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Trident Ltd’s FY2024 Results: Revenue Grows But Profits Falls, Recent Capex To Enhance Future Performance

• By  Textile Excellence
• May 22, 2024

Trident Ltd. posted encouraging results for FY2024, even in a subdued economic climate. The company’s consolidated revenue for the full financial year 2024 was Rs 6808.83 crore, compared to Rs 6332.26 crore in FY2023, an increase of 7.53%.

Segment-wise, revenue from yarn business in FY2024 was up by 2.52% to Rs 3262.08 crore, compared to 3182.02 crore in FY2023. Revenue from towel business was up by 4.65% to Rs 2594.73 crore against Rs 2479.44 crore achieved in FY 2023. Revenue from bedsheets business was up by 28.24% to Rs 1297.6 crore in FY 2024 (which was at Rs 1011.86 crore in FY 23). The revenue from the paper and chemicals business, however, dwindled to Rs 1145.92 crore from Rs 1343.84 crore in FY 2023.

Profit before tax from the yarn business in FY2024 witnessed a sharp fall of 57% to Rs 91.8 crore which was at Rs. 213.69 crore in FY2023. Towel business, however, contributed to the PBT growth of 104.5% to touch Rs 152.39 crore from Rs 74.52 crore in the previous year. The bedsheets business PBT was up by 267.1% to Rs 223.86 crore in FY 2024 against Rs 60.98 crore recorded in FY 2023. The paper and chemicals business recorded a PBT of Rs 284.26 crore in the recently concluded FY which is significantly lower than the Rs 414.06 crore achieved in FY 2023.

Q4FY 2024 Performance

Trident Ltd. reported a 54.8% drop in net profit to Rs 59 crore in Q4 of financial year 2024, from Rs 130.6 crore in the same quarter a year ago. However, revenue for the quarter grew by 7% to Rs 1,682 crore in the final quarter of FY 2024, from Rs 1,573 crore in the corresponding quarter of previous fiscal.

Trident’s earnings before interest, taxes, depreciation and amortisation (EBITDA), or operating profit decreased 23.5% on a year-on-year (YoY) basis to Rs 205 crore, as opposed to Rs 268 crore. Moreover, the EBITDA margin squeezed 480 basis points (bps) to 12.2% in Q4FY24, from 17% in Q4FY23.

The company declared the first interim dividend of Rs 0.36 per share for the financial year 2024-25 (FY25) and fixed 28 May 2024 as ‘Record Date’.

Additionally, the company’s board is considering at raising Rs 500 crore by issue of Non-Convertible Debentures (NCDs), by way of public or private offering, in one or more tranches and further recommended enabling resolution for approval of shareholders

The market capitalisation of the company stood at Rs 19,441.07 crore, according to Bombay Stock Exchange (BSE) and stock’s 52-week high was Rs 52.85 and its 52-week low was Rs 31.65 per share.

Investment and Business Outlook

In FY 2023-24, Trident invested Rs 785 crore on capex to complete total investment of Rs 1397 crore for completion of ongoing capacity enhancement in Spinning, Sheeting, Towel as well as capacity expansion of Cogen power and Solar power plant.

Trident added 42 modern looms during the year to augment Towel Segment’s capacity by 7200 tons per annum and installation of 1,89,696 spindles during the year enhanced fine count spinning capacity. The production capacity of Sheeting segment also increased by 10.8 million meters per year. In the Energy segment, Trident invested Rs 204.86 crore that include roof top Solar and Cogen power plant.

Commenting on the results, Deepak Nanda, Managing Director, Trident Limited, said “We remain confident of Trident Limited manufacturing prowess, as evidenced in increasingly better order book and volumes in the home textiles segment. Our investments this year of Rs 785 crore has added to our production capabilities, which will start reflecting in numbers from the next year. We continue to focus on reducing Net Debt and strengthening the balance sheet. Despite the capex and loan towards buying cotton during the season, our Net Debt has not increased to that extent.”

We remain confident of Trident Limited manufacturing prowess, as evidenced in increasingly better order book and volumes in the home textiles segment. Our investments this year of Rs 785 crore has added to our production capabilities, which will start reflecting in numbers from the next year. We continue to focus on reducing Net Debt and strengthening the balance sheet. Despite the capex and loan towards buying cotton during the season, our Net Debt has not increased to that extent.”