February 14, 2017 / 18:05 IST
Triveni Turbine’s (TRIV) 3QFY17 revenue (flat YoY) was below our estimates. However, better-than-expected EBITDA margins (26.3%, +550bps YoY) led to an in line PAT (Rs 351mn, +19% YoY). The superior EBITDA margin was led by the execution of high margin export orders and strong growth in after-market sales (+27% YoY).
Outlook
We continue to remain constructive on TRIV, given potentially large opportunities and TRIV’s competitiveness (cost efficiency and GE backing) to capture market share. Commissioning of 3 turbines in the 30 MW plus segment in international markets would improve TRIV’s references for future orders. New product offering (API 612 turbines, service income) further enhances visibility on exports. Reiterate BUY with a TP of Rs 148/sh (30x Dec-18E EPS).
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