Triveni Turbine surges 4%, nears record high on healthy business outlook

ICRA upgraded the long-term rating of the bank facilities of TTL on expectation of improvement in revenues, operating profits, and robust debt coverage metrics in FY2023-FY2024

Shares of Triveni Turbine (TTL) surged 4 per cent to Rs 356.04 in Wednesday’s intra-day trade, in an otherwise subdued market, on expectation of healthy business outlook. The stock traded close to its record high level of Rs 368.30, which it had touched on March 1, 2023. In comparison, the S&P BSE Sensex was down 0.19 per cent at 60,019, as of 9:58 am.

TTL is an established industrial steam turbine manufacturing company and holds leadership position in the sub-30-megawatt (MW) capacity turbine category. It manufactures steam turbines upto 100 MW. Over the years, the company has completed more than 5,000 installations in the domestic and export markets.

TTL’s order booking reached a new high of Rs 420 crore during October-December quarter (Q3FY23), leading to a total order booking of Rs 1,139 crore during 9MFY23, up 26.5 per cent when compared to same period last year and only marginally below the order booking for the entire FY22.

With solid performance across its geographies and business segments, the management said that the company had an impressive closing order book of Rs 1,232 crore, up 33 per cent year-on-year (YoY), as on December 31, 2022, placing it in an extremely favourable position for the year to come.

Against this backdrop, ratings agency ICRA upgraded the long-term rating of the bank facilities of TTL on expectation of improvement in its revenues, operating profits, and robust debt coverage metrics in FY2023-FY2024.

"This is supported by a healthy order book of Rs 1,232 crore as on December 31, 2022 – a multi-year high, robust order intake and a continued favourable investment cycle in various end-user industries in India as well as globally. The current order book lends increased revenue visibility at 1.1 times (order execution period is generally 6-12 months for the product segment and 3-9 months for the aftermarket segment) amid the ongoing capacity expansion in various key end-user segments in both the domestic and global markets," the ratings agency said.

Moreover, analysts believe that the settlement of dispute with respect to Triveni Energy Solutions Limited (TESL; formerly known as GE Triveni Limited) with its JV partners would aid focused business growth in the 30-100 MW segment as well.

TTL holds a dominant position with around 60 per cent market share in the sub-30 MW domestic steam turbines market, aided by a healthy pipeline of orders and strong research, development, and engineering capabilities.