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Business News/ Companies / Triveni Q1FY’08 net sales up 13% at Rs347 cr
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Triveni Q1FY’08 net sales up 13% at Rs347 cr

Triveni Q1FY’08 net sales up 13% at Rs347 cr

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New Delhi: Triveni Engineering & Industries Ltd., one of India’s leading companies engaged in the manufacture of sugar and engineered-to-order mechanical equipment, such as steam turbines, high speed gears and water and wastewater treatment equipment, announced its performance for the quarter ended 31December 2007 (Q1 FY2008).

Net sales increased 13% to 47 crore in the quarter, while EBITDA was 63% higher at 1.1 crore and PAT showed an increase of 17% to 25.7 crore. EPS for the quarter was .00 (not annualized).

The overall sugar businesses showed a growth of 1% while the engineering businesses’ revenue increased by 12%. The sugar operations achieved net turnover of Rs181 crore, 6% lower than the corresponding quarter last year on account of lower realization, while the cogeneration operations achieved a turnover of 28.4 crore, lower by 3% on account of late start of the crushing during this season.

During this quarter, distillery achieved a turnover of Rs15.5 crore. On the engineering business front, overall sales turnover went up by 12% with turbines showing a growth of 4% while gears and water businesses showed a growth of 32% and 79% respectively.

The issue of sugarcane prices for 2006-07 and 2007-08 seasons is before supreme court and high court respectively. The company had provided cane prices at State Advised Price (SAP) of Rs1250 per tonne in the accounts for FY 07 while for the current season, based on the Lucknow Bench’s interim order, cane prices has been taken at Rs1100 per tonne.

Overall PBIT increased 52% to Rs49.9 crore, with PBIT margin expanding to 14.4% from 10.7% last year. This was primarily driven by better margins in engineering businesses.

Depreciation and amortization, during this quarter, almost doubled to Rs21.2 crore as against Rs10.8 crore during the corresponding quarter of previous year. This is on account of the capitalization of sugar manufacturing, cogeneration and distillery capacities.

The total finance cost also went up from Rs4.4 crore to Rs19.1 crore, primarily on account of commissioning of all projects. Net profit before tax (PBT) increased 8% to Rs30.8 crore while Profit after Tax (PAT) went up by 17% to Rs25.7 crore.

Commenting on the company’s financial performance, Dhruv M. Sawhney, chairman and managing director, Triveni Engineering & Industries Ltd, said, “Our engineering businesses are performing in line with our expectation with an aggregate order book in excess of Rs600 crore. With foray into new product lines in water business (desalination) and gears business (hydel and niche low speed gears) we hope to enhance the turbine business complimented by increased refurbishment business and collaborative tie-ups".

In sugar segment, after a gap of three quarters, the company has registered a profit before interest and tax. Sugar prices currently are ruling firm on the back of country’s estimated lower production for current season. With consistent performance of their co-generation units coupled with carbon credits accruing, the co-generation operations should provide good support in the overall profitability of the company. “We believe the issue of rational sugar cane pricing, which is currently before the courts, will be resolved in the best interest of all stakeholders, thus bringing stability in sugar operations in the long run", added Sawhney.

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Published: 30 Jan 2008, 02:08 PM IST
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