Triveni Engineering & Industries Ltd. announced results for Q4/FY12 ended 30 Sept 2012
11/22/2012

FY 12 (consolidated)* Results
Net sales at Rs. 1859 crore - growth of 9%
EBITDA at Rs. 210 crore
PAT at Rs. (52.3) crore after exceptional charge of Rs. 79 crore
Dividend - 10% declared

Online PR News – 22-November-2012 – Noida, November 21, 2012 – For immediate release

Q4 FY 12 (consolidated)* Results
Turnover at Rs. 477 crore - growth of 25%
PAT at Rs. 31.8 crore - year on year growth of 118%

FY 12 (consolidated)* Results
Net sales at Rs. 1859 crore - growth of 9%
EBITDA at Rs. 210 crore
PAT at Rs. (52.3) crore after exceptional charge of Rs. 79 crore
Dividend - 10% declared

FY 12 Performance Highlights:
• Sugar Businesses
 Buoyant sugar prices in Q4 - continue to remain strong
 Country's lower sugar production for 2012-13 season augers well for firm sugar prices during FY 13.
 Outlook for next year dependent on cane price
 Industry awaits some reforms towards decontrol
• Engineering Businesses
 Lower turnover - on account of economic slowdown & deferment of deliveries / execution by customers
 Good order-inflow in Water Business while the order intake in Gears is muted.
 Outstanding order book of Rs. 533 crore

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 the annual results for the period ended 30th September 2012 (Q4 / FY 12).
* After considering Share of Profit of Associates

PERFORMANCE OVERVIEW: FY 12 V/S FY 11 (Consolidated)*
(Oct 2011 – Sep 2012 V/S Oct 2010 - Sep 2011)

• Net Sales at Rs. 1859 crore - an increase of 9%
• EBITDA, increase of 11% at Rs. 210 crore at a margin of 11%
• Profit before tax (PBT) at Rs. (73.4) crore (after extraordinary charge of Rs. 79 crore) as against Rs. 17.3 crore in FY 11
• Profit after tax (PAT) at Rs. (52.3) crore as against Rs. 22.2 crore in FY 11
• Dividend for FY 12 - 10 %

PERFORMANCE OVERVIEW: Q4 FY 12 V/S Q4 FY 11 (Consolidated)*
(July 2012 – Sep 2012 V/S July 2011 – Sep 2011)
• Net Sales at Rs. 477 crore - an increase of 25%
• EBITDA, an increase of 48% at Rs. 93 crore at a margin of 19%
• Profit before tax (PBT) at Rs.38.7 crore - an increase of 131%
• Profit after tax (PAT) at Rs. 31.8 crore as against Rs. 14.6 crore.

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said:

“The performance of the company during the current financial year has been satisfactory given the macro economic scenario as well as the fluctuating sugar scenario. Sugar prices remained subdued during the first half of the current fiscal which resulted in sugar business registering losses at EBITDA level. However, sugar prices started firming up in Q4 FY 12, which in turn helped the company to show positive results during the quarter and also reduce the losses significantly for the year which included an exceptional item of the payment of cane dues for 2007-08 season amounting to Rs. 790 million.

While the sugar fundamentals appear encouraging for the next year on account of estimated lower production, the profitability still depends on the cane price yet to be declared by the State Government. Further, it is hoped that the Central Government may implement some of the key recommendations of Dr. C. Rangarajan Committee on Sugar sector reform, which should benefit the industry in the long term, thereby encouraging further investments and higher productivity.

The company expects to crush higher volume of cane during the 2012-13 season. The cane development initiatives undertaken by the Company are yielding results, both in terms of increased yield and optimal varietal balance. During the year, the Company had undertaken projects with quick pay-back at nominal capital costs to improve efficiencies and profitability – these included a refinery at Sabitgarh Sugar unit and two incidental co-generation plants at Chandanpur and Milak Narayanpur Sugar Units. All these projects will be commissioned in the 2012-13 season.

The company's performance of two engineering businesses has been muted given the current economic scenario. While the order in-flow has been good in water business on account of securing municipal orders, the order finalisation on the industrial segment has been poor. Similar trend was visible in revenue recognition, as many projects under execution have been delayed on account of delays from the customers. In the Gears business, the order inflow for the year has been lower than the previous year primarily on account of the delay in finalisation of capex both by power sector & other industrial segments. We believe that the situation may improve in FY 13 for both these businesses which should result in good order inflow and execution. Further, the focus on new products and new geographies in the gears business together with the focus on the after-market segment should yield growth both in terms of turnover & profitability. Similarly, in the Water business, completion of large projects will qualify the company to bid for larger projects. During the year, the company also made a strategic investment in a high technology water & waste water technology company from Israel. We expect that this will position our water business uniquely in the Indian water industry space and also allow us to achieve growth in this line of business in the long run.

* After considering Share of Profit of Associates
- ENDS –

Note: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Triveni Engineering & Industries Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Triveni Engineering & Industries Limited is a focused, growing corporation having core competencies in the areas of sugar and engineering. The Company is one amongst the largest sugar manufacturers in India and the market leader in its engineering businesses comprising high speed gears, gearboxes, and water treatment solutions. Triveni currently has seven sugar mills in operation at Khatauli, Deoband, Sabitgarh, (all in western Uttar Pradesh), Chandanpur, Rani Nangal and Milak Narayanpur (all in central Uttar Pradesh) and Ramkola (eastern Uttar Pradesh). While the Company’s Gears manufacturing facility is located at Mysore, the Water & Waste water treatment business is located at Noida. The Company also has two co-generation facilities in two of its major facilities viz., Khatauli & Deoband and one of the largest single stream molasses based distillery in India, located at Muzaffarnagar.

The turbine business of the company, located at Bengaluru has been demerged through a scheme of arrangement into Triveni Turbine Limited (TTL) from the appointed date on 1st October 2010, and the same has become effective w.e.f. 21st April, 2011. Triveni Engineering & Industries Limited holds 21.8% equity capital of Triveni Turbine Limited.