Triveni Engineering & Industries Ltd. (‘Triveni’), one of India’s leading companies engaged in the manufacture of sugar and engineered-to-order mechanical equipment, such as steam turbines, high speed gears and water and wastewater treatment equipment, today announced its performance for the quarter ending 30th September 2007 and for the Financial year 2006-07 ended 30th September 2007.

* The current accounting year has been extended by six months. Financial year 2006-07 is for a period of 18 months ending September 30, 2007.

PERFORMANCE OVERVIEW: FY07

· For the period, the Company’s Net Sales were Rs1907 crore with EBITDA margin of 12.5% at Rs 238 crore. The turnover rose by 60% during the 18 month ending FY 07 when compared with 12 months in FY 06. In spite of an impressive growth in EBITDA margins of engineering businesses by over 600 basis points during the 18 months period, steep fall in sugar realization led to an overall fall in EBITDA margins. Depreciation & amortization charges for the period was Rs 86.3 crore while the Finance Charges amounted to Rs 73.1 crore and the company achieved a net profit after tax of Rs 75.4 crore. Apart from the 50% interim dividend paid, the Board has, subject to the approval of the shareholders, recommended a final dividend of 10%.

PERFORMANCE OVERVIEW: July - September 2007 V/S July – Sept 2006

· Net Sales increased by 5% to Rs 304 crore while EBITDA registered a decline of 12% primarily on account of lower sugar realizations. As the company wrote down its inventory in the previous quarters, the impact of further write down on account of inventory in this quarter was not substantial. Further, through writing down of the inventories to the market price, future losses have been recognized as we expect the sugar prices to remain at the current levels.

· The sales for the cogeneration business during this quarter are significantly higher at Rs 10 crore on account of longer duration of operations during the off-season.

· Net Sales of the Engineering Business are Rs 137 crore which is lower by 15%. This has been primarily due to cyclicality in dispatches of turbines. EBITDA margins from the engineering businesses have shown a significant improvement of over 500 basis point. The order book of the engineering business as of 30th September 2007 was Rs 468 crore for turbines, Rs 41 crore for high speed gears and Rs 45 crore for water & waste water business, to be executed within 6 – 10 months between the respective business units.

· Depreciation (including amortization) cost increased by 118% on account of capitalization of the new projects.

· Finance cost increased to Rs 20.1 crore due to higher borrowings for projects and increased requirement of working capital finance.

· Profit before tax and after tax were at Rs 5.6 crore and Rs 5 crore respectively.

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd, said:

“Sugar prices continue to remain depressed both domestically and globally on the back of record production of sugar. Since the company was adjusting its inventory value in line with the market price in the previous quarters, the sugar losses for the current quarter was significantly lower when compared with last two quarters of this financial year. Higher cane prices during season 2006-07 coupled with declining sugar prices, resulted in overall loss for sugar segment in the 18 months.

The engineering businesses continue to register growth in line with our expectations on a year on year basis. With enhanced order book, focus on exports and leveraging the capability of after market operations, we believe that the engineering businesses will continue to grow and will hedge against the volatility of sugar operations to a very large extent.”

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About Triveni Engineering & Industries Limited

Triveni Engineering & Industries Limited is a focused, growing corporation having core competencies in the areas of sugar and engineering. The Company is among the three largest sugar manufacturers in India, and the market leader in its engineering businesses comprising steam turbines, high speed gears, gearboxes, and water treatment solutions. Triveni currently has seven sugar mills in operation at Khatauli, Deoband, Sabitgarh, (all in western Uttar Pradesh), Chandanpur, Raninagal and Milak Narainpur (all in central Uttar Pradesh) and Ramkola (eastern Uttar Pradesh). The Company’s turbine manufacturing and gear manufacturing facilities are located at Bangalore and Mysore respectively while the Water & Waste water treatment business is located at Noida. Triveni’s sugar crushing capacity is 61,000 TCD. The Company also has a total co-generation capacity of 68 MW located in two of its major facilities viz., Khatauli (46 MW) & Deoband (22 MW) and a 160,000 litre per day capacity distillery at Muzaffarnagar. Additionally, Triveni Khushali Bazaar, a rural and semi-urban retail store, is steadily expanding its reach with 42 stores currently in operation.

For further information on the Company, its products and services please visit www.trivenigroup.com

For further information contact:
C.N. Narayanan
Saurabh Saxena/Kunal Takalkar
Triveni Engineering & Industries Limited
Adfactors PR Pvt. Limited
Noida (U.P.) Phone:- 0120-4308000
New Delhi Phone:- 011-26930132-139