PL First Cut – Triveni Turbine (TRIV) Q1FY24

PL First Cut – Triveni Turbine (TRIV) Q1FY24 – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Triveni Turbine (TRIV) Q1FY24 -First Cut – Beat on topline front while EBITDA margins impacted owing to higher other expenses

Result summary

✳️Consol sales came in better than estimates at Rs3.8bn up 56.3% YoY (PLe ~Rs3.3bn and consensus estimate of ~Rs3.4bn), driven by strong execution.

✳️Gross margin expanded 840bps YoY to 51.5% in Q1FY24.

✳️EBITDA grew of 45.6% YoY to Rs709mn (PLe ~Rs633mn and consensus estimate of Rs668mn). Despite strong gross margin expansion, EBITDA margins remained flat YoY 18.8% in Q1FY24 (vs PL estimate of 19%), due to higher other expenses (up 143% YoY). Other expenses were higher as during the quarter it included subcontracting charges (Rs391.4mn) towards execution of maintenance and overhauling contract for large utility turbines in South African Development Community (SADC) region by its subsidiary.