Fundamental Analysis Of Triveni Turbine: In recent months, the stock of Triveni Turbine has been in the news as the stock has outperformed the Nifty 50 by delivering a multi-bagger return of 105% in the span of a year.

Will the stock rally further? More importantly, how does the growth prospects of the company look like?

In this article, we will attempt to answer these questions by performing a Fundamental Analysis Of Triveni Turbine Limited. Keep reading to find out more!

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Fundamental Analysis Of Triveni Turbine - Triveni Turbine Logo

Fundamental Analysis Of Triveni Turbine

We shall begin the fundamental analysis of Triveni Turbine Limited by getting ourselves acquainted with the business of the company. Subsequently, let us see the industry overview and then dig deeper into the financial performance of the company.

Later, we shall proceed with the future plans of the company. Finally, let us analyze the key metrics and conclude with the fundamental analysis of Triveni Turbines Limited.

Company Overview

Triveni Turbine Limited (TTL ) is one of the leading original equipment manufacturers of steam turbines. It was incorporated in 1968 in Bengaluru, Karnataka, India. It basically manufactures the turbines that generate power from the steam.

Combined heat and power can be handled by steam turbines effectively. Therefore, it is a widely used mode of power generation in the process industry.

The company is an outcome of a demerger scheme that came into effect in April 2011. Triveni Engineering & Industries Limited holds a stake of 21.8% in Triveni Turbine Limited (TTL).

For Over five decades the company has rendered efficient steam turbine solutions. As a result, it has a dominant market share of over 60% in the Indian Market. The company is engaged in the business of manufacturing power-generating equipment and solutions.

The company has installed around 6000 steam turbines in India up to 100 MWe range which are used for power generation in over 20 plus industries including Sugar, Steel, Distillery, Textiles,  Captive Power Plants( CPPs), Pharmaceuticals, Petrochemicals and many more.

Further, it has a worldwide presence in about 75 countries including Europe, Latin America, SAARC countries, and many more. The company also has a record of 16000 plus global installed capacity 

Triveni Turbine Limited is part of the Triveni Group of Companies, the fastest-growing conglomerate with diversified interests in engineering and distilled water solutions. The core competency of TTL lies in manufacturing and supplying industry-specific, customized steam turbines.

Products Of Triveni Turbine

As we got ourselves acquainted with the primary overview of Triveni Turbine Limited (TTL) now let us proceed with the fundamentals analysis of Triveni turbines and see the various products manufactured by the company.

The company mainly manufactures 4 kinds of steam turbines including Backpressure turbines, Condensing Turbines, API Steam Turbines, and Smart Turbines. 

Backpressure Turbines: The back pressure turbine is used for supplying process steam to the facilities in private-use power producers. They are typically used where a large amount of steam is needed which would be petrochemical, Pulp and Paper and Oil Refineries Industries.

Condensing Steam Turbines: These turbines can use steam to a maximum extent to produce a large quantity of power. Therefore, it is mostly at power plants where generating power is a primary objective.

API Steam Turbines: The API steam turbines are designed for installation in harsh weather conditions and the company provides customized API steam turbines for different industries like Oil refineries, fertilizer industry, etc.

(Sustainable Modularly Arranged pressure Reducing Turbines) SMART Turbines

SMART turbines are the unique backpressure steam turbines curated by the company to aid in electricity generation by converting steam into electricity. This finds an application majorly in the rice milling industry where steam is produced at a very high pressure.

Industry Overview

In recent times, the global power generation industry is witnessing a major transformation mainly from conventional sources to renewable sources.

The entire world is heading towards “Green Power” solutions that are eco-friendly, cost-effective, and integrated through the digitization of power assets. In a global scenario, India is one of the major countries that are accountable for around 80% of renewable capacity expansion worldwide.

However, the global steam turbine market was valued at $17.5 billion in 2022 and is projected to grow at a CAGR of 2.6% from 2023 to 2032.

Additionally, the increasing demand for steam turbines in power generation and combined heat and power applications from industrial customers is an opportunity for potential growth.

Coming to the steam turbine market overview in the Indian scenario, the turbine market for less than 30 MW range grew by 137% post-global pandemic.

Increasing demand for heat and power generation from the industrial segment was the key factor that led to the rebound of the steam turbine market. 

Industry-wise application of Steam Turbines

Sugar Industry: In the sugar industry, the bagasse available after crushing sugarcanes is boiled and the steam generated during the process is fed into turbines for power generation. As per a recent survey, India is the second largest sugar producer in the world, with an expected CAGR of 5.2% by 2028.

Steel Industry: For Steel and Metallurgical Industry, it is extremely important to have a constant and reliable source of power. Thus efficient power generation is the need of an hour. The steel industry in India has always had an integral role in the economic development of the country. As per the surveys, the steel sector is expected to generate a US$ 5 trillion economy by 2025 with a CAGR of 5-6 YoY.

Cement Industry: In the cement industry, the waste heat generated from the Preheated boilers in the manufacturing facility is pushed into turbines and later power generation is done using (Air Quenching Coolers) AQC.

India was the second-largest cement producer in the world as of FY22 and is expected to grow at a CAGR of 4-5% by the end of 2027 as per CRISIL reports.

Pulp and Paper Industry: Typically, the exhaust steam generated during the process of paper manufacturing is extracted for further power generation from steam or for other activities like drying paper, evaporation, etc. The market is projected to register a compound annual growth rate CAGR of 0.72 percent from 2022 to 2029 to reach a value of roughly 373 billion U.S. dollars.

Triveni Turbine – Financials

Till now, we have got a fair idea about the company and its products. Now, moving forward with the fundamental analysis of Triveni Turbine, let us look into the overall financial performance of the company.

In spite of the decline in the global steam turbine market, the company has managed to generate good revenues as the steam turbine market below 100 MW is operating flat over the years.

As per the reports of Q4 FY23, the company has achieved its highest-ever turnover of Rs 12,476 million which amounts to an impressive growth of 46% over the previous year’s revenue of Rs 8,522 million.

Revenue and Net Profit

The table below shows the company’s revenue and net profit over the last 5 fiscal years.

Fiscal YearRevenue (In Rs Cr)Net Profit (In Rs Cr)
20231247.6192.9
2022852.2121.9
2021702.6116.3
2020817.9121.8
2019840100.2

As mentioned earlier, the company has earned the highest-ever turnover as well as profits of Rs 1,247.6 Cr and Rs 192.9 Cr respectively for the FY23. The profits are the outcome of the highest orders that the company has received amounting to Rs 1,605 Crores which is a sign of sustainable growth in the upcoming years. 

Return Ratios

The table below shows the return ratios of the company for the last 5 fiscal years.

Fiscal YearROCE (In %)ROE (In %)
20233224
20222336
20212618
20203225
20193423

If we see the return ratios of the company for the last 5 years, we see that the company has efficiently utilized the capital invested in generating revenue. The decrease in ROE from 36% in FY22 to 24% in FY23 is due to the exceptional items of the company.

Moreover, the asset turnover ratio of the company has increased from 3.2 to 4.5 over the last 5 years which shows the effective use of assets in profit generation.

Debt and Interest Coverage Ratio

The leverage ratios like Debt equity ratio, Interest Coverage Ratio help in assessing the ability of the company to meet its financial obligations. Now let us look into the leverage ratios of the company.

Fiscal YearDebt Equity RatioInterest Coverage Ratio
20230279.18
20220187.83
20210128.96
2020045.06
20190131.19

From the above table, we can see that Triveni Turbine is a debt-free company over the last 5 years with an increasing interest coverage ratio YoY. This shows that the company is running self – sufficiently with its own funds.

Future Plans Of Triveni Turbine

Up to this point, we have understood the financial performance of the company. Now, in the fundamental analysis of Triveni Turbine, we shall see the future plans of the company for the upcoming years.

  • The company has planned to increase its manufacturing capacity to 350 turbines annually, from 225 turbines at present by the end of FY24, which would be a piece of great news for its investors.
  • As per the annual reports of the company, nearly 75% of the revenue comes from renewable energy sources like geothermal energy, bioenergy, etc. As the world is heading towards the “ GO Green” concept, the company that generates power through renewable energy has huge growth potential.

Key Metrics Of Triveni Turbine

Before wrapping up the article on the fundamental analysis of Triveni turbine, let’s take a quick look at the key metrics of the company.

CMP (In Rs)397Market Cap (in Rs Cr)12,703
EPS (in Rs)6.06Stock P/E59
ROCE (in %)32ROE (In %)24
Face Value (in Rs)1Book Value23.92
Promoters Holding (in %)55.8%Price to Book Value17.69
Industry P/E58.88Dividend Yield0.36
Net Profit Margin (%)15.45Operating Profit Margin (%)22.15

Closing Thoughts

As we reach the end of the fundamental analysis of the Triveni Turbine, we learned about the company and its financial performance in detail. Furthermore, we also saw what is on board for its investors in the coming years in its future plan. Hope this article on the fundamental analysis of Triveni turbine helped you to get good insights. Happy reading!

Written By Bhagyalakshmi Patil

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.


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