Latest news with #TriveniTurbine
Indian Express
29-05-2025
- Business
- Indian Express
High margins, global orders, clean energy bets. Is Triveni the midcap Tata Power?
In 2020, Triveni Turbine was a steady industrial player known for its steam turbines, mostly serving sugar mills and process industries. Fast-forward to FY25, and the picture has changed dramatically. The company recently reported its highest-ever revenue of Rs 2,005 crore, along with Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of Rs 517 crore, and Profit After Tax (PAT) of Rs 358 crore. Its order book stands at a record Rs 2,362 crore, exports now contribute nearly half its revenue, and it's even building a CO₂-based energy storage system for NTPC, a first-of-its-kind in India. What started as a steam turbine manufacturer is now quietly becoming a key enabler of clean energy and decentralised power, both in India and abroad. The stock has rallied accordingly, up nearly 3.5x in the last three years. But with valuation multiples running hot and new segments still scaling, one needs to ask: Is this just the beginning of a longer upcycle, or is most of the good news already priced in? Let's break it down. What does Triveni Turbine do? Triveni's business is at the intersection of energy, engineering, and the clean-tech shift. The company builds and services steam turbines of up to 100 MW capacity, often used in power generation for industries like sugar, chemicals, cement, oil & gas, and waste-to-energy. These turbines aren't powering city grids; they're running industrial plants that need their own, decentralised energy sources. A business built on three strong pillars Triveni's revenue model revolves around three main engines: 1. Industrial turbine manufacturing (core product business) This is Triveni's bread and butter: engineered-to-order steam turbines sold to industrial clients and independent power producers across the world. In FY25, the product segment clocked Rs 1,363 crore in revenue, up 22% YoY. New order booking reached Rs 1,741 crore, marking a 38% YoY jump, the highest ever in the company's history. This growth was driven by sectors like biomass, process co-gen, sugar distilleries, chemical factories, and waste-to-energy plants. Triveni has also gained ground in the API (American Petroleum Institute) turbine segment, supplying to global oil refiners and petrochemical majors. These turbines meet stricter design and performance specs and fetch premium pricing. The demand isn't just domestic. The company is present in over 80 countries, with more than 6,000 turbines installed globally, and is building a credible brand in high-quality industrial turbines. 2. Aftermarket services: Recurring revenue Steam turbines need regular maintenance, spares, and upgrades, especially in mission-critical plants. Triveni's aftermarket segment provides exactly that, often for the entire lifecycle of the turbine, which can span 15-30 years. In FY25, aftermarket revenue hit Rs 642 crore, up 19% YoY. It now makes up 32% of overall revenue. The company booked Rs 6,216 crore in aftermarket orders during the year, largely flat YoY but healthy in absolute terms. This segment is a high-margin cushion, it continues to grow even when new industrial capex is slow. 3. Global expansion: Exports and subsidiaries leading the way A big part of Triveni's success story is happening outside India. In FY25, exports contributed 48% of revenue, compared to 46% in FY24 and 41% in FY23. Export turnover grew by 26% YoY, reaching Rs 967 crore. Export order booking stood at Rs 1,258 crore, making up 53% of total orders. To serve global markets better, Triveni has set up fully owned subsidiaries in the UK (Europe HQ), Dubai (Middle East hub), South Africa (Africa servicing), and Texas, USA (entry into North America). While the US business is still in its early phase, the management is bullish, especially in sectors like geothermal, pulp & paper, and industrial gas turbines. Tariff hurdles may have slowed initial traction, but Triveni has begun localising operations and may even manufacture turbines in the US if needed. Together, these three engines — core turbines, aftermarket, and exports — are what powered Triveni's transformation from a steady industrial player to a clean-energy growth story. Next, we'll look at how a first-of-its-kind project with NTPC may signal a bigger pivot for the company, from just making turbines to enabling India's energy transition. The clean energy pivot: More than just steam For years, Triveni Turbine quietly built its reputation by serving traditional industries like sugar, textiles, and cement. But over the last three years, the company has deliberately repositioned itself as a partner in clean energy and decarbonisation. And the biggest sign of that shift? A Rs 2.9 billion order from NTPC that has almost nothing to do with conventional steam turbines, and everything to do with the future of renewable energy storage. The NTPC-Kudgi project: A glimpse into the future In January 2025, Triveni secured a landmark contract from NTPC to set up a 160 MWh long-duration CO₂-based energy storage system (ESS) at its Kudgi thermal power plant in Karnataka. This isn't just a big-ticket order, it's a first-of-its-kind pilot in India, and only a handful of such projects exist globally. So, how does it work? The system, developed in partnership with Italian firm Energy Dome, uses supercritical CO₂ in a closed-loop cycle to store and release energy. When excess renewable power is available (say, solar at noon), the system compresses and stores CO₂ in liquid form. When power is needed (like at night), it releases the gas, drives a turbine, and pushes energy back into the grid. It's clean, scalable, and built for the intermittency problem of renewables. Why this matters for Triveni This order does three things for the company: 1. Proves it can play in futuristic, high-tech energy segments. Until now, energy storage was seen as the domain of lithium-ion batteries or pumped hydro. Triveni has now stepped into the conversation with a differentiated solution. 2. Establishes credibility in grid-scale clean energy projects. NTPC is India's largest power utility. Delivering a complex, first-of-its-kind project for NTPC could open doors for similar projects across the country, and even globally. 3. Creates a new business vertical, if it works. The company has called this a 'proof of concept.' If successful, CO₂-based energy storage could become a product category of its own, expanding Triveni's addressable market well beyond steam turbines. Clean energy is already embedded in the core business Even outside this CO₂ project, clean and decentralised energy already makes up a big chunk of Triveni's order book. In FY25: In short, Triveni is already riding two energy transition megatrends: The NTPC project might just be the first visible symbol of a deeper strategic shift that's already underway. FY25 at a glance: Record-breaking numbers So what's behind this steady margin expansion? 1. Higher Exports = Higher Margins In FY25, Triveni's export revenue grew 26% YoY, compared to 17% growth domestically. 2. Favourable product mix The company has been tactically shifting its focus from small, low-margin turbines to more complex, high-margin products, especially API turbines for global oil & gas players, power turbines for international energy clients, and CO₂-based ESS projects, which offer turnkey margins comparable to large industrial contracts. This mix shift has been a major contributor to the 280 basis point jump in operating margins between FY24 and FY25. 3. Operating leverage kicking in As revenue crosses the Rs 2,000 crore-mark, Triveni is now seeing fixed costs spread across a higher base, especially in areas like: R&D and engineering (which are being scaled globally) Aftermarket service (where incremental customers drive disproportionate margins) International subsidiaries (which took time to scale, but are now contributing meaningfully) 4. Tight control over costs Despite global inflation in raw materials (especially steel and alloys), Triveni's cost controls have held up: Key financial ratios that stand out This is capital-efficient, margin-accretive growth, the kind long-term investors love. That said, the next question is natural: Can this momentum continue, or is Triveni nearing peak profitability? Orders in hand, eyes on the horizon: Can growth sustain? Management commentary suggests cautious confidence. Here's what they see as Triveni's next drivers: 1. Export Expansion The company is doubling down on exports, especially in: With new local entities like Triveni Turbines Americas (Texas), the company aims to reduce friction and eventually localise part of manufacturing if needed. 2. CO₂ storage as a scalable segment The NTPC-Kudgi project is seen as a 'proof-of-concept,' but if it succeeds, Triveni believes it could replicate the model across India and even internationally. The margins are comparable to the turbine business, but the TAM could be much larger. 3. Aftermarket deepening More turbines on the ground = more servicing revenue. And unlike capital goods, aftermarket is sticky, high-margin, and recurring. Triveni is expanding offerings to cover even non-Triveni turbines, including gas, geothermal, and utility-grade machines. But what about valuation? That brings us to the trickiest part. Triveni's stock has had a solid run and is no longer cheap. At a recent price of ~Rs 580-600, the stock trades at: Is it justified? Let's map out a few scenarios. Valuation Scenarios (FY26E) Scenario EPS (FY26E) P/E Multiple Implied Price Conservative (with 16% growth in EPS) ₹13 35x ₹455 Base Case (with 25% growth in EPS) ₹14 40x ₹560 Bullish Upside (with 34% growth in EPS) ₹15 45x ₹675 Note: This is not a prediction of where the stock price could head. It's just an if-then calculation for acade Upside from here depends on one or more of the following happening: Risks include: Note: This is not a prediction of where the stock price could head. It's just an if-then calculation for academic purposes. So is it still a buy? That depends on your lens. If you're a long-term investor betting on India's energy transition and want exposure to industrial clean tech, Triveni offers moated leadership, consistent earnings, and a clean balance sheet. If you're a value-conscious buyer, much of the near-term optimism may already be priced in. Either way, Triveni is no longer just a steam turbine company. It's a clean-energy engineering play with global ambitions, and over the next few years, it'll either scale into that potential or find itself in a high bar vs high multiple dilemma. Note: This article relies on data from annual and industry reports. We have used our assumptions for forecasting. Parth Parikh has over a decade of experience in finance and research and currently heads the growth and content vertical at Finsire. He holds an FRM Charter along with an MBA in Finance from Narsee Monjee Institute of Management Studies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
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Business Standard
12-05-2025
- Business
- Business Standard
Triveni Turbine shares fly 12% as Q4 profit zooms 24%; ₹2 dividend declared
Triveni Turbine share price: Turbines manufacturer Triveni Turbine shares zoomed up to 12.30 per cent to hit an intraday high of ₹579.25 per share, on Monday, May 12, 2025. At 1:20 PM, Triveni Turbine shares were off day's high, and were trading 9.54 per cent higher at ₹565 per share. By comparison, BSE Sensex was trading 3.20 per cent higher at 81,996 level. Catch Stock Market Updates Today LIVE What fuelled the rally in Triveni Turbine share price? Triveni Turbine shares zoomed after the company posted a healthy set of numbers in its March quarter of financial year 2025 (Q4FY25) results. The company's revenue soared 17.5 per cent year-on-year (Y-o-Y) to ₹538 crore, from ₹458.1 crore in the same quarter a year ago (Q4FY24). The profit, also known as bottomline, surged 24.1 per cent Y-o-Y to ₹94.6 crore in Q4FY25, from ₹76.2 crore in Q4FY24. At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) zoomed 31.2 per cent annually to ₹140.3 crore in Q4FY25, from ₹106.9 crore in Q4FY24. Subsequently, Ebitda margin expanded to 26.1 per cent in Q4FY25, from 23.3 per cent in Q4FY24. The order booking for the year reached a record ₹2,363 crore, up 26 per cent annually backed by a surge in domestic and product-led demand, Triveni Turbine said. ALSO READ | Triveni Turbine dividend announcement The Board of Directors of the company recommended a final dividend at 200 per cent i.e. ₹2 per fully paid-up equity share of the face value of ₹1 each for the financial year 2024-25, subject to approval of the shareholders at the ensuing Annual General Meeting (AGM) to be held on Monday, September 8, 2025. The dividend, if declared, shall be paid to the shareholders, subject to deduction of tax at source, within thirty days from the date of declaration. Triveni Turbine outlook Triveni Turbines is well-positioned for continued strong performance, supported by a solid order backlog in its API and IPG segments and expansion into high-growth markets like the USA. A reliable domestic supply chain further strengthens its competitiveness, the company revealed, in a statement. The Aftermarket business is set for growth, driven by a broader range of services and spare parts for steam, gas, utility, and geothermal turbines. 'The Company's expanding presence in global markets, along with the increasing demand for renewable energy, energy efficiency, waste-to-energy (WtE), and decentralised power solutions, continues to present substantial growth opportunities for Triveni Turbines. The Company is confident that leveraging these opportunities, both domestically and internationally, will enable it to maintain growth and profitability in the coming years,' the company added. ALSO READ | About Triveni Turbine Triveni Turbine is a leading industrial steam turbine manufacturer based in Bengaluru, India, specialising in efficient and reliable power solutions for industrial and renewable energy sectors. With a strong focus on engineering excellence and customer-centric innovation, Triveni Turbine offers precision-engineered steam turbines up to 100 MW. The company's offerings cater to a wide range of industries, including Sugar, Steel, Cement, Oil & Gas, and Food Processing, among others. Its global footprint spans over 80 countries, with more than 6,000 turbine installations across more than 20 sectors.
Business Standard
12-05-2025
- Business
- Business Standard
Triveni Turbine zooms as Q4 PAT jumps 24% YoY to Rs 95 cr
Triveni Turbine surged 9.63% to Rs 565.45 after the company's consolidated net profit jumped 24.14% to Rs 94.60 crore on 17.44% rise in revenue from operations to Rs 538 crore in Q4 FY25 over Q4 FY24. Domestic sales increased by 8% YoY to Rs 260 crore while export sales grew by 27% YoY to Rs 280 crore during the period under review. Profit before tax stood at Rs 100.90 crore in the March 2025 quarter, up 30.92% from Rs 100.90 crore posted in the corresponding quarter last year. EBITDA surged 31.24% year on year to Rs 140.30 crore in the quarter ended 31 March 2025. EBITDA margin improved to 26.1% in Q4 FY25 as against 23.3% recorded in the corresponding quarter last year. The company achieved an order booking of Rs 630 crore in Q4 FY25, registering a 44% year-on-year growth. Export order booking declined 27% YoY to Rs 190 crore, while domestic order booking surged 150% YoY to Rs 440 crore, driven by Rs 290 crore worth of orders from NTPC for setting up a Long Duration Energy Storage (LDES) system at Kudgi, Karnataka. On its outlook, the company stated that Triveni Turbines, as a globally trusted energy innovator, is well-positioned to sustain healthy near-term performance following a strong showing in FY25. This positive outlook is underpinned by a robust order backlog in the API and IPG (Industrial Power Generation) turbine segments, along with market expansion in high-potential regions such as the USA. A strong domestic supply chain further strengthens competitiveness and supports business continuity. The company also highlighted strong growth potential in its Aftermarket business, driven by an expanded range of offeringsincluding spare parts, services, and refurbishmentstargeting a broader customer base across various rotating equipment, including steam turbines, gas turbines, utility turbines, and geothermal turbines. Triveni Turbines growing global presence, coupled with rising demand for renewable energy, energy efficiency, waste-to-energy (WtE), and decentralized power solutions, continues to offer significant growth opportunities. The company remains confident that by leveraging these trends both in India and internationally, it will be able to sustain its growth and profitability in the years ahead. Dhruv M. Sawhney, chairman and managing director, Triveni Turbine, said: In FY25, Triveni Turbines sustained its strong track record of outstanding financial performance and surpassed previous highs of annual revenues, profitability and order booking. Revenue from operations grew 21% over the previous year to reach record level of Rs 20.06 billion. EBITDA and profit before tax (PBT) grew faster at 36% and 37% YoY and stood at Rs 5.18 billion and Rs 4.88 billion respectively. Profit after tax (PAT) stood at Rs 3.59 billion, representing an increase of 33% over last year. Higher EBITDA and profits were achieved through a combination of efficient cost management, operating leverage and an improved revenue mix. Order booking for the year reached a record Rs 23.63 billion, up 26% YoY supported by increased domestic and product-led demand. This is despite downward adjustments of Rs 1.4 billion in order booking due to slow moving orders while having customer advances. The aftermarket segment witnessed a notable increase in new, repeat, and referral orders. At end of 31 March 2025 the closing order book stood at a record Rs 19.09 billion, an increase of 23% YoY. A robust closing order book ensures healthy visibility for the medium term, positioning the company well for continued momentum. Demand for the Companys products remained strong with Product order booking achieving an impressive growth of 38% YoY to Rs 17.41 billion in FY25. Key drivers of growth in product order booking were finalisation of orders in the renewable energy sector, industrial clients, power producers and API turbines. Domestically, product order booking was also supported by the Companys strategic foray in CO₂ energy storage solutions. In the API segment, the enquiry base expanded geographically, resulting in order finalisations for both drive and power turbines across the Middle East, Southeast Asia, Central & South America and Europe. As a result, the company achieved its highest-ever annual Product order booking for the fourth consecutive year, representing a key milestone in its pursuit of sustainable and innovative solutions. The company continues to see good international demand which is reflected in export order booking which grew 23% YoY to Rs 12.59 billion during the year. This includes orders secured across broad power ranges from key regions including the Middle East, Europe, North America, Southeast Asia, and Africa. The enquiry pipelines in both product and aftermarket segments remain robust and globally diversified. In FY25, the international enquiry pipeline grew by 30% while the domestic enquiry growth was even more impressive at 120%, providing strong visibility for the coming year. By diversifying across various geographies and product/aftermarket segments, we also aim to mitigate the risks associated with market volatility. Our strategic initiatives are underpinned by a robust culture of innovation, customer centricity, operational excellence, safety, and quality assurance. This lays a solid foundation for Triveni Turbines for future opportunities and sustained value creation for all stakeholders. The board of directors has recommended payment of final dividend Rs 2 per equity share of Rs 1 each) for the financial year 2024-25, subject to approval of shareholders. Triveni Turbine is primarily engaged in business of manufacture and supply of power generating equipment and solutions.
Business Standard
12-05-2025
- Business
- Business Standard
Triveni Turbine consolidated net profit rises 23.55% in the March 2025 quarter
Sales rise 17.44% to Rs 538.00 crore Net profit of Triveni Turbine rose 23.55% to Rs 93.90 crore in the quarter ended March 2025 as against Rs 76.00 crore during the previous quarter ended March 2024. Sales rose 17.44% to Rs 538.00 crore in the quarter ended March 2025 as against Rs 458.10 crore during the previous quarter ended March 2024. For the full year,net profit rose 32.69% to Rs 357.20 crore in the year ended March 2025 as against Rs 269.20 crore during the previous year ended March 2024. Sales rose 21.27% to Rs 2005.80 crore in the year ended March 2025 as against Rs 1654.00 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 538.00458.10 17 2005.801654.00 21 OPM % 22.3819.60 - 21.7719.27 - PBDT 139.60106.70 31 514.90378.50 36 PBT 132.10101.50 30 488.60357.80 37 NP 93.9076.00 24 357.20269.20 33
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Business Standard
10-05-2025
- Business
- Business Standard
Triveni Turbine Q4 profit surges 60% to Rs 94 cr on higher income
Triveni Turbine on Saturday reported a 60.44 per cent rise in standalone profit to Rs 93.7 crore in the March quarter, on account of higher income. It had posted Rs 58.4 crore profit after tax in the year-ago period, the company said in an exchange filing. The company's total income rose to Rs 508.1 crore from Rs 400.2 crore a year ago. For the entire FY25, net profit rose to Rs 374.4 crore from Rs 209 crore in FY24. The board of directors also recommended a final dividend Rs 2 per fully paid-up equity share of the face value of Re 1 each for 2024-25, subject to approval of the shareholders at the ensuing annual general meeting (AGM) to be held on September 8, 2025. Triveni Turbine Ltd Chairman and Managing Director Dhruv M Sawhney said, "In FY25, Triveni Turbines sustained its strong track record of outstanding financial performance and surpassed previous highs of annual revenues, profitability and order booking. "Revenue from Operations grew 21 per cent over the previous year to reach record level of Rs 20.06 billion. EBITDA and Profit Before Tax (PBT) grew faster at 36 per cent and 37 per cent y-o-y and stood at Rs 5.18 billion and Rs 4.88 billion, respectively. " Triveni Turbine Ltd offers steam turbine solutions for industrial captive and renewable power.
