Yarn sales climb 18% at Trident in Q1 FY'14

06 Sep '13

3 min read

Trident Limited, flagship Company of USD 1 billion Trident Group and leading manufacturer and exporter of Textiles & Paper products, announced its financial results for the quarter ended June 30, 2013.

Financial Highlights for the quarter ended June 30, 2013

- Yarn segment revenues improved to Rs. 454.9 crore as compared to Rs. 384.3 crore in the corresponding quarter; up ~18%; PBIT tripled to Rs. 76.4 crore compared to Rs. 23.8 crore in Q1 FY13

-Terry Towel segment revenues at Rs. 315.6 crore compared to Rs. 317.0 crore in Q1 FY13; PBIT stood at Rs. 26.56 crore vis-à-vis Rs. 29.8 crore in Q1 FY13

- The revenues of Paper & Chemicals Division were higher by ~6% at Rs. 186.4 crore as compared to Rs. 176.5 crore in Q1 FY13; PBIT grew by ~23% to Rs. 34.4 crore from Rs. 27.9 crore in Q1 FY13

Commenting on the performance, Mr. Rajinder Gupta, Chairman at Trident Group said:

“Trident continues to make headway across its key business segments and the performance during the quarter is a testimony to our unprecedented progress. The results are a reflection of improving business dynamics combined with fructification of our efforts towards developing a much leaner set-up in line with customer requirements.

"With increased focus on profitable growth, we are broadening our reach and strengthening our partnership with suppliers and customers. Further, our innovation teams are enabling us to develop products that match consumer needs and improve margins. With better operational performance; our emphasis on enhancing the product mix combined with cost optimization initiatives and prudent financial management, we believe we are well poised to record a strong performance and deliver better returns to our shareholders.”

Segmental Overview

Yarn

- Higher realizations consequent to improved contribution from value-added products like Mélange yarn enabled topline growth; this was despite marginal increase in sales volumes

- PBIT Margins improved from 6.2% in Q1 FY13 to 16.8% driven by cost optimization measures along with improving realizations resultant to enhanced product mix towards value-added products

- Commenced business with niche segments (high end buyers) and introduced value added products in China and Hong Kong

- Successfully entered new markets such as Turkey, Malaysia, Morocco, Thailand and Denmark; apart from significantly ramping up volumes in niche markets such as Mauritius and Middle-East

Terry Towel

- Lower sales volumes moderated topline performance - partly mitigated by improved realizations on account of higher sale of value-added products

- Despite lower sales volumes, profitability flat given various cost rationalization initiatives combined with change in product mix towards value-added products

Paper

- Higher realizations given improving product mix towards the copier segment enabled topline growth despite marginal decline in sales volumes

- PBIT margins improved to 18.4% from 15.8% in Q1 FY13 given stable costs and improved realizations as a result of enhanced product mix

- Encouraging results from Branding initiatives and launching of Trident Royal Touch Copier Paper

Trident

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