Sugar stock in green after company reports net profit increase of 30%; Do you own it?

Shares of Triveni Engineering & Industries Ltd. surged 4% on Friday to reach an intraday high of ₹ 281.40  apiece from the previous close price of  ₹ 264. The company’s recent release of strong Q4 FY 22-23 results caused the stock price to jump today. 

At 14:30 am, the stock was trading at  ₹273.25 on the BSE, up 3.23 percent from its previous close.

The company’s net profit increased by 74% year over year to Rs 190.31 crore. Additionally, revenue from operations increased by 53% to Rs 1,839 crore from Rs 1,195 crore the previous year.

Triveni Engineering & Inds. Ltd. is engaged in the business of manufacturing sugar, steam turbines, distilleries, Co-Geneartion projects, and engineering activities. The company also sells FMCG goods under the brand name Shagun.

Having a quick walkthrough of the financials reported by the company, the operating revenue increased from ₹1,695 crores in Q3 to ₹1,839 crores in Q4. Similarly, the net profits of the company during the same period, increased by 30 percent, from ₹147 crore to ₹ 190 crore. 

On a YoY comparison of the metrics, the revenues significantly improved from ₹ 4,716 crores during FY 21-22 to ₹6,390 crores in FY 22-23. The PAT numbers have shifted upwards within the timeframe mentioned, from ₹ 424 crores to ₹1792 crores. 

The board of directors has recommended a final dividend of 325 percent of Rs 3.25 per equity share.

In the past three years, the stock has jumped around 592.50 percent, ranging from  ₹40.65 to the current price levels. 

According to the latest data pertaining to the shareholding pattern, promoters of the company hold a 60.98 percent stake, and domestic institutional investors (DIIs) hold an 8.54 percent stake in the company for FY 22-23.

Written by Omkar C