Triveni Turbine , a leading manufacturer of industrial steam turbines, has announced its quarterly financial results, showcasing modest growth across key metrics. The company's performance demonstrates resilience in the current economic landscape.

Financial Highlights

Key Takeaways

• Profit Growth: Triveni Turbine's net profit increased marginally to ₹91.20 crore, up from ₹90.90 crore in the same period last year, representing a 0.33% year-over-year growth.

• Revenue Expansion: The company's revenue rose to ₹506.20 crore, compared to ₹501.10 crore in the previous year, showing a 1.02% increase.

• EBITDA Improvement: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew to ₹114.20 crore from ₹111.60 crore, indicating a 2.33% increase.

• Margin Enhancement: The EBITDA margin improved slightly, reaching 22.60% compared to 22.30% in the previous year, a gain of 0.30 percentage points.

• Corporate Developments: The board approved shifting the registered office to Noida and reappointed Ernst & Young LLP as internal auditor for three years.

• Stock Performance: Shares closed 2.80% higher but have declined nearly 30% year-to-date.

The financial results indicate that Triveni Turbine has managed to maintain its profitability and slightly improve its operational efficiency. The company's ability to increase its EBITDA margin while growing revenue suggests effective cost management.

These results reflect Triveni Turbine's efforts to navigate market challenges. The company's performance may be of interest to investors and industry observers as an indicator of the broader industrial equipment sector's health.

Triveni Turbine Limited has announced a significant move to strengthen its global presence and operational control. The company's wholly owned subsidiary, Triveni Turbines DMCC-Dubai, has executed a Sale of Shares Agreement to acquire the remaining 30% equity shares of TSE Engineering Pty. Ltd., a South African company specializing in high-precision engineering repairs and servicing of machinery in sugar and other industrial plants.

Acquisition Details

About TSE Engineering

TSE Engineering, incorporated in South Africa in 2015, has shown significant growth in recent years. The company's turnover has increased substantially over the past three financial years:

Strategic Objectives

The acquisition aligns with Triveni Turbine's strategic objectives, aiming to:

1. Consolidate ownership and strengthen operational control
2. Simplify the group structure
3. Enhance decision-making agility
4. Realize operational synergies through unified management
5. Streamline processes and improve resource allocation

Regulatory Compliance

The transaction is considered a Related Party Transaction under SEBI Listing Regulations but is being carried out at arm's length. No governmental or regulatory approvals are required for this acquisition.

Future Outlook

This strategic move is expected to bolster Triveni Turbine's presence in the South African Development Community (SADC) region. By fully integrating TSE Engineering, the company aims to leverage its expertise in high-precision engineering repairs and servicing of industrial machinery, potentially expanding its service offerings and market reach.

The acquisition reflects Triveni Turbine's commitment to strengthening its global footprint and enhancing its capabilities in the industrial machinery sector. As the company moves towards completing this transaction, stakeholders will be keen to observe how this full ownership translates into improved operational efficiencies and financial performance in the coming years.