Detailed Narrative
Q4 and FY25 Financial Performance Highlights
Triveni Engineering & Industries reported a strong Q4 FY25, achieving record revenues of over ₹1,925 crore and a record PAT of ₹187.1 crore. For the full fiscal year 2025, revenue from operations, net of excise duty, stood at ₹5,689 crore, marking a 9% increase year-on-year, with PAT reaching ₹238.3 crore. This performance was notably bolstered by the engineering segments, particularly Power Transmission, which delivered stellar results.
Sugar Business Performance and Outlook
The Sugar business experienced a 2.8% increase in turnover for FY25, primarily due to higher realization prices. However, segment profits declined by 12.8% year-on-year, driven by higher costs of sugar sold and a 69 basis points reduction in gross recovery. The company's sugar inventory as of March 31, 2025, was 60.4 lakh quintals, valued at ₹37.62 per kilo. Management anticipates a 10-15% increase in sugar production for FY26, supported by favorable monsoon forecasts and ongoing efforts in cane development and varietal changes.
Alcohol Business and Ethanol Blending
The Alcohol business saw its net turnover increase by 15.7% in FY25, largely due to the commissioning of a new multi-feed distillery at Rani Nangal. Profitability was adversely affected by higher sales volumes of maize-based ethanol, which has significantly lower margins compared to ethanol produced from FCI rice. Ethanol from grain-based stocks constituted 51% of total alcohol sales in FY25, up from 33% in FY24. The domestic ethanol industry successfully achieved the 20% blending target ahead of schedule, with April 2025 blending reaching 19.7%.
Engineering Businesses: Power Transmission and Water
The Power Transmission business delivered a remarkable performance, with turnover increasing by 27% and profitability by almost 19% in FY25. The segment's PBIT margins exceeded 34%. Order booking for the year was strong at over ₹475 crore, with a closing order book of approximately ₹390 crore as of March 31. The Water business, despite a slight decline in revenues due to project execution delays, secured new orders worth ₹586 crore for the year, bringing its outstanding order book to over ₹1,600 crore, including ₹1,100 crore for long-term O&M contracts.
Capital Allocation and Corporate Restructuring
The company's consolidated gross debt stood at ₹1,969 crore as of March 31, 2025. A final dividend of 250% for FY24-25 has been recommended. Triveni is undertaking a ₹60 crore capex for its Power Transmission business, aiming to expand annual capacity to ₹700 crore by September 2026. The merger of Sir Shadi Lal and the demerger of the Power Transmission Business are progressing as per plan, with the PTB separation expected by Q4 FY26, pending regulatory approvals from SEBI and NCLT.