Triveni Engineering and Industries limited announces Q2/H1 FY 12 results

H1 FY 12 (Consolidated)* Results
Net sales at Rs. 930 crore
PBT (before exceptional items) at Rs. (50.6) crore

Online PR News – 11-May-2012 – Noida, U.P. – : Triveni Engineering & Industries Ltd. (‘Triveni’), one of the largest integrated sugar producers in the country with seven sugar manufacturing facilities, three co-generation units and one distillery; a market leader of engineered-to-order high speed gears & gearboxes and a leading player in water and wastewater management business, today announced its performance for the quarter and half year ended 31st March 2012 (Q2 / H1 FY 12).

PERFORMANCE OVERVIEW: H1 FY 12 V/S H1 FY 11 (Consolidated)*
(H1 FY 12 – Oct – Mar 2012);(H1 FY 11 – Oct – Mar 2011)

• Net Sales at Rs. 930 crore
• EBITDA (before exceptional items) at Rs. 42.8 crore
• Profit before Interest & Tax (PBIT) before exceptional items at Rs. 2.18 crore (after considering sugar inventory write down of Rs. 66.5 crore)
• Engineering business revenue Rs. 146 crore, up by 5.5% compared with corresponding period of last year
* After considering Share of Profit of Associates
• PBT (before exceptional items) at Rs. (50.56) crore
• Profit after tax (after exceptional items) at Rs. (95.41) crore

PERFORMANCE OVERVIEW: Q2 FY 12 V/S Q2 FY 11 (Consolidated)*
(Q2 FY 12 – Jan – Mar 2012);(Q2 FY 11 – Jan – Mar 2011)

• Net Sales at Rs. 510 crore
• EBITDA at Rs. 12.9 crore
• Profit before Interest & Tax (PBIT) at Rs. (7.4) crore (after considering sugar inventory write down of Rs. 41.5 crore)
• Engineering business revenue Rs. 85.3 crore, an increase of 10% over corresponding period of previous year
• PBT during Q2 FY 12 at Rs. (39.3) crore
• Profit after tax at Rs. (27.4) crore

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said:
“In spite of improved availability of cane and higher sugar production in the State of Uttar Pradesh, owing to high sugar cane cost and low recoveries (especially in West U.P.), the industry in the State is reeling under cost pressure, which cannot be met from the prevailing sugar prices. Sugar inventories were accordingly written down to the estimated realization prices. However, if the sugar realisation improves, the same will be reversed resulting in better profitability in the coming quarters. After adverse directions in respect of 2007-08 cane price, which has been fully paid by our company, in another case, the Supreme Court has directed the U.P. based sugar mills to pay the cane price for the season 2011-12 in three installments, commencing from May’2012. It will impose enormous burden on the sugar mills, especially in the regions which experienced low recoveries. The industry would look forward to financial assistance from the State / Central Government to tide over the challenging times. While the government’s recent action to announce quarterly release quota (instead of monthly earlier) for free sugar is a step in the right direction, there is need to address other contentious issues as well, most notable being doing away with levy obligations. There is enormous financial burden being imposed on the sugar industry by subsidizing PDS on behalf of the Government in the form of levy sugar, the impact of which on our sugar operations is around Rs. 55.5 crore. The government’s policy on export, though delayed, is pragmatic as it aims to avoid inventory build-up in the country more than the consumption. The planned
* After considering Share of Profit of Associates
exports to liquidate surplus production in the country and the government’s attempts to stringently control selling of free sugar beyond the announced release orders will help in the improvement of the free sugar prices. Our Co-generation and Distillery operations had performed better offsetting a part of losses incurred by the Sugar Operations.

In our engineering businesses, the outstanding order book is over Rs. 500 crore, with water business and gears business getting good orders in the current quarter in comparison to the previous quarter. During the quarter under review, sequentially both the businesses achieved better turnover and profitability. We believe, both the engineering businesses are geared to take advantage of the improvement in the business sentiments that may take place during the balance part of the year.