Triveni Engineering Shares Rally on Strong Q4 Earnings

Triveni Engineering & Industries Limited (TEIL) shares rose more than 10% in opening trade today after the announcement of the company's fourth quarter ended March 31, 2025 (Q4 FY25).

The stock hit an intraday high of ₹468.10 on the NSE and was later trading around ₹460.40, marking a strong gain of 8.46% as of 11:25 am.

The diversified industrial conglomerate and sugar company reported a strong Q4 performance in the fiscal year.

Triveni Engineering Delivers Strong Q4 FY25 Performance

Triveni Engineering & Industries Ltd posted a strong set of numbers for the fourth quarter of FY25, with net profit rising 16.2 percent year-on-year to ₹187.1 crore, up from ₹161 crore in the corresponding quarter last year.

Gross revenue from operations climbed 24.4 percent to ₹1,925.3 crore, compared to ₹1,548.1 crore in Q4 FY24. On a net basis - excluding excise duty - operating revenue recorded a stronger growth of 25.1 percent, touching ₹1,629.3 crore.

The company’s operating profitability also improved, with EBITDA rising 21.5 percent year-on-year to ₹317.4 crore. However, despite the growth in absolute EBITDA, the margin compressed slightly to 19.5 percent from 20.1 percent in the year-ago period.

Earnings per share for the quarter stood at ₹8.55, up from ₹7.36 in Q4 FY24, reflecting the underlying earnings momentum.

Triveni Engineering Closes FY25 with Strong Revenue Growth but Profitability Under Pressure

While Triveni Engineering delivered a robust set of numbers in the fourth quarter, the broader picture for the full fiscal year FY25 was more subdued, particularly on the profitability front.

Net revenue from operations, excluding excise duty, rose by 9 percent year-on-year to ₹5,689.2 crore, supported by stronger performance across the Sugar, Alcohol, and Power Transmission segments.

Despite this topline growth, profitability came under pressure. EBITDA for the year declined sharply by 22.5 percent, falling to ₹533.8 crore, as input costs and operating pressures weighed on margins.

The EBITDA margin contracted significantly, slipping to 9.4 percent from 13.2 percent in the previous fiscal year. Bottom-line performance reflected this strain, with profit after tax declining 39.7 percent year-on-year to ₹238.3 crore.

The decline in profitability, despite higher revenues, underscores the challenges the company faced in sustaining margins during the year.

Segment-Wise Performance: Sugar and Alcohol Weigh on Margins, Power Transmission Shines

Triveni Engineering's segmental performance in Q4 FY25 presented a mixed picture, with growth in key verticals offset by margin pressures in the core businesses.

The Sugar business posted a modest 2.8 percent increase in turnover, driven by better realisations. However, segment profits (PBIT) declined by 12.8 percent as higher sugarcane prices during the 2023–24 season and lower recovery rates for the 2024–25 season pushed production costs higher, offsetting the benefit of improved selling prices.

In the Alcohol segment, turnover rose 15.7 percent, supported by the commissioning of a new multi-feed distillery at Rani Nangal and improved average realisations. Despite this top-line growth, profitability remained under pressure.

A higher proportion of lower-margin maize-based ethanol sales, reduced output of molasses-based ethanol due to lower sugarcane crushing, and higher internal molasses transfer pricing weighed on margins.

Additionally, fixed costs incurred during shutdowns triggered by feedstock shortages and the loss from subsidiary Sir Shadi Enterprises Limited (SSEL) further dented segment profits.

On a more positive note, the Power Transmission business delivered a robust performance, with turnover rising 26.8 percent. The management highlighted "stellar performance" in this vertical across revenue, profitability, and order intake, underscoring its growing importance in the company’s portfolio.

The Water business, meanwhile, saw a slight decline in turnover of 4.9 percent, marking a relatively muted quarter for the segment.

Dividend Announcement

The board has proposed a FY2024-25 final dividend of ₹2.50 per equity share (a 250% return on face value of ₹1), subject to shareholder sanction at the next annual general meeting.

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