TRIVENI - Triveni Engineering & Industries Ltd Share Price

Management provided an optimistic outlook for Triveni Engineering & Industries, highlighting a robust performance across its segments for Q3 and the nine-month period ending December 31, 2025. Key financials included revenue from operations at Rs.4,782.5 crore, up 17.8%, and a profit before tax (PBT) of Rs.102.8 crore, compared to Rs.57.6 crore the previous year. The profit after tax reached Rs.77.8 crore versus Rs.42.6 crore year-on-year.

For the sugar business, management noted a 19% revenue increase for the nine-month period, driven by higher dispatches and better sugar realisation. They reported an improved sugar recovery rate of 10.5% compared to 9.1% last year, attributed to healthier cane conditions and effective disease management. However, expectations for overall sugar production were slightly moderated due to challenges in Maharashtra and Karnataka, predicting total national production closer to 6 million metric tonnes.

The distillery segment turned around significantly, thanks to improved sales volumes and lower procurement costs, particularly for maize. Management projected strong margins due to favorable pricing trends in the alcohol business, with 92% of alcohol sales from ethanol.

The engineering segment demonstrated a 75% increase in inquiry levels, with a robust order booking of Rs.409 crore, up 8% year-on-year. The Defence business is nearing operational capacity, driving growth in inquiries and expected wins.

Management emphasized ongoing cost optimization strategies and the potential for higher sugar prices, mentioning a high probability of recovering prices due to favourable global and local supply dynamics. They expect to see continued improvements and opportunities for growth across all sectors in the upcoming quarters, particularly in export markets.

Here is a summary of the major questions and their corresponding answers from the Q&A section of the earnings transcript:

1. Question: "Tarun, we had signed an MoU for 4-megawatt marine gas turbine generators with Rolls Royce. So could you provide an update on our marine GTG partnership?"

   • Answer: Currently, the partnership for the next-generation vessels is at the architectural stage, with the Indian Navy deciding between gas turbine or diesel engines. We've made presentations and expect a decision soon. This partnership could lead to a locally developed gas turbine solution, marking a significant technological advancement.

2. Question: "Let's assume that, if they agree to our proposal, would Triveni move from manufacturing gears into manufacturing turbines as well?"

   • Answer: It's more complex than that; any new program would take about five years before supplying equipment. The work share details with Rolls-Royce aren't finalized yet as we're still at the MoU stage.

3. Question: "What would be the price differential between us and EU players if we are supplying to the same customers?"

   • Answer: Generally, we believe we're about 25%-30% lower in manufacturing costs compared to European suppliers. We can often deliver orders between 6-8 months compared to their 12 months.

4. Question: "Can you speak about opportunities in steam and gas turbines?"

   • Answer: We are seeing strong traction in the gas segment and have built excellent relationships with major gas turbine manufacturers. This is expected to translate into regular ordering and growth in our export business.

5. Question: "Can you provide guidance for FY 2027?"

   • Answer: We typically do not provide forward guidance. However, inquiry conversion has improved in January, and I anticipate a strong quarter.

6. Question: "Can you outline the unit economics across different production routes?"

   • Answer: I cannot provide specific contribution figures, but maize provides robust double-digit contributions. Prices have softened, and though we have spare capacities, maize may not be as favorable moving forward.

7. Question: "Can we expect income from your new multi-modal defence facility soon?"

   • Answer: The facility has a CAPEX of just north of Rs.100 crore, and while I can't share forward-looking estimates, we are already qualified for multiple products and are in the early stages of production.

8. Question: "What is the current outlook on cane recovery in UP?"

   • Answer: Production levels should be similar to last year. While cane area is higher, yields have been impacted by various climatic conditions, but we aim to manage this moving forward.

9. Question: "What factors contributed to your improved sugar recovery compared to last year?"

   • Answer: This year, we avoided past issues with disease and rainfall that hurt recoveries. Healthier cane and better pest management have led to improved results.

10. Question: "What is your outlook on sugar prices considering current inventory levels?"

    • Answer: While speculation exists about El Nino impacts, past trends show that pricing generally aligns with demand and supply. A significant drop in projected stocks could support higher prices, but we remain cautious given uncertainty around external factors.

This summary captures the essence of the questions and answers, reflecting the company's ongoing strategies and outlook for its various segments.