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Submission and Compliance • Transcript submitted to BSE and NSE on August 12, 2024. • Earnings call held on August 6, 2024, discussing Q1 financial results.
Financial Highlights • Revenue: ₹4.63 billion (up 23% YoY). • EBITDA: Increased by 36%. • Profit Before Tax (PBT): Grew by 37%. • Profit After Tax (PAT): ₹804 million (up 32%). • Order Book: Highest at ₹6.36 billion (up 40% YoY).
Operational Focus • Emphasis on heat and power solutions for industrial and renewable applications. • Shift towards larger turbines and growing aftermarket segment. • Domestic sales increased by 27%, exports by 19% (47% of total sales).
Market Outlook • Anticipated increased demand in the domestic market despite election-related uncertainties. • Outstanding order book at ₹17.26 billion (up 23% YoY). • Investment in U.S. facility to enhance international capabilities.
Personnel and Innovation • Focus on investing in people and R&D for innovation. • Medium-term outlook remains strong with a substantial backlog in renewable energy and industrial sectors.
New Product Development • Introduction of new turbine product line for industrial needs. • Large orders received from the Middle East.
Long-term Strategy • Shift from dependence on captive power to a diversified growth model. • Plans to evolve into a multi-product technology company over the next 5-7 years.
Market Positioning • Stable global steam turbine market with growth potential due to renewable energy demand. • Pricing trends affected by commodity costs but competitiveness remains strong.
Capital Allocation • Commitment to dividends and asset-light capex strategy. • Increased focus on R&D investments while maintaining free cash flow.
Conclusion • Strong inquiry pipeline suggests promising upcoming quarters. • Confidence in maintaining margins despite product mix variability. • Encouragement for follow-up questions post-call.
Disclaimer • Transcript may contain inaccuracies and should not be considered an authoritative record.
Call Overview • Date: May 17, 2024 • Moderated by: Rishab Barar (CDR India) • Key Executives: Nikhil Sawhney (Vice Chairman), S.N. Prasad (CEO) • Format: Opening remarks followed by Q&A • Note: Some statements may be forward-looking
Financial Performance Highlights • Record Achievements: • Highest annual revenue: ₹16.54 billion (up 33% y-o-y) • Order bookings: ₹18.78 billion (up 17% y-o-y) • Q4 revenue: ₹4.58 billion (up 24%) • Q4 EBITDA: 36% increase • Dividends: • Final dividend: 130% per share • Interim and special dividend: 230%
Market Insights • Order Bookings: • Slight decline in Q4 order bookings compared to previous year • Strong domestic market inquiries; international inquiries slightly declined • Domestic Market Growth: • Expected growth in 0 to 100 MW segment: 2,100-2,200 MW for FY 24 • 25% growth over FY 23, but below the anticipated 2,500 MW
Aftermarket and Capacity • Aftermarket Growth: • Year-over-year growth: 30% • Quarterly decline attributed to delayed order finalizations • Production Capacity: • Capacity utilization at 75% • No constraints in production capacity
U.S. Market Update • Subsidiary Progress: • Established with personnel hired and machinery ordered • Initial sales and marketing activities underway • Future Plans: • Workforce expansion of 20-25% in FY 25 • Estimated Capex: ₹90 to ₹100 crore over the next couple of years
Strategic Focus • Growth Areas: • Emphasis on renewable energy and aftermarket services • Targeting the API market for future growth • Market Conditions: • Strong interest in U.S. market driven by government incentives • Commitment to energy efficiency and expanding customer service offerings
Conclusion • Optimism for sustained growth and positive results in future earnings calls, with a focus on long-term customer relationships and infrastructure development.
Triveni Turbine Limited Q3 and 9M FY 24 Earnings Conference Call Summary
Financial Performance Highlights • Q3 Revenue: ₹4.32 billion (up 33% YoY) • EBITDA: ₹1.01 billion (up 35%) • Profit After Tax (PAT): ₹683 million (up 30%) • 9M Revenue: ₹11.96 billion (up 36%) • 9M PAT: ₹1.93 billion (up 41%) • Order Bookings: • Q3: ₹5.31 billion • 9M: ₹14.43 billion • Closing Order Book: ₹15.75 billion
Strategic Focus • Geographic Expansion: Establishing a subsidiary in the U.S. • R&D Commitment: Increasing R&D spending from 1% to over 3% of sales. • Market Outlook: Positive for renewable energy and industrial markets.
Q&A Session Insights • Domestic vs. Export Orders: • Domestic order growth flat; export orders up over 50%. • Strong domestic enquiry pipeline with a 57% increase. • Export Performance: • Robust demand from the Americas and Middle East; weakness in East Asia. • Focus on higher-margin export orders.
Growth Prospects • API Turbine Growth: Increased interest from domestic and international clients, especially in renewables. • Gross Margins: Improved to around 56% due to value engineering; aim to stabilize raw material costs. • U.S. Market Strategy: Focus on aftermarket services to build customer trust.
Future Roadmap • Five-Year Growth Plan: Aim to be a preferred provider in turbines and heat solutions, focusing on aftermarket capabilities. • Local Presence: Emphasis on establishing local workshops to enhance service capabilities. • Service Center Expansion: Plans to increase international presence, particularly in servicing roles.
Competitive Positioning • Differentiation in Refurbishment Market: Triveni as an OEM offering refurbishment services with strong engineering capabilities. • Capacity Utilization: Confirmed that capacity is not a constraint; can expand as needed.
Operational Considerations • Transit Times: Delays primarily due to production planning, not shipping constraints. • Capital Intensity: Technology-focused approach for new product development with low capital investment.
Conclusion • Organic Growth Focus: Emphasis on organic growth strategies and attracting skilled personnel. • Future Sales Expectations: Anticipated sales to begin in FY 25 from the U.S. subsidiary.
Conference Call Overview • Date: November 2, 2023 • Announcement of unaudited financial results for Q2 and H1 FY24 • Key executives present: Vice Chairman Nikhil Sawhney and CFO Lalit Agarwal • Transcript available on the company's website • Forward-looking statements made during the call
Financial Performance Highlights • Q2 Results: • Revenue: ₹3.88 billion (up 32% y-o-y) • EBITDA: ₹889 million (up 34%) • PAT: ₹640 million (up 38%) • Order bookings: ₹4.59 billion (up 27%) • H1 Results: • Revenue: ₹7.64 billion (up 38%) • PAT: ₹1.25 billion (up 48%) • Outstanding order book: ₹14.76 billion (up 30% y-o-y)
Growth and Market Insights • Increase in export contributions to sales: 47% (up from 41% y-o-y) • Aftermarket segment growth: 73% in Q2 • Enquiry book growth: 33% y-o-y • Focus on expanding international presence and R&D investments
Aftermarket Business Expansion • New offerings in upgradation and automation services • Competing with OEMs and local repair shops • Targeting a broad market without turbine capacity restrictions
Future Growth Expectations • Strong order book and robust orders for the upcoming financial year • Domestic enquiry book doubled; healthy growth in international enquiries • Significant growth in sectors like steel, cement, and process co-generation
Margin and Capacity Considerations • EBITDA margins stable at 19-20% • Investments in manpower and R&D may limit short-term operating leverage • Adequate capacity for growth; focus on vendor development
Product Development and Innovation • Emphasis on global benchmarking in technology development • Ongoing work in carbon dioxide technology • Commitment to increasing investment in innovation and R&D
Competitive Landscape and Market Position • Respect for competitors like Siemens Energy; no significant changes in competition • Strong inquiry book with international inquiries exceeding 5 GW (up 15% y-o-y) • Confidence in revenue growth, particularly in the oil and gas sector
Conclusion • Optimism for future performance and growth opportunities in both domestic and international markets.
Q1 FY 24 Earnings Conference Call Summary for Triveni Turbine Limited
Call Details • Date: August 2, 2023 • Moderated by: Rishab Barar (CDR India) • Key Executives: Nikhil Sawhney (Vice Chairman), Lalit Agarwal (CFO) • Focus: Discussion on operations and future outlook post Q1 FY 24 financial results.
Financial Performance • Record Turnover and Profitability: 45% year-on-year revenue growth. • Order Booking: ₹4.53 billion (26% increase), record closing order book of ₹14.05 billion (31.4% increase). • International Market Contribution: 128% growth in orders, comprising 53% of total bookings. • Aftermarket Segment Growth: 91% increase in sales.
Strategic Focus • Technology and R&D Commitment: Over 330 intellectual property rights filed. • Positive Enquiry Pipeline: Strong future sales prospects despite macroeconomic concerns. • API Business: Strong enquiry pipeline with aims to improve market share.
Segment Performance Insights • Metals Segment: Robust performance in smaller facilities; larger manufacturers not expanding significantly. • Waste Heat Recovery (WHR): Estimated 15-20% capacity in cement; growth expected. • South Africa Market: Consistent growth and healthy inquiry pipeline.
Market Opportunities • Export Markets: Focus on renewable energy segments in Europe, Southeast Asia, and North America. • Domestic Market Trends: Gradual growth in fixed capital formation, primarily from SMEs.
Subcontracting and Margins • SADC Project Impact: Previous impact on margins acknowledged; future positive margin expectations.
Market Share and Competition • International Market Share: Estimated at 25% (excluding China and Japan). • Domestic Market Share: Approximately 45-50% in the up to 100 MW segment; stronger in sub-30 MW.
Refurbishment and Growth Potential • Refurbishment Market: Larger than new product sales; significant growth opportunity. • U.S. Market Focus: International expansion prioritized, with refurbishment as a key strategy.
Future Outlook • Domestic Market Growth: Expected over 25%. • International Growth: Anticipated to outpace domestic growth in the long term. • Capacity and Operations: New operational bay at Sompura plant; focus on maintenance CapEx.
Conclusion • Positive Growth Prospects: Overall optimism about sustaining growth in both domestic and international markets.
Triveni Turbine Limited Q4 & FY 23 Earnings Conference Call Summary
Announcement Details • Date of announcement: May 23, 2023 • Transcript availability: Accessible on the company's website • Key executives present: Nikhil Sawhney (Vice Chairman), Lalit Agarwal (CFO) • Call date: May 17, 2023 • Forward-looking statements noted; session recorded
Financial Highlights • Record annual revenue: ₹12.48 billion (46.4% increase YoY) • EBITDA: ₹2.76 billion (43.9% increase) • Profit after tax: ₹1.93 billion (57.7% increase) • Highest order bookings: ₹16.05 billion • Closing order book: ₹13.28 billion • Shareholder returns: ₹290 crore (₹190 crore buyback, ₹50 crore dividend) • Return on capital employed: 32% • Cash portfolio: ₹6.71 billion
Market Performance • Order bookings from product segment: 22% increase • Aftermarket segment contribution: 29% of order bookings • Export sales: 121% increase (45% of total turnover) • Domestic enquiry book decline noted, but optimism for future growth
Business Growth and Strategy • Focus on aftermarket business growth, particularly refurbishment services • Plans to enhance brand visibility through a new subsidiary • Market share: 50% in Indian turbine market, smaller globally • Strong order pipeline and increased workforce anticipated
Inquiry Book and Market Insights • Inquiry book includes orders up to 100 MW • Expected aftermarket contribution from SADC orders: 15-20% • Domestic market size: approximately 2200 MW (50% market share in 0-100 MW segment) • Sufficient manufacturing capacity confirmed
International Market and Export Strategy • Company sold turbines in over 80 countries • Enquiry book exceeds 9 GW, indicating growth potential • Over 70% of enquiry book from international markets • Target: Achieve over 50% of turnover from exports in the medium term • Key growth geographies: North America and Southeast Asia
Production and Future Outlook • Turbines produced in FY 23: 190 (up from 116 in FY 22) • Optimism for another record year in FY 24 • Continued investment in product development alongside focus on refurbishment and API turbines
Triveni Turbine Limited Q3 FY 23 Earnings Conference Call Summary
Call Overview • Date: January 24, 2023 • Moderated by: Rishab Barar (CDR India) • Key Executives: Nikhil Sawhney (Vice Chairman), Lalit Agarwal (CFO) • Format: Opening remarks followed by Q&A • Disclaimer: Forward-looking statements; transcript not to be reproduced
Financial Performance Highlights • Q3 FY 23 Revenue: ₹3.26 billion (44.6% increase YoY) • EBITDA: ₹750 million • PAT: ₹526 million • Order Bookings: • Quarterly: ₹4.2 billion • Nine months total: ₹11.39 billion (26% increase YoY) • Outstanding Order Book: ₹12.32 billion (33.3% increase YoY)
Segment Performance • Aftermarket Growth: • Order bookings up over 130% • Contributed 39% to total turnover • Domestic Sales: Increased by 14% • Export Turnover: Surged by 123%
Future Outlook • Optimism: Focus on renewable energy and industrial sectors despite global recession concerns • Innovation and Workforce: Emphasis on customer-centric strategies and workforce expansion
Key Discussions • Aftermarket Revenue: • Doubled in current quarter; attributed to sustainable refurbishment services • Expected long-term stabilization around 30% • Inorganic Growth: Recent acquisition aimed at talent acquisition, preference for organic growth • Domestic Market: Temporary slowdown in inquiries, but optimism for future growth due to government spending
International Market Insights • European Energy Costs: Stabilization seen as a positive for energy transition discussions • SADC Region Orders: Cumulative orders of around ₹60 crore from utility-level customers
Employee Recruitment • Plans to maintain employee numbers to support sales and productivity
Capital Expenditure Plans • Increase turbine production from 160 to over 200 units • Expansion of Sompura plant nearing completion
API Turbine Market • Growth potential identified, with a strong inquiry pipeline • Current market share in API segment is small, indicating significant growth opportunities
Profitability and Expenses • Recent increases in subcontracting charges deemed routine; aim to maintain PBT margins above 20% • Anticipated decrease in material costs due to better product mix
Conclusion • Management expressed confidence in sustaining growth and maintaining a strong order book • Acknowledgment of employee contributions to success • Future discussions anticipated in May 2023
Disclaimer • Transcript may contain inaccuracies due to transcription errors.