Owing largely to a drop in export orders, Triveni Turbine Ltd witnessed a 7 per cent fall in order inflows during FY20.
According to a company release, TTL achieved order inflows of Rs.7.9 billion in FY20 that was 7 per cent lower than the FY19 level. While the domestic market shown a growth of 8 per cent, export order booking was lower by 23 per cent. Some of the large international orders which were in the finalization stage got deferred due to COVID-19, the release said.
Total consolidated outstanding order book stood at Rs.7 billion as on March 31, 2020 which is 3 per cent lower than the comparable level of March 31, 2019.
Triveni Turbine’s thermal renewable based IPP power plant segment contributed 48 per cent of the total export enquiry in FY20 while the process co-generation contributed 32 per cent. In the domestic market, enquiries from co-generation accounted for around 70 per cent while around 20 per cent came from waste heat recovery segment.
Commenting on the performance, Dhruv M. Sawhney, Chairman & Managing Director, Triveni Turbine Ltd, said: “We aim to grow this global market share during the year and are confident of success. While some revenue has been deferred from Q4 FY 20 to Q1/Q2 FY 21 by customers, there will also be a situation where customers push deliveries from FY 21 to FY 22. Though with a strong follow up with customers, with the current degree of pessimism, in the worst scenario we believe that revenue for the year may decline by 10 per cent to 15 per cent. Our attempts are to work towards a flat growth year.”
“Even though TTL has a good carry forward order book and enquiry pipeline, we believe due to the pandemic whose impact is felt across the globe, there could be delay in order finalization and customer readiness for taking delivery of their orders. This may have an impact on the revenue and order booking for FY21. The cost control and value engineering efforts started last year are showing results and production of our new high efficiency product line has stabilized which is already reflected in the margins,” the CMD of Triveni Turbine remarked.
“Despite the impact on the business due to COVID-19 in the first half of FY21, the company is confident in the underlying resilience of its businesses and operating model. The company has a strong balance sheet and being debt-free, with around Rs.1.95 billion in cash, it is confident that its liquidity needs will be well covered. We aim to achieve the best margins and market share in the global market in our business segments and all these factors auger well for our business going forward,” added Sawhney.