Triveni Engineering & Industries Ltd. Today Announced Its Performance for the Quarter and Nine Months Ended 30th June 2012 (Q3 / 9M FY 12)

Noida, India, July 30, 2012 --(PR.com)-- Triveni Engineering & Industries Ltd. (‘Triveni’), one of the largest integrated sugar producers in the country with seven sugar manufacturing facilities, three co-generation units and one distillery; a market leader of engineered-to-order high speed gears & gearboxes and a leading player in water and wastewater management business, today announced its performance for the quarter and nine months ended 30th June 2012 (Q3 / 9M FY 12).

* After considering Share of Profit of Associates
Performance Overview: 9M FY 12 V/S 9M FY 11 (Consolidated)*
(9M FY 12 – Oct – June 2012);(9M FY 11 – Oct – June 2011)
· Net Sales at Rs. 1382 crore
· EBITDA (before exceptional items) at Rs. 104.1 crore
· Profit before Interest & Tax (PBIT) before exceptional items at Rs. 43.28 crore (after considering sugar inventory write down of Rs. 25 crore)
· PBT (before exceptional items) at Rs. (45.91) crore
· Profit after tax (after exceptional items) at Rs. (84.12) crore

Performance Overview: Q3 FY 12 V/S Q3 FY 11 (Consolidated)*
(Q3 FY 12 – Apr – June 2012);(Q3 FY 11 – Apr – June 2011)
· Net Sales at Rs. 452 crore
· EBITDA at Rs. 71.2 crore
· Profit before Interest & Tax (PBIT) at Rs. 50.99 crore
· PBT during Q3 FY 12 at Rs. 14.54 crore
· Profit after tax at Rs. 12.07 crore

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said:
“After reeling under cost and price pressures in the first two quarters, we are witnessing the much awaited improvement in sugar prices, mainly after the end of the quarter under review. This has enabled us to forecast higher estimated realisation price for the sugar inventories as at the end of the quarter and reverse substantial inventory write-down considered in our half year results, resulting in positive segment results of the sugar operations after two quarters of losses. The substantial exports of around 3 million have largely mitigated higher production during 2011-12 which in turn resulted in improved sugar prices. Though it may be premature to draw conclusions but In view of the current status of monsoon deficit, there may be significant impact on the production in the country, mainly in Maharashtra, Karnataka and Gujarat. The international prices remain firm due to delayed exports from Brazil on account of heavy rains which has affected harvesting and export logistics. Some intervention by the government should maintain the sugar prices at the current level. We continue to await the report of Dr. C. Rangarajan Committee for some major policy reforms, most notable being the subsidisation to the Government by way of supply of Levy Sugar well below our cost and a process to prescribe the cane prices on commercial basis without any political intervention. We will be vulnerably exposed to adhoc political decisions and vagaries of nature unless these contentious issues are addressed.

“In our engineering businesses, the turnover and profitability for the current period/s reflect the overall slow-down being faced by the economy. However, our engineering businesses put together still holds an order book of Rs.560 crore, which will help us in showing a better performance both in terms of turnover and profitability in the coming quarters. Further, the order inflow during the quarter, especially in our water business, has been good with a healthy mix of industrial and municipal orders. Both our engineering businesses are geared up to take full advantage of the opportunities in their respective fields once the market improves.”

* After considering Share of Profit of Associates
Note: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Triveni Engineering & Industries Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Triveni Engineering & Industries Limited is a focused, growing corporation having core competencies in the areas of sugar and engineering. The Company is one amongst the largest sugar manufacturers in India and the market leader in its engineering businesses comprising high speed gears, gearboxes, and water treatment solutions. Triveni currently has seven sugar mills in operation at Khatauli, Deoband, Sabitgarh, (all in western Uttar Pradesh), Chandanpur, Rani Nangal and Milak Narayanpur (all in central Uttar Pradesh) and Ramkola (eastern Uttar Pradesh). While the Company’s Gears manufacturing facility is located at Mysore, the Water & Waste water treatment business is located at Noida. The Company also has a total co-generation capacity of 68 MW located in two of its major facilities viz., Khatauli (46 MW) & Deoband (22 MW) and a 160,000 litre per day capacity distillery at Muzaffarnagar.

The turbine business of the company, located at Bengaluru has been demerged through a scheme of arrangement into Triveni Turbine Limited (TTL) from the appointed date on 1st October 2010, and the same has become effective w.e.f. 21st April, 2011. Triveni Engineering & Industries Limited holds 21.8% equity capital of Triveni Turbine Limited.

For further information on the Company, its products and services please visit www.trivenigroup.com