnover increased by 21.4 per cent due to higher sales volumes driven by higher distillation capacities and increased activities in Indian Made Indian Liquor (IMIL). “In the Alcohol business, we successfully raised our distillation capacity from 320 KLPD in FY 22 to an impressive 660 KLPD presently. Looking ahead, we are ambitiously planning to further expand our capacity to 1110 KLPD,” said Dhruv M. Sawhney.
Meanwhile, the combined engineering turnover increased by 24.2 per cent boosted by a 77.8 per cent increase in power transmission business. “Our Engineering businesses continue to perform well with healthy order books and enquiry 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,” said Dhruv M. Sawhney.
In the Water business, he added, 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,” the CMD said.
On a consolidated basis, the total debt during the quarter stood at Rs 1011.07 crore as compared to Rs 1617.68 crore as on June 30, 2022. Overall average cost of funds is at 6.71 per cent during Q1 FY 24 as against 5.04 per cent in the previous corresponding period.