Trident Q4 Results: Net profit declines 28% to ₹129 crore, dividend declared; key highlights here

Trident Group announced its Q4FY23 results on May 24, reporting a net profit of ₹129.7 crore, registering a decline of 28.4 per cent, compared to ₹181 crore in the corresponding quarter last year. The towel-to-paper maker's revenue from operations for the January-March quarter stood at ₹1,573.2 crore, posting s drop of 15.9 per cent, compared to ₹1,869.8 crore in the year-ago period.

The company's board declared the first interim dividend of ₹0.36 per fully paid up equity share of ₹1 each (at 36 per cent per equity share) for the financial year 2023-24. ‘’June 1, 2023 is fixed as the ‘record date’ for taking record of the members of the company. The said interim dividend will be credited/dispatched to the shareholders as per the prescribed statutory timelines,'' according to a regulatory filing by Trident to the stock exchanges.

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The board also recommended raising of funds for ₹500 crore by the issue of non-convertible debentures (NCDs), by way of public or private offering, in one or more tranches, upon the approval of shareholders. The Punjab-based company operates in the segments of home textiles, yarns, papers, and energy.

On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter came in at ₹268.4 crore, registering a decline of 20.5 per cent, compared to ₹337.6 crore in the year-ago period. 

Sluggish domestic sales for Trident continue from the last quarter, when India’s textile industry faced cuts in customer spending on inflationary pressures, and saw a decline in exports for five straight months.

Revenue from its yarn segment fell 34 per cent, while the towel and bedsheets businesses posted approximate declines of three per cent and four per cent, respectively. However, the company’s paper and chemicals arm rose 22 per cent. 

On May 24, shares of Trident settled 0.23 per cent higher at ₹34.72 apiece on the BSE.