Triveni Turbine Limited has informed the Exchange about Investor Presentation
l-·
PIVEnI TURBINES
.
TRIVENI TURBINE LIMITED CORPORATE OFFICE 8" Floor, Express Trade Towers, 15-16, Sector-16A4, Noida - 201301, U.P., India T.: +91 120 4308000 I F: +91120 4311010-11 www.triveniturbines.com
Date: 20-02-2023
BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001
Scrip Code: 533655
Sub: Earning Presentation for Q3/9M FY 23
Dear Sir/Madam,
National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (E) Mumbai - 400 051 Symbol: TRITURBINE
We send herewith a copy of updated Investor Presentation on the performance of the Company for the Q3/9M FY 23 ended December 31, 2022 for your information. The same is also being made available on the Company's website www.trivenigroup.com.
Thanking you,
Yours faithfullyThanking You,
For Triveni Turbine Limited
Name: Rajiv Sawhney Designation: Company Secretary
Encl : As above
Regd Office : A-44, Hosiery Complex, Phase-II Extn., Noida - 201 305 (U.P.) CIN : L29110UP1995PLC041834
Investor Presentation 3Q FY 23
February 2023
www.triveniturbines.com
AGENDA
GLOBAL AND DOMESTIC OVERVIEW
COMPANY OVERVIEW
3Q/9M FY 23 PERFORMANCE REVIEW
SHAREHOLDING PATTERN
GLOBAL AND DOMESTIC OVERVIEW
Global Energy Consumption Is Driven By Heating and Cooling
Thermal energy uses, which include space and water heating, space cooling, and industrial process heat, represent more than half (51%) of Global Total Final Energy Consumption
Source: : Renewables 2022 Global Status Report
4
Industry sector is one of the largest energy users globally
The industry sector is one of the largest energy users, accounting for 29% of Global Total Final Energy Consumption
Source: : Renewables 2022 Global Status Report
5
Overall Global Steam Turbine Market Has Been Declining Over The Years…
Overall Global Steam Turbine Market (in GW)
140
120
100
80
60
40
20
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: McCoy Report, 2021
6
The global steam turbine market declined from
115 GW in 2012 to 54 GW in 2021
a decline of 8% p.a. yearly during 2012 - 21
…However Below 100 MW Segment Has Registered Growth
Global Steam Turbine Market (in GW)
140
120
100
80
60
40
20
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Above 100 MW
Below 100 MW (Right Axis)
14.0
13.0
12.0
11.0
10.0
9.0
8.0
7.0
Steep Decline in over 100 MW segment from 106 GW to 42 GW translating to
-10% p.a.
…while below 100 MW grew from 8.9 GW to 11.7 GW translating to
+3% p.a.
over a period of 9 years
7
Source: McCoy Report, 2021
...And India Capacity Utilization is yet to return to its peak levels
Domestic Asset Turnover (x)
1.0
0.6
1.2
1.0
0.8
0.7
0.6
0.4
0.2
0.0
9 9 Y F
0 0 Y F
1 0 Y F
2 0 Y F
3 0 Y F
4 0 Y F
5 0 Y F
6 0 Y F
7 0 Y F
8 0 Y F
9 0 Y F
0 1 Y F
1 1 Y F
2 1 Y F
3 1 Y F
4 1 Y F
5 1 Y F
6 1 Y F
7 1 Y F
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
Indian economy is showing signs of recovery after the Covid pandemic
…however with asset turnover ratios hovering at 0.6x vs. peak of 1x, the Indian economy still has some way to go to return to those levels
8
Source: Ace Equity
COMPANY OVERVIEW
Domestic market leader in sub-30 MW segment
Industrial and Renewable Heat and Power Solutions Below 100 MW
Presence in growing segment of below 100MW
Closing Order Book: ₹12.3 bn as on Dec 2022 up 33% YoY
Global presence in >75 countries
Top 3 globally in >5-30 MW segment*
Caters to a diverse base of customers and end- users
5000+ global installations with power generation capacity of 13+GW
Triveni Turbine At A Glance
10
*Source: McCoy Report, 2021
Our Founding Principles
Impact
Product Quality
Technology
▪ Aims to make a positive
impact to all our stakeholders
▪ Enhance market share with a compelling value proposition
▪ Propel sustainable
development through our strategic priorities
▪ Best-in-class manufacturing at
two-world class facilities at Peenya and Sompura in Bengaluru
▪ Both the plants are certified for AS 9100, ISO 14001 and ISO 45001 ISO 9001, standards Quality Management, for Environmental Management and Safety Management respectively
▪ Consistent R&D of technology to surpass
customer needs and keeping up with changing business requirements
▪ Leveraged in-house R&D expertise along with institutional association reputed technical institutes such as IISc, etc.
▪ An organization driven by Intellectual Property
(IP)
11
Our Founding Principles
Ethics
Strong Relationships
Sustainability
▪ Professional and transparent
▪ Sustainable solutions that create a high
business practices
degree of value for our customers
▪ Strong focus on Environment,
▪ Strong networks in place to enable
Social and Governance (ESG)
smooth business operations
▪ Customer centricity with focus on
continuous modernisation, with regular upgrades and efficiency improvements
▪ Supports environment sustainability with significant focus on thermal efficiency improvements
▪ Leadership in all our business lines
with sustainability at the core
▪ Enabling Environmentally responsive
operations
12
Continued ESG Focus
Environmental
Social
Governance
▪ Manufacturing Facilities
at both Peenya and Sompura are Green Factories
▪
Installation of roof top solar power plant of 300 KW capacity with net metering facility
▪ 400 MWH of electrical power saved through energy
during last year conservation efforts
13
▪ Educational
as initiatives sponsorship on education and training differently-abled programmes students
such
for
▪ Provided financial support
to a non- profit organisation, focusses on value based leadership development and open dialogue on important issues facing the Indian society, to help its transformation
that
▪ Board comprises of 10 members which include 5 Non-Executive Independent Directors one Women Non- Director, Independent Directors and 3 Executive Directors
including 2
Non-Executive
Audit Committee
▪ Committees of the Board: i. ii. Nomination Committee
and
Remuneration
iii. Stakeholders’ Relationship Committee iv. Corporate Responsibility Social Committee
v. Risk Management Committee
A Differentiated Product Portfolio Catering To Wide Range Of Applications
Up to 100 MW
CONDENSING STEAM TURBINES
• Straight Condensing
• Uncontrolled Extraction Condensing
• Controlled Extraction Condensing
• Double Extraction Condensing
• Injection Condensing
• Reheat Condensing
BACK PRESSURE STEAM TURBINES
• Straight Back Pressure
• Uncontrolled Extraction Back Pressure
• Controlled Extraction Back Pressure
14
POWER GENERATION APPLICATIONS
COMBINED HEAT & POWER APPLICATIONS
DRIVE APPLICATIONS
Independent
Industrial segments
Power Producers
(IPP) such as
Biomass, Waste
to Energy, Waste
Heat Recovery &
Combined Cycle
Power Plant
such as Sugar &
Distillery, Food
Processing,
Paper, Textile,
Palm Oil, Cement,
Steel, Chemicals,
Petrochemicals,
Petroleum
Refineries, etc.
Petroleum
Refineries,
Chemicals,
Petrochemicals
and Fertilisers
Strong Global Footprint
>75
Present in 75+ Countries Countries of presence
Enquiries from ~110 countries
15
A Diversified Base Of End Use Industries
1116
Supplying turbine solutions to renewable energy space
Biomass (bagasse, palm oil, residues, wood pellets, rice husk
Waste-to-energy (WtE) (Industrial and municipal waste) facilities
Waste Heat Recovery (WHR) (Steel, Cement)
17
Increasing Demand for Renewable Power Generation Globally
The turbine industry, with its large manufacturing base, is also moving aggressively towards energy conservation and use of renewable sources in line with the global trends.
The growing Government push towards Swachh Bharat is expected to lead to further pick-up in municipal solid waste incineration and Waste-to- Energy (WtE) in India too.
Due to increased environmental awareness, the Governments in North America and Europe are pushing for reduction in Hydrofluoro Carbon (HFC) and their replacement with natural refrigerants
18
RENEWABLE ENERGY OPPURTUNITY MATRIX
Globally, Governments are shifting from conventional to renewable sources of energy to attain their renewable energy goals.
In India too, the Government has been consistently promoting biomass power such as bagasse based cogeneration programmes, as well as Waste Heat Recovery (WHR) and municipal solid waste power generating solutions
A strong uptick is visible in gross fixed capital formation in industries such as steel and cement, as well as chemical waste heat recovery around the world.
Our Value Proposition
Continued investment in R&D
Strong R&D and Innovation, backed by continuous investments in Digitalisation and Automation
Focus on alternative energy technologies
Manufacturing excellence Two state-of-the-art manufacturing facilities
Triveni is amongst the few turbine manufacturers worldwide, which conducts mechanical steam run tests
Cost and value proposition
Cost leadership and on-time delivery performance ensure quick Return on Investment (ROI)
Growing installed base
Growing installed turbine base provides opportunity for aftermarket services which contributes significantly to customer lifetime value
Expanding addressable market
Foray into API (American Petroleum Institute), Geothermal, aftermarket services for turbines of other make
Independent approach to >30.1-100 MW expanding addressable market
Market share in Renewables
Strong market share in renewables globally, a growing segment
0919
Our Business Model
Customer Centricity
Experienced and reliable partner with proven expertise
Innovation Strength
Strong Research & Development (R&D) capabilities to innovate new products and solutions designed to
meet our customer needs; 316 filed, 220 granted Total IP (Intellectual Property) rights (as at end FY 22)
Sales & Marketing Efficiency
Extensive Sales & Marketing network, comprising in-house team and hired agents
Engineering Excellence
Expert teams to drive precision excellence across the value chain
Sustainable Sourcing
‘Responsible Sourcing’ programme for all vendors to upgrade their units from “Standard” to
“World-Class” level
Manufacturing Prowess • World-class manufacturing facilities with best-in-class machinery and equipment
Aftermarket Strength • Delivering to customer needs across applications, sectors and geographies, as well as different
0920
brands of turbines
Propelling Sustainable Development Through Our Strategic Priorities
S01 - Growing Addressable Market
S02 – Decarbonisation & Sustainability
▪ Post TESL acquisition, Triveni is
▪ Decarbonisation and sustainability have
independently pursuing the market opportunity in the above 30.1-100 MW segment
▪ Focusing on building a strong global sales network with competent personnel and a strong agent network
▪
▪ Now executing special turbine projects in the 30.1-100 MW segment with high vacuum conditions for the international market
21
emerged as primary trends across sectors, with energy efficiency emerging as a top investment priority to achieve a lower carbon future in view of climate change
Increased focus on energy efficiency is a driving force for cost-saving (both customer CAPEX and OPEX) and the emergence of new technologies, lending an enhanced competitive edge to the customer
▪ Our advanced and cost competitive turbines are driving higher energy efficiencies leading to lower emissions across a wide range of sectors
S03 – Innovating & Leading the Energy Transition
▪ The in-house innovative eco-system we are creating for the development of sCO2/tCO2 turbines and auxiliaries is helping us lead the energy transition phase in both high speed and medium speed turbo machinery for CO2 based turbine systems
▪ Supercritical/transcritical carbon dioxide (sCO2/tCO2) based power plants are expected to gain momentum as primary energy producers in certain niche markets. These can compress power plant footprint due to its high energy density
Pillars of our Growth with focus on Enhancing Addressable Markets
Maintaining Leadership position in Traditional Business of Sub- 30MW
Independent Approach in 30.1- 100 MW market
Gaining Traction in API Turbines
Augment the Aftermarket segment
Continued focus in the
Significant
Expanding
sub-30 MW business
Strategic objective of
strides made with
capabilities in the
segment where
Company is among
the Top 3 globally and
gaining a strong
foothold in this
segment
has dominant share in
internationally in the
the Indian market
coming years
several key orders on
Aftermarket segment
the ability to supply
to refurbish other
energy-efficient
rotating equipment
API 611 and 612
beyond industrial
compliant steam
steam turbines,
turbines, ranging from
such as geothermal,
10 kW to 100 MW
compressors, etc.
22
3Q/9M FY 23 PERFORMANCE REVIEW
Comments from the Chairman & Managing Director on 3Q/9M FY 23 Performance and Outlook for the Company
• We are pleased that the Company has continued its strong growth momentum
with highest ever turnover and profitability during the quarter under review with
both delivering over 40% increase over the corresponding quarter of last year.
• Order booking reached a new high of ₹ 4.20 billion during the quarter, leading
to a total order booking of ₹ 11.39 billion during 9M FY 23, up 26.5% when
compared to same period last year and only marginally below the order booking
for the entire FY 22.
• With solid performance across its geographies and business segments, the
Company had an impressive closing order book of ₹ 12.32 billion, up 33% year-
on-year as on December 31, 2022, placing it in an extremely favourable
position for the year to come.
• The Company’s long-term vision is well supported by a growing workforce with
a focus on upskilling and reskilling, higher international presence to increase
proximity to customers and continued investments in customer-centric innovation
through research & development initiatives.
Mr. Dhruv Sawhney, Chairman & Managing Director Triveni Turbine Limited
24
Solid FY23 Performance in both Domestic And International Markets
14,000
12,000
10,000
8,000
7,104
8,278 8,540
7,935
6,431
Order Booking (₹ in Million)
6,000
4,000
2,000
-
5 9 9 , 2
9 0 1 , 4
2 9 1 , 4
6 8 0 , 4
3 6 1 , 4
7 7 3 , 4
0 1 2 , 3
5 2 7 , 4
0 1 1 , 2
1 2 3 , 4
11,836
11,391
8 7 6 , 4
8 5 1 , 7
8 3 7 , 4
3 5 6 , 6
Net Sales (₹ in Million)
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
Domestic
Exports
9M FY 23
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
7,446
7,511
4 1 9 , 3
2 3 5 , 3
0 7 3 , 3
1 4 1 , 4
8,400 8,179
8,522
7,026
0 4 9 , 3
0 6 4 , 4
2 2 9 , 3
7 5 2 , 4
4 6 2 , 3
2 6 7 , 3
8 1 5 , 2
4 0 0 , 6
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
Domestic
Exports
8,778
0 6 6 , 3
8 1 1 , 5
9M FY 23
Impressive Order Booking in 9M FY 23, nearing FY 22 and with one quarter’s performance yet to be added
9M FY 23 sales growth of 43% YoY, crossed entire FY 22 sales figure
25
Increasing Contribution Of Aftermarket
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
0 8 7 , 1
6 6 6 , 5
0 3 9 , 1
1 8 5 , 5
9 5 0 , 2
1 4 3 , 6
8 5 8 , 1
1 2 3 , 6
3 6 2 , 2
9 5 2 , 6
8 3 6 , 2
0 4 1 , 6
0 2 9 , 1
6 0 1 , 5
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
9M FY 23
Refurbishment
Spares
Services
Product
Aftermarket
Aftermarket Sales (₹ in Million)
Aftermarket contribution increased to 30% of Sales in 9M FY 23 as compared to 27% in FY 22
26
Financial Highlights: Key P&L Metrics for 9M FY 23 ahead of FY 22
(₹ in Million)
8,400 8,179
7,511
7,026
8,522 8,778
10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
-
1,976
1,921
1,703
1,660 1,675
1,667
2,000 1,950 1,900 1,850 1,800 1,750 1,700 1,650 1,600 1,550 1,500
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 -
1,822
1,708
1,463 1,462 1,469 1,454
1,373
1,218
1,219
1,163
960 1,002
1,600
1,400
1,200
1,000
800
600
400
200
-
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
NET SALES
EBITDA
PBT
PAT*
Improving Net Sales:
9M FY 23 net sales up 42.5% YoY and crossed sales for entire FY 22
*PAT (excluding exceptional items) FY 22 reported PAT was ₹ 2,702 million
27
Healthy EBITDA and EBITDA Margins:
9M FY 23 EBITDA grew 38.6% YoY. Overall 9M FY 23 EBITDA margins largely stable at 22.5% as compared to FY22 margins
Healthy Profitability:
PBT grew by 43.6% in 9M FY 23 with a PBT margin of 20.8% as compared to 20% in FY 22
PAT (ex-exceptionals) grew by 47.4% in 9M FY23
Financial Highlights: Healthy Ratios & Strong Cash Position
40%
35%
30%
25%
20%
15%
10%
5%
0%
35% 34%
32%
26%
23%
27%
40%
35%
30%
25%
22% 23%
20%
15%
10%
5%
0%
4.37
3.24 3.22
2.84
2.82
3.41
36%
25%
20%
18%
5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 -
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
8,370
7,506
3,844
1,979
217 322
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 M 9
ROCE (%)
ROE (%)
Asset Turnover Ratio (x times)
Closing Investments including Cash (₹ in million)
27% & 20% Healthy Return Ratios – Return on Capital Employed (ROCE) and Return On Equity (ROE) respectively.
4.37 Times Focus on high-value engineering while remaining asset-light. Thus, Company enjoys a healthy asset turnover
8,370 Million Healthy cash flow position driven by market leadership and planned efforts to improve working capital, liquidity, receivables, etc.
Note: Commentary for 9M FY23 For 9M FY23, ratios are annualised
28
Reaching New Highs Quarter after Quarter
(₹ in Million)
3,500
3,000
2,500
2,000
1,500
1,000
500
-
3,258
2,930
2,590
2,252 2,366
534
497
561
800
700
600
500
400
300
200
100
-
750
664
600
500
526
4,500
4,000
463
3,500
3,208
4,204
12,000
12,316
11,369
10,692
3,580 3,607
10,000
9,703
9,240
400
357
330
383
300
200
100
-
2,828
3,000
2,500
2,000
1,500
1,000
500
-
8,000
6,000
4,000
2,000
-
2 2 Q 3
2 2 Q 4
3 2 Q 1
3 2 Q 2
3 2 Q 3
2 2 Q 3
2 2 Q 4
3 2 Q 1
3 2 Q 2
3 2 Q 3
2 2 Q 3
2 2 Q 4
3 2 Q 1
3 2 Q 2
3 2 Q 3
2 2 Q 3
2 2 Q 4
3 2 Q 1
3 2 Q 2
3 2 Q 3
2 2 Q 3
2 2 Q 4
3 2 Q 1
3 2 Q 2
3 2 Q 3
NET SALES
EBITDA
PAT
ORDER BOOKING
CLOSING ORDER BOOK
44.6% YoY Growth in Net Sales Domestic market driving growth in sales both in product and aftermarket segments
31% YoY Growth in Order Booking Driven by products across domestic and international markets
12,316 Million Closing Order Book, an increase of 33% YoY Record closing order book driven by strong demand across sectors and geographies
Note: Commentary for latest period i.e.3Q 23;
2Q22 PAT is adjusted for exceptional income of ~₹1.48 billion
29 20
Q3/9M FY 23 and FY 22: Performance Review *
(₹ in Million)
Revenue from Operations
EBITDA
EBITDA Margin
Depreciation & Amortisation
PBIT
PBIT Margin
Finance Cost
PBT
PBT Margin
Exceptional Items
Share of loss from Joint Venture (JV)
Consolidated PAT Consolidated PAT adjusting for exceptional items and share of loss from JV Consolidated PAT Margin (after adjusting for exceptional items and share of loss from JV) EPS (₹/share) without exceptional items and share of loss from JV
Q3 FY 23
Q3 FY 22
% Change
9M FY 23
9M FY 22
% Change
3,258
750
23.0%
49
701
2,252
534
23.7%
51
483
21.5%
21.4%
1
700
2
481
21.5%
21.4%
-
-
526
526
-
-
357
357
44.6
40.4
45.1
45.5
47.3
47.3
8,778
1,976
22.5%
149
1,827
20.8%
5
1,822
20.8%
-
-
1,373
1,373
6,157
1,425
23.1%
152
1,273
20.7%
5
1,268
20.6%
1,982
(42)
2,372
931
42.5
38.6
43.5
43.6
(42.1)
47.4
16.1%
15.8%
15.6%
15.1%
1.63
1.10
4.24
2.88
30
*TESL (Triveni Energy Solutions Limited (formerly known as GE Triveni Limited)) & TSE have been consolidated on a line-by-line basis w.e.f. September 6, 2021 and March 1, 2022 respectively after becoming subsidiaries of the Company. Further, TESL ceased to be a joint venture with effect from September 6, 2021 thus 9M FY22 results also included share of loss of the JV up to that date
SHAREHOLDING PATTERN
Shareholding Pattern
As on 31st Dec 2022
55.9%
23.2%
15.4%
3.9%
1.0%
0.6%
Promoter Group
Foreign Portfolio Investors Mutual Funds
Resident Individuals
Corporate Bodies
Others
No. Of Shareholders
Mutual Funds, Alternate Investment Funds
Foreign Portfolio Investors
11
118
32
Investor Relations Contact
Visit us: www.triveniturbines.com
Surabhi Chandna Investor Relations & Value Creation
ir@triveniturbines.com
+91 - 120 - 4308000
8th Floor, Express Trade Towers Plot No. 15 & 16, Sector 16-A, Noida – 201 301, India.
Some of the statements in this presentation that are not historical facts are forward looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate.
These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.
Further, this presentation may make references to reports and publications available in the public domain. Triveni Turbine Ltd. makes no representation as to their accuracy or that the company subscribes to those views / findings.
33
THANK YOU