Triveni reports loss of Rs 14.23 crore in June quarter

Triveni reports loss of Rs 14.23 crore in June quarterTriveni Engineering & Industries Ltd has announced its results for the quarter ended June 2010. The company suffered a loss of Rs 14.23 crore in the quarter compared to a profit of Rs 39.8 crore.

The loss is mainly due to the sugar operations as the company had to make a provision of Rs 805 million towards write-down of sugar inventory and due to lower return from sales, according to a press release from the company.

The press release added that the growth in the engineering division was also slower at 12 per cent as the company had to reschedule some deliveries to the next quarter. The net sales for the company grew about 14 per cent to Rs 5.9 billion.

Nikhil Sawhney, executive director said, "On the sugar side, we have taken a hit mainly because of lower sugar prices and inventory revaluation." The prices of sugar in the country have fallen to a third form Rs 3,900 per 100 in October to Rs 2,600. Most millers in the country procured cane at the peak of the sugar cycle at Rs 240-270 a quintal in October.

On the engineering division the company had book orders an order book of Rs 9.27 billion and is expected to go up. "There are a number of orders that are due to close. We have come out as the lowest bidders for some projects," said Mr. Sawhney.

The trailing 12-month EPS of the company stood at Rs 7.59 per share till the march quarter results. The P/E ratio was at 13.12 while the current book value of the company is Rs 35.15 per share.