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Triveni Engineering and Industries Ltd.

BSE: 532356 Sector: Agri and agri inputs
NSE: TRIVENI ISIN Code: INE256C01024
BSE 00:00 | 30 Sep 254.25 8.70
(3.54%)
OPEN

244.05

HIGH

255.25

LOW

243.45

NSE 00:00 | 30 Sep 254.20 8.40
(3.42%)
OPEN

246.00

HIGH

255.40

LOW

243.20

OPEN 244.05
PREVIOUS CLOSE 245.55
VOLUME 66226
52-Week high 374.00
52-Week low 181.25
P/E 16.96
Mkt Cap.(Rs cr) 6,148
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 244.05
CLOSE 245.55
VOLUME 66226
52-Week high 374.00
52-Week low 181.25
P/E 16.96
Mkt Cap.(Rs cr) 6,148
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Triveni Engineering and Industries Ltd. (TRIVENI) - Chairman Speech

Company chairman speech

Dear Shareholders

Having successfully navigated the COVID-19 triggered tribulations yourCompany reported extraordinary performance during FY 22 and exited the year with excellentresults.

I am happy to report that all our businesses contributed significantlyto the Company?s growth and profitability. Our positive performance equipped us toeffectively lead the journey of self-reliance on which we are partnering with the nation.We see in India?s progress the inclusive and holistic growth of the Company and eachof our stakeholders and have committed ourselves to propel the nation?s effortstowards becoming more self-sustaining.

With our strategic response and efforts of the previous fiscaltranslating into tangible and targeted initiatives FY 22 proved to be a notable year forthe Company on both the financial and operational metrics.

We reported our highest ever annual profitability with theConsolidated Profit Before Tax (PBT) going up 25% year-on-year to touch Rs 574 crore. Thegrowth in Consolidated Profit After Tax (PAT) was even more impressive with TEILregistering 44% increase to reach Rs 424 crore. I am happy to share that driven by thesenumbers the Company?s Board has decided on a final dividend of Rs 2 per equity shareor 200% for FY 22. Together with the interim dividend paid during the year of Rs 1.25 perequity share or 125% the total dividend aggregates to Rs 3.25 per equity share of theface value of ~ Rs 1 each or 325% for FY 22. This implies a 20% payout on standaloneprofits.

What is truly notable about the Company?s exceptional financialperformance is that it has come despite lower sales volume in the Sugar segment impactingour net turnover. The overall business performance however remained in the positiverange on account of the increase in turnover in other segments with the Alcohol businessin particular reporting significant gains.

Our healthy performance and growth in the Alcohol segment is theoutcome of our strategic focus on partnering India?s ethanol journey which theGovernment is continually scaling to further the country?s sustainability goals. Weare striving continuously to gain from the Government?s push for ethanol blendedpetrol. Subsequent to the year we expanded the operations of our existing distillery atSabitgarh to 200 KLPD capacity from the earlier 160 KLPD and also operationalised a 160KLPD multi- feed distillery at our Milak Narayanpur plant. I am happy to share that thelatter became our first distillery to run on sugarcane juice/syrup.

With the imminent commissioning of our grain-based distillery of 60KLPD and further enhancement of capacities at our existing facilities at Milak Narayanpurand Muzaffarnagar the total alcohol manufacturing capacity will reach 660 KLPD by July2022. We remain committed to harnessing the opportunities of this segment to delivergreater value to all our stakeholders while further consolidating our performance toenable long-term and viable growth. The Indian Government?s decision to advance theE20 by 2025 (20% ethanol blending by 2025) has paved the way for even better growth inthis segment which we are gearing up to capitalise on. Our core capabilities andexperience backed by our focussed strategy of investing in key areas of sustainablelong-term growth equip us to capitalise on the burgeoning opportunities in this segment.

Overall we see the Sugar business headed in a positive direction atthe back of supportive Government policies that are designed to strike a fine balancebetween cane production diversion for ethanol cane price payment sugar prices. Thisaugurs well for TEIL which is focussing strategically on premium varieties that yieldhigher recoveries while promoting efficiencies through modernisation of its sugar units.

Needless to say our concerted efforts to drive sustainabledevelopment for the Company as well as the country at large extend beyond the ambit ofour Sugar business. The remarkable performance of our Engineering business during the yearvalidates this strategy. The segment reported a 16% increase in turnover during the yeardriven primarily by the Power Transmission business. What is truly commendable is thatthis performance came in a year fraught with multiple challenges including a COVID-19catalysed six-to-eight-week shutdown during the second wave of the pandemic in Q1 FY 22.

In the Engineering segment marked improvement in profitability forboth the Power Transmission and Water businesses contributed to the excellent performanceof the year. The performance positivity across businesses underscores the Company?sstrong ability to identify and tap into new opportunities while staying on course with itsplans to strengthen its presence in the existing segments and regions of its presence. Italso highlights TEIL?s capacity to adapt to the fast-paced transformations takingplace in the market and the evolving needs of the customer who are becoming more alignedtowards self-reliant growth.

We see in this segment strong potential for future growth given thetraction in the demand for industrial gearboxes across key industries particularlyCement Biomass and Agri Waste Steel and Oil & Gas. Government initiatives under theProduction Linked Incentive (PLI) scheme are also designed to boost domestic manufacturingas part of the Atmanirbhar Bharat campaign infusing a strong positivity in the industry.Energy conservation drives coupled with focus on reducing the carbon footprint willcontinue to steer demand for Waste Heat Recovery (WHR) systems & power upgrades inSteel & Cement plants opening up new stream of business opportunities for TEIL.

We are also extremely optimistic about futuristic growth in the Defencesegment where we currently have a strong pipeline with some niche orders from the IndianNavy for whom we are a preferred partner in this segment.

Our Water business is also set for scale-up in the near future as theGovernment thrust on capacity building and infrastructure development through watermanagement and conservation programmes is leading to a massive growth in the demand forwater treatment solutions. Our focus in this business remains on enhancing operationalefficiencies which will enable better profitability and growth in the years ahead.

Another important development that I would like to share here is thatin May 2022 the Board of Directors decided to divest the Company?s entire 21.85%shareholding in Triveni Turbine Limited. The move is aimed at unlocking value forstakeholders with emphasis on timely monetisation of non-core assets unbundling ofbusinesses and enabling the Company?s long-term succession planning and facilitationof focussed management. We plan to utilise the divestment proceeds for the growth

and expansion of the businesses and for rewarding the shareholders ofthe Company.

I am confident that this decision will help unleash a biggeropportunity matrix for the Company. We are well positioned to harness this opportunity atthe back of our core strengths expertise and experience aided by our deep insights intothe market trends and drivers. Both our Sugar and Engineering business segments areideally placed to drive the next level of growth.

From a macro perspective in the Sugar segment we are looking at theenhancement of minimum sale price of sugar which will give a fresh impetus to industrygrowth and translate into further progress for the Company in this sector. In thedistillery segment as our new capacities come on stream we will move towards higherrevenues and profitability. As far as the Power Transmission business goes we are lookingto expand further in the coming years to boost revenues and profitability with a biggerfootprint across geographies and in global markets. On the Water business front we arehopeful of the award of tenders that we had been anticipating for the past couple of yearsto steer our business forward.

I am confident that with the continued hard work of our dedicatedworkforce who have actively partnered us in our progressive journey we shall succeed inour goal to enhance growth and profitability on all fronts. I would like to take thisopportunity to thank our teams as well as our customers partners vendors investorsshareholders and other stakeholders for their contribution to TEIL?s success. Theircontinued trust and support inspire us to think big and push for the progress of theentire nation in line with the Government?s vision of self-reliance and in tandemwith our strategic plans.

With best regards
DHRUV M. SAWHNEY
Chairman & Managing Director

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