Triveni Turbine gains on renewed buying on positive FY 2014 outlook

The company announced the results during trading hours on Friday, 11 January 2013. The stock had fallen 1.32% to settle at Rs 59.65 on Friday, 11 January 2013.

Meanwhile, the BSE Sensex was up 163.66 points or 0.83% at 19,827.30.

On BSE, 9,932 shares were traded in the counter as against average daily volume of 59,739 shares in the past one quarter.

The stock hit a high of Rs 60.40 and a low of Rs 58.20 so far during the day. The stock had hit a record high of Rs 63.50 on 9 January 2013. The stock had hit a 52-week low of Rs 36.10 on 20 January 2012.

The stock had outperformed the market over the past one month till 11 January 2013, surging 11.91% compared with the Sensex's 1.43% rise. The scrip had also outperformed the market in past one quarter, jumping 18.35% as against Sensex's 4.57% surge.

The company has equity capital of Rs 32.99 crore. Face value per share is Re 1.

Triveni Turbines' net profit jumped 48.2% to Rs 30.52 crore on 18.7% growth in net sales to Rs 173.04 crore in Q3 December 2012 over Q3 December 2011.

Commenting on the company's Q3 performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Turbine said, "The performance for the quarter under review has been satisfactory especially in this bleak economic scenario in the domestic market. We could substantially bridge the gap in the year-on-year variation in turnover during the nine month period while increasing our profitability. The company's continuing focus and strategy on the export market to overcome the domestic market slow-down has paid rich dividend and the results have started reflecting in our performance. During the nine month period, export turnover is higher by 158% year�on-year while the order in-take during the same period has been higher by 54%. Further, the visibility for future on the export front is also very good with a strong enquiry book from varied markets globally. Similarly, the aftermarket revenues have also shown good growth at 10% year-on-year resulting in an improved share of aftermarket to 18% from 16% last year. The switch in product sales skewed towards higher export mix coupled with the increase in aftermarket enabled the company to show an improvement in PBT margin by over 400 basis points. With the current trend in order execution and expected export order inflows in the coming quarters based on a strong enquiry book, we are confident of achieving a single digit growth both in turnover, with expanded margins, for the full year and also continue our growth story into FY 2014".

"GE Triveni (GETL), the joint venture (JV) has successfully delivered its first turbine which is currently under commissioning. The JV also received an order through one of the largest power sector Engineering, Procurement and Construction (EPC) company for the supply of two advanced steam turbines of 40 MW each, for a new 80 MW distributed power plant that will generate power for a leading GoI Enterprise engaged in mining & metal industry at its new 3 million tonne per annum integrated steel plant in Central India. This is a welcome break for GETL and we believe that the business should start getting the requisite traction and should be on a strong footing in FY 2014", Mr. Sawhney added.

On its future business prospects, Triveni Turbine (TTL) said the order book composition from various sectors shows a healthy mix. Further, the thrust of the company on continuous research & development has resulted in foray into higher MW, high-temperature, high-pressure turbines and a broader product range will enhance the market of its products, the company said. The company has also been focusing on the exports market in a big way to compensate for slowdown in the domestic market, TTL said in a statement.

TTL said that the overall domestic market for the sub 30 MW power products has shown a decline year-on-year due to challenging macro economic factors. Even under these circumstances, the company continued to maintain its market share of around 60%, TTL said. Triveni said it is optimistic that the slowdown may not continue for long and with some policy actions by the Government, the markets may revive in the FY 2014.

TTL said that the availability of consistent and reliable power for industrial sector remains a challenge and has resulted in setting up of captive generation facilities. This will have an impact on the cost of production for many of these units, the company added. This has been the main driving force for the demand for the company's products and is expected to remain in future as well, TTL said in a statement.

GE Triveni, the subsidiary of TTL, is a JV of TTL with General Electric to manufacture and market steam turbines from above 30 MW to 100 MW for the global market.

Triveni Turbine's (TTL) core competency is in the area of steam turbines manufacturing upto 30 MW size.

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