Shares of textiles and chemical maker Trident Ltd. fell over 6 percent on Thursday after the company reported a 16 percent year-on-year drop in revenue for the March quarter.
Dragged by the weak performance of its textiles business segment, the company's revenue declined 16 percent to Rs 1,573 crore in the March quarter compared to Rs 1,870 crore in the year-ago period. However, on a sequential basis, the company saw a marginal drop of 3 percent in revenue compared to Rs 1,618 crore in the December quarter.
Gross profit margins were higher at 50.2 percent against 45.9 percent a year ago and 48.6 percent in the December quarter. Trident's EBITDA dropped by 20 percent to Rs 269 crore in the March quarter against Rs 338 crore in the year-ago period.
EBITDA was down 2 percent compared to Rs 272 crore in the December quarter. EBITDA margins stood at 16.8 percent in the December quarter. The company, however, managed to control the EBITDA margin contraction to 17.1 percent in the quarter under review as against 18.1 percent a year ago as other expenses were down by 7 percent.
Profit after tax dropped 28 percent to year-on-year Rs 131 crore compared to Rs 181 crore in the March quarter of FY22.
The company posted a 20 percent drop in its textile segment revenue at Rs 1,608 crore compared to Rs 2,006 crore a year ago. The yarn division’s revenue declined the most by 34 percent, followed by Bedsheet (-4 percent) and Towel (-3 percent) segments.
The chemical segment revenue soared by 22 percent to Rs 339.21 crore compared to Rs 277 crore a year ago.
Trident Limited, the flagship company of the $3 billion conglomerate Trident Group, is a vertically integrated textile (Yarn, Bath & Bed Linen) and Paper (Wheat Straw-based) manufacturer. The company operates in three major business segments of textiles, paper, and chemicals. It has manufacturing facilities in Punjab and Madhya Pradesh.
Shares of Trident are trading over 6 percent lower at Rs 32.60.
