Triveni Engineering & Industries : Net Sales at Rs. 1930.1 crore

Registered office: Deoband, District Saharanpur, Uttar Pradesh 247554.

Corporate office: Express Trade Towers, 8th floor, 15-16, Sector 16A, Noida 201301, Ph: 0120-4308000, Fax: 0120-4311011 CIN : L15421UP1932PLC022174

For immediate release

• Net sales for the quarter and nine months period is higher by 34% and 33% respectively
• Achieved record PAT for the quarter and nine months period
• Sugar Businesses
  • Stable sugar prices resulted in improved Sugar business performance
  • India's estimated sugar output at ~ 21.3 million tonnes for SS2016-17
  • Demand-supply balance to support sugar prices barring governmental action to curb prices
  • Production during SS 2016-17 estimated to increase substantially over previous season
  • Recoveries are slightly lower than last year across the state of UP
• Engineering Businesses
  • Muted performance in Engineering businesses due to slow revival of economic activity
  • Received an order for ` 125 crore in Water Business
  • Outstanding order book of ` 725 crore
• Scheme of Arrangement (Scheme)-The Board of Directors of the Company has decided to withdraw the Scheme in the overall interest of all the stakeholders.

NOIDA, February 9, 2017: Triveni Engineering & Industries Ltd. ('Triveni'), one of the largest integrated sugar producers in the country; a market leader of engineered-to-order high speed gears

& gearboxes and a leading player in water and wastewater management business, today announced its performance for the third quarter and nine months ended December 31, 2016 (Q3/9M FY 17).

The Company has prepared the Financial Results for the current quarter and nine months period based on the Indian Accounting Standards (Ind AS) and as in the past, has been publishing and analyzing results on a consolidated basis.

In ` crore

• Net sales for the quarter and nine months period is higher by 34% and 33% respectively, with the highest profit for the quarter and nine months period.

• Significant improvement in the performance in the quarter and nine months under review mainly attributed to Sugar Business

• Robust sugar realization prices coupled with moderate increase in despatches resulted in better profitability of Sugar Business.

• Despite modest increase in turnover of the Engineering Business, the performance is muted. It is likely to post better results in Q4.

• The overall debt of the Company as on Dec 31, 2016 is ` 1076 crore, which is 21% higher than on Dec 31, 2015 primarily on account of higher utilization of cash credit due to accelerated and timely cane payments. The term loan as at Dec 31, 2016 is at ` 536 crore (including ` 97 crore loans with concessional interest /interest subvention) while the cash credit utilization was at ` 540 crore.

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

"Sugar business continued its profitable performance during Q3 & 9M FY 17. The profitability during the quarter and nine months period has been the highest ever recorded by the Company. This has been on account of the turnaround in the Sugar business which has contributed both through external and internal factors. With the consistent, aggressive and focused cane development programme during the past couple of years, the results have started showing up in terms of crush, recovery and relative ranking within the State. Consequently, we expect to increase sugar production considerably over the previous season. Our efforts to further improve the varietal balance and to correct soil deficiencies, if any, will continue to receive top priority.

Despite forecasts of lower sugar production in SS 2016-17 at around 21 million tonnes for the country as a whole, we believe, the position of sugar stocks is expected to be comfortable and that no imports are necessary.

The Ministry of Environment, forest and Climatic Control (MoEFCC) has approved our request for operating the distillery for 365 days subject to certain conditions. We are in the process of complying with such conditions and based on the availability of molasses, we expect to operate for 330 days annually. It tantamount to about 20% increase in capacity and will also reduce selling molasses under reserved category at low prices. The quarter and nine months under review also registered good performance of co-products. While the Government seems committed to the Ethanol Blending Programme (EBP), the withdrawal of excise duty exemption on ethanol and pruning down prices of Ethanol to OMCs may act as a deterrent and lead to lower supply of ethanol by the sugar industry during the sugar year.

The performance of the Engineering business was subdued during the quarter and nine months due to sluggish demand and overall subdued economic activities. Water business booked a significant order during the quarter while the order intake in the Gears business was impacted on account of macroeconomic factors - both domestically and globally. We expect the order booking position for both the Engineering businesses to improve in the last quarter of the current financial year.

The update on the Scheme of Arrangement to segregate Sugar and Engineering businesses is provided at the end of the Investor Brief.

- ENDS -

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 one amongst the largest integrated sugar manufacturers in India and the market leader in its engineering businesses comprising 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, Rani Nangal and Milak Narayanpur (all in central Uttar Pradesh) and Ramkola (eastern Uttar Pradesh). While the Company's Gears manufacturing facility is located at Mysore, the Water & Waste water treatment business is located at Noida. The Company currently operates three grid connected co-generation plants and three incidental co-generation plants located across five sugar units and one of the largest single stream molasses based distillery in India, located at Muzaffarnagar.

The turbine business of the Company, located at Bengaluru has been demerged through a scheme of arrangement into Triveni Turbine Limited (TTL) from the appointed date on 1st October 2010, and the same has become effective w.e.f. 21st April, 2011. Triveni Engineering & Industries Limited holds 21.82% equity capital of Triveni Turbine Limited.

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

Note: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Triveni Engineering & Industries Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.