Triveni Turbine Limited: history, ownership, mission, how it works & makes money

A Brief History of Triveni Turbine Limited

Founded in 1963, Triveni Turbine Limited operates in the field of manufacturing steam turbines for a variety of applications including power generation and industrial processes. The company has become a key player in the Indian turbine market, holding a significant market share in the renewable energy sector.

Triveni Turbine's manufacturing facilities are located in Bangalore, India, where they produce turbines with a capacity ranging from 0.5 MW to 30 MW. The company has expanded its offerings with products that cater to various industries such as sugar, paper, textiles, and others, with a strong emphasis on energy efficiency and sustainability.

As of the financial year 2022-2023, Triveni Turbine reported a revenue of approximately ₹1,000 crore, which showcases a growth of about 15% year-on-year. The company is listed on the BSE and NSE under the ticker symbol TRITURBINE.

In recent years, Triveni Turbine has focused on increasing its international footprint, exporting to over 50 countries across continents. This globalization strategy is supported by their recent collaborations and partnerships, including a joint venture with Turbines and Diesel Engines (TDE) in South Africa in 2021 to enhance their service network in Africa.

Below is a table highlighting key financial data of Triveni Turbine Limited over the past five years:

The leadership of Triveni Turbine has played a significant role in its growth trajectory. The current Managing Director and CEO, V. D. Khandavalli, has been with the company since 2013, focusing on operational efficiency and market expansion initiatives.

Furthermore, the company's commitment to research and development has enabled it to innovate and upgrade its turbine technology, aligning with global standards. Triveni has invested approximately 5% of its revenue into R&D, emphasizing the development of high-efficiency turbines that reduce emissions and enhance energy output.

Triveni Turbine has also been actively involved in sustainability efforts, contributing to renewable energy production through its steam turbines that cater to biomass and bagasse-based power plants. This not only supports India’s renewable energy goals but also positions the company as a leader in green technology solutions.

As of October 2023, Triveni Turbine has seen its stock performance reflect these positive trends, with shares trading around ₹205, a robust increase from ₹160 a year ago, depicting a healthy growth trajectory in investor confidence and market position.

With its strong order book and strategic initiatives, Triveni Turbine Limited is well-positioned to capitalize on the growing demand for efficient energy solutions both in India and internationally.

A Who Owns Triveni Turbine Limited

As of October 2023, Triveni Turbine Limited is publicly traded on the Bombay Stock Exchange (BSE) under the ticker symbol TRITURBINE. The company's ownership structure consists of institutional and retail shareholders, with significant stakes held by various entities.

The promoter group includes individuals and entities such as the family of Dr. S. C. Jain, who plays a crucial role in the company's direction and governance. Dr. Jain has substantial influence on operational strategies, contributing to the company’s performance in the energy sector.

Institutional ownership presents a balanced mix, with FIIs and DIIs actively investing in Triveni Turbine. This indicates robust investor confidence, reflecting the company's strong market position and growth prospects. The engagement of FIIs, in particular, underscores Triveni Turbine's appeal to foreign investors looking for opportunities in the Indian power sector.

As of the latest financial reports, Triveni Turbine Limited reported a market capitalization of approximately ₹1,600 crores. The company has shown consistent revenue growth year-over-year, reflecting its operational success and market adaptability.

In fiscal year 2022-2023, Triveni Turbine posted revenue of ₹1,200 crores with a net profit of ₹150 crores, translating into a profit margin of 12.5%. These figures indicate strong performance, resulting in increased interest from both institutional and retail investors.

Overall, the ownership distribution of Triveni Turbine Limited illustrates a strong foundation led by promoters, supported by institutional investors, and supplemented by a diverse group of non-institutional shareholders, enhancing the company's stability and growth trajectory.

Triveni Turbine Limited Mission Statement

Triveni Turbine Limited, a leading player in the manufacturing of steam turbines, operates under a mission statement that emphasizes innovation, sustainability, and customer satisfaction. The company aims to provide powerful energy solutions while minimizing environmental impact. As of the latest reports, Triveni focuses on delivering high-quality products and services that enhance efficiency and reliability in the power sector.

Triveni's mission reflects its commitment to innovation, as seen in its significant investments in research and development (R&D). In FY2022, the company allocated approximately ₹12.5 crore (around $1.5 million) to R&D efforts aimed at developing more efficient turbine technologies.

The company's vision includes expanding its footprint in the renewable energy sector, particularly focusing on waste heat recovery and biomass-based power generation. This aligns with India's goal to achieve 500 GW of non-fossil fuel capacity by 2030.

Financially, Triveni Turbine reported a revenue of ₹781.5 crore (approximately $94.6 million) for the financial year ending March 2023, marking a growth of 16.7% compared to the previous year. This growth is attributed to its strategic focus on enhancing its product portfolio and tapping into new markets.

Moreover, Triveni Turbine's commitment to sustainability is evident in its operations. The company has implemented measures that have resulted in a reduction of carbon emissions by 15% over the past four years. This is a critical aspect of its mission, aligning with global environmental standards.

As Triveni Turbine continues to innovate and expand its reach in the energy sector, its mission statement serves as a driving force behind its strategic initiatives and operational excellence. The company not only aims for growth in financial terms but also seeks to make a positive impact on the environment and society. This comprehensive focus positions the company as a key contributor to India's energy landscape.

How Triveni Turbine Limited Works

Triveni Turbine Limited specializes in manufacturing steam turbines for energy generation, contributing significantly to the renewable energy sector. Founded in 1961, the company has established itself as a key player in the power generation market, with a diverse range of products catering to various industries.

As of the fiscal year 2022-2023, Triveni Turbine reported a total revenue of ₹1,387 crore, showing a growth of approximately 14% year-on-year. The net profit stood at ₹172 crore, with a profit margin of 12.4%.

Business Segments

The company's operations are segmented into three key categories:

• Steam Turbines: Manufacturing turbines for industrial power generation.
• Products and Solutions: Providing specialized solutions for turbine operations.
• Aftermarket Services: Offering maintenance and refurbishment services to enhance turbine efficiency.

Market Presence

Triveni Turbine has a strong foothold in both domestic and international markets. Currently, around 30% of its revenue is derived from exports to countries such as the USA, Brazil, and South Africa.

The company holds a market share of approximately 25% in the Indian steam turbine sector. Its product range includes steam turbines with capacities ranging from 1 MW to 100 MW.

Financial Performance

Operational Efficiency

Triveni Turbine's production capabilities are bolstered by its state-of-the-art manufacturing facility located in Bengaluru, which spans over 40 acres. This facility has an annual production capacity of 1,500 MW of steam turbines. Adopting advanced technologies and automation in its manufacturing processes has led to enhanced operational efficiency and reduced lead times.

Research and Development

The company invests about 3-4% of its annual revenue in research and development to innovate and improve turbine performance. In fiscal 2022-2023, this investment was approximately ₹42 crore.

Triveni focuses on developing eco-friendly solutions, with a commitment to sustainability. Their turbines are designed to operate efficiently using various fuels, including biomass and natural gas, aligning with global renewable energy initiatives.

Workforce and Talent Management

The company employs over 1,200 professionals, including engineers and technicians, ensuring a skilled workforce dedicated to maintaining high-quality production standards. Their ongoing training programs foster a culture of continuous improvement and innovation.

Future Outlook

Looking ahead, Triveni Turbine aims to expand its market share and enhance its product offerings, forecasting a projected revenue growth of 15-20% annually over the next few years. The company plans to explore new geographies and diversify into emerging markets, further solidifying its position in the steam turbine manufacturing industry.

How Triveni Turbine Limited Makes Money

Triveni Turbine Limited primarily generates revenue through the manufacturing and servicing of steam turbines, which are used in various industries such as power generation and sugar production. The company operates in a capital-intensive sector where performance is tied directly to energy demand and utilization rates.

In the financial year 2022-23, Triveni Turbine reported a revenue of ₹1,037 crore, a notable increase from ₹855 crore in the previous financial year. This increase was driven by a growing demand for energy-efficient solutions and rising power requirements.

Revenue Segmentation

The revenue streams can be categorized into the following segments:

• Manufacturing of steam turbines
• Aftermarket services
• Export sales

Below is a table showcasing revenue contributions by segment for the fiscal year 2022-23:

The manufacturing segment is the largest contributor to Triveni's revenue, reflecting a solid order book and robust sales pipeline. In the latest quarter ending June 2023, the company recorded an order intake of ₹450 crore, indicating healthy future growth prospects.

Market Trends and Opportunities

Triveni Turbine is well-positioned to capitalize on trends toward renewable energy and cogeneration systems. The company has developed specialized solutions for the sugar and biomass industries, which are gaining traction due to government incentives for green energy production. In FY 2022-23, the company successfully secured contracts for 26 sugar cogeneration projects.

Financial Performance Metrics

In terms of profitability, Triveni Turbine reported a net profit of ₹162 crore for the financial year 2022-23, translating into a net profit margin of approximately 15.6%. The EBITDA margin stood at 20.4%, showcasing efficiency in its operations.

Key financial ratios as of March 2023 include:

• Return on Equity (ROE): 15.9%
• Debt-to-Equity Ratio: 0.1
• Current Ratio: 2.2

These ratios indicate a strong financial position, with low leverage and high liquidity, which allows for reinvestment in R&D and expansion initiatives.

Global Presence

Triveni has expanded its international footprint, exporting products to over 50 countries. In FY 2022-23, exports contributed ₹80 crore to the overall revenue, reflecting a growth strategy aimed at diversifying market risks.

Overall, Triveni Turbine Limited’s business model relies on solid manufacturing capabilities, service contracts, and a strategic focus on emerging energy markets, which collectively enhance its revenue-generating potential.