Triveni Engineering & Industries (TRIVENI) Q4 00/01 earnings summary

Executive summary

• FY ended 31 Mar 2001 returned to profit, with PBT of Rs 7.16 crore and PAT after prior-period adjustment of Rs 6.36 crore, versus losses in the prior period; periods are not comparable due to the merger.

• Sugar operations led the year, while engineering margins faced pressure and delayed project closures weighed on Projects & Engineering profitability.

Financial highlights

• Income from operations was Rs 520.22 crore gross and Rs 487.02 crore net; total income was Rs 493.68 crore.

• PBT was Rs 7.16 crore versus a Rs 4.38 crore loss; PAT before prior-period adjustment was Rs 6.41 crore and reported profit after adjustment was Rs 6.36 crore, versus a Rs 14.34 crore loss.

• Proposed 15% dividend, with an outgo of Rs 2.03 crore including taxes, subject to shareholder approval.

• An adverse Rs 24.16 crore impact from accounting-policy changes was recorded, including inventory valuation and lease-rental accounting changes.

Outlook and guidance

• Sugar policy liberalization raised hopes for decontrol before the next season; asset disposal at the closed Oil & Gas and Naini units was expected to yield substantial results before FY 2001-02 end.

• Completion of legacy sugar machinery, mini-hydel and sewage-treatment projects was targeted by March 2002; the gear unit expected a good turnover increase in FY 2001-02.

• Turbine development investment was increasing, with new strategic alliances under consideration and development plans for higher-capacity models.