Triveni Turbine Ltd

- Triveni Turbines expects medium-term robust business performance with continued growth. - Growth drivers include increased contribution from above 30 MW segment, API turbines, and refurbishment segments. - Export order book has grown substantially (71% YoY), now constituting 61% of total, indicating strong international demand. - Domestic market expected to provide a stable base with moderate growth despite recent election-related slowdowns. - Aftermarket business (spare parts, services, refurbishment) and digital offerings projected to contribute significantly. - Product diversification and new technology commercialization (e.g., CO2 turbines) to support revenue expansion. - Order booking momentum has been strong, with 25-32% YoY growth in recent quarters. - Capex planned for FY26-27 to support capacity expansion aligned with expected sales growth. - The company does not provide specific guidance but emphasizes sustained growth backed by a substantial order book and enquiry pipeline.

- The company indicated potential capital expenditure (capex) for expansion in FY 26 - FY 27. - The planned capex is expected to be in the range of ₹70-80 crore annually. - This expansion plan will require Board approval. - The management mentioned that this capex will be well within the company's resources, implying no immediate need for external fundraising. - There is no explicit mention of raising new funds through debt or equity in the near term. - The focus seems to be on utilizing internal resources for growth and expansion rather than external fundraisings.

- Triveni Turbines follows an asset-light business model, focusing on assembly, testing, and quality assurance rather than heavy manufacturing. - Given strong growth, the company plans to seek board approval for capital expenditure (capex) to expand capacity during FY 26 - FY 27. - The anticipated annualized capex is approximately ₹70-80 crore. - Capacity is designed to be fungible between in-house production and third-party refurbishment needs, aiming to reduce vendor dependence and risks. - Investments have been made in the U.S. to establish a workshop and workforce; though currently loss-making (₹25 crore loss estimated this year), it is expected to start contributing to revenue from next year onward. - Strategic sourcing initiatives are underway to diversify the vendor base, include imports from low-cost origins, and stabilize margins. - The company continues R&D investments significantly above reported 1.2-1.3% of turnover to develop new products and sustain growth.

- Triveni Turbines expects robust business performance and sustained growth supported by a strong order book, particularly in renewables, API, and Industrial Power Generation segments. (Page 4) - Export order booking showed 63% YoY growth in H1 FY25, indicating strong revenue prospects from international markets. (Page 3-4) - Aftermarket business is growing and contributing significantly to revenue with higher-margin orders, supporting profitability. (Page 12) - Margins are strong; the company aims to maintain EBITDA margins around 20-25% and emphasizes expanding sales and order booking to drive revenue growth. (Page 12) - Product mix diversification, including newer higher MW products and refurbishment services, provides medium- to long-term growth runway. (Pages 3, 7) - The US operation, currently loss-making, is expected to start contributing positively from FY26-FY27 onward. (Page 16) - No formal earnings or EPS guidance provided, but record order bookings and execution visibility suggest improving earnings. (Page 15)

- Total outstanding order book as of September 30, 2024: ₹17.96 billion (up 22% YoY). - Domestic order book: ₹7.09 billion (down 16% YoY). - Export order book: ₹10.87 billion (up 71% YoY), constituting 61% of the total order book. - Q2 FY25 order booking: ₹5.72 billion (up 25% YoY). - Export order booking in Q2 FY25: ₹3.04 billion (up 50% YoY). - Domestic order booking in Q2 FY25: grew by 4%. - Half-year order booking FY25: ₹12.08 billion (up 32% YoY). - Domestic order booking for H1 FY25: up 3%. - Export order booking for H1 FY25: up 63%. - Product segment order booking for Q2 FY25: ₹3.98 billion (30% YoY growth). - Aftermarket segment order booking for Q2 FY25: ₹1.74 billion (13% growth). - Orders from API, newer markets, and higher MW categories are growing and contributing significantly.