Triveni Engineering & Industries (TRIVENI) Q3 24/25 earnings summary

Executive summary

• Consolidated revenues for the nine months ended December 31, 2024, rose 3.6% to INR 4,060 crores, but PAT declined 78.2% to INR 51.1 crores due to lower margins in sugar and alcohol businesses.

• Engineering businesses, especially Power Transmission, achieved record order bookings and closing order book, offsetting subdued performance in sugar and alcohol.

• Board approved a composite scheme of arrangement, including amalgamation of Sir Shadi Lal Enterprises and transfer of power transmission business to a subsidiary.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved, showing a decline in quarterly profits but growth over the nine-month period.

• Major policy measures include a 1 million ton sugar export quota and revised ethanol procurement prices.

Financial highlights

• EBITDA for 9M FY25 fell 49.4% year-over-year to ₹216.4 crore; EBITDA margin dropped to 5.3% from 10.9%.

• Sugar revenues for Q3 declined 9.5% year-over-year due to lower sales volumes and realizations; segment margins were lower as subdued realizations could not offset higher production costs.

• Alcohol business revenues grew 7.9% for the nine months, but profitability was impacted by lower high-margin ethanol sales and feedstock shortages.

• Power Transmission revenue grew 13.1% and PBIT rose 9.0% year-over-year; record closing order book at ₹377.1 crore.

• Q3 FY25 standalone revenue from operations: ₹1,548 crore; consolidated: ₹1,600.3 crore.

Outlook and guidance

• Sugar prices are expected to remain buoyant, with no anticipated declines as the industry enters higher consumption months.

• Alcohol business outlook positive with ethanol price revision and improved feedstock mix; further capex approved for IMIL business.

• Power Transmission business expects robust growth from domestic capex, export orders, and defence traction; capacity expansion underway.

• Water business anticipates new opportunities in recycle, reuse, and ZLD, with positive demand-supply gap and international tenders.