Triveni Engineering & Industries (TRIVENI) Q4 98/99 earnings summary

Executive summary

• 18-month period ended 31 Mar 1999: operating income Rs 48,074 lakh and net profit Rs 1,313 lakh; prior period covered 12 months, limiting comparability.

• Sugar remained the largest operational focus; engineering businesses faced margin pressure, while Naini engineering operations and Oil & Gas activities were being wound down or disposed of.

Financial highlights

• Operating income was Rs 48,074.45 lakh; total income including other income and inventory movement was Rs 53,757.59 lakh for 18 months.

• PBT was Rs 1,379.93 lakh and net profit Rs 1,313.18 lakh, versus Rs 1,283.88 lakh and Rs 962.65 lakh, respectively, in the prior 12 months.

• Prior-period other income included a non-recurring Rs 2,167.84 lakh gain on sale of GEC Alsthom Triveni shares; prior-period non-recurring expenses were Rs 874.49 lakh.

• Interim dividend of 15% amounting to Rs 144 lakh was paid; a 12% final dividend of Rs 115 lakh was recommended, subject to financial institution approval.

Outlook and guidance

• Sugar management expected some improvement in international sugar prices in the next season and hoped revised cane-area distribution would ease recent cane shortages.

• New small steam turbine models were planned for the current year; the range was to extend to 15 MW under a Peter Brotherhood licence, with designs targeting higher efficiency and global performance standards.

• Y2K remediation steps and contingency plans were being implemented, with targeted compliance by 31 Oct 1999.