Triveni Engineering & Industries Soars on MoU with Rolls-Royce

Significant Share Price Movement

Triveni Engineering & Industries Limited, a prominent mid-cap player in the engineering sector, has drawn attention in the stock market after its share price surged by nearly 5%. The increase follows the company’s announcement of a Memorandum of Understanding (MoU) with Rolls-Royce to supply marine gas turbine generators for customers in India. As of the market opening, the stock was priced at ₹382, up 0.5% from the previous day’s close of ₹380. The stock reached an intraday high of ₹398.80, reflecting a gain of 4.97%.

Details of the MoU

The newly established MoU with Rolls-Royce encompasses a wide array of collaborative efforts, focusing on the design, development, and manufacturing of 4MW marine gas turbine generators. These generators are intended to cater specifically to the Indian market, with an emphasis on comprehensive sales and support activities. This collaboration marks a significant step for Triveni, highlighting its ambitions beyond its core sectors.

Financial Highlights

Despite the bullish stock market reaction, Triveni Engineering’s financial performance displayed mixed results. For the third quarter of the fiscal year 2025 (Q3FY25), the company recorded a revenue decline of 2.98% year-on-year, dropping from ₹1,600.30 Crore to ₹1,553.64 Crore. However, when compared to the previous quarter (Q2FY25), the revenue showed a noteworthy increase of 8.46%, rising from ₹1,748.33 Crore.

In terms of profitability, the company’s net profit experienced a significant drop of 69% year-on-year, falling from ₹137.40 Crore to ₹42.57 Crore. On a quarter-on-quarter basis, the company rebounded from a loss of ₹22.42 Crore in the previous quarter, indicating a potential recovery path moving forward.

Segment Analysis

Triveni Engineering’s revenue stream is predominantly derived from its Sugar & Allied Businesses, which contributes a staggering 98.87% of total revenue. In contrast, the Engineering Businesses, which include their newly announced collaboration with Rolls-Royce, account for just 1.12% of overall revenue. This disparity highlights the company’s strong foothold in the sugar industry while also pointing toward the potential for growth in its engineering ventures.

About Triveni Engineering & Industries Limited

Founded in 1932 and headquartered in Noida, Triveni Engineering & Industries Limited is a diversified Indian company with operations that span sugar production, ethanol manufacturing, power transmission, water treatment, and defense engineering. As one of India’s largest integrated sugar producers, the company also boasts multiple distilleries for ethanol and alcohol production. In addition to its sugar business, Triveni manufactures high-speed gears, gearboxes, and steam turbines tailored for both industrial and defense applications, underscoring its multifaceted expertise.

Conclusion

The recent MoU with Rolls-Royce reflects Triveni Engineering’s strategic move to diversify its offerings, particularly within the engineering sector. As the company navigates its financial challenges while exploring new opportunities, stakeholders will be watching closely to see how these developments shape its future performance.

Written by Abhishek Das

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