Triveni Engineering & Industries Limited has informed the Exchange about Investor Presentation
m ·
PIVEDI ENGINEERING & INDUSTRIES LTD.
+91120 4308100 g +91120 4311010/11 ~ www.trivenigroup.com
REF: TEIL:SE: BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort, Mumbai- 400 00 I Thru: BSE Listing Centre
D:
uly,
ate:
25111
2023 National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex, Bandra (E) Mumbai -400 051 Thru: NEAPS
Scrip Code: 532356 Sub: Investors' brief & Presentation for Q1 FY24 ended June 30, 2023
Symbol: TRIVENI
Dear Sirs,
We send herewith a copy of Investors' brief & Presentation on the performance of the Company for the QI FY24 (consolidated) ended June 30, 2023 for your information. The same is also being made available on the Company's website www.trivenigroup.com.
Thanking you,
Yours faithfully, For Triveni Engineering & Industries Ltd.
,%,✓GE~HALLA
Group Vice President & Company Secretary M.No.A9475
Encl: As above
Corporate Office: B'h Floor. Express Trade Towers. Plot 15 & 16, Sector 16-A, Naida, Uttar Pradesh -- 201301, Indi a. Registered Office: A-44, Hosiery Complex. Phase-II Extension, Noida-201 305, Uttar Pradesh. CIN No.: L154210P1932PLC022174
Registered office: A-44, Hosiery Complex, Phase-II Extension, Noida-201 305, Uttar Pradesh, India. Corporate office: Express Trade Towers, 8th floor, 15-16, Sector 16A, Noida 201301, Ph: 0120-4308000, Fax: 0120-4311011 CIN: L15421UP1932PLC022174
For immediate release
Q1 FY 24 Consolidated Results ended June 30, 2023
• Revenue from Operations (Net of excise duty) at ₹ 1197.9 crore • Profit before Tax at ₹ 91 crore, an increase of 2.6% • Profit after Tax at ₹ 67.6 crore, an increase of 1.7%
• Sugar & Alcohol (Distillery) Businesses
▪ Achieved blended sugar realisation of ₹ 37,254/MT, an increase of 5.6% over corresponding previous
period due to high export realisations and relatively firmer domestic realisations
▪ Highest-ever quarterly Alcohol production of 5.04 crore litres, an increase of 19% over corresponding
previous period due to additional capacities & expansions commissioned
▪
Increase in net turnover of Alcohol business by 21% during Q1 FY 24, driven by higher distillation
capacities
• Engineering Businesses
▪ Power Transmission business reported robust revenue and profitability of ₹ 54.09 crore and ₹ 18.40
crore, registering growth of 77.8% and 109.8% respectively, over previous corresponding period
▪ Order booking in Power Transmission grew 21.3% year-on-year, with an outstanding order book of
₹ 271.6 crore, up 11.6% year-on-year
▪ Outstanding order book of ₹ 1,613 crore for combined Engineering Businesses
Noida, July 25, 2023: Triveni Engineering & Industries Ltd. (‘Triveni’), one of the largest integrated sugar producers
in the country, a dominant player in engineered-to-order high speed gears & gearboxes and a leading player in
water and wastewater management business, today announced its financial results for the first quarter ended Jun
30, 2023 (Q1 FY 24). The Company has prepared the financial results based on the Indian Accounting Standards (Ind
AS) and as in the past, has been publishing and analyzing results on a consolidated basis.
1
PERFORMANCE OVERVIEW: Q1 FY 24 (Consolidated Results)
Revenue from Operations (Gross) Revenue from Operations (Net of excise duty) EBITDA EBITDA Margin Share of income from Associates Profit Before Tax (PBT) Profit After Tax (PAT) Other Comprehensive Income (Net of Tax) Total Comprehensive Income EPS (not annualised) (₹/share)
Q1 FY 24 Q1 FY 23 1,361.48 1,432.26 1,225.67 1,197.94 123.75 137.12 10.1% 11.4% 8.37 (0.03) 88.68 91.00 66.45 67.61 -1.74 0.47 64.71 68.08 2.75 3.09
In ₹ crore Change % 5.2% -2.3% 10.8%
2.6% 1.7%
5.2% 12.3%
• Net turnover has declined by 2.3% in Q1 FY 24 primarily driven by lower turnover in the sugar business while the
alcohol and aggregate engineering turnover improved over the previous corresponding period.
o Sugar turnover declined 15.2% over the corresponding period last year after considering exports, driven by
a 21.7% decline in domestic sales volumes due to lower domestic quota allocations. Sales volumes for the
current quarter includes exports of 14,531 tonnes of sugar at remunerative prices, while there were no
exports in previous corresponding period
o Alcohol business turnover (net of excise duty) increased by 21.4% due to higher sales volumes driven by
higher distillation capacities and increased activities in Indian Made Indian Liquor (IMIL).
o Combined engineering turnover increased by 24.2% boosted by a 77.8% increase in Power Transmission
business.
• Profit before tax (PBT) increased by 2.6% in Q1 FY 24 to ₹ 91 crore.
• The total debt on a standalone basis as on June 30, 2023 is ₹ 918.54 crore as compared to ₹ 824.96 crore as on
March 31, 2023 and ₹ 1541.53 crore as on June 30, 2022. Standalone debt at the end of the quarter under review,
comprises term loans of ₹ 281.16 crore, almost all such loans are with interest subvention or at subsidized interest
rate. On a consolidated basis, the total debt is at ₹ 1011.07 crore as compared to ₹ 913.83 crore as on March 31,
2023 and ₹ 1617.68 crore as on June 30, 2022. Overall average cost of funds is at 6.71% during Q1 FY 24 as against
5.04% in the previous corresponding period.
Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director,
Triveni Engineering & Industries Ltd, said:
“Overall performance of the Company during the quarter ended June 30, 2023 has been satisfactory. Alcohol and
Engineering businesses contributed to 60% of the total segment results.
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There had been general trends of low recovery in the just concluded Sugar Season 2022-23 but the Company has
outperformed the state of Uttar Pradesh in the same, with a decline of 23 bps in recoveries (on C-heavy molasses
basis).
In the Sugar business, we continue to focus on yield improvement initiatives by making our farmers adopt the best
agricultural practices, through continual engagement with them and showing them the results in the demonstration
plots which have been set up in each key area. It will be accompanied with increasing crush capacities progressively
in sync with increased sugarcane availability. The Company is also in the process of increasing its refined sugar
production to ~70% (up from ~60% currently) by changing the manufacturing process at its sugar unit in Milak
Narayanpur. Activities previously announced pertaining to modernisation, debottlenecking and efficiency
improvements are progressing well. The condition of the sugarcane crop and the rainfall so far has been satisfactory
in the catchment areas of our sugar mills but the continuance of good climatic conditions in the subsequent period
are critical for the performance in the forthcoming season. We are also embarking on digitization of sugarcane
activities to increase productivity and our response time to the issues requiring immediate action.
In the Alcohol business, we have been a strong supporter of the Government's Ethanol Blended Petrol (EBP)
programme and have actively bolstered our capacities while keeping pace with the expanding range of feedstocks
for bio-ethanol production. We successfully raised our distillation capacity from 320 KLPD in FY 22 to an impressive
660 KLPD presently. Looking ahead, we are ambitiously planning to further expand our capacity to 1110 KLPD.
Our Engineering businesses continue to perform well with healthy order books and enquiry pipelines. In the Power
Transmission business, the demand for high-speed gear solutions is witnessing a significant upswing in recent times
in industries across various sectors, such as, steel, oil & gas, petrochemicals, etc. as these are seeking advanced and
efficient power transmission solutions to optimise their operations. In the Water business, the demand for reliable
water and wastewater treatment solutions is on the rise both in India and in International markets. Apart from
participating in domestic projects, we are aiming to expand our global footprint, establish strategic partnerships,
and foster mutually beneficial relationships with key stakeholders.
At Triveni, we have strategically positioned ourselves to capitalise on emerging opportunities in both domestic and
international markets in our various businesses. And as we forge ahead, our unwavering dedication to delivering
exceptional value to our stakeholders remains at the core of our business strategy”
3
Q1 FY 24: BUSINESS-WISE PERFORMANCE REVIEW
(all figures in ₹ crore, unless otherwise mentioned)
Sugar business
Triveni is one of the largest integrated sugar producers in the country, with seven state-of-the-art FSSC
22000 certified sugar manufacturing facilities located in the state of Uttar Pradesh.
Performance
Apr-Jun 2023
Apr-Jun 2022
Change (%)
Sugar Season 2022-23
Sugar Season 2021-22
Change (%)
Sugarcane Crush (Million Tonnes) Net Recovery (%) Sugar Production (Tonnes)
1.58
1.80
-12.5%
9.33
8.41
10.8
10.58 166817
10.47 188585
-11.5%
10.23 953436
10.55 887171
7.5
Sugar Dispatches (Tonnes)
- Domestic - Exports - Total
Average Blended Realisation (₹/MT)* Revenue (₹ crore) PBIT (₹ crore)
*including export realisations
Q1 FY 24 Q1 FY 23
187522 14531 202053 37254 892.33 49.55
239540 - 239540 35293 1051.69 53.29
Change %
-21.7
-15.6 5.6 -15.2 -7.0
•
Lower turnover in the Sugar business of 15.2% due to lower domestic dispatches as compared to previous
corresponding year. It has led to lower segment results (PBIT) by 7%
• The contribution of sugar sold in Q1 FY 24 was higher by ₹ 880/tonne over the previous quarter in view of
higher sugar realisation prices (including exports).
• During the quarter, achieved sugar exports of 14531 tonnes out of total export quota of 204868 tonnes
(190337 tonnes achieved in FY 23) and export realisations were at a considerable premium to the domestic
prices further contributing to the profitability
• The sugar inventory as on June 30, 2023 was 43.44 lakh quintals, which is valued at ₹ 33.6/kg.
• Co-generation operations (including incidental co-generation) achieved external sales of ₹ 12.65 crore during
Q1 FY 24 as against ₹ 16.91 crore in Q1 FY 23.
4
Industry Scenario – Domestic
•
ISMA estimates all-India sugar production for SS 2022-23 at 32.8 million tonnes after considering diversion of
about 4.0 million tonnes of sugar equivalent into ethanol.
• As on June 30, 2023 the all-India sugar production for the season reached 32.3 million tonnes with 11 mills in
operation.
• As of end of June 2023, Uttar Pradesh produced 10.5 million tonnes of sugar as compared to 10.2 million tonnes
at the same time last year while Maharashtra’s production declined from 13.7 million tonnes last year to 10.5
million tonnes at end of June 2023 due to unexpectedly lower sugarcane yields owing to higher ratoon crop
share and uneven distribution of rainfall.
•
In Karnataka, three mills had restarted their operations for the special season and the State had collectively
produced 5.5 million tonnes of sugar as compared to 5.83 million tonnes produced last year same period.
• Earlier in the year, GOI had announced an initial export quota of 6.00 million tonnes, followed by another
announcement of additional quota of 0.15 million tonnes taking the total approved export quota to 6.15 million
tonnes with option to swap one’s quota. Till June 30, 2023 nearly all of the approved quota was physically
exported out of the country.
• For North India and the state of Uttar Pradesh, rainfall during this monsoon season, in the first half of July, has
been significantly higher than last year, which is likely to aid the sugarcane crop growth. There is also an
apprehension of a mild EL Nino which may occur.
• Sugar balance sheet: As per recent estimates that with an opening balance as on October 1, 2022 of around 7.0
million tonnes, sugar production for SS 2022-23 of around 32.8 million tonnes, domestic sales of around 27.5
million tonnes and 6.15 million tonnes of sugar exports, the closing stock is expected at 6.0 million tonnes.
Industry Scenario – International
• Global Sugar Balance Sheet now pointing to surplus for SS 2022-23: According to International reports, in view
of the higher production estimates from Brazil, the global 2022-23 sugar balance is now estimated at a surplus
of 0.8 million tonnes as compared to the earlier expectation of deficit of 2 million tonnes. For sugar season
2023-24, in view of the global demand/supply situation, a surplus of 4.9 million tonnes is expected.
• Bumper sugarcane crop and sugar production expected in Brazil: For the 2023-24 season that commenced in
April, Centre South Brazil has crushed ~210 million tonnes of sugarcane, up 11% and produced 12.23 million
tonnes of sugar, up 25% from the year before. Sugar mix for the region has improved from 42.6% in the previous
year to 47.7% till June. With higher than expected agricultural yields, International reports estimate sugarcane
5
availability for the 2023-24 season (April-March) at 612 million tonnes and sugar production of 38.8 million
tonnes.
• Thailand sugar production expected to remain subdued: International reports estimate a 10% year-on-year
drop in 2023-24 sugarcane crush in Thailand to 85 million tonnes and sugar production of 9.8 million tonnes, a
sharp cut of 1.2 million tonnes from earlier estimates owing to El Nino which has led to droughts in many regions
despite the start of monsoon season.
•
International sugar prices continue to remain firm: The 2023 NY #11 raw sugar futures nearly broke the US
27.00 cents/lb threshold earlier in the year, however has reported a mixed trend later during this quarter.
Overall, prices hovered around US 25 cents/lb this quarter while the lowest prices were noticed during the end
July contracts - to the level of almost US 25 cents/lb. As on July 21, 2023 the NY #11 front month contract was
trading around US 24.5 cents/lb. London #5 prices were also at record levels and kept inching upwards during
the first half of this quarter, however fell sharply in June. Prices have since recovered and were at $686.50
tonne on July 21, 2023.
NY#11 & London#5 Price Trend From Jan’22 - Jul'23
750
650
550
450
350
29.00 27.00 25.00 23.00 21.00 19.00 17.00 15.00 13.00
Note: London #5 on left hand side (LHS) in $/tonne; NY #11 on right hand side (RHS) in US cents/lb
London #5
NY #11
Alcohol (Distillery) business
The Company has state-of-the-art distilleries spread across Muzaffarnagar (MZN) – 2 facilities, Sabitgarh (SBT) and
Milak Narayanpur (MNP) in Uttar Pradesh aggregating to 660 KLPD. These facilities have the capability to produce
Ethanol, Extra Neutral Alcohol (ENA), Rectified Spirit (RS) and Denatured Spirit (SDS). The Company utilises a mix of
sugarcane-based feedstocks as well as grain. Dried Distillers Grain with Solubles (DDGS), a co-product produced on
grain operations is also sold to premium Institutions and has been well accepted in market. The Company also
manufactures Indian Made Indian Liquor (IMIL).
6
Performance
Q1 FY 24 Q1 FY 23 Change %
Operational details Production (KL) Sales (KL) Avg. Realization (₹/ ltr) IMIL Sales (Lakh Cases)
Financial details Gross Revenue (₹ crore) Revenue Net of Excise Duty (₹ crore) PBIT (₹ crore)
50446 42457 56.96
11.26
42273 38902 57.80
6.56
529.78 295.46 51.02
379.23 243.42 49.84
19.3 9.1 -1.5
71.6
39.7 21.4 2.4
• Additional capacities commissioned in FY 23 resulting in highest-ever production in a quarter
• Despite having record alcohol production and orders in hand, alcohol sales during the quarter under review
were lower than expected due to offtake issues at the end of Oil Marketing Companies (OMC) at certain
depots. However, these were temporary challenges and the situation has since improved.
• During the quarter, alcohol produced from sugarcane-based feedstocks formed 64% of the total sales
volumes, with sales of ethanol made from B-heavy molasses at 56%.
• Alcohol sales from grains constituted 36% in the current quarter whereas there were no grain operations
during the previous corresponding quarter. Accordingly, overall profit margin was lower in the current
quarter as the margin associated with the grain operations is lower than B-heavy molasses.
• Ethanol constituted 91% of alcohol sales during Q1 FY 24 as compared to 95% in the corresponding period
last year
Domestic Industry Scenario
• Out of the 559.08 crore liters finalised by the OMCs for the Ethanol Supply Year 2022-23 (Dec-Oct) against a
total requirement of 600.0 crore liters, contracts for 553.68 crore liters have been contracted till Jul 9, 2023.
• Against the above, 351.15 crore liters have been lifted by the OMCs till Jul 9, 2023.
• The average blending percentage is 11.75% till Jul 9, 2023.
• Of the total contracted quantity of 553.68 crore liters, sugarcane-based feedstocks collectively contribute the
highest at 71% with B-Heavy molasses, Sugarcane Juice and C-Heavy molasses accounting for 45%, 25% and 1%
respectively. Grain-based feedstocks such as surplus rice and damaged food grain contribute to 26% and 4%
respectively.
• Presently, Food Corporation of India has suspended supplies of Surplus Rice for the purpose of production of
ethanol.
7
Power Transmission Business
This business based at Mysuru involves manufacturing of high-speed gears and gearboxes up to 70MW capacity
with speeds of 70,000 rpm and Defence products and solutions for the Navy.
Performance
Q1 FY 24
Q1 FY 23
Change %
Revenue (₹ crore) PBIT (₹ crore) Order Booking (₹ crore) Closing Order Book (₹ crore)*
54.09 18.40 65.37 271.63
30.43 8.77 53.89 243.39
77.8 109.8 21.3 11.6
*including long duration orders
•
Increase in Q1 FY 24 turnover and profitability by 77.8% and 109.8% respectively driven by product sales
across OEMs.
• Strong export performance in supply of API gearboxes to the Americas and Europe; compressor gears to
China and Europe
• Profitability margins improved to 34.0% in Q1 FY 24 as compared to 28.8% in the corresponding period last
year due to lower raw material costs and cost optimisation of SG&A expenses.
• The growth in order book during the quarter is driven by growth witnessed across key sectors such as steel,
oil & gas and customer segments such as steam turbines, compressors, pumps.
• The outstanding order book as on June 30, 2023 stood at ₹ 271.63 crore including long duration orders of
₹ 123.84 crore.
Outlook
• Domestic product segment is gaining momentum across key sectors
•
Infrastructure growth providing stimulus for expansion of Steel and Cement for Waste Heat Recovery
(WHR)
• Domestic Oil & Gas sector is doubling the refining capacity by 2030 leading to gearbox requirements for
Steam Turbines, Gas Turbines, Pumps and Compressors
• Steam Turbine Generator (STG) market is expected to grow in the smaller power range for Sugar and
Distillery sector
• Growing potential in the Waste-to-Energy (WtE) through agricultural and municipal waste
• Focus on market share gains in product segment, especially from the international market through greater
promotion of our technology and focus on new and existing customer relationships
8
•
•
Increasing footprint to capture high-growth opportunities for Aftermarket segment through a combination
of own efforts and expanding the agents’ network
In the Defence segment, the business expects increased order booking from key segments of Gas Turbines
packaging, propulsion gearboxes and special application pumps where the key activities of qualifications
and Request For Proposal (RFP) have progressed considerably in the last couple of years
• Setting up of dedicated multi-modal facility for Defence products will also help the business gain confidence
of key customers and expand its service offerings
Water business
This business is focused on providing world-class solutions in water and wastewater treatment to customers in
industrial and municipal segments. This business is gaining faster momentum and is getting recognition in a high
potential market as a supplier of superior quality products and services at competitive costs.
Performance
Q1 FY 24
Q1 FY 23
Change %
Revenue (₹ crore) PBIT (₹ crore) Orders Received (₹ crore) Closing Order Book (₹ crore)*
64.72 3.00 11.47 1,341.06
65.26 2.55 176.79 1645.47
-0.8 17.6 -93.5 -18.5
* including long duration orders for Operations & Maintenance (O&M)
• The above results are based on consolidated results including wholly owned SPV executing Mathura Project
awarded by National Mission of Clean Ganga (NMCG) under Namami Gange Programme and Pali ZLD Pvt. Ltd.
• Revenues declined marginally due to delay in execution in certain projects
• The business is actively targeting foreign projects wherever it possesses the pre-qualifications and funding is
ensured through multilateral and reputed agencies
• The outstanding order book as on Jun 30, 2023 stood at ₹ 1341.06 crore, which includes ₹ 905.79 crore towards
O&M contracts for a longer period of time
Outlook • After achieving success in Maldives and Bangladesh, Water business is trying to expand activities in overseas
markets
• Domestic market opportunities are increasing in Recycle & Reuse of wastewater and water business is equipped
to target this market
9
• Business is also exploring Public Private Partnership (PPP) opportunities for Sewage Treatment Plant (STP)
recycling on PPP format
• Municipal business opportunities are looking attractive in many states
• Outlook is positive for EPC and HAM projects driven by large investments by Governments, both at state level
and at central. Market is witnessing increasingly more & more projects under Public Private Partnership (PPP) -
HAM model and the Company would widely participate in this business segment.
10
Attached: Details to the Announcement and Results Table
About Triveni Engineering & Industries Limited Triveni Engineering & Industries Limited (TEIL) is a diversified industrial conglomerate having core competencies in the areas of sugar, alcohol, power transmission and water. The Company holds the position of one of India's largest integrated sugar manufacturers and one of the largest ethanol manufacturers, while making significant contributions in Power Transmission and in Water & Wastewater treatment solutions. TEIL currently has seven sugar mills in operation at Khatauli, Deoband, Sabitgarh, (all in western Uttar Pradesh), Chandanpur, Rani Nangal and Milak Narayanpur (all in central Uttar Pradesh) and Ramkola (eastern Uttar Pradesh). While the Company’s Power Transmission (Gears) manufacturing facility is located at Mysuru, the Water & Wastewater treatment business is located at Noida. The Company currently operates 6 co-generation power plants located across five sugar units, with 104.5 MW grid connected co-generation capacity.
The Company has state-of-the-art distilleries spread across Muzaffarnagar (MZN) – 2 facilities, Sabitgarh (SBT) and Milak Narayanpur (MNP) in Uttar Pradesh aggregating to 660 KLPD. These facilities have the capability to produce Ethanol, Extra Neutral Alcohol (ENA), Rectified Spirit (RS) and Denatured Spirit (SDS). The Company utilises a mix of sugarcane-based feedstocks as well as grain. Dried Distillers Grain with Solubles (DDGS), a co-product produced on grain operations is also sold to premium Institutions and has been well accepted in market. The Company also manufactures Indian Made Indian Liquor (IMIL).
The Company produces premium quality multi-grade crystal sugar, raw (as per the market/export requirements), refined and pharmaceutical sugar. All of the Sugar units are FSSC 22000 certified. The sugar is supplied not only to household consumers but also to bulk consumers. The Company has supply chain relationship with leading multinational beverage, food & FMCG companies, pharmaceutical companies and leading confectionery producers. It also has a strong presence in branded sugar market through its brand “Shagun”.
The Company is a dominant market player in the engineered-to-order turbo gearbox manufacturer in India. The Power Transmission business has 3 different business segments – Gears, Defence, Built to Print. It delivers robust and reliable Gears solutions which cover a range of applications and industries to meet the ever-changing operating conditions and customers’ requirements. The Company has become a dominant supplier to all major OEMs in the country, offering solutions to all industrial segments including Oil and Gas as per AGMA, API-613 and API-677 standards. It is amongst the market leaders in high-speed Gears and Gearboxes up to 70 MW capacity and speed of 70,000 rpm. The major product portfolio includes steam turbines, gas turbines and compressor gearboxes under the High-Power High-Speed segment. In the Low-Speed segment, the Company focuses on the gearboxes used in applications such as reciprocating pumps and compressors, hydel turbines, mill and extruder drives for metal, sugar, rubber and plastic industries, marine applications, etc. Its robust and reliable products are backed by 360-degree service solutions which minimise the downtime for its customers. The Company provides health monitoring services for all types of critical gearboxes, high-speed and low-speed, as well as maintains an inventory of dimension ready sites for immediate solution.
The Company provides complete and sustainable water technology solutions across the water usage segments. Advanced Solutions offered for total water management include turnkey / EPC, customer care, operations and maintenance, life cycle models such as Design, Build Own & Operate (DBOO), Design, Build Own Operate and Transfer (DBOOT), BOOT, equipment supply for unit processes like screening, grit separation, clarification and sludge handling. The Customer Care Division offers value added services for operation management and performance optimisation. The quality service offerings are tailored to customers’ requirements, which in many cases form an integral part of the main contract - operations and maintenance, annual maintenance contracts, product & process audit, health check-up and overhauling, pilot experiments, refreshment, upgradation and automation of existing plants, spares and service consumables and chemicals and on-site training and assistance.
Triveni Brands is the FMCG Division of the Company which currently constitutes Shagun Sugar, Triveni Sugar and the Private Label Business. The mission of this division is to create innovative and high-quality products that delight customers. Our products have a strong omni-channel strategy and we are committed to growing in a sustainable manner while keeping customer at the very center.
11
As a result of a Scheme of Arrangement, the Company's steam turbine division was demerged into one of its wholly owned subsidiaries, Triveni Turbine Limited (TTL), and was listed on the NSE and BSE in 2011. The Company owned 21.85 of TTL's equity, until September 21, 2022 when the entire stake was divested with net proceeds of ₹ 1,593 crore.
For further information on the Company, its products and services please visit www.trivenigroup.com
Surabhi Chandna Triveni Engineering & Industries Ltd Ph: +91 120 4308000 Fax: +91 120 4311010, 4311011 E-mail: ir@trivenigroup.com
Gavin Desa/ Rishab Barar CDR India Ph: +91 22 6645 1237 / 1235 Fax: +91 22 22844561 E-mail: gavin@cdr-india.com|rishab@cdr-india.com
Note: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Triveni Engineering & Industries Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
12
TRIVENI ENGINEERING & INDUSTRIES LIMITED Regd. Office : A-44, Hosiery Complex, Phase-II Extension, Noida, Uttar Pradesh - 201 305 Corp. Office: 8th Floor, Express Trade Towers, 15-16, Sector-16A, Noida, Uttar Pradesh - 201 301 CIN : L15421UP1932PLC022174
Statement of Standalone Unaudited Financial Results for the Quarter ended June 30, 2023
Particulars
1 Revenue from operations 2 Other income Total income
3 Expenses
(a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, stock-in-trade and
work-in-progress
(d) Excise duty on sale of goods
(e) Employee benefits expense
(f)
Finance costs
(g) Depreciation and amortisation expense
(h) Other expenses
Total expenses
4 Profit/(loss) from continuing operations before exceptional items
and tax
5 Exceptional items (net) - income/ (expense) 6 Profit/(loss) from continuing operations before tax 7 Tax expense
(a) Current tax (b) Deferred tax Total tax expense Profit/(loss) from continuing operations after tax
8
9 Profit/(loss) from discontinued operations 10 Tax expense of discontinued operations 11 Profit/(loss) from discontinued operations (after tax) 12 Profit/(loss) for the period 13 Other comprehensive income
/\ (i)
\ (ii)
B (@)
B (ii)
Items that will not be reclassified to profit or loss
Income tax relating to items that will not be reclassified to profit or loss
ltems that will be reclassified to profit or loss
Income tax relating to items that will be reclassified to profit or loss
Other comprehensive income for the period, net of tax
14 Total comprehensive income for the period
15 Paid up equity share capital (face value 1/-)
16 Other equity
I7 Earnings/(loss) per share of ? 1/- each (not annualised)
(a) asic (in ) (b) Diluted (in )
See accompanying notes to the standalone financial results
30/Jun/2023 (Unaudited)
3 Months ended 31/Mar/2023 (Audited) (refer note 4)
( in lakhs, except per share data)
30/Jun/2022 (Unaudited)
Year ended 31/Mar/2023 (Audited)
143158 799 143957
71348 1284
12415
23432
8630
1868
2526
13478 134981
8976
- 8976
2089 226 2315 6661
- - - 6661
-
-
63
16
47 6708 2189
3.04 3.04
181770 1730 183500
183280 1272
(79771)
23573
9850
789
2447
17134 158574
24926
- 24926
5304 664 5968 18958
- - - 18958
(485)
{122)
151
38
(250) 18708 2189
8.04 8.04
136043 825 136868
68904 1289
22422
13581
7767
2013
2179
10749 128904
7964
- 7964
1822 185 2007 5957
- - - 5957
-
-
{196)
(50)
(146) 5811 2418
2.46 2.46
630690 7915 638605
395153 4624
8872
69326
34702
4984
9348
56277 583286
55319
158594 213913
19680 1832 21512 192401 - - - 192401
(232)
(58)
{194)
(49)
(319) 192082 2189 263750
80.08 80.08
TRIVENI ENGINEERING & INDUSTRIES LIMITED
Standalone Unaudited Segment wise Revenue, Results, Assets and Liabilities for the Quarter ended June 30, 2023
Particulars
1
Segment Revenue (a)
Sugar & Allied Businesses Sugar Distillery
(b) Engineering Businesses Power transmission Water
(c) Others
Total Segment revenue Less : Total Revenue from operations
Inter segment revenue
2 Segment Results
(a)
Sugar & Allied Businesses Sugar Distillery
(b) Engineering Businesses Power transmission Water
(c) Others
Total Segment results Less : (i) (ii) Exceptional items (net) - (income)/expense (iii) Other unallocable expenditure net of unallocable income
Finance costs
Total Profit/(loss) before tax
3 Segment Assets
(a) Sugar & Allied Businesses
Sugar Distillery
(b)
Engineering Businesses Power transmission Water
(c) Others
Total Segment assets
Add : Unallocable assets Total Assets
4 Segment Liabilities
(a) Sugar & Allied Businesses
Sugar Distillery
(b} Engineering Businesses Power transmission Water
(c) Others
Total Segment liabilities Add : Unallocable liabilities Total Liabilities
30/Jun/2023 (Unaudited)
3 Months ended 31/Mar/2023 (Audited) (refer note 4)
30/Jun/2022 (Unaudited)
( in lakhs)
Year ended 31/Mar/2023 (Audited)
89233 52978 142211
5409 6404 11813
3770
157794 14636 143158
4955 5102 10057
1840 378 2218
(36)
12239
1868 - 1395 8976
254320 89429 343749
20653 37704 58357
1314
403420 20239 423659
10630 7767 18397
6226 16638 22864
562
41823 109189 151012
117092 59184 176276
7318 11422 18740
4191
199207 17437 181770
16389 6516 22905
2553 1047 3600
(157)
26348
789 - 633 24926
264700 88468 353168
21071 40087 61158
1123
415449 19121 434570
36871 6953 43824
5711 20095 25806
592
70222 98409 168631
105169 37923 143092
3043 6421 9464
4028
156584 20541 136043
5329 4984 10313
877 197 1074
(278)
11109
2013 - 1132 7964
246156 80564 326720
13656 32924 46580
1413
374713 15724 390437
11895 5617 17512
3749 16377 20126
661
38299 168906 207205
436195 186553 622748
22525 34898 57423
15936
696107 65417 630690
30583 21232 51815
7644 2559 10203
(801)
61217
4984 {158594) 914 213913
264700 88468 353168
21071 40087 61158
1123
415449 19121 434570
36871 6953 43824
5711 20095 25806
592
70222 98409 168631
TRIVENI ENGINEERING & IND1,JSTRIES LIMITED
Notes to the Standalone Unaudited Financial Results for the Quarter ended June 30, 2023
1. The above financial results have been prepared in accordance with the principles and procedures of the Indian Accounting Standards ('Ind AS') notified under section 133 of the Companies Act, 2013 [Companies (Indian Accounting Standards) Rules, 2015 (as amended)].
2.
In view of the seasonality of the Sugar Business, the performance results may vary from quarter to quarter.
3. During the quarter, the Company has incorporated a new joint venture company namely Triveni Sports Private Limited. The Company owns 50% equity stake in the joint venture company, the balance being owned by Triveni Turbine Limited.
4. The figures for the quarter ended March 31, 2023 are the balancing figures between the audited figures in respect of the full financial year ended on that date and published year to date figures upto the third quarter of the said financial year.
5. The above financial results have been reviewed and recommended for adoption by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on July 25, 2023. The statutory auditors have carried out a limited review of the above financial results.
For Triveni Engineering & Industries Limited
Place : Noida Date : July 25, 2023
.
5awhney
Chairman & Managing Director
TRIVENI ENGINEERING & INDUSTRIES LIMITED Regd. Office: A-44, Hosiery Complex, Phase-II Extension, Noida, Uttar Pradesh - 201 305 Corp. Office : 8th Floor, Express Trade Towers, 15-16, Sector-16A, Noida, Uttar Pradesh - 201 301 CIN : L15421UP1932PLC022174
Statement of Consolidated Unaudited Financial Results for the Quarter ended June 30, 2023
Particulars
Revenue from operations
1 2 Other income Total income
3 Expenses (a) (b) (c)
Cost of materials consumed Purchases of stock-in-trade Changes in inventories of finished goods, stock-in-trade and work-in-progress
Excise duty on sale of goods Employee benefits expense Finance costs
(d) (e) (0) ) Depreciation and amortisation expense (h) Other expenses
Total expenses
4 Profit/(loss) from continuing operations before share of
profit/(loss) of associates and joint ventures, exceptional items and. tax
5 Share of profit/ (loss) of associates and joint ventures 6 Profit/(loss) from continuing operations before exceptional items
and tax
7 Exceptional items (net) - income/ (expense) 8 Profit/(loss) from continuing operations before tax 9 Tax expense
Current tax (a) (b) Deferred tax
Total tax expense
10 Profit/(loss) from continuing operations after tax 11 Profit/(loss) from discontinued operations 12 Tax expense of discontinued operations 13 Profit/(loss) from discontinued operations (after tax) 14 Profit/(loss) for the period
Profit/ (loss) for the period attributable to :
(i) Owners of the Company (ii) Non-controlling interests
15 Other comprehensive income
A(i)
Items that will not be reclassified to profit or loss
A (ii) Income tax relating to items that will not be reclassified to
profit or loss
Items that will be reclassified to profit or loss
13 (i) B (ii) Income tax relating to items that will be reclassified to profit
or loss
Other comprehensive income for the period, net of tax
Other comprehensive income for the period, net of tax attributable to:
(i) Owners of the Company (ii) Non-controlling interests
16 Total comprehensive income for the period
Total comprehensive income for the period attributable to:
(i) Owners of the Company (ii) Non-controlling interests
17 Paid up equity sha re capital (face value 1/-) 18 Othe r equity 19 Earnings per share of 1/- each (not annualised)
(a) (b)
Basic (in ) Diluted (in )
See accompanying notes to the consolidated financial results
30/Jun/2023 (Unaudited)
..
3 Months ended 31/Mar/2023 (Audited) (refer note 5)
( in lakhs, except per share data)
30/Ju/2022 (Unaudited)
Year ended 31/Mar/2023 (Audited)
143226 1221 144447
71348 1284
12415
23432 8669 2083 2526 13587 135344
9103
(3)
9100
- 9100
2113 226 2339 6761 - - - 6761
6761 -
-
-
63
16 47
47
- 6808
6808 - 2189
3.09 3.09
181829 2157 183986
183280 1272
(79771)
23573 9887 980 2447 17261 158929
25057
-
25057
- 25057
5330 696 6026 19031 - - - 19031
19031 -
(485)
(122)
151
38
(250)
(250) - 18781
18781 - 2189
8.08 8.08
136148 986 137134
68904 1289
22422
13581 7799 2165 2179 10764 129103
8031
837
8868
- 8868
1827 396 2223 6645 - - - 6645
6645 -
-
-
(232)
(58)
(174)
(174) - 6471
6471 - 2418
2.75 2.75
631010 8041 639051
395153 4624
8872
69326 34828 5674 9348 56615 584440
54611
1633
56244
140120 196364
19741 (2557) 17184 179180 - - - 179180
179180 -
(232)
(58)
(256)
(55)
(375)
(375) - 178805
178805 - 2189 264336
74.58 74.58
TRIVENI ENGINEERING & INDUSTRIES LIMITED
Consolidated Unaudited Segment wise Revenue, Results, Assets and Liabilities for the Quarter ended June 30, 2023
Particulars
1
Segment Revenue
(a)
Sugar & Allied Businesses Sugar Distillery
(b) Engineering Businesses Power transmission Water
(c)
Others
Total Segment revenue Less : Inter segment revenue Total Revenue from operations
2 Segment Results
(a)
(b)
Sugar & Allied Businesses Sugar Distillery
Engineering Businesses Power transmission Water
(c) Others
Total Sement results Less: Finance costs (i) (ii) Exceptional items (net) - (income)/expense (iii) Share of (profit)/loss of associates and joint ventures (iv) Other unallocable expenditure net of unallocable income
Total Profit/(loss) before tax
3 Segment Assets
(a)
(b)
Sugar & Allied Businesses Sugar Distillery
Engineering Businesses Power transmission Water
(c) Others
Total Segment assets Add : Unallocable assets Total Assets
4 Segment Liabilities
(a)
Sugar & Allied Businesses Sugar Distillery
(b) Engineering Businesses Power transmission Water
(c) Others
Total Segment liabilities Add: Unallocable liabilities Total Liabilities
30/Jun/2023 (Unaudited)
3 Months ended 31/Mar/2023 (Audited) (refer note 5)
30/Jun/2022 (Unaudited)
( in lakhs)
Year ended 31/Mar/2023 (Audited)
89233 52978 142211
5409 6472 11881 3770 157862 14636 143226
4955 5102 10057
1840 300 2140 (36) 12161
2083 -
3
975 9100
254320 89429 343749
20653 55260 75913 1314 420976 13968 434944
10630 7767 18397
6226 18274 24500 562 43459 118152 161611
117092 59184 176276
7318 11480 18798 4191 199265 17436 181829
16389 6516 22905
2553 952 3505 (157) 26253
980 - -
216
25057
264700 88468 353168
21071 57178 78249 1123 432540 12904 445444
36871 6953 43824
5711 21773 27484 592 71900 107019 178919
105169 37923 143092
3043 6526 9569 4028 156689 20541 136148
5329 4984 10313
877 255 1132 (278) 11167
2165 - (837)
971
8868
246156 80564 326720
13656 48355 62011 1413 390144 28515 418659
11895 5617 17512
3749 18064 21813 661 39986 180917 220903
436195 186553 622748
22525 35217 57742 15936 696426 65416 631010
30583 21232 51815
7644 2428 10072 (801) 61086
5674 (140120) (1633)
801
196364
264700 88468 353168
21071 57178 78249 1123 432540 12904 445444
36871 6953 43824
5711 21773 27484 592 71900 107019 178919
TRIVENI ENGINEERING & INDUSTRIES LIMITED
Notes to the Consolidated Unaudited Financial Results for the Quarter ended June 30, 2023
1. The above financial results have been prepared in accordance with the principles and procedures of the Indian Accounting Standards ('Ind AS') notified under section 133 of the Companies Act, 2013 [Companies (Indian Accounting Standards) Rules, 2015 (as amended)].
2.
In view of the seasonality of the Sugar Business, the performance results may vary from quarter to quarter.
3. During the quarter, the Company has incorporated a new joint venture company namely Triveni Sports Private Limited. The Company owns 50% equity stake in the joint venture company, the balance being owned by Triveni Turbine Limited.
4. The standalone unaudited financial results of the Company are available on the Company's website (www.triyenigroup.com), website of BSE (www.bseindia.com) and NSE (www.nseindia.com). Summarised standalone financial performance of the Company is as under:
Particulars
Income from operations Profit/ (loss) before tax (after exceptional items) Profit/ (loss) after tax (after exceptional items) Total comprehensive income
30/Jun/2023 (Unaudited)
143158
8976
6661
6708
3 Months ended
31/Mar/2023 (Audited) (refer note 5) 181770
24926
18958
18708
( in lakhs
Year ended
31/Mar/2023 (Audited)
30/Jun/2022 (Unaudited)
136043
7964
5957
5811
630690
213913
192401
192082
5. The figures for the quarter ended March 31, 2023 are the balancing figures between the audited figures in respect of the full financial year ended on that date and published year to date figures upto the third quarter of the said financial year.
6. The above financial results have been reviewed and recommended for adoption by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on July 25, 2023. The statutory auditors have carried out a limited review of the above financial results.
For Triveni Engineering & Industries Limited
Place : Naida Date : July 25, 2023
Dhruv M. Sawhney
Chairman & Managing Director
Investor Presentation Q1 FY 24
July 2023
1
AGENDA
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
2
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
3
COMPANY OVERVIEW
Integrated and diversified conglomerate in areas of sugar, ethanol and engineering
Located strategically in sugarcane-rich western and central belt of Uttar Pradesh
Among the Top 3 sugar manufacturers in India & second highest supplier for ethanol*
Dominant market player in the engineered-to-order turbo gearbox industry
Efficient, sustainable and complete water/wastewater treatment solutions provider, across the water cycle
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
Note: * in current ethanol tender ESY 22-23
4
BUSINESS OVERVIEW
SUGAR
ALCOHOL
POWER TRANSMISSION
WATER SOLUTIONS
• Flexibility of feedstock and
installations globally
• 7 FSSC 22000 certified sugar
plants in U.P., India
• ~335K+ farmer associates • >2,10,000 Hectare area under
Sugarcane
• State-of-the-art alcohol producing facilities with capacity of 660 KLPD
product mix
• Multi-grade - Large, Medium and
• Products include Fuel-Grade
Small White Crystal Sugar, Refined Sugar, Raw Sugar (for export based on market dynamics)
Ethanol, Extra Neutral Alcohol (ENA), Rectified Spirit
• Overall capacity to be further
expanded to 1110 KLPD
• Pharmaceutical-grade Sugar • Refined sugar 60% of overall portfolio fetching higher realisations
• 6 power generation plants with
~104.5 MW grid capacity
• 3 business segments – Gears,
• Leading solutions provider for
Defence, Built to Print
• 12,000+ high speed gearbox
• Among the largest engineered to order turbo gears manufacturers • Unmatched world-class delivery time, reputation for reliability & product excellence
• Our Defence Portfolio: Propulsion
Gearboxes and other critical gearboxes, Critical Turbo and Motor- driven Pumps, Gas Turbine Generators for auxiliary power, Fin Stabilisers, Propulsion system integration, propulsion Shafting
efficient water management for industrial/municipal/ urban applications
• 12,000+ Million Litres Per Day
(MLD) of water treated • Full range of innovative
water/wastewater treatment solutions across all major water usage segments
• Customised, sustainable EPC
solutions/services • Efficient total water
management across the water cycle
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
5
OUR PAN-INDIA FOOTPRINT
>210K
Hectare Area under Sugarcane
~335K
Farmer Network
~61,000 Tonnes per day crushing capacity
Note: Map for representation purpose and not to scale
TEIL FACILITIES TRIV ENI WATER PROJECTS
OUR SERVICE LOCATIONS
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
6
FOUNDING PRINCIPLES
ETHICS
SUSTAINABILITY
PRODUCT QUALITY
TECHNOLOGY
STRONG RELATIONSHIPS
• Professional and
transparent business practices
• Strong focus on
Environmental, Social and Governance (ESG)
• Leadership in all our business lines with sustainability at the core
• Enabling
Environmentally responsive operations
• Best in class manufacturing
• Internationally
benchmarked on quality standards
• Consistent R&D of
technology to surpass customer needs
• Experienced team with an Innovation forward mindset
• Sustainable solutions that create a high degree of value for our customers
• Strong networks in place
to enable smooth business operations
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
7
ESG PRINCIPLES
Maintaining ecological balance while ensuring business excellence
Best-in-class sustainable processes and solutions across our operations and units
Fostering Community Development And Social Empowerment
Harnessing co-products to become raw materials for other products promoting circular economy
Allocation of capital with focus to reduce carbon footprint and promote energy efficiency
Highest level of ethical and corporate governance standards
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
8
OUR ESG DRIVEN APPROACH TO BUSINESS
ENVIRONMENTAL
SOCIAL
GOVERNANCE
• Power generation through bagasse, a renewable source
• Farmer relations through continuous
of energy & co-product of sugar operations
communication
• Utilising molasses for production of ethanol, a bio-fuel
which lowers dependence on fossil fuels
• Reduction in Effluents through investments in treatment plants, incineration boilers, etc.
• Capture CO2 and Potash rich ash from Distillery operations to extract value and limit impact to environment
• In power transmission, supplying to a multitude of
industries that use renewable sources of energy and R&D to promote lower losses and increase efficiencies
• Leading water and waste water treatment company
with a nationwide presence
• Promoting R&D in water and wastewater treatment
through CII Triveni Institute
• Best practices in recycling and promoting conservation
of natural resources
• Improving soil health through regular tests • Engagement with farmer communities • Customer satisfaction • Data protection and privacy policies and efforts • Employee diversity equity and inclusion • Employee engagement and relations • Health and safety • Respect for human rights and compliance to
labour principles
• Diverse Board of Directors with broad-
based functional and managerial competencies and experience • Visionary Company leadership • Highest ethical standards • Professionally run organization with highly
experienced management team
• Accountability, transparency & fairness in
business practices
• Well-structured Enterprise Risk
Management (ERM) policy
Click here for Key Policies
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
9
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
5-YEAR HIGHLIGHTS
Well Diversified and Growing Revenues
Progressively improving profitability
Strong balance sheet position
Consistent focus on returns
• •
• •
• •
• •
FY 19-23 Gross Revenue CAGR 19.0% Rising revenue contribution from non-sugar business from 21% to 34% during FY 2019-23
FY 19-23 PBIT CAGR 17.5% Sugar contribution progressively reducing; from 66% in FY 2020 to 49% in FY 2023
Improved leverage and cost of funds over the 5-year period ICRA reaffirmed Long Term Credit Rating of AA (Stable) in Mar 2023
Long history of returning cash through combination of dividend and buybacks In FY 23, Buyback of ₹ 800 crore completed and Final Dividend of 325% per equity share proposed
FY 23 – a year of many milestones
Record sugarcane crush, record turnover across all businesses
• • Healthy financial and operational metrics •
Buyback of ₹ 800 crore following monetisation of Triveni Turbine Limited stake
FY 23 has further solidified our long-term history of financial & operational excellence
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
11
WELL DIVERSIFIED AND GROWING REVENUE BASE
FY 19-23 Revenue CAGR 19.0%
Rising non-sugar contribution from 21% to 34% during FY 2019-23
Revenue from Operations (Gross)*
Segment-wise Contribution to Revenue from Operations#
₹ Crore
6,310
2% 8%
4%
2%
7%
3%
9%
2% 6%
3%
11%
3%
6%
4%
7%
4,437
4,703
4,694
3,152
79%
79%
79%
FY 19
FY 20
FY 21
FY 22
FY 23
FY 19
FY 20
FY 21
Sugar
Alcohol
Power Transmission
3% 6%
4%
21%
66%
16%
71%
FY 22
Water
FY 23
Others
Revenue growth of 19.0% p.a. during FY 2019-2023 with increasing contribution from non-sugar businesses
Note: * Revenue from Operations (Gross) include Excise duty of ` 693.26 crore in FY 23, ` 403.10 crore in FY 22 and ` 29.18 crore in FY 21 on account of IMIL sales # Percentages calculated on Net Revenue from Operations excluding aforesaid excise duty. Intersegmental revenue adjusted from Sugar as these are largely due to sale of sugar by-products
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
12
PROGRESSIVELY INCREASING PROFITABILITY WITH HEALTHY CONTRIBUTION FROM NON-SUGAR BUSINESSES
FY 19-23 PBIT CAGR 17.5%
Sugar contribution progressively reducing; 49% in FY 2023
Profit Before Interest and Tax (PBIT)
Segment-wise PBIT Contribution
₹ Crore
576
603
510
505
316
2%
11%
38%
49%
4% 9%
21%
5% 8% 19%
66%
69%
5% 10%
24%
61%
4%
13%
35%
49%
FY 19
FY 20
FY 21
FY 22
FY 23
FY 19
Sugar
FY 20
Alcohol
FY 21
FY 22
Power Transmission
FY 23
Water
PBIT growth of 17.5% p.a. during FY 2019-2023
Note: In FY 19, distillery profitability was higher due to increase in operating days and higher capacity utilisation which resulted in higher production by 80% and corresponding increase in sales volume. The higher profitability was also contributed by lower raw material prices.
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
13
STRONG BALANCE SHEET POSITION
Total Consolidated Debt (₹ Crore)
Total Consolidated Debt To Equity (x times)
1,725.9
1,558.2
1,568.0
994.0
913.8
1.51
1.16
0.64
0.82
FY 19
FY 20
FY 21
FY 22
FY 23
FY 19
FY 20
FY 21
FY 22
0.32
FY 23
Average Cost of Debt (Standalone)
Long-term credit rating
7.9%
6.3%
6.1%
5.0%
5.1%
ICRA AA- (Stable)
ICRA AA- (Stable)
ICRA AA- (Stable)
ICRA AA (Stable) *
ICRA AA (Stable) *
FY 19
FY 20
FY 21
FY 22
FY 23
FY 19
FY 20
FY 21
FY 22
FY 23
Note: Lower debt to equity in FY 23 due to substantial exceptional income during the year
Note: *Upgraded to ICRA AA- (Positive) on April 6, 2021 and further upgraded to ICRA AA (Stable) on November 23, 2021. Reaffirmed on March 24, 2023
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
14
CREATING SHAREHOLDER VALUE
Cash Generation during FY 19-23
₹ 3581 crore
Capital Expenditure*
₹ 929 crore (26% of cash generation)
Dividends & Buybacks (incl. taxes)
Funds Retained for Working Capital
₹ 1,415 crore (40% of cash generation)
₹ 1,237 crore (34% of cash generation)
Healthy mix of investments in business for future growth and returns to shareholders
Note: Based on Standalone Statement of Cash Flows from FY 19 to FY 23 *Capital Expenditure: Purchase of property, plant and equipment and intangible assets, net of term loans availed/paid
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
15
ENHANCING SHAREHOLDER RETURNS THROUGH COMBINATION OF BUYBACKS & DIVIDENDS
₹ Crore
Buyback of Shares
Dividend
Dividend Payout Ratio (%)
800
100
65
18.1
27.3
42.3
78.6
71.1
21%
17%
15%
10%
10%
FY 20
FY 21
FY 23
FY 19
FY 20
FY 21
FY 22
FY 23
FY 19
FY 20
FY 21
FY 22
FY 23
Past history of returning cash through combination of dividend and buybacks In FY 23, Buyback of ₹ 800 crore completed and Final Dividend of 325% per equity share proposed
Dividend Policy: Payout ratio of the dividend is in the range of 15-25% of the normal business income after deduction of tax
Note: The Company completed buyback of ₹ 100 crores, ₹ 65 crores and ₹ 800 crores in August 2019, August 2020 and February 2023 respectively. Buybacks under FY 20 and FY 21 were announced in preceding year. Dividend and buyback amounts are excluding taxes FY 23 Final Dividend is subject to shareholders’ approval
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
16
=
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
17
Q1 FY 24: HEALTHY ALL-ROUND PERFORMANCE
Higher Sugar Realisations
•
Achieved blended sugar realisations of ₹ 37,254/MT, an increase of 5.6% over previous corresponding period due to high export realisations and relatively firmer domestic realisations
Highest-ever Quarterly Alcohol Production
• Highest-ever quarterly Alcohol production of 5.04 crore litres, an increase of 19.3% over previous corresponding period due to additional capacities & expansions commissioned Increase in net turnover of Alcohol businesses by 21.4% during Q1 FY 24, driven by higher distillation capacities
•
Improved Revenue and Profitability in Power Transmission
Robust Closing Order Book in Engineering Businesses
•
•
Power Transmission Business (PTB) reported robust revenue and profitability of ₹ 54.09 crore and ₹18.40 crore, registering growth of 77.8% and 109.8% Y-o-Y respectively 21.3% Y-o-Y growth in PTB Order booking; Outstanding order book of ₹ 271.6 crore, up 11.6% Y-o-Y
• Outstanding order book of ₹ 1,613 crore for combined Engineering Businesses • Outlook for both remains constructive boosted by good domestic demand and foray into
international markets
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
18
FINANCIAL HIGHLIGHTS Q1 FY 24
Q1 FY 24
Q1 FY 24
Change (%)
₹ Crore
Revenue from Operations (Gross)
1,432.26
1,361.48
Revenue from Operations (Net of excise duty)
1,197.94
1,225.67
5.2%
-2.3%
EBITDA
EBITDA Margin
Share of income from Associates
Profit Before Tax (PBT)
Profit After Tax (PAT)
Other Comprehensive Income (Net of Tax)
Total Comprehensive Income
EPS (not annualised) (₹/share)
137.12
123.75
10.8%
11.4%
(0.03)
91.00
67.61
0.47
68.08
3.09
10.1%
8.37
88.68
66.45
-1.74
64.71
2.75
2.6%
1.7%
5.2%
12.3%
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
19
SS 2022-23: RECORD SUGARCANE CRUSH IN THE SEASON
Sugarcane Crushed (Million Tonnes)
Sugar Production (Tonnes)
Net Recovery (%)
+10.8%
+7.5%
8.41
9.33
887171
953436
10.55
10.23
1.80
1.58
188585
166817
Q1 FY 23
Q1 FY 24
SS 2021-22
SS 2022-23
Q1 FY 23
Q1 FY 24
SS 2021-22 SS 2022-23
SS 2021-22
SS 2022-23
Record crush in SS 2022-23 owing to continued investments in modernisation, debottlenecking at
three sugar facilities along with robust sugarcane development programme
Net recovery of 10.23% with 92% of sugarcane crush with B-heavy diversion in SS 2022-23 vs. 84% in the previous season.
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
20
SUGAR: HIGHER REALISATIONS IN BOTH DOMESTIC AND EXPORT MARKETS
Sugar Dispatches (Tonnes)
Average Blended Realization (₹/MT)
-15.6% (Total)
+5.6%
239540
239540
Q1 FY 23
187522
202053
14531
Q1 FY 24
35293
Q1 FY 23
Domestic
Exports
Total
37254
Q1 FY 24
• Contribution of sugar sold in Q1 FY 24 was higher by ₹ 880/tonne over Q1 FY 23 in view of
higher sugar realisation prices
• Achieved sugar exports of 14531 tonnes in Q1 FY 24 out of total export quota of 204868 tonnes
(190337 achieved in FY 23)
• Sugar export prices were at a considerable premium to the domestic prices
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
21
SUGAR: LOWER DISPATCHES IMPACTED TURNOVER & PROFITABILITY
REVENUE
-15.2%
₹ Crore
PBIT
-7.0%
1,051.69
892.33
53.29
49.55
Q1 FY 23
Q1 FY 24
Q1 FY 23
Q1 FY 24
• Lower turnover in the sugar business of 15.2% due to lower domestic dispatches as compared to
previous corresponding year
• This led to lower segment results (PBIT) by 7%
• The sugar inventory as on June 30, 2023 was 43.44 lakh quintals, which is valued at around ₹ 33.6/kg
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
22
SUGAR: HEALTHY DOMESTIC SUGAR REALISATIONS SUPPORTED BY PREMIUM PRODUCT MIX
Triveni Sugar Realisation (Domestic) (₹/Quintal)
3,717
3,523
3,394
3,685
3,570
3,340
3,224
3,168
3,696
3,526
3,505
3,593
3,478
3,307
3,276
3,732
3,568
3,761
3,620
3,639 3,615
3,653
3,527
3,539
3,521
3,511
3,488
3,517
3,513
3,289
3,339
3,333
3,327
3,274
3,311
3,263
3,203
3,257
3,267
April
May
June
July
August
September October
November December
January
February
March
•
Improved realisations over last two years; strong realisations in Q1 FY 24
FY 2021
FY 2022
FY 2023
FY 2024
• We expect sugar prices to stay firm during the year
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
23
ALCOHOL: HIGHEST EVER QUARTERLY ALCOHOL PRODUCTION IN Q1 FY 24
Alcohol Production (KL)
+19.3%
Alcohol Sales (KL)
+9.1%
42273
50446
38902
42457
Q1 FY 23
Q1 FY 24
Q1 FY 23
Q1 FY 24
Avg. Realisation (₹/litre)
-1.5%
57.80
56.96
60.00
58.00
56.00
54.00
52.00
50.00
• Additional capacities commissioned in FY 23
•
•
resulting in highest-ever production in a quarter
Sale of alcohol produced from sugarcane-based
feedstocks (majorly B-heavy molasses) constitutes
64% of the total alcohol sales for Q1 FY 24
Sale of alcohol produced from grain commenced in
FY 23 and accounted for 36% of total sales volumes
Q1 FY 23
Q1 FY 24
in Q1 FY 24
Note: Q1 FY 23 realisation includes relief announced by Oil Marketing Companies from June 1, 2022
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
24
ALCOHOL: SALES GROWTH YEAR-ON-YEAR DRIVEN BY ADDITIONAL DISTILLATION CAPACITIES
₹ Crore
NET REVENUE*
+21.4%
PBIT
+2.4%
243.42
295.46
49.84
51.02
Q1 FY 23
Q1 FY 24
Q1 FY 23
Q1 FY 24
* Revenue net of excise duty
• Additional capacities commissioned in FY 23 contributed to higher Alcohol sales
• Despite having record alcohol production and orders in hand, alcohol sales during the quarter
under review were lower than expected due to offtake issues at OMCs’ end
• Profit margin was lower in the current quarter due to change in product mix; margins
associated with the grain operations are lower than B-heavy molasses
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
25
POWER TRANSMISSION CONTINUES ITS GROWTH PATH
REVENUE
+77.8%
PBIT
+109.8%
₹ Crore
30.43
8.77
54.09
18.40
Q1 FY 23
Q1 FY 24
Q1 FY 23
Q1 FY 24
•
Increase in Q1 FY 24 turnover and profitability driven by product sales across OEMs
• Profitability margins improved to 34.0% in Q1 FY 24 as compared to 28.8% in the corresponding
period last year due to lower raw material costs and cost optimisation of SG&A expenses
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
26
POWER TRANSMISSION CLOSING ORDER BOOK UP 11.6% Y-O-Y
Order Booking
+21.3%
Closing Order Book
+11.6%
₹ Crore
53.89
65.37
243.39
271.63
Q1 FY 23
Q1 FY 24
Q1 FY 23
Q1 FY 24
• The growth in order book during the quarter is driven by growth witnessed across key sectors
such as steel, oil & gas and customer segments such as steam turbines, compressors, pumps
• Outstanding order book as on June 30, 2023 stood at ₹ 271.63 crore including long duration
orders of ₹ 123.84 crore
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
27
WATER: CLOSING ORDER BOOK REMAINS ROBUST
REVENUE
-0.8%
PBIT
+17.6%
Closing Order Book*
₹ Crore
65.26
64.72
2.55
3.00
1,645.47
1,341.06
Q1 FY 23
Q1 FY 24
Q1 FY 23
Q1 FY 24
Q1 FY 23
Q1 FY 24
• Revenues declined marginally due to delay in execution in certain projects • The business is actively targeting foreign projects wherever it possesses the pre-qualifications
and funding is ensured through multilateral and reputed agencies
• Long duration O&M orders in hand as on June 30, 2023: ₹ 905.79 crore
Note: These results are based on consolidated results including wholly owned SPV executing Mathura Project awarded by National Mission of Clean Ganga (NMCG) under Namami Gange Programme and PALI ZLD Pvt. Ltd. *Including long duration orders for Operations & Maintenance (O&M)
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
28
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
29
SUGAR
GLOBAL SUGAR OUTLOOK
• Global Sugar Balance Sheet now pointing to surplus for SS 2022-23 of 0.8 million tonnes. For SS 2023-24, in view of the global demand and supply situation, a surplus of 4.9 million tonnes is expected.
• Bumper sugarcane crop and sugar production expected in
Brazil: With higher than expected agricultural yields, International reports estimate sugarcane availability for the 2023-24 season (April-March) at 612 million tonnes and sugar production of 38.8 million tonnes.
•
International sugar prices continue to remain firm: As on July 21, 2023 the NY #11 front month contract trading around US 24.5 cents/lb, London #5 trading around at $686.50 tonne
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
Source:
31
DOMESTIC SUGAR OUTLOOK
• Closing stock of 6.0 million tonnes expected for SS 2022-23: As per recent estimates that with an opening balance as on October 1, 2022 of around 7.0 million tonnes, sugar production for SS 2022-23 of around 32.8 million tonnes, domestic sales of around 27.5 million tonnes and 6.15 million tonnes of sugar exports, the closing stock is expected at 6.0 million tonnes.
• Monsoon Updates: For North India and the state of Uttar
Pradesh, rainfall during this monsoon season, in the first half of July, has been significantly higher than last year, which is likely to aid the sugarcane crop growth. There is also an apprehension of a mild EL Nino which may occur.
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
Source:
32
THE INDIAN SUGAR INDUSTRY IS MOVING AWAY FROM CYCLICALITY
• Structural shift from a cyclical industry into more secular and consistent performance-based industry driven by timely and predictable Government intervention
• Consistent production much above the consumption levels, has led to a surplus and India becoming a regular exporter of sugar
• Record exports ~11.1 million tonnes during SS 21-22 despite no export assistance; 6.15 million tonnes estimated during SS 22-23
• Also supported by progressively increasing diversion of sugarcane
for production of ethanol under EBP programme from 0.34 million tonnes in SS 18-19 to 3.4 million tonnes in SS 21-22, increasing further to 4.0 million tonnes in SS 22-23
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
33
STELLAR SUGAR BUSINESS PERFORMANCE YEAR AFTER YEAR
Area under Sugarcane (Lakh Hectares)
Sugarcane Crushed (LQ)
7 6 . 1
5 1 - 4 1 0 2
7 5 . 1
6 1 - 5 1 0 2
7 6 . 1
7 1 - 6 1 0 2
3 8 . 1
8 1 - 7 1 0 2
4 9 . 1
9 1 - 8 1 0 2
2 9 . 1
0 2 - 9 1 0 2
6 9 . 1
1 2 - 0 2 0 2
Sugar Produced (Lakh Quintals)
1 2 . 5 9
8 1 - 7 1 0 2
3 0 . 4 9
9 1 - 8 1 0 2
7 7 . 0 7
7 1 - 6 1 0 2
2 9 . 0 0 1
0 2 - 9 1 0 2
0 8 . 3 9
1 2 - 0 2 0 2
5 0 . 9 4
5 1 - 4 1 0 2
5 8 . 8 4
6 1 - 5 1 0 2
8 9 . 1
2 2 - 1 2 0 2
5 7 . 8 8
2 2 - 1 2 0 2
6 0 . 2
3 2 - 2 2 0 2
4 3 . 5 9
3 2 - 2 2 0 2
3 1 5
5 1 - 4 1 0 2
2 5 4
6 1 - 5 1 0 2
0 4 6
7 1 - 6 1 0 2
7 3 8
8 1 - 7 1 0 2
8 9 7
9 1 - 8 1 0 2
4 7 8
0 2 - 9 1 0 2
4 5 8
1 4 8
1 2 - 0 2 0 2
2 2 - 1 2 0 2
Gross Recovery (%)
7 5 . 9
5 1 - 4 1 0 2
0 8 . 0 1
6 1 - 5 1 0 2
6 0 . 1 1
7 1 - 6 1 0 2
8 3 . 1 1
8 1 - 7 1 0 2
9 7 . 1 1
9 1 - 8 1 0 2
7 9 . 1 1
0 2 - 9 1 0 2
6 8 . 1 1
1 2 - 0 2 0 2
0 7 . 1 1
2 2 - 1 2 0 2
2 3 9
3 2 - 2 2 0 2
7 4 . 1 1
3 2 - 2 2 0 2
Note: Data for Sugar Seasons; Gross recoveries (after adjustment on account of B-heavy molasses and syrup diversion) Recent crush and recoveries impacted by climatic factors across the state of UP; Triveni amongst the leaders in peer group
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
34
THE TRIVENI USP
• Strategic Location: Presence in Western and Central UP which
has one of the best cane area with high yields and water availability. Strong farmer relations, timely sugarcane payment resulting in high drawl rates and good cane productivity
• Strong recovery: The Company has one of the best recoveries in
the state of Uttar Pradesh
• Product Mix and Price Benefit: production capacity of ~60% refined sugar, coupled with the high-grade pharmaceutical quality sugar produced, helps secure higher realisations
• Prestigious Customer base: Key supplier to major multinational soft drink companies, leading confectionery manufacturers, breweries, pharmaceutical companies, dairies and leading ice cream producers.
• ~335k+ farmer relationships
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
35
OUR SUGAR BUSINESS INITIATIVES
Ongoing: • Expansion in the capacity of one of the existing sugar units at Sabitgarh by 2000 TCD (from 7000 TCD to 9000 TCD). With the proposed expansion, the total crushing capacity of the Company will stand augmented to 63,000 TCD
• Process change to DRP (Refining process) at Milak Narayanpur • Modernisation, debottlenecking & efficiency improvements at various sugar units towards cost
optimisation
• Enhancing sugarcane availability with minimal capex to increase the raw material for both sugar and
distillery operations
• Structured Sugarcane Development Programme for varietal substitution to gradually replace the star Co-
0238 variety by other high sugared and high yielding sugarcane varieties
Completed: • Modernisation of three of the existing sugar units at Khatauli, Deoband and Sabitgarh in Uttar Pradesh
which has led to enhancement in crushing efficiency in SS 2022-23
• Doubling capacity for pharmaceutical sugar which fetches a substantial premium over refined sugar,
making Triveni among the largest producer in the country
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
36
SUGARCANE DEVELOPMENT PROGRAMME
• Significant focus on Yield improvement through various agronomic
interventions (e.g. wide spacing, trench planting, etc.)
• Emphasis on before wheat planting has led to an overall increase in its area,
providing higher time in the field to the spring planted sugarcane
• Active engagement with farmers: Development of very large number of
model demonstration (demo) plots with 40-50% higher yields, for neighbouring farmer visits to understand know-how on yield enhancement activities, which can be replicated in own plots with an objective on yield and thereby income enhancements
• Soil Health Improvement: Application of balanced dosage of fertilizers &
nutrients as per soil analysis reports and recommendations
• Crop Protection from different Pests & Diseases using a structured surveillance programme. Farm implements and mechanization for enhancing inter-cultural operations, etc.
• Various digital initiatives towards sugarcane development programme
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
37
TRIVENI BRANDS: GETTING FUTURE READY
• Triveni sees a bright future for branded sugar in India, set to
grow at double digit CAGRs over the next 5 years
• Tremendous scope to bring to market higher grade and quality
offerings with premiumization trends
• Focus on high quality products under trustworthy brands with an omni channel sales & distribution strategy while maintaining a lean structure
• Triveni Sugar brings to market Premium White Crystal Sugar, High Grade Brown Sugar and SweetLite (A stevia blended product) – all in the premium priced zone
• North India’s largest contract manufacturing business around
private label sugar
• FY 23 revenue of Triveni brands @ ₹ 133 crore
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
38
ALCOHOL
ALCOHOL SEGMENT DRIVEN BY ETHANOL DEMAND
• Government actively promoting the production
and blending of fuel ethanol with petrol, and has targeted 20% blending under Ethanol Blended Petrol (EBP) Programme by 2025 or EBP20
• To achieve the target of 20% blending by 2025, ~1,000+ crore litres of ethanol will be required. With ~300+ crore litres for other usage, there is need to create capacity of ~1,700 crore litres, assuming plants operate at 80% efficiency.*
•
Industry and Triveni estimates of ~4.0 million tonnes of sugar will get diverted during SS 22-23 for ethanol production which was around 3.4 million tonnes during previous season
Ethanol Demand Drivers
need for renewable fuel for cleaner environment
increasing mobility
reducing trade deficit by lowering foreign exchange outgo
employment generation in rural areas
financial viability of sugar mills
utilising wide array of feedstocks that are surplus in the country like grain, rice, etc.
* Source: May 2023 comments from Food and Consumer Affairs Ministry
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
40
SUGARCANE - THE MAINSTAY OF THE ETHANOL BLENDING PROGRAMME
• Ethanol from sugarcane route continues to dominate and contributes 80-85% of total supplied quantities, despite having a lower share for last two years in terms of contracted quantity.
• We believe sugarcane will remain the major contributor to the production of ethanol under EBP20.
• Triveni: Sale of alcohol produced from
grain commenced in FY 23 and accounted for 25% of total sales volumes in FY 23, with the balance 75% from sugarcane-based feedstocks
86%
81%
86%
83%
81%
71%
29%
19%
14%
18%
17%
14%
Grain - % of Contracted Quantity
Grain - % of Supplied Quantity
Sugarcane - % of Contracted Quantity
Sugarcane - % of Supplied Quantity
ESY 20-21
ESY 21-22
ESY 22-23*
Note: *ESY 22-23 is Dec-22 to Oct-23 i.e. 11 months. Data for ESY 22-23 till July 2, 2023)
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
41
CONTINUED ETHANOL PRICING IMPROVEMENTS
• Government has been incentivizing the industry through supportive ethanol prices under the EBP Programme
• Prices were revised for Ethanol Supply Year (ESY) 2022-23, however we believe that to achieve the aggressive
blending targets more support is needed especially for sugarcane juice/syrup and grain as feedstocks
• Ethanol Supply Year (ESY) has also been redefined as a period of ethanol supply from 1st November of a year to 31st October of next year from 1st November 2023 onwards. In view of the above change in ESY period, the ESY 22-23 period will be considered from 1st December 2022 to 31st October 2023 i.e. 11 months
India Ethanol Pricing (₹/litre)
65.61
63.45
60.73
59.08
70.00
65.00
60.00
55.00
50.00
45.00
40.00
55.54
52.92
58.50
56.87
49.41
46.66
Sugarcane Juice / Sugar / Sugar Syrup
B-Heavy Molasses
C-Heavy Molasses
Damaged Food Grain
Surplus Rice sourced from FCI
ESY 21-22
ESY 22-23
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
42
OUR ALCOHOL BUSINESS STRENGTHS
• Flexibility of both feedstock (grain/sugarcane based) and
product mix (ethanol/ENA/Rectified Spirit, etc.) to optimize production and profitability based on economics
• High operational efficiencies with continuous focus on the
same to further improve recoveries and reduce supplementary fuel
• Full capacity utilization to maximize production
• High adherence to Environment, Health, Safety and
Sustainability standards
• Modern & Efficient Technology employed to achieve Zero
Liquid Discharge (ZLD)
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
43
TIMELY AND EFFICIENT INVESTMENTS TO INCREASE DISTILLATION CAPACITIES
• Triveni has been at the forefront of setting up distillation capacities in a timely and efficient manner
• Short timeframe in setting up large scale distilleries utilizing the entire range of established feedstocks has been a key strength
In KLPD
₹ 460 CRORE
1110
₹ 100 CRORE
₹ 250 CRORE
320
320
520
160
40
320
660
200
60
400
650
60
400
FY 21
FY 22
FY 23
Planned
Molasses-based
Grain-based
Dual-feed
Total Capacity
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
44
OUR ALCOHOL BUSINESS INITIATIVES
Ongoing:
• Overall capacity will be further expanded to 1110 KLPD
• Enhancement of sugarcane availability: Higher sugarcane crush will boost availability of sugarcane
derived feedstock for distillery operations
• Enhancing various value adding propositions through sale of DDGS, potash-rich fly ash, CO2
Completed:
• Capacity expansion: Achieved overall capacity of 660 KLPD. First company to see such large
incremental capacity coming onstream with Milak Narayanpur being the first distillery of its size in the country utilising the entire range of feedstocks
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
45
OUR VALUE ADDED PROPOSITION: DISTILLERS DRIED GRAIN SOLUBLES (DDGS)
Facilities at Milak Narayanpur & Muzaffarnagar to help us enhance our value proposition through their partial/full operations on grains
• The by-product of grain-based operations, DDGS, is a protein rich
product derived from grains after converting starch in fermentation with yeast to produce Ethanol
•
It provides a good amount of protein, fibres and other nutrients, and is a food supplement for poultry, cattle feed, livestock, aquatic products, etc.
• With no branded DDGS currently in the market, the potential for boosting our revenues and enabling profitability with high quality DDGS
• DDGS selling price of ₹ 22.5-30/kg translating to ₹ 8-12/liter of
alcohol leading to significant offset of raw material and conversion cost
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
46
OUR VALUE ADDED PROPOSITION: FLY ASH
• The process of conversion of molasses to ethanol generates spent wash (an effluent) which upon concentration is called Slop, further used as fuel in the Incineration boilers which leads to fly ash generation which is rich in potash
• We supply this fly ash for additional revenues,
wherein the customer convert the same to produce granules of potassic fertilizers.
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
47
OUR VALUE ADDED PROPOSITION: CO2
•
In the fermentation process of alcohol manufacturing, carbon dioxide is generated as a by-product. This carbon dioxide can be captured, purified, liquified and put into cylinders or converted into dry ice.
• The Company has a carbon dioxide capturing unit at its
Sabitgarh distillery on a BOO basis for which we are paid for the raw carbon dioxide to earn additional revenues. Exploring the possibilities of installing 2 more plants in units
• This is an initiative towards Environment, reduction of emission of Green House Gases (GHG). New opportunities on carbon sequestration by capturing CO2 and storing / injecting underground for mineral value are also being explored
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
48
POWER TRANSMISSION
DIVERSE PRODUCT PORTFOLIO ADDRESSING A MULTITUDE OF INDUSTRIES
• High power & high speed gears designed for steam
turbines, gas turbines, compressors, pumps, blowers, and other special purpose industry applications
• Niche low speed gearboxes for mini hydel turbines,
steel mills, sugar mills, rubber mixers and extruders, cement mills, thermal plants, plastics etc.
• Marine gearing solutions
• Naval and Defence products
• Spares and Aftermarket solutions
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
50
Note: Sample list
MULTI-PRONGED STRATEGY IN POWER TRANSMISSION BUSINESS
Pillars of our strategic approach:
• World-class technology
• Automation & Digitalisation
• Associations & tie-ups
• Cost management & efficiencies
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
51
FORAY INTO DEFENCE
Our Defence Portfolio:
• Propulsion Gearboxes and other critical gearboxes
• Critical Turbo and Motor-driven Pumps
• Gas Turbine Generators for auxiliary power
• Steam Turbines to complex Turbo-Auxiliaries
• Propulsion System Integration
• Propulsion Shafting
• Solutions for Steering Systems / Stabilisers
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
52
POWER TRANSMISSION BUSINESS HIGHLIGHTS
• Among the largest engineered to order turbo gear manufacturer
• Largest domestic market share across OEMs & Patronised by
global OEMs across application spectrum like STG/GTG/ Compressor / Pumps / Blower / ID-FD Fans
• One of the few companies globally catering to AGMA & API
standards and supplying gearboxes to hazardous and sub-zero temperatures
• Centred on Operational Excellence: Integrated plant located in
Mysuru, Karnataka with state of the art infrastructure
•
Industry leading Product delivery cycle: Ranging from few weeks to 6 months for full gearboxes
• Strong focus on value engineering, low cost manufacturing, R&D
for new product and expertise in reverse engineering & replacement solutions
• Providing critical technology and engineered solutions on multiple
fronts to Indian Navy and Indian Defence industry
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
53
OUR POWER TRANSMISSION BUSINESS INITIATIVES
Ongoing:
• Ongoing expansion of power transmission business at an aggregate cost of ₹ 180 crore for setting up a new multi-modal facility, dedicated to Defence products; a new bay proposed to be set up along with a large grinder, hobber and other supporting machines & equipment for power transmission and defence products etc. to enhance the capacity from ₹ 250 crore to ₹ 400 crore
Completed:
• Signed of a 10-year business agreement with GEAE Technology USA to locally manufacture the
LM2500 gas turbine base and enclosure
• The Indian Navy has chosen Triveni as its reliable supplier of Turbo Alternator Turbines (TAT) and
turbopumps, for the indigenous submarine programme
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
54
POWER TRANSMISSION BUSINESS OUTLOOK
• Outlook for the domestic product segment within high speed gears is
extremely promising as industrial CapEx in sectors like sugar, distillery, oil & gas, cement, steel is growing and have been supported by policies and robust economic growth
• Focus on market share gains in product segment, especially from the international market through greater promotion of our technology and focus on new and existing customer relationships.
•
•
•
Increasing footprint to capture high-growth opportunities for Aftermarket segment through a combination of own efforts and expanding the agents’ network
In the Defence segment, the business expects increased order booking from key segments of Gas Turbines packaging, gearboxes and special application pumps where the key activities of qualifications and Request For Proposal (RFP) have progressed considerably in the last couple of years
Setting up of dedicated multi-modal facility for Defence products will also help the business gain confidence of key customers and expand its service offerings
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
55
WATER SOLUTIONS
WATER & WASTEWATER OPPORTUNITIES AND THE WAY FORWARD
• Global water crisis: Increased demand for water resources, more than 2 billion people globally live in water stressed countries. Situation is getting worse with climate change
• Water is undervalued, and proper incentives are not in place to
use water resources efficiently
•
Indian Government along with State Governments focusing on making country’s water secure
• Surface wastewater discharge norms revised as per National
Green Tribunal (NGT) order and high potential for rehabilitation of existing & new STP’s
• Promulgation & promotion on PAN India Government policies to utilize tertiary treated water from sewage / effluent treatment plants
• Desalination being promoted in coastal regions of Tamil Nadu,
Gujarat and water deficit coastal Regions
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
57
WATER: TRIVENI‘S CUSTOMISED AND SUSTAINABLE FUTURISTIC SOLUTIONS
CUSTOMERS Industrial • • Municipal •
Specialized projects
MODES OF OPERATION • End-to-end Turnkey / EPC offerings • Build, Own, Operate, Transfer (BOOT) model • Private Public Partnership (PPP)
TYPES OF PROJECTS • Water treatment (Raw, Process, Desalination) • Wastewater/Sewage treatment • Recycling & zero liquid discharge • Bio gas system with power generations • Water/Wastewater Sludge treatment and management • Water & wastewater network management • Hybrid Annuity Model (HAM) • Water treatment plants • Oil Water separation
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
58
WATER BUSINESS HIGHLIGHTS
•
•
•
•
EPC solutions for water/wastewater treatment and recycling of water, for industrial and municipal applications
~12,000 Million Liters Per Day (MLD) water treated
>2,000 process equipment supplied and commissioned
Executed some of the largest projects in India
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
59
SELECT ON GOING WATER & WASTEWATER PROJECTS
• Awarded the Pali HAM/PPP project
• Awarded an EPC Project in Bangladesh under a joint-venture with
a local company
• Awarded the Bhiwadi 6 MLD Zero Liquid Discharge project
• 205 MLD STP (3 Phases) at Kondli based upon new NGT norms for
Delhi Jal Board funded by JICA, under YAP(III) package K3
• 210 MLD WTP at Greater Noida for Greater Noida Industrial
Development Authority
• Water & Sewerage system for 6 Islands in Maldives including RO
for Govt Of Maldives funded by Exim Bank of India
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
60
WATER & WASTEWATER DEVELOPMENTS AND THE WAY FORWARD
• After achieving success in Maldives and Bangladesh, Water business is trying to expand activities in overseas markets • Domestic market opportunities are increasing in Recycle &
Reuse of wastewater and water business is equipped to target this market.
• Business is also exploring Public Private Partnership (PPP)
opportunities for Sewage Treatment Plant (STP) recycling on PPP format.
• Municipal business opportunities are looking attractive in many key states such as Karnataka, UP, Punjab, Delhi, Telangana, and Maharashtra.
• Outlook is positive for EPC and HAM projects driven by large
investments by Governments, both at state level and at central. Market is witnessing increasingly more & more projects under Public Private Partnership (PPP) - HAM model and the Company would widely participate in this business segment.
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
61
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
SHAREHOLDING PATTERN
60.98%
4.23%
8.14%
19.89%
4.25%
1.89%
0.62%
Promoter Group Resident Individuals Others
Foreign Portfolio Investors Corporate Bodies
Mutual Funds + AIF NRI
Note: For the quarter ending Jun 30, 2023. Others comprise of Clearing members, HUF, Trust, IEPF, etc.
COMPANY OVERVIEW
OUR 5-YEAR JOURNEY
FINANCIAL RESULTS Q1 FY 24
BUSINESS-WISE UPDATE
SHAREHOLDING PATTERN
63
INVESTORS CONTACT
Surabhi Chandna Triveni Engineering & Industries Ltd. Tel. +91 120 430 8000 Fax : +91 120 431 1010 ir@trivenigroup.com www.trivenigroup.com
Gavin Desa/ Rishab Brar Citigate Dewe Rogerson Tel: +91 22 66451237/1235 gavin@cdr-india.com / rishab@cdr-india.com
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SAFE HARBOUR/LEGAL DISCLAIMER
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 Engineering & Industries Ltd. makes no representation as to their accuracy or that the company subscribes to those views / findings.
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COMMONLY USED TERMS
Term
AGMA
Alcohol
API
ASP
Bagasse
Definition
American Gear Manufacturers Association (AGMA)
Colourless liquid produced by natural fermentation of sugary feedstocks and used as an intoxicating constituent of
potable spirits, industrial solvent and as fuel
American Petroleum Institute
Activated Sludge Process
Cane fibre leaving cane mill after extraction of juice
B-Heavy Molasses
These are molasses produced from 2nd stage (B-massecuite) pan boiling during production of sugar
BNR
BOD
Biological Nutrient Removal
Biological oxygen demand
Cane development
Activities for improving quality and quantity of cane in sugarcane command area of factory
Cane yield
Cane produced per acre/hectare
C-Heavy Molasses
COD
Co-product
Also known as final molasses, blackstrap molasses, treacle. This is the end by-product of the processing in the
sugar factory.
Chemical oxygen demand
Products of the sugar industry essentially e.g. bagasse, press cake, molasses, simultaneously produced during
sugar production
Co-generation
Production of electricity and usable steam in same plant
CSR
DDGS
Corporate Social Responsibility
Distillers Dried Grain Solubles. A co-product of a grain ethanol facility which contains higher protein and is sold as
an animal feed, poultry and swine feed.
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COMMONLY USED TERMS
Term
Definition
Denatured spirit
Ethanol that has additives to make it poisonous, bad tasting, foul smelling or nauseating to discourage its
recreational consumption.
Distillation
Process of separating alcohol from water via evaporation and condensation
EBP
EHS
ENA
Fly ash
Ethanol Blended Petrol. The EBP programme seeks to achieve blending of ethanol with petrol with a view to
reducing pollution, conserve foreign exchange and increase value addition in the sugar industry enabling them to
clear cane price arrears of farmers.
Environment, Health & Safety
Extra Neutral Alcohol. Colourless food grade alcohol without any impurity, used in alcoholic beverages.
Fine solid particles of ashes, dust and soot carried out from burning fuel
Fuel grade ethanol or fuel ethanol Ethanol used for blending in low concentration in gasoline
Grain distillery
GTG
ID-FD
MBBR
MEE
MoEF & CC
Molasses
Distillery producing Ethanol / Alcohol using grain as a feedstock. Starch available in grain is converted with
enzymes to sugar and fermented with yeast to produce grain alcohol
Gas Turbine Generator
Induced Draft/Forced Draft
Moving Bed Biofilm Reactor
Multi Effect Evaporator
Ministry of Environment, Forests & Climate Change
A co-product/by-product of sugar manufacturing process used mainly for ethanol production
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COMMONLY USED TERMS
Term
Definition
Multi-feed distillery
NGT
O&M
OMC
Distillery producing Ethanol / Alcohol using various feedstocks such as sugarcane juice/syrup, grains, B-Heavy
molasses, C-Heavy molasses
National Green Tribunal
Operations & Maintenance
Oil Marketing Companies
Potable alcohol
Highly purified alcohol with very neutral odor and taste
Rectified spirit
RO
SBR
SLOP
Steam cycle
STG
STP
Sugarcane juice
Sugarcane syrup
WTP
ZLD
Alcohol of 95% concentration which is used for Industrial purpose as well as for manufacturing Potable Alcohol &
Ethanol
Reverse Osmosis
Sequencing Batch Reactor
Slop is the concentrated spent-wash which is an effluent generated during alcohol manufacturing in distilleries,
which is used as fuel in incineration boilers
A process in which steam is generated in a boiler, produced steam is expanded through a turbine to extract
mechanical work, steam is condensed into water and water is feed to the boiler to produce steam.
Steam Turbine Generator
Sewage Treatment Plant
Juice obtained from sugarcane after crushing it in mills
Sugar solutions of higher concentration obtained after evaporating water of juice in evaporators
Water Treatment Plant
Zero Liquid Discharge
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