One of the biggest vertically integrated manufacturers of textiles (yarn, bath, and bed linen), paper (based on wheat straw), and chemicals, Trident Limited, released its earnings for the quarter and a half that ended on September 30th (Q2FY25).
Financial Highlights:
While earnings before interest, depreciation, tax, and amortization (EBIDTA) were INR 236 Cr, total standalone income for Q2FY25 was INR 1721 Cr. This resulted in a profit after tax (PAT) of INR 84 Cr, compared to INR 73 Cr for the preceding June quarter.
The H1FY25 standalone total income was INR 3470 Cr, up 6.7% from the H1FY24 total of INR 3253 Cr.
Commenting on the results, Mr. Deepak Nanda, Managing Director, Trident Ltd., said:
By cutting debt by INR 440 Cr. and increasing working capital efficiency, we have greatly strengthened our balance sheet. As a result, the debt-to-equity ratio has improved from 0.50 to 0.37. Additionally, our financial stability is strengthened by the Current Ratio’s improvement from 1.59 on a Q-o-Q basis to 1.74. However, our Top Line, Revenue, and Bottom-Line, Profit for the Quarter saw a muted growth caused by a fall in yarn prices that hit our Integrated Home Textile business. Half-Year Revenue increased 6.7% to INR 3470 Cr. Likewise, the paper industry experienced a general decline in consumer demand.
Business Performance:
While maintaining margins and a slight increase in our Bath Linen Business margin, Q2 FY25 Standalone Revenue for Yarn, Home Textile, and Paper & Chemical was likewise subdued at INR 902 Cr., INR 980 Cr., and INR 233 Cr., respectively.
Other Developments During the Quarter:
To expand its global reach, Trident Ltd. formed Trident Group Enterprises Pte., a wholly owned subsidiary in Singapore. Additionally, Trident Group displayed its wide selection of products during the esteemed NY Home Fashion Market Week in New York. The company continues to make significant investments in improving production capacity and environmental initiatives, as exports account for 57% of its income.
The introduction of Takshashila, our flagship recruitment and training program, and campus hiring were two significant initiatives on the human resources and talent front that intended to empower 2000 entry-level employees from rural and semi-urban India. More than 1500 merchants attended Trident Group’s biggest 5-day retailer event, which was held in New Delhi.
By supporting the community in the areas of high-quality education, healthcare access, women’s empowerment, skill development and livelihood creation, sustainability, and clean environment, among other areas, the company reiterated its commitment to corporate social responsibility.
In compliance with the Global Reporting Initiative (GRI) framework, the company published its first ESG Report for FY 23–24 during the quarter. In addition to submitting the S&P Global Corporate Sustainability Assessment in September and the Carbon Disclosure Assessment in October.
