Triveni Engineering Q1 Results Review- Outlook For H2 Bright; Maintain Buy: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Triveni Engineering and Industries Ltd. consolidated revenue grew 7% YoY to Rs 15.3 billion and was 6% below our estimate of Rs 16.3 billion. Sugar segment revenue increased 12% YoY fueled by higher sale volumes and realisations. The gears segment grew by a marginal 1% YoY. Distillery/Water segment posted weak performance with revenue dropping 2%/21% YoY respectively.Ebitda dropped 31% YoY to Rs 862 and was 43% below our estimate of Rs 1.5 billion. Sugar/Distillery/Gears segment Ebit dropped 26%/62%/1% YoY respectively, while Water segment Ebit jumped ~2 times YoY led by cost savings. Gross margin contracted 576 basis points YoY to 34.9% (our estimate 42%) and Ebitda margin too contracted 310 bps YoY to 5.6% (our estimate 9.4%). Profit Before Tax dropped 54% YoY to Rs 417 million.Consequently, profit after tax dropped 54% YoY to Rs 310 million and was 64% below our estimate of Rs 862 million. Management is strategically focused on restoring the sugar business back to normalcy by taking persistent efforts in eradicating infected crop, substituting low-yielding variety with more robust varieties, enhancing yields and has also undertaken curative control measures to combat the wide-spread Red-Rot disease.Looking ahead, Triveni Engineering plans to concentrate on premium products like refined sugar and pharmaceutical-grade sugar (which now contributes ~70% of overall production) to further enhance its profitability..Click on the attachment to read the full report:.Five Star Business Finance Q1 Review - Inline; Strong Loan Growth With Stable Asset Quality: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Triveni Engineering Q1 Results Review- Outlook For H2 Bright; Maintain Buy: Systematix

The brokerage retains Buy on the stock and assign 14 times EV/Ebit to distillery, seven times EV/Ebit to sugar and 20x EV/Ebit to the engg and water businesses.

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Triveni Engineering Q1 Results Review- Outlook For H2 Bright; Maintain Buy: Systematix

The brokerage retains Buy on the stock and assign 14 times EV/Ebit to distillery, seven times EV/Ebit to sugar and 20x EV/Ebit to the engg and water businesses.

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