India's Triveni Turbine Q2 profit declines on higher costs

Overview

• India turbine maker's Q2 revenue declined yr/yr

• Q2 net profit fell compared to prior-year period

• Company enhanced corporate guarantee for South African subsidiary's working capital facility

Outlook

• Company did not provide specific guidance or outlook commentary for future quarters in the press release

Result Drivers

• REVENUE AND MATERIAL COSTS – Q2 consolidated profit before tax fell to INR 754 mln from INR 1.25 bln, while revenue from operations declined and cost of materials consumed increased

• INVENTORY AND OTHER EXPENSES – A smaller inventory-build credit partly offset the profit pressure, while other expenses fell

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the heavy electrical equipment peer group is "buy"

• Wall Street's median 12-month price target for Triveni Turbine Ltd is ₹665.00, about 29.3% above its November 11 closing price of ₹514.35

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 42 three months ago

Reuters Recommended Reads

• Nov 9 - AI power rush sends data centres hunting for used turbines and jet engines

• Nov 11 - India's Orient Green Power Q2 revenue rises on improved wind, solar generation

• Nov 11 - Siemens Energy Q4 revenue beats estimates on gas services growth; expands buyback

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)