Triveni Turbine shares fell to a day’s low of Rs 586.10 after its June quarter net profit dropped 20% year on year to Rs 51 crore.

The stock was among the biggest losers on the Nifty 500 index on Tuesday, tumbling after the company’s Q1 numbers, released after market hours on Monday, came in weaker than expected on the profitability front.

Let’s break down what actually happened with the numbers. Revenue for the quarter grew a healthy 19% to Rs 442.7 crore from Rs 371.3 crore a year earlier.

But profit didn’t follow that same path. Net profit slipped to Rs 51.1 crore from Rs 64.4 crore last year, while EBITDA fell 30% to Rs 51.3 crore.

Margins took a real hit too, dropping to 11.6% from 19.8% in the year ago quarter. The company pointed to an unfavourable product mix, rising input costs, and delays in delivering certain large orders as the reasons behind the squeeze.

There’s a silver lining in the order book though. Order booking for the quarter came in at Rs 568.3 crore, up 6.1% from a year ago, with exports and aftermarket business doing the heavy lifting.

Export orders alone jumped 53.4% to Rs 384 crore and now make up 68% of total bookings.

The company’s total closing order book stood at Rs 2,180 crore as of June 30, up 5.1% from last year. Management stayed cautiously upbeat despite the rough quarter.

Triveni Turbine said ongoing geopolitical tensions in West Asia could bring some short term volatility, but it still expects to sustain its year on year growth trajectory and sees margins improving in the second half of the financial year.

As of 11:02 am, Triveni Turbine was trading at Rs 599.70 on the NSE, down 5.82% for the day.

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