Triveni Engineering gains as Q2 profit up nearly three-fold

The stock rallied 10% to Rs 64.70 on the BSE at intra-day trade after company reported profit of Rs 68 crore in Q2FY17 against Rs 23 crore in Q2FY16.

Triveni Engineering & Industries rallied 10% to Rs 64.70 on the BSE at intra-day trade after the company reported nearly three-fold jump in consolidated net profit at Rs 68 crore for the quarter ended September 30, 2016 (Q2FY17), on back of higher operational income. The company had profit of Rs 23 crore in the same quarter last fiscal.

Net sales of the company rose by 49% to Rs 641 crore against Rs 431 crore in the corresponding quarter of previous fiscal.

EBITDA (earnings before interest, tax, depreciation and amortization) margin expanded 400 basis points to 21% compared to 17% last year.

“Significant improvement in the performance in the quarter under review is due to the higher sugar realization prices – quarter over quarter as well as significantly higher sugar prices in comparison to year on year and improved performance of distillery business owing to increased realization prices and sale volumes,” Triveni Engineering said in a statement.

The performance of the engineering businesses was subdued during the quarter and half-year due to sluggish demand and overall subdued economic activities. The order intake has been sluggish during the quarter but with many of the enquiries which are in the advanced stages of finalization, we expect the order booking position for both the Engineering businesses to improve in the second half of the current financial year, it added.

At 10:04 am; the stock was up 5% at Rs 61.80 on the BSE, as compared to 0.38% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 1.9 million shares changed hands on the BSE and NSE so far.