Triveni Turbine shares surged by nearly 12% on November 12, driven by its strong Q2 earnings report, which highlighted significant growth across key financial metrics. As of 10:43 am, Triveni Turbine was trading at ₹690.15 on the NSE, witnessing high trading volumes as 58 lakh shares had already changed hands, far surpassing the one-month daily traded average of nine lakh shares.

Robust Q2 Performance

Triveni Turbine reported a 42% year-on-year increase in consolidated net profit, reaching ₹91 crore for the July-September quarter. This remarkable profit growth reflects the company’s focus on capturing opportunities in both domestic and international markets. A year ago, Triveni's net profit for the same quarter stood at ₹64 crore, marking a substantial improvement over the past year.

The company also achieved record revenue of ₹520.7 crore in Q2, up from ₹402.3 crore in the corresponding quarter last year. This impressive revenue growth was fueled by improved order bookings and a significant rise in exports. Order bookings in Q2 FY25 rose by 25% year-on-year to ₹572 crore, primarily driven by a 50% increase in export orders to ₹304 crore. This focus on international markets indicates Triveni Turbine’s commitment to expanding its global footprint.

Record-Breaking EBITDA and Order Book

Alongside record revenue, Triveni Turbine also posted its highest-ever EBITDA at ₹131 crore, marking a 320 basis point expansion in EBITDA margin to 26.1%. The strong EBITDA performance reflects operational efficiencies and favorable market conditions that allowed the company to improve profitability.

Another highlight from the earnings report is the record outstanding order book of ₹1,796 crore as of September 30, 2024, a 22% year-on-year increase. This substantial order backlog not only reflects strong demand but also gives the company a solid foundation for future revenue growth. The healthy order book is indicative of Triveni Turbine’s competitive position in the power generation sector, both domestically and internationally.

Strategic Focus on Innovation and Sustainability

Dhruv M. Sawhney, Chairman and Managing Director of Triveni Turbine, emphasized the company's commitment to innovation and sustainability. In an exchange filing, he noted, “We have reported another strong set of results across all key metrics—revenues, profitability, and order booking. In response to the growing demand for higher efficiencies and sustainable power generation, the company is actively pursuing a robust R&D program.”

Triveni Turbine’s research and development efforts are aimed at advancing its product portfolio through digitization and innovation. The company is working on solutions aligned with energy transition and sustainability goals, addressing the increasing demand for efficient and eco-friendly power generation solutions. These initiatives are expected to strengthen Triveni’s position as a leader in the steam turbine industry, particularly as the world transitions towards sustainable energy sources.

Implications of the Earnings Report

Triveni Turbine’s strong Q2 performance has several positive implications for investors and the industry at large:

• Stock Momentum: The 12% surge in stock price reflects investor confidence in Triveni Turbine’s growth trajectory, especially following a robust earnings report and record order bookings.
• Expansion in International Markets: The 50% increase in export orders highlights Triveni’s strategic push in global markets, which is likely to further enhance its revenue base and reduce dependence on domestic demand.
• Focus on Sustainability: Triveni’s commitment to R&D and sustainable power generation positions it well in an industry increasingly focused on eco-friendly solutions. This alignment with global energy trends will likely benefit the company in the long run.

In summary, Triveni Turbine’s impressive Q2 earnings performance has captured the attention of investors, with key metrics such as revenue, profit, and order bookings reaching new highs. The company’s commitment to innovation and sustainability, along with its expansion in international markets, underscores its growth potential and solidifies its position as a leader in the steam turbine and power generation sectors.

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