Triveni Engineering And Industries Limited · NSE:TRIVENI
Triveni Engineering And Industries — Q3 FY2023 Earnings Presentation
41 slides from Triveni Engineering And Industries's earnings presentation, Feb 6, 2023
Slide 1: Cover letter to stock exchanges: Earnings Presentation Q3/9M FY 23
•zta· . PIVEDI ENGINEERING & INDUSTRIES LTD. , +91120 4308100 +91120 4311010/11 e www .trivenigroup.com REF:TEIL:SE: eruary 2023 D ate: 06F.b BSE Limited National Stock Exchange of India Ltd., Department of Corporate Services, Listing Department Rotunda Building, P.J. Tower, Exchange Plaza, 5"Floor,
Slide 2: Investor Presentation Q3/9M FY 23
Investor Presentation Q3/9M FY 23 February 2023
Slide 3: Agenda
AGENDA ABOUT THE COMPANY PERFORMANCE OVER THE YEARS RESULTS REVIEW Q3/9M FY 23 MARKET UPDATES 2
Slide 4: About the Company
tT A _ - PIven ENGINEERING & INDUSTRIES LTD. ABOUT THE COMPANY
Slide 5: Company Overview
COMPANY OVERVIEW Integrated and diversified conglomerate in areas of sugar, ethanol and engineering Located strategically in sugarcane-rich western and central belt of Uttar Pradesh One of India’s leading sugar & ethanol manufacturers Efficient, sustainable and complete water/wastewater treatment so
Slide 6: Triveni at a Glance
TRIVENI AT A GLANCE 61,000 104.5 Tonnes per day Sugarcane Mega Watt crushing capacity Power Co-generation LOCATION 660 1110 >10,000 18+ world-class Kilo Liter Per Day (KLPD) facilities including PTB installations Alcohol/Distillery capacity* across the world 7 Sugar plants 4 Distillery facilities at
Slide 7: India Footprint
INDIA FOOTPRINT ~206K Hectare Area under Sugarcane 300K+ Farmer Network TEIL PLANTS ~61,000 TR IV ENI WATER PROJECTS Tonnes per day OUR SERVICE LOCATIONS crushing capacity TRIVENI POWER TRANSMISSION 6 Note: Map for representation purpose and not to scale
Slide 8: Our Sugar & Distillery Units' Locations
OUR SUGAR & DISTILLERY UNITS' LOCATIONS Milak Narayanpur Rani Nangal Deoband Sugar Sugar Sugar Incidental Co-Generation Co-Generation Multi-feed Distillery Muzaffarnagar Khatauli Multi-product Molasses Distillery Refined Sugar Grain-based Alcohol Production Facility 2 Co-Generation units Multi-produ
Slide 9: Our ESG Driven Approach to Business
OUR ESG DRIVEN APPROACH TO BUSINESS Maintaining ecological balance Best-in-class sustainable processes and solutions across 01 while ensuring business excellence 02 our operations and units Fostering Community Allocation of capital with focus 03 Development And Social Empowerment 04 to reduce carbon
Slide 10: Striving to Go Beyond Compliance to Address Environmental Risks
STRIVING TO GO BEYOND COMPLIANCE TO ADDRESS RISKS THAT THREATEN THE ENVIRONMENT Power generation Utilising molasses for Reduction in Effluents across Leading water and through bagasse, a production of fuel ethanol air, water and ground waste water treatment renewable source of which lowers dependenc
Slide 11: Community Engagement
COMMUNITY ENGAGEMENT Continue to look at ways to make a positive societal difference for the community at large Farmer relations Improving soil health Engagement with through continuous through regular tests farmer communities communication Customer Data protection and Employee diversity satisfactio
Slide 12: Sound Corporate Governance is the Backbone of Our Organisation
SOUND CORPORATE GOVERNANCE IS THE BACKBONE OF OUR ORGANISATION Diverse Board of Directors with broad-based functional and managerial competencies and experience Visionary Company Highest ethical leadership standards Professionally run organization with highly experienced management team Accountabili
Slide 13: Performance Over the Years
PERFORMANCE OVER THE YEARS 12
Slide 14: Well Diversified and Growing Revenue Base
WELL DIVERSIFIED AND GROWING REVENUE BASE ₹ Crore FY 19-22 Revenue CAGR 14.2% Rising non-sugar contribution from 13% to 19% during FY 2019-22 Revenue from Operations (Gross)* Segment-wise Contribution to Revenue from Operations# 5000 2% 2% 2% 3% 4500 7% 6% 11% 4,703 4,694 8% 7% 9% 6% 16% 4000 4,437
Slide 15: Progressively Increasing Profitability with Healthy Contribution from Non-Sugar Businesses
PROGRESSIVELY INCREASING PROFITABILITY WITH HEALTHY CONTRIBUTION FROM NON-SUGAR BUSINESSES ₹ Crore FY 19-22 PBIT CAGR 21.6% Sugar contribution of 62% in FY 2022 Profit Before Interest and Tax (PBIT) Segment-wise PBIT Contribution 2% 4% 5% 5% 700 11% 9% 8% 10% 600 21% 19% 627 24% 38% 500 543 400 540
Slide 16: Healthy Margins Across Businesses
HEALTHY MARGINS ACROSS BUSINESSES PBIT Margins 70.0% 14.6% 16.0% 60.0% 62.0% 14.0% 12.2% 11.6% 11.1% 12.0% 50.0% 10.0% 40.0% 34.7% 8.0% 30.0% 31.5% 31.5% 28.7% 22.4% 28.3% 6.0% 19.6% 20.0% 11.5% 11.1% 4.0% 9.4% 10.2% 10.0% 6.2% 9.2% 2.0% 2.9% 7.8% 0.0% 0.0% FY 19 FY 20 FY 21 FY 22 Sugar Power Transm
Slide 17: Highest Ever Profitability Achieved in FY 22
HIGHEST EVER PROFITABILITY ACHIEVED IN FY 22 ₹ Crore FY 22 EBITDA Growth 11.6% y-o-y FY 22 PAT Growth 43.9% y-o-y EBITDA and EBITDA Margins* Profit After Tax (PAT) 15.3% 700 13.1% 16.0% 12.6% 600 656.58 14.0% 11.8% 424.06 500 579.44 588.61 12.0% 400 10.0% 335.12 294.61 300 372.52 8.0% 216.28 200 6.0
Slide 18: Strong Balance Sheet Position
STRONG BALANCE SHEET POSITION ₹ Crore Total Debt (Consolidated) Total Consolidated Debt To Equity (x times) 1,725.9 1,558.2 1,568.0 1.51 994.0 1.16 480.0 0.82 0.64 0.14 FY 19 FY 20 FY 21 FY 22 9M FY 23 FY 19 FY 20 FY 21 FY 22 9M FY 23 Average Cost of Debt (Standalone) Long-term credit rating ICRA AA
Slide 19: Consistent Focus on Enhancing Returns
CONSISTENT FOCUS ON ENHANCING RETURNS ROE (%) ROCE (%) 27.0% 24.5% 19.9% 20.7% 17.9% 18.1% 20.4% 13.1% FY 19 FY 20 FY 21 FY 22 FY 19 FY 20 FY 21 FY 22 Maximising operational performance across businesses Enhancing returns consistently over the years Note: Return Ratios for 9M FY 23 not presented due
Slide 20: Enhancing Shareholder Returns Through Buybacks & Dividends
ENHANCING SHAREHOLDER RETURNS THROUGH COMBINATION OF BUYBACKS & DIVIDENDS ₹ Crore Buyback of Shares Dividend Payout Dividend Payout Ratio (%) 800 21% 78.6 15% 100 65 42.3 10% 10% 32.9 21.8 FY 20 FY 21 FY 23 FY 19 FY 20 FY 21 FY 22 FY 19 FY 20 FY 21 FY 22 Past history of returning cash through combin
Slide 21: Shareholding Pattern
SHAREHOLDING PATTERN 5.28% 7.52% 61.23% 18.94% 3.73% 1.83% 1.47% Promoter Group Foreign Portfolio Investors Mutual Funds + AIF Resident Individuals Corporate Bodies NRI Others Note: For the quarter ending December 31, 2022. Others comprise of Clearing members, HUF, Trust, IEPF, etc. 20
Slide 22: Results Review Q3/9M FY 23
tT A _ - PIven ENGINEERING & INDUSTRIES LTD. RESULTS REVIEW Q3/9M FY 23
Slide 23: Key Highlights of 9M FY 23 Results
KEY HIGHLIGHTS OF 9M FY 23 RESULTS The Board of Directors approved Revenue from Profit before Profit after Tax at capex of ₹ 90 crore Operations (Net of exceptional items and ₹ 1601.49 crore for Sugar business excise duty) at tax at ₹ 311.87 crore and ₹ 100 crore for ₹4034.28 crore, an Power Transmi
Slide 24: Financial Highlights Q3 / 9M FY 23
FINANCIAL HIGHLIGHTS Q3 / 9M FY 23 ₹ Crore Q3 FY 23 Q3 FY 22 Change (%) 9M FY 23 9M FY 22 Change (%) Revenue from Operations (Gross) 1,658.7 1,235.4 34.3 4,491.8 3,501.9 28.3 Revenue from Operations (Net of excise duty) 1,462.7 1,115.7 31.1 4,034.3 3,220.9 25.3 EBITDA 230.6 209.8 9.9 411.5 478.9 -14
Slide 25: Sugar: Performance in Sugar Season
SUGAR: PERFORMANCE IN SUGAR SEASON SUGAR Sugarcane Crushed (Million Tonnes) Sugar Production (Tonnes) Recovery (%) +25.3% +16.5% 3.12 10.08 2.49 292888 251369 9.38 SS 2021-22 SS 2022-23 SS 2021-22 SS 2022-23 SS 2021-22 SS 2022-23 Net Recovery Materially higher crush in SS 2022-23 owing to the modern
Slide 26: Sugar: Higher Dispatches and Realisations
SUGAR: HIGHER DISPATCHES AND REALISATIONS SUGAR Domestic Sugar Dispatches (Tonnes) Domestic Realization price (₹/MT) +16.5% 40409 40409 755272 +15.1% 25785 648206 36452 36111 62046 35028 35579 38066 222247 255837 693226 62046 610140 222247 193791 3Q FY 22 3Q FY 23 9M FY 22 9M FY 23 3Q FY 22 3Q FY 23
Slide 27: Sugar: Higher Revenues; Profitability Impacted in Q3 / 9M FY 23
SUGAR: HIGHER REVENUES; PROFITABILITY IMPACTED IN Q3 / 9M FY 23 SUGAR ₹ Crore REVENUE PBIT 21.5% 3,191.03 264.07 2,627.04 21.4% 140.82 141.94 113.69 1,131.64 931.86 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Revenues boosted by higher sales volumes and sugar realisations
Slide 28: Higher Alcohol Realisations and Sales in Q3/9M FY 23
HIGHER ALCOHOL REALISATIONS AND SALES IN Q3/9M FY 23 ALCOHOL Alcohol Production (KL) Alcohol Sales (KL) +66.9% +39.8% +87.2% +60.0% 131618 127226 78868 91019 46275 42615 24713 26638 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Avg. Realisation (₹/litre) Additional capacity
Slide 29: Additional Distillation Capacities Added in 9M FY 23
ADDITIONAL DISTILLATION CAPACITIES ADDED IN 9M FY 23 ₹ Crore ALCOHOL NET REVENUE* PBIT 23.9% +61.0% 816.16 147.16 +82.9% 506.88 118.79 39.6% 285.58 156.14 50.14 35.91 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 * Revenue net of excise duty Additional capacities commission
Slide 30: Power Transmission Continues Its Growth Path
POWER TRANSMISSION CONTINUES ITS GROWTH PATH ₹ Crore POWER TRANSMISSION REVENUE PBIT +28.8% 152.07 +27.1% +70.9% 118.04 50.91 +91.6% 40.05 60.52 35.41 21.04 10.98 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Domestic market showing encouraging signs due to various Governme
Slide 31: Power Transmission Closing Order Book Up 23% y-o-y
POWER TRANSMISSION CLOSING ORDER BOOK UP 23% y-o-y ₹ Crore POWER TRANSMISSION Order Booking Closing Order Book +9.4% +22.8% -10.1% 176.78 193.37 262.74 213.88 88.51 79.59 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Q3 FY 22 Q3 FY 23 Some challenges especially in export markets in 9M FY 23, however with good
Slide 32: Continued Improvement in Water Business Revenues
CONTINUED IMPROVEMENT IN WATER BUSINESS REVENUES ₹ Crore WATER REVENUE +40.7% PBIT -33.4% 237.37 -36.0% 22.2 +34.4% 168.72 14.76 103.86 12.1 77.3 7.74 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Q3 FY 22 Q3 FY 23 9M FY 22 9M FY 23 Water business revenues improved in Q3 FY 23 The orders received in 9M FY 23
Slide 33: Water Business Order Booking Remains Robust
WATER BUSINESS ORDER BOOKING REMAINS ROBUST ₹ Crore WATER Closing Order Book** -5.7% 1503.32 1594.5 Q3 FY 22 Q3 FY 23 Expecting robust order booking in the coming quarters and is well placed in certain bids being evaluated both domestically and internationally Long duration O&M orders in hand are Q3
Slide 34: Market Updates
tT A _ - PIven ENGINEERING & INDUSTRIES LTD. MARKET UPDATES
Slide 35: Global & Domestic Sugar Outlook
GLOBAL & DOMESTIC SUGAR OUTLOOK • Recent industry reports forecast for global sugar balance for SS 2022-23 is a surplus of 3 million tonnes, owing to a bigger crop in CS Brazil and Thailand. • Central South Brazil is expected to produce ~36 million tonnes of sugar in the next season as against ~33-3
Slide 36: India Sugar Balance Sheet: Stable Closing Stocks of ~6 MT Expected
INDIA SUGAR BALANCE SHEET: STABLE CLOSING STOCKS OF ~6 MT EXPECTED FOR SUGAR SEASON (SS) 2022-23 +2.0 +3.4 +4.5 million million million tonnes* tonnes* tonnes* India Sugar Balance Sheet (million tonnes) 40.0 35.8 35.0 35.0 31.2 30.0 26.6 27.3 27.5 25.0 20.0 15.0 10.7 11.1 10.0 8.2 7.2 7.0 8.2 5.5 5.
Slide 37: Power Transmission Business Outlook
POWER TRANSMISSION BUSINESS OUTLOOK • Outlook for the domestic product segment within high speed gears is extremely promising as industrial CapEx in sectors like cement, energy, distillery, steel is growing and have been supported by policies and robust economic growth • In the aftermarket business,
Slide 38: Water & Wastewater Developments and the Way Forward
WATER & WASTEWATER DEVELOPMENTS AND THE WAY FORWARD • Expect improvement in order booking in coming quarters with many projects coming under conclusion • Expanding our activities in overseas markets after achieving success in Maldives and Bangladesh • Domestic market opportunities are increasing in
Slide 39: Investors Contact
INVESTORS CONTACT Surabhi Chandna Gavin Desa/ Rishab Brar Triveni Engineering & Industries Ltd. Citigate Dewe Rogerson Tel. +91 120 430 8000 Fax : +91 120 431 1010 Tel: +91 22 66451237/1235 ir@trivenigroup.com gavin@cdr-india.com / rishab@cdr-india.com www.trivenigroup.com 38
Slide 40: Safe Harbour/Legal Disclaimer
SAFE HARBOUR/LEGAL DISCLAIMER Some of the statements in this presentation that are not historical facts are forward looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concern
Slide 41: Thank You
a a . Piven ENGINEERING & INDUSTRIES LTD.
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