Triveni Turbine sees upswing in domestic and international business enquiries, orders

New Delhi Driven by capital expenditure across Indian corporates and the opening-up of export markets, particularly the South East Asian ones, Triveni Turbine, the country’s largest steam turbine maker, has seen an upswing in enquiries and orders.

According to Nikhil Sawhney, Vice Chairman and Managing Director, Triveni Turbine Ltd, its opening order book- for steam turbines of up to 100 MW - stood at ₹970 crore for the next eight months; a growth of 52 per cent over the previous fiscal.

International enquiry generation are up 25 per cent on an annualised basis.

“In FY22, domestic enquiry book saw an increase of 57 per cent led by sectors such as co-generation, food processing, distillery, pulp & paper, chemicals and a variety of different sectors including cement, sugar and oil & gas. International enquiry generation increased by 25 per cent compared to FY 21,” he told BusinessLine.

Despite the stress in some sectors in India, like cement and steel, the most prominent names are already going ahead with their announced expansion plans. Moreover, with many countries looking at a “China-plus-one strategy,” some Indian small and medium enterprises are already expanding capacities.

“We have an over 50 per cent market share in India. So practically every capex plan come on our table. If not greenfield, brownfield expansion projects are going on in India and most of them are on track,” Sawhney, who is also the VP of AIMA, said,

Export Markets

New export markets are opening up in Southeast Asia – with many of these nations coming out of covid-led restrictions – and Europe. International demand is being driven by sectors like renewable energy-based Independent Power Producers (IPPs) and process industries.

Triveni has installation in over 75 countries and enquiries from over 110.

“Globally we have been gaining market share in the export markets and we have plans to ramp up after sales. We are also looking to set up more international subsidiaries,” he said.

The company recently announced the acquisition of 70 per cent equity of TSE Engineering in South Africa for 11.9 million South African rands, through its wholly-owned subsidiary. The company, TSE, registered under the South African law, is into high-precision engineering repairs and servicing machinery in sugar and other industrial plants in the South African Development Community region.

Margins

According to Sawhney, margins should “ideally improve” or “at most remain stable” at FY22. International business growth and an improved order book position are seen as the key positives.

In FY22, Triveni Turbine reported revenue from operations to ₹852 crore, up 21 per cent, y-o-y. The EBITDA was at ₹ 192 crore, up 15 per cent y-o-y. The PAT stood at ₹270 crore, an increase of 164 per cent, y-o-y.

“Our opening order book position is strong, and international business has better margins than domestic. So all-in-all, margins should at most be stable, if not better,” he added.

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