FY2021-22 was a good year for Triveni Turbines Ltd (TTL). Some pointers from the Annual Report:
Financial
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A huge scale-up of its performance, with highest ever turnover of Rs. 852 crore – a marked growth of more than 21% over the previous financial year.
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Operating profit up 18 %. Operating margins dipped slightly from 19 % to around 18.59 due to increase in RM prices and higher proportion of domestic revenue. The price of chrome ingrid (a key raw material) went up by over 60-70% during the year. Steel and copper prices also saw a jump.
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At Rs.1,184 crore – the highest ever annual order booking in its history, 84% higher than the previous year. The total consolidated outstanding order book was at its highest ever at Rs.970 crore – a 52% growth over the previous year. Domestic outstanding order book stood at Rs.540 crore while export order book doubled to Rs. 430 crores.
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TTL is cash rich as it receives an advance from customers for the projects it executes. Debt on the balance sheet is zero and excluding advance received from customers of Rs.288 crores, has free cash of Rs.450 crores, up 71% on a consolidated basis. Advances from customers also at its highest level. Company last did a buyback in FY2019.
Business
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TTL has installed 5000 + steam turbines globally, has presence in more than 75 countries and serves more than 20 industries.
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An important highlight for the year – settlement of its dispute with GE Group of companies. Post this, the erstwhile JV GE Triveni Ltd (now called Triveni Energy Solutions Ltd – TESL) has become 100 % a subsidiary. The company received an amount of close to Rs.200 crore as net settlement for the dispute.
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It is among the leading manufacturers of industrial steam turbines in >5 to 30 MW range globally for many years. Post settlement of its dispute with GE, it is now independently approaching the 30.1-100 MW segment globally, thus catering to the entire range from 0.1-100 MW on a worldwide basis.
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Based on the order booking for FY22, nearly 75% of the business currently comes from non-fossil or renewable energy.
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During the year FY22, 7 new products were launched, 4 new geographies added, 136 new orders booked.
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Asset light model. Undergoing a capex of Rs.35 crores towards an additional bay at the Sompura facility to steer capacity enhancement. The facility will be largely catering to testing & assembling, and to meet the need for higher throughput anticipated in the coming years. With this, capacity is expected to increase from 150-180 machines to 200-250 machines per annum.
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Significant leadership resource augmentation and capability development done during the year, says the Annual Report. Also focussing on building a strong global sales network with competent personnel and a strong agent network.
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Expecting the aftermarket segment to emerge as a bigger contributor to revenue growth in the years ahead. In this, margins are traditionally higher. One key development in this was the acquisition of a 70% stake in a service company, TSE Engineering Pty. Ltd., with an existing workshop facility in South Africa. This will enhance its ability to provide faster response to customers in the SADC (South African Development Community) region and build relationships with new customers requiring service and upgrades on turbines of other makes. The company sees aftermarket emerging as a major growth driver for TTL in the years ahead.
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The Company was also successful in winning orders in API business segment in FY 22 due to its ability to supply energy-efficient API (American Petroleum Institute) 611 and 612 compliant Steam Turbines, ranging from 10 kW to 100 MW.
The good performance has continued with strong set of numbers in Q1 FY23, with highest ever quarterly revenues of Rs.259 crores while the outstanding order book has crossed the thousand crore mark to reach Rs.1069 crore.
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