Triveni Engineering & Industries Ltd, a prominent sugar manufacturer headquartered in Uttar Pradesh, announced on Wednesday its plans to commission a new dual-feed distillery at Rani Nangal in the state by March 31, according to thehindubusinessline.
However, the company has deferred the expansion of its 250-kilo liters per day (KLPD) distillery at Sabitgarh for the time being. Additionally, Triveni Engineering & Industries disclosed its entry into Indian Made Foreign Liquor (IMFL) manufacturing, expected to commence in the April-June period of the next fiscal year.
Tarun Sawhney, Vice Chairman and Managing Director of Triveni Engineering & Industries, stated, “With the commissioning, the total distillation capacity will stand enhanced to 860 KLPD.”
The company also released its financial results for October-December 2023, revealing a 6.7% decline in net profit to ₹137.4 crore from ₹147.3 crore in the corresponding period of the previous year. However, for the nine months ending on December 31 in the current fiscal year, the company’s net profit recorded an 85% decline to ₹234.1 crore, despite a 2.5% increase in gross revenue to ₹4,603.3 crore.
Triveni Engineering & Industries attributed this decline to the inclusion of divestment proceeds from the stake in Triveni Turbine in April-December of FY23, reflected under exceptional items. The company clarified that there is no comparable item in the 9M FY 24.
Tarun Sawhney described the Q3 performance as satisfactory, considering the current market conditions. He highlighted that the sugar business performed well, and power transmission was strong, but the water business faced challenges due to mutations. The distilleries, involved in ethanol and alcohol production, experienced impacts from policy changes and increased activities. Despite these short-term challenges, Sawhney expressed confidence in the positive long-term fundamentals of the company.
Emphasizing that the company’s sugar inventory as of December 31, 2023, was 29.63 lakh quintals, compared to over 23 lakh quintals in the year-ago period, he noted that the price point is also higher.