Triveni Engineering & Industries Ltd , a leading player in the sugar and engineering sectors, reported a significant decline in its consolidated net profit for the first quarter, despite a notable increase in revenue.

Financial Performance

The company's consolidated net profit attributable to owners of the company for Q1 stood at ₹4.41 crore, marking a substantial decrease from ₹31.27 crore in the same period last year. This represents a year-on-year decline of approximately 85.9%.

Despite the sharp drop in profitability, Triveni Engineering saw its revenue from operations grow to ₹1,954.46 crore, up from ₹1,534.03 crore in the corresponding quarter of the previous year, reflecting a 27.4% increase.

Segment-wise Performance

Sugar & Allied Businesses

The sugar segment, which includes sugar and distillery operations, remained the primary revenue driver:

• Sugar revenue increased to ₹1,169.57 crore from ₹999.48 crore in the previous year.
• Distillery revenue saw significant growth, reaching ₹784.35 crore compared to ₹522.38 crore in the same quarter last year.

Engineering Businesses

The engineering segment, comprising power transmission and water businesses, showed mixed results:

• Power transmission revenue slightly decreased to ₹50.29 crore from ₹54.78 crore.
• Water business revenue marginally increased to ₹54.29 crore from ₹51.05 crore.

Profitability and Margins

The company's profitability was significantly impacted, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declining sharply:

• EBITDA fell to ₹54.00 crore from ₹862.00 crore in the corresponding quarter.
• EBITDA margin compressed to 2.74% from 5.62% in the previous year.

Other Financial Highlights

• Finance costs increased to ₹38.15 crore from ₹26.41 crore year-over-year.
• Employee benefits expense rose to ₹110.46 crore from ₹96.03 crore.
• Depreciation and amortization expenses increased to ₹35.37 crore from ₹28.89 crore.

Management Commentary

While the company did not provide specific management comments in the financial release, the significant decline in profitability despite revenue growth suggests challenges in maintaining margins, possibly due to increased costs or market pressures.

Future Outlook

The company's board has previously approved a Composite Scheme of Arrangement involving the amalgamation of Sir Shadi Lal Enterprises Limited into Triveni Engineering & Industries Limited and the demerger of its Power Transmission Business. The approval from stock exchanges for this scheme is still awaited.

Investors and analysts will be closely watching how Triveni Engineering navigates the challenging environment and implements strategies to improve profitability in the coming quarters.

Note: All figures are based on the consolidated financial results for Q1 ended June 30.

Triveni Engineering & Industries Ltd. (TEIL) has disclosed receiving demands for export fees on denatured alcohol from the Office of the Assistant Excise Commissioner. The company, in a regulatory filing to the stock exchanges, revealed that these demands cover the period from August 25, 2018, to June 30, 2025.

Supreme Court Ruling and Its Impact

The demands follow a Supreme Court order dated October 23, 2024, which upheld the state's authority to regulate industrial alcohol. This ruling has paved the way for the excise department to seek export fees from companies dealing with denatured alcohol.

Financial Implications

TEIL has quantified the aggregate amount demanded at Rs 46.78 crore. This significant sum represents potential financial implications for the company, should it be required to pay the full amount.

Company's Response

Triveni Engineering is contesting the matter through an Industry Association. This approach suggests that TEIL is not alone in facing such demands and is collaborating with other industry players to address the issue.

Recent Developments

The latest letter from the excise department was received by Triveni Engineering on July 23, 2025. This recent communication indicates that the matter is ongoing and may continue to evolve.

Investor Considerations

While the company is contesting the demand, the potential liability of Rs 46.78 crore is substantial. Investors and stakeholders will likely be watching closely to see how this situation unfolds and its potential impact on Triveni Engineering's financial position.

The company's decision to disclose this information promptly, in line with SEBI regulations, demonstrates its commitment to transparency with its shareholders and the market at large. As the situation develops, further updates from the company or regulatory bodies may provide more clarity on the resolution of this matter.