Shares of Triveni Engineering and Industries dropped 5% on November 6 after the company posted disappointing results for the July-September quarter. The company reported a consolidated net loss of Rs 22.4 crore, a stark contrast to its net profit of Rs 29.1 crore in the same period last year, primarily due to weaker profitability in the sugar and alcohol segments.
Revenue for the quarter grew by 8.1% year-on-year, reaching Rs 1,748.3 crore from Rs 1,617.4 crore. However, operational challenges dragged down earnings as EBITDA margin plummeted to just 1.2% from 5.3% last year. The sugar business, facing seasonal downtime with no manufacturing operations, saw its profitability decline sharply, while the alcohol business also experienced margin pressures.
According to Dhruv M Sawhney, Chairman and Managing Director of Triveni Engineering, the first half of FY25 reflected subdued profitability due to challenges in the alcohol business and losses from newly acquired Sir Shadi Lal Enterprises. In contrast, Triveni’s engineering division contributed positively, bolstering the company’s overall profit margins.
At 12:43 pm, Triveni Engineering shares traded at Rs 406.40 on the NSE. The sharp decline in stock price was accompanied by high trading volumes, with over nine lakh shares traded, far above the average daily volume of five lakh shares.
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Source: Moneycontrol
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