ET NowIn a chat with ET Now, Dhruv M Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, shares his business outlook. Excerpts:
ET Now: Can you highlight how the Q4 has gone by?
Dhruv M Sawhney: We have had an outstanding year. Our total income has gone up by 26% and the EBITDA has gone up by 37% with PAT, EPS going up by 33%. The operating income for the year also is at 20%. For the year as a whole, exports have been extraordinary. There has been a growth of 87% on exports.
That is the difference with the the capital goods space. We have not had to rely on the domestic market. We now have some very robust orders on hand. So, we see an extremely good FY16. We have had an increase in our aftermarket sales too. The ratio mix has gone up from 21 to 23.
Our margins now are at very good levels and that is why we have been able to give an ROC of almost 65%, and a return on equity over 40%-44%. The Q4 standalone numbers must really be taken for the year as a whole, because the other income is really hedged income. When we book our orders, we hedge almost all of it. That is the profitability we calculate when we take the orders.
Our margins have held up extremely well the after tax. And we see a rapid growth in our internationalisation. We are now exporting to 45 countries. This is quite an unusual 'Make in India' story because all of it is made in India; the import is less than 1%.
ET Now: You did mention about the margins doing well, but they have been under a fair amount of pressure. Would this be due to cost factors? And do you expect a recovery?
Dhruv M Sawhney: Our margins are now at almost 15%, probably one of the highest globally. In the rotating equipment space, we benchmark our margins against all the big names. We are far ahead of them.
We are still getting robust margins — PAT of almost 14%-15%. We expect both the margins to hold up during the FY16. We are looking for growth in turnover. There will be growth in turnover — both domestically and export-wise. Our JV GE Triveni has turned the corner, it has made it on its own, it has made profits for the first time.
It has got extremely good orders in Indonesia and the Philippines. Once these are delivered in the current year FY16, this will give a very big fillip to further orders in the international space.
ET Now: Then let us talk a bit bit about the current orders at hand.
Dhruv M Sawhney: We have got almost Rs 100-crore of orders for the current month. There is a slight revival. We will definitely see a revival during the second half of FY16 domestically. Internationally, there are certain countries that are doing very well for us. Turkey is doing very well. Indonesia is doing good. We see a big fillip in parts of Europe.
ET Now: Can you highlight how the Q4 has gone by?
Dhruv M Sawhney: We have had an outstanding year. Our total income has gone up by 26% and the EBITDA has gone up by 37% with PAT, EPS going up by 33%. The operating income for the year also is at 20%. For the year as a whole, exports have been extraordinary. There has been a growth of 87% on exports.
That is the difference with the the capital goods space. We have not had to rely on the domestic market. We now have some very robust orders on hand. So, we see an extremely good FY16. We have had an increase in our aftermarket sales too. The ratio mix has gone up from 21 to 23.
Our margins now are at very good levels and that is why we have been able to give an ROC of almost 65%, and a return on equity over 40%-44%. The Q4 standalone numbers must really be taken for the year as a whole, because the other income is really hedged income. When we book our orders, we hedge almost all of it. That is the profitability we calculate when we take the orders.
Our margins have held up extremely well the after tax. And we see a rapid growth in our internationalisation. We are now exporting to 45 countries. This is quite an unusual 'Make in India' story because all of it is made in India; the import is less than 1%.
ET Now: You did mention about the margins doing well, but they have been under a fair amount of pressure. Would this be due to cost factors? And do you expect a recovery?
Dhruv M Sawhney: Our margins are now at almost 15%, probably one of the highest globally. In the rotating equipment space, we benchmark our margins against all the big names. We are far ahead of them.
We are still getting robust margins — PAT of almost 14%-15%. We expect both the margins to hold up during the FY16. We are looking for growth in turnover. There will be growth in turnover — both domestically and export-wise. Our JV GE Triveni has turned the corner, it has made it on its own, it has made profits for the first time.
It has got extremely good orders in Indonesia and the Philippines. Once these are delivered in the current year FY16, this will give a very big fillip to further orders in the international space.
ET Now: Then let us talk a bit bit about the current orders at hand.
Dhruv M Sawhney: We have got almost Rs 100-crore of orders for the current month. There is a slight revival. We will definitely see a revival during the second half of FY16 domestically. Internationally, there are certain countries that are doing very well for us. Turkey is doing very well. Indonesia is doing good. We see a big fillip in parts of Europe.
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