Innovative Solutions, Unparalleled Expertise
A Strong Foundation: Our Expertise in Industrial Heat and Power Solutions
Driving Sustainable Growth Through Efficient Rotating Equipment Solutions
Demonstrated Excellence through Consistent Execution:
As a customer-centric organisation that has been at the forefront of innovation, the Company has achieved remarkable success in acquiring both an unprecedented number of orders and prestigious contracts, elevating our reputation and significantly enhancing our standing in the industry. These achievements have also played a crucial role in establishing valuable references, enabling us to secure further enquiries in similar geographical areas and sectors.
TTL has reported a record year in FY 23 despite the challenging macro environment, marked by supply chain disruptions, geopolitical tensions causing a global energy crisis, inflationary spikes to name a few.
The Company’s success is attributable to meticulous planning in line with our strategic priorities followed by solid execution. From the stage the order is booked, the Company deploys a detailed project management plan to ensure timely delivery while mitigating risks. The Company’s stellar performance is a sum total of such well executed projects.
As a customer-centric organisation that has been at the forefront of innovation, the Company has achieved remarkable success in acquiring both an unprecedented number of orders and prestigious contracts, elevating our reputation and significantly enhancing our standing in the industry. These achievements have also played a crucial role in establishing valuable references, enabling us to secure further enquiries in similar geographical areas and sectors.
Given that we provide engineered-to-order products and customised solutions, it is of utmost importance that we collaborate closely with our customers, addressing their needs from the initial enquiry stage to execution, to ensure the highest level of satisfaction. This commitment to customer-centricity was once more exemplified in the past year.
In FY 23, the Company reported a remarkable 46% growth in turnover, to reach the highest ever figure of ₹12.48 billion. There was an all‑round performance with exports and aftermarket sales excelling in particular. Export sales increased by 121% to ₹5.57 billion while the aftermarket turnover rose by 82% to ₹4.12 billion. The product segment turnover was ₹8.36 billion during the year, an increase of 34% over previous year.
The order booking growth was, notably, spread across the Product and Aftermarket segments, which grew 22% and 88% respectively over the previous year. The product order booking was the highest ever at ₹11.43 billion, while the aftermarket segment registered order booking of ₹4.62 billion. Domestic order booking increased 30% to ₹9.31 billion, while the export order booking went up 44% to ₹6.74 billion. In line with our expectations, the contribution of exports to the total order booking increased to 45%, as against 30% in FY 22.
In the domestic market, the Company witnessed strong contribution from sectors such as Sugar, Distillery, Food Processing, Pulp & Paper, Chemicals and Waste Heat Recovery (comprising Steel and Cement). These stem from the growing nationwide focus on renewable energy, including cleaner biofuels such as ethanol, along with higher industrial activity, and strong Government push for domestic manufacturing under the Atmanirbhar campaign, to name a few.
In the international market, the Company was able to close key milestone orders in both small and large power ranges of turbines from regions like Europe, Africa, Central & South America and North America. The key international customers and sectors for the Company are Biomass-based Independent Power Producers (IPP), Food Processing, Waste to Energy (WtE), Sugar, etc.
The Company has been focussed on increasing the share of exports in both the product and aftermarket segment to diversify its avenues for growth, address a larger market, especially since the lucrative higher power range segment is a much bigger segment globally, and improve its profitability pool due to better margin profile internationally. We are happy to report that we were able to deliver on this front in FY 23. Exports improved from 30% of sales to an impressive 45%. Even in terms of new order booking, export contribution increased from 40% to 42%. We have been enhancing, and will continue to increase our market coverage in the international markets, be it through an enhanced ground presence like we did with the acquisition of TSE which elevated our profile in the South African Development Community region, or through expansion of our sales network and deployment of personnel in key geographies, among others.
India’s growth prospects both on regional and global levels remain stellar. Given the dominance of the Company in terms of market position, the prospects for us remain bright. Our Company serves a diverse array of industries, allowing us to actively engage in and capitalise on the widespread expansion of public and private consumption. This significant trend in capital formation within the country contributes to our continuous growth and development. As a technology-agnostic company, we are also beneficiaries of the energy transition taking place in India, where the capacity additions will be far higher than any other major economy in the world. Domestic order booking for the Company in FY 23 grew 30% year-on-year to reach ₹9.31 billion. We believe the investment momentum in the country is likely to be strong in the coming years, and the Company will capitalise on opportunities across its wide landscape of sectors.
As a technology-agnostic Company, we are also beneficiaries of the energy transition taking place in India, where the capacity additions will be far higher than any other major economy in the world. Domestic order booking for the Company in FY 23 grew 30% year-on-year to reach ₹9.31 billion. We believe the investment momentum in the country is likely to be strong in the coming years, and the Company will capitalise on opportunities across its wide landscape of sectors.
Industrial steam turbines play a critical role in decarbonisation efforts, particularly in the industrial sector. As industries account for a significant portion of global carbon emissions, reducing emissions from industrial processes is essential for achieving global decarbonisation goals. One of the key ways that the Company is participating in the renewable energy space is by facilitating the use of renewable energy sources and reducing reliance on fossil fuels. We have successfully delivered products and provided aftermarket solutions using renewable sources, like geothermal, biomass, waste-to-energy, making it easier for industries to adopt these cleaner sources of energy. With the completion of each project, the Company has been able to generate references which help garner further orders. As a result of our efforts, nearly 80% of the order booking now comes from renewable energy sources.
People have been at the heart of the Company’s success and we believe that the next leg of growth will not be possible without the right employees in our team. Thus, headcount ramp-up has been a major activity in FY 23 to support the business needs, based on the detailed strategic workforce planning carried out during the year. There has been a net addition of 20% headcount in the year gone by. This also includes internationalisation of our workforce, as our growing global business warrants more local presence and closer proximity to our customer base.
In line with the improved business outlook, the Company successfully executed a capacity expansion and can now produce 250-300 machines per annum. We have ramped up our sales efforts as well, to raise the enquiry profile for both products and aftermarket, which provides greater visibility to the end-user demand.
The Company has prioritised digitalisation as a key area of focus, undertaking a transformative journey in this direction over recent years. Our digitalisation endeavours have been specifically geared towards three core aspects:
Despite the cost pressures, the Company was able to report healthy EBITDA margins of 22.2% (including other income). However, the Company continues to experience pressure on escalating input cost due to supply chain constraints resulting from geopolitical factors and fluctuations in commodity prices. It is our continuous endeavour to avert cost pressures to a large extent by passing on price increases to customers along with long-term strategic supply chain initiatives, including advance purchase planning. While we are investing for growth and thus anticipating increase in certain costs, we believe these will be compensated by higher export and aftermarket contribution, thus leading to a balanced margin outlook for the medium term.
The world has seen massive power fluctuations in the last couple of years amid the increasing industrial activity taking place following the COVID-19 pandemic. This has catalysed a sharp spike in demand for reliable power, especially for renewable energy as a sustained source of power for industries. Triveni Turbines has been at the forefront of delivering to this growing demand, at the back of its strong product and solution capabilities and its market leadership in the renewable energy space. We see the role of Triveni Turbines assuming greater importance as we move proactively forward to maximise the global growth potential.
Overall, we expect our strong business performance for FY 23 to continue in FY 24. This is on account of our strong carry-forward order book and continued development of new product market segments of API turbines and turbines in the higher power range. Prospects for the aftermarket segment are bright as well, with an increasing portfolio of offerings, for services, refurbishment and spares, across a wider customer base of rotating equipment such as steam turbines, utility turbines and geothermal rotors. A robust domestic supply chain ensures a distinct competitive edge and uninterrupted business operations, even during challenging times for global supply chains and economies. To sustain our commitment to delivering value to customers, we will place significant emphasis on effectively managing the impact of inflation.
Overall, we expect our strong business performance for FY 23 to continue in FY 24. This is on account of our strong carry-forward order book and continued development of new product market segments of API turbines and turbines in the higher power range. Prospects for the aftermarket segment are bright as well, with an increasing portfolio of offerings across a wider customer base of rotating equipment.
