TRIVENI TURBINE

The company is a market leader in steam turbines upto 30 MW, it seems to have had a turbulent time in Q3FY14. Its net profit fell 32% (YoY) at Rs.21 crore on a 19% decline in net sales at Rs.141 crore. There was pressure all around with EBITDA falling 31% at Rs.32 crore.  EBITDA margins also declined sharply from 28% to 22.7%.

The company has blamed the poor numbers on existing macroeconomic situation. Though its enquiry books for both domestic and overseas markets remained strong, delays in order finalisation as well as deliveries by customers led to the overall decline. The order intake in Q3 exceeded H1FY14 by 25% yet poor execution or delay in implementation caused damage. Its outstanding carry forward order book as on 31 December 2013 was at Rs.520 crore.  The company does not expect to end FY14 on a high note and as per the company’s estimates, earnings are expected to actually register a decline. It will have a healthy order book for FY15 and hopefully, it should be able to show some recovery then. Thus one should not expect much in current Q4.