Shares of Triveni Turbine continued their upward trend for the second straight trading day on Tuesday, surging by 10% to mark a new all-time high of ₹330 apiece. Despite the volatile trend in the market, the stock has generated a return of almost 19.60% in the current month, moving from Rs. 271 to the current price of Rs. 324.
After hitting a 52-week low of ₹147 in June, the stock witnessed a remarkable surge of 120% to date. Over the last nine months, the stock has experienced positive gains for a total of seven months.
The recent upswing in the company's share price can be attributed to the positive impact of its robust financial performance in the December quarter, which surpassed analyst expectations.
The company on January 23 reported a strong consolidated net profit of ₹53 crore, indicating a substantial YoY rise of 47% compared to ₹33 crore recorded in the corresponding period of the previous year.
In the last four quarters, the company has consistently demonstrated a growth trajectory in terms of its net profit. The Q1 of the current fiscal year witnessed a net profit of ₹38 crore, which was sustained in the subsequent quarter, delivering a net profit of ₹46 crore.
The Q3FY23 results have further strengthened, and the company reported its highest-ever revenue from operations of ₹326 crore, with domestic sales showing an increase of 14% to ₹185 crore, while the export turnover increased by 123% to ₹141 crore.
The operating profit rose by 41% to ₹75 crore in Q3 FY23 as against ₹53 crore in Q3 FY22, while the operating profit margins declined by 70 basis points to 23% in Q3 FY23 as against 23.7% in Q3 FY22.
The fall in margins was mainly due to higher material costs on orders booked in FY22 and the execution of large services contract in the South African Development Community (SADC) region at relatively lower margins, the company said in an exchange filing.
Meanwhile, the company achieved yet another quarterly high in total order booking, crossing the ₹400 crore mark to end at ₹420 crore in Q3 FY23 as against ₹321 crore in Q3 FY22, an increase of 31%, supported by the aftermarket orders with a growth of 130% YoY.
The domestic order book of the company jumped 181% to ₹230 crore in Q3FY23, while the export order book was down by 21% to ₹190 crore. Overall, the consolidated outstanding order book stood at ₹1,232 crore in 9MFY23, up 33% from the previous year.
On the financial ratio front, the company has zero debt, Trendlyne data showed. It generated a strong ROE of 32.35% and a RoCE of 19.37% in FY22. The company generated a net profit margin of 30.74% in FY22, compared to 12.73% in FY21.
Triveni Turbine is a leading industrial steam turbine manufacturer, with a dominant market share of over 60% in India. The company's product portfolio includes a diverse range of turbines of various types with capacities ranging from 1 to 100 MW. Over 6,000 steam turbines supplied by Triveni have been installed across 18 industries in over 75 countries, the company website shows.
05 analysts polled by MintGenie on average have a 'strong buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
