Any current/future new fundraising through debt or equity?

There is no mention of any current or planned new fundraising through debt or equity in the transcript. The company highlights a significant reduction in net debt from ₹914 crore (March 31, 2023) to ₹101 crore (September 30, 2023) on a consolidated basis. On a standalone basis, net debt is reported as only ₹10 crore as of September 30, 2023. Existing loans are primarily term loans with interest subvention or subsidised interest rates. No discussion or indication of additional fundraising activities either through debt or equity was provided during the call.

Any current/future capex/capital investment/strategic investment?

Power Transmission Business expansion on track: - Building construction to be completed by April 2024. - Machinery installation to follow with full commissioning expected around Q1 FY 2025. Investment in Defence segment: - Setting up a dedicated multi-modal facility for defence products. - Facility expected to be commissioned in the next fiscal year. Water Business: - Exploring Public Private Partnership (PPP) opportunities for Sewage Treatment Plants (STP) recycling. - Targeting expanded activities overseas, including projects in Maldives, Bangladesh, and India (e.g., Greate

Future growth expectations in sales/revenue/volumes?

Alcohol business sales volume increased 12.8% in Q2 FY24; net turnover boosted by higher sales and operational efficiencies. Power Transmission business revenue grew 44.8% in H1 FY24, driven by strong domestic OEM sales; order booking up 36.1% QoQ. Engineering businesses combined turnover rose 8.7% in Q2, with Power Transmission key driver. Sugar production expected to rise by 8-10% this season; sugarcane area expansion and yield improvements anticipated. Ethanol diversion at ~3.5 million tonnes; expected supply ramp-up in Q3-Q4 due to improved ethanol pricing. Capacity expansions in Alcohol s

Current/ Expected Orderbook/ Pending Orders?

Power Transmission business closing order book as of September 30, 2023: ₹282 crore, a 15% year-on-year increase. Water business closing order book as of September 30, 2023: ₹1,291 crore, including ₹892 crore of long-term O&M contracts. Engineering businesses combined outstanding order book as of September 30, 2023: ₹1,573 crore. Water business recently won a bid at RUDSICO Greater Jaipur with LOI received in October 2023; Triveni’s share: ₹355 crore (including O&M and GST).

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Triveni Engineering and Industries LtdQ3 FY23Agricultural Food & other Products

Triveni Engineering and Industries Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹410P/E: 28.8Market Cap: ₹9.0K CrSector: Agricultural Food & other Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Alcohol business sales volume increased 12.8% in Q2 FY24; net turnover boosted by higher sales and operational efficiencies.
→Power Transmission business revenue grew 44.8% in H1 FY24, driven by strong domestic OEM sales; order booking up 36.1% QoQ.
→Engineering businesses combined turnover rose 8.7% in Q2, with Power Transmission key driver.
→Sugar production expected to rise by 8-10% this season; sugarcane area expansion and yield improvements anticipated.
→Ethanol diversion at ~3.5 million tonnes; expected supply ramp-up in Q3-Q4 due to improved ethanol pricing.
→Capacity expansions in Alcohol segment: from 320 KLPD in FY22 to 1,110 KLPD planned, supporting volume growth.
→Water business targeting expanded domestic and international projects; order book near ₹1,300 crore.
→Overall, steady revenue growth with margin maintenance expected across segments through capacity scaling and operational improvements.

Margin guidance

Category 3

- The company anticipates growth without margin dilution; margins are expected to remain robust despite expansion domestically and internationally. (Page 10) - The Power Transmission business is achieving record quarterly revenue and profitability with strong order booking and backlog, supporting future growth. (Pages 7, 10) - The Alcohol business is growing well due to capacity expansions and stabilization of operations. (Pages 6, 10) - Ethanol blending program targets and supply commitments by oil marketing companies are expected to increase demand for ethanol from multiple feedstocks, potentially lifting revenues. (Pages 6, 13) - Although tougher blending targets (15%) and raw material pricing volatility exist, the company remains optimistic about meeting volume and margin targets via operational efficiencies and product mix. (Pages 12, 13) - Asset turns and margins in the expanded PTB division are expected to remain robust, maintaining EBIT margins above 30%. (Page 10) Overall, the company projects sustainable top-line growth and margin maintenance, leading to higher operating profits and earnings in coming years.

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Fundraise plans

→There is no mention of any current or planned new fundraising through debt or equity in the transcript.
→The company highlights a significant reduction in net debt from ₹914 crore (March 31, 2023) to ₹101 crore (September 30, 2023) on a consolidated basis.
→On a standalone basis, net debt is reported as only ₹10 crore as of September 30, 2023.
→Existing loans are primarily term loans with interest subvention or subsidised interest rates.
→No discussion or indication of additional fundraising activities either through debt or equity was provided during the call.

Order book

Yes

→Power Transmission business closing order book as of September 30, 2023: ₹282 crore, a 15% year-on-year increase.
→Water business closing order book as of September 30, 2023: ₹1,291 crore, including ₹892 crore of long-term O&M contracts.
→Engineering businesses combined outstanding order book as of September 30, 2023: ₹1,573 crore.
→Water business recently won a bid at RUDSICO Greater Jaipur with LOI received in October 2023; Triveni’s share: ₹355 crore (including O&M and GST).

Capex plans

Yes

→Power Transmission Business expansion on track:
→ - Building construction to be completed by April 2024.
→ - Machinery installation to follow with full commissioning expected around Q1 FY 2025.
→Investment in Defence segment:
→ - Setting up a dedicated multi-modal facility for defence products.
→ - Facility expected to be commissioned in the next fiscal year.
→Water Business:
→ - Exploring Public Private Partnership (PPP) opportunities for Sewage Treatment Plants (STP) recycling.
→ - Targeting expanded activities overseas, including projects in Maldives, Bangladesh, and India (e.g., Greater Jaipur).
→Sugar Business:
→ - Ongoing robust sugarcane development programme with farmer community focusing on varietal replacement and yield enhancement.
→Alcohol Business:
→ - Capacity expansion from 320 KLPD in FY22 to 660 KLPD, targeting 1,110 KLPD soon.

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