Current/ Expected Orderbook/ Pending Orders?

Record closing order book as of June 30, 2023, at ₹14.05 billion, up 31.4% year-on-year (Page 3). Order booking for Q1 FY 24 was ₹4.53 billion, an increase of 26% year-on-year (Page 3). Order book provides approximately 9 to 10 months of revenue visibility (Page 10). Domestic order book increased by 56% in Q1, with the international enquiry book growing over 22% (Page 11). International orders contributed 53% of overall order booking in the quarter, growing 128% (Page 3). The robust enquiry pipeline suggests sustained order booking growth across domestic and international markets (Pages 3-6, 1

Any current/future new fundraising through debt or equity?

There is no specific mention of current or planned new fundraising through debt or equity in the provided content. The company has a substantial cash reserve (~₹747 crore) and operates on negative working capital, which reduces immediate financing needs. The management adopts a prudent cash view and maintains a payback policy to shareholders, including buybacks, but any new buyback or capital raising decisions will be made by the Board. Expansion plans, especially international growth, will be funded through internal accruals rather than immediate capital raising. Overall, the company focuses

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

The Board has not taken any decision on specific capital investments or new setups as of now. Management and Board continuously explore routes for international expansion. The U.S. market, due to its large size and current growth opportunities, is a key focus area. Entry strategies like refurbishment are considered, especially where installed base is limited (e.g., U.S.). Cash reserves (~₹747 crore) are strong; the company operates on negative working capital with about ₹400 crore customer advances. Company maintains a prudent view on cash and retains a shareholder payback policy. No announced

Future growth expectations in sales/revenue/volumes?

Company confident of sustaining strong growth trajectory; Q1 FY24 turnover grew 45% YoY. Indian steam turbine market expected to grow around 25% annually this year. Enquiry book expanded by 56% domestically and over 22% internationally, indicating robust demand. International markets anticipated to contribute significantly to future growth, with focus on USA, Europe, Southeast Asia, and Africa. Expansion in aftermarket services and refurbishment business seen as major growth drivers. Growth driven by renewable energy sectors including biomass, waste heat recovery, and decentralized power solut

Future growth expectations in earnings/operating earnings/profits/EPS?

Triveni Turbines is confident of sustaining strong growth with Q1 FY24 showing a 45% increase in turnover and 50-59% growth in EBITDA and profit after tax respectively. The company expects the Indian steam turbine market to grow around 25% annually, supported by a robust enquiry book. International business growth is anticipated to outpace domestic growth in the long term due to expanded global presence. The order book provides visibility for about 9-10 months of revenue, indicating sustained revenue flow. Margins are expected to be maintained above a 20% PBT level, balancing growth with profi

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Triveni Turbine LtdQ2 FY23Electrical Equipment

Triveni Turbine Ltd Q2 FY23 Earnings Call Analysis

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

Price: ₹671P/E: 54.7Market Cap: ₹19.3K CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Company confident of sustaining strong growth trajectory; Q1 FY24 turnover grew 45% YoY.
→Indian steam turbine market expected to grow around 25% annually this year.
→Enquiry book expanded by 56% domestically and over 22% internationally, indicating robust demand.
→International markets anticipated to contribute significantly to future growth, with focus on USA, Europe, Southeast Asia, and Africa.
→Expansion in aftermarket services and refurbishment business seen as major growth drivers.
→Growth driven by renewable energy sectors including biomass, waste heat recovery, and decentralized power solutions.
→Sustained profitability targeted with PBT margin above 20%.
→Growth expected from both new product sales and aftermarket/refurbishment segments.
→Long-term trend favors faster international business growth compared to domestic market.
→Growth anticipated to be steady and sustainable rather than sharp spikes seen in past cycles.

Margin guidance

Category 3

→Triveni Turbines is confident of sustaining strong growth with Q1 FY24 showing a 45% increase in turnover and 50-59% growth in EBITDA and profit after tax respectively.
→The company expects the Indian steam turbine market to grow around 25% annually, supported by a robust enquiry book.
→International business growth is anticipated to outpace domestic growth in the long term due to expanded global presence.
→The order book provides visibility for about 9-10 months of revenue, indicating sustained revenue flow.
→Margins are expected to be maintained above a 20% PBT level, balancing growth with profitability.
→The refurbishment business and aftersales segment are targeted for rapid expansion, contributing to margin stability and earnings growth.
→Commitment to maintaining payback policies to shareholders ensures a balanced approach to profitability and capital management.

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Fundraise plans

→There is no specific mention of current or planned new fundraising through debt or equity in the provided content.
→The company has a substantial cash reserve (~₹747 crore) and operates on negative working capital, which reduces immediate financing needs.
→The management adopts a prudent cash view and maintains a payback policy to shareholders, including buybacks, but any new buyback or capital raising decisions will be made by the Board.
→Expansion plans, especially international growth, will be funded through internal accruals rather than immediate capital raising.
→Overall, the company focuses on conservative and focused growth without explicit plans for new fundraising announced.

Order book

Yes

→Record closing order book as of June 30, 2023, at ₹14.05 billion, up 31.4% year-on-year (Page 3).
→Order booking for Q1 FY 24 was ₹4.53 billion, an increase of 26% year-on-year (Page 3).
→Order book provides approximately 9 to 10 months of revenue visibility (Page 10).
→Domestic order book increased by 56% in Q1, with the international enquiry book growing over 22% (Page 11).
→International orders contributed 53% of overall order booking in the quarter, growing 128% (Page 3).
→The robust enquiry pipeline suggests sustained order booking growth across domestic and international markets (Pages 3-6, 11).
→Refurbishment orders and aftermarket segments are also contributing significantly to the order book (Pages 14-17).

Capex plans

Yes

→The Board has not taken any decision on specific capital investments or new setups as of now.
→Management and Board continuously explore routes for international expansion.
→The U.S. market, due to its large size and current growth opportunities, is a key focus area.
→Entry strategies like refurbishment are considered, especially where installed base is limited (e.g., U.S.).
→Cash reserves (~₹747 crore) are strong; the company operates on negative working capital with about ₹400 crore customer advances.
→Company maintains a prudent view on cash and retains a shareholder payback policy.
→No announced changes in approach to buybacks or other shareholder return mechanisms; decisions on capital investments are to be made by the Board as appropriate.

How does Triveni Turbine Ltd rank vs peers in Electrical Equipment?

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