Trident, a prominent textile and fabric manufacturer, witnessed a 27 percent year-on-year (YoY) drop in net profit during the first quarter of the financial year 2023-24 (Q1FY24). The company's net profit fell to Rs 90 crore, impacting its overall financial performance. Consequently, Trident's total revenue also experienced a decline, dropping by 11.6 percent to Rs 1,478 crore compared to the corresponding period in the previous fiscal year. Additionally, the Earnings Before Income Tax, Depreciation, and Amortization (EBITDA) also faced a decrease of 7.5 percent YoY, reaching Rs 239 crore in Q1FY24.
Trident's major business segment, the textile component, which contributes 82 percent to the company's total revenue, saw a decline of 10 percent YoY, generating revenues of Rs 1,207 crore in Q1FY24. Furthermore, the textile business experienced a substantial YoY decline of 19.7 percent, with revenues reaching Rs 259 crore in the same quarter.
In response to the challenging financial scenario, Trident stated in its Q1FY24 investor presentation that it plans to improve margins through the digitization of processes and the implementation of lean practices. Additionally, the company aims to develop new and innovative products, capitalizing on changing consumer sentiments and behaviors to secure a premium position in the market.
As a result of the weaker financial performance, Trident's shares experienced a decline of 3.17 percent, trading at Rs 32.05 at 11.30 am on July 28. Despite the recent setback, Trident holds a strong market presence, supplying its products to prominent retail chains such as D-MART, IKEA, Amazon, Big Bazar, and more.
