Trident Reports 27.91% Decline in Q4 Net Profit, Revenue from Operations Slips 15.86%

Trident
  • Key takeaways:
    • Trident’s consolidated net profit declined by 27.91% to Rs 130.66 crore in Q4 FY23.
    • Revenue from operations slipped 15.86% to Rs 1,573.25 crore.
    • The decline in profit was due to higher input costs, such as cotton and energy.
    • The company’s production of yarn declined by 10.5% to 24,694 tonnes in Q4 FY23.
    • Trident’s sales volume of yarn declined by 10.6% to 24,755 tonnes in Q4 FY23.
  • Analysis:
    • The decline in Trident’s profit is a reflection of the challenging operating environment in the textile industry.
    • Higher input costs have been a major challenge for the textile industry in recent quarters.
    • The war in Ukraine has also had a negative impact on the textile industry, as it has led to higher energy prices and disrupted supply chains.
    • Trident is taking steps to mitigate the impact of higher input costs, such as increasing production of yarn and investing in new technologies to improve its efficiency.
    • However, it is likely that the challenging operating environment will continue to weigh on Trident’s profitability in the near term.

In addition to the above, here are some other key takeaways from Trident’s Q4 results:

  • The company’s gross margin declined by 160 basis points to 19.7% in Q4 FY23.
  • The company’s operating profit margin declined by 250 basis points to 10.3% in Q4 FY23.
  • The company’s net profit margin declined by 300 basis points to 8.3% in Q4 FY23.

Overall, Trident’s Q4 results were disappointing. The company’s profit declined significantly due to higher input costs. The company is taking steps to mitigate the impact of higher input costs, but it is likely that the challenging operating environment will continue to weigh on Trident’s profitability in the near term.