Triveni Engineering & Industries (TRIVENI) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 standalone PAT reached a record ₹17.8 crore, up 270% YoY, despite gross sales falling ₹65.6 crore to ₹637.9 crore.

• Better sugar realizations and lower financing costs drove the turnaround; operating profit rose 20% to ₹64.7 crore.

Financial highlights

• Standalone PBT was ₹25.5 crore vs ₹7.9 crore; EPS was ₹20.71 vs ₹3.91.

• Consolidated net revenue was ₹594.4 crore vs ₹654.7 crore; consolidated PAT was ₹16.8 crore vs ₹4.8 crore and EPS was ₹19.61 vs ₹3.89.

• Standalone financing charges declined 30% to ₹22.4 crore from ₹31.3 crore; net deferred tax charge was ₹4.7 crore vs ₹2.4 crore.

• Inventory rose to ₹443.2 crore from ₹308.7 crore, largely reflecting higher sugar stocks; operating cash flow was negative ₹55.4 crore due mainly to working-capital changes.

Outlook and guidance

• FY 2004-05 all-India sugar output could fall below 130 lakh tonnes; consumption was expected near 180 lakh tonnes, implying raw sugar imports of 2–2.5 million tonnes.

• Sugar margins may be pressured by a state-advised cane price; performance at Khatauli and Ramkola was expected to improve with cane development and modernization.

• Turbine market growth of 8–10% was expected in 2004-05, with market share maintained; the business aimed to sustain its 15% five-year CAGR.