Triveni Engineering & Industries (TRIVENI) Q4 96/97 earnings summary

Executive summary

• FY97 total income rose to Rs 341.86 crore from Rs 290.18 crore; net profit after tax was Rs 9.63 crore, with EPS of Rs 10.01.

• Sugar operations benefited from improved factory efficiency and a stronger outlook, while turbine and oil-and-gas activities faced severe market contraction and restructuring.

Financial highlights

• Income from operations was Rs 317.50 crore versus Rs 287.48 crore; other income was Rs 24.36 crore, including investment-sale gains.

• Gross profit before interest, depreciation and tax was Rs 48.77 crore versus Rs 38.82 crore; profit before tax was Rs 12.84 crore versus Rs 9.05 crore.

• Profit after tax was Rs 9.63 crore versus Rs 9.05 crore; EPS was Rs 10.01 versus Rs 9.41.

• Net worth increased to Rs 175.58 crore from Rs 168.85 crore.

Outlook and guidance

• Sugar outlook for 1997-98 and 1998-99 was favorable, supported by lower national stocks, improved crushing and ~10% better factory efficiency YoY.

• Sugar crushing began on 28 October; daily crush was ahead of the prior year, with lower sugar stocks and interest rates expected to support profitability and financing costs.

• Small turbine market weakness was expected to continue in 1997-98 and the foreseeable future; no market recovery was anticipated.

• Plans included expanding turbine capacity range from 6 MW to 12 MW and targeting global efficiency and performance levels.