Triveni Engineering & Industries (TRIVENI) Q4 01/02 earnings summary

Executive summary

• FY ended 31 Mar 2002 delivered record sales and net profit: sales and other income ₹622.72 crore, up 18% YoY; net profit ₹26.86 crore versus ₹6.36 crore.

• Profit included net extraordinary gains from divestments and asset sales, partly offset by an accounting-policy charge; excluding extraordinary items, EPS was ₹12.45.

Financial highlights

• Operating profit before interest, depreciation, tax and extraordinary items rose 46% to ₹94.06 crore; PBT before extraordinary items was ₹33.85 crore versus ₹7.16 crore.

• PAT from ordinary activities was ₹15.31 crore versus ₹6.36 crore; net extraordinary impact added ₹11.55 crore, taking net profit to ₹26.86 crore.

• Basic EPS was ₹21.86 versus ₹5.18; diluted EPS was ₹10.26 versus ₹2.78.

• Operating income was ₹603.29 crore; other income rose to ₹19.43 crore, including gains on divestment and asset sales.

• Operating cash flow increased to ₹51.77 crore from ₹12.21 crore; investing activities generated ₹28.12 crore, while financing used ₹75.40 crore.

Outlook and guidance

• Sugar operating profits were expected to weaken in FY 2002-03 as record stocks and lower average sugar prices weighed on realizations; crop yields and sucrose content remained rainfall- and pest-dependent.

• Turbine sales and profit were expected to increase despite production falling below 60 units; focus was shifting to non-sugar markets, with a major Kenya export order secured.

• Gear division sales and profit were expected to rise in FY 2002-03; sugar machinery turnover was expected to fall as the business refocused on milling plants rather than complete plants.

• Modernization of Deoband and Ramkola and entry into power co-generation were under consideration; small hydel projects were planned on a BOO basis, independently or with a strategic partner.