Trident Ltd reported a 12.9% year-on-year profit growth for the June quarter, supported by a strong performance in its yarn division. The company also received board approval to form a new wholly-owned subsidiary aimed at boosting brand marketing and international sales. Shares closed at ₹25.24 on the NSE.
Detailed Coverage
Trident Ltd posted a consolidated net profit of ₹158 crore for the quarter ended June 30, marking a 12.9% increase compared to the same period last year. Revenue from operations grew by 4.7% to reach ₹1,786.8 crore. Despite the profit growth, the company’s operating margin remained steady at 17%, with EBITDA rising slightly by 2.7% to ₹299.6 crore. Alongside these results, the company declared an interim dividend of ₹0.50 per share for its investors.
The yarn division emerged as the primary revenue driver, with its segment revenue increasing to ₹954.2 crore from ₹902 crore last year. Profitability in this unit saw a significant boost, with pre-tax profit more than doubling to ₹145.8 crore. Meanwhile, the paper and chemicals segment, while showing revenue growth, saw its pre-tax profit decline to ₹52.4 crore compared to ₹73.3 crore in the previous year. The home textile segments, comprising towels and bedsheets, experienced mixed results, with revenue in both categories remaining largely flat, although the bedsheets division reported a slight improvement in pre-tax profit.
To sharpen its focus on brand identity and customer reach, the board of directors has approved the formation of a new wholly-owned domestic subsidiary. This entity is designed to manage brand-building, marketing, and sales development, specifically targeting expansion in overseas markets. The company is currently awaiting the final name approval for this subsidiary from the Ministry of Corporate Affairs. This initiative follows a broader trend in the textile sector, where manufacturers are increasingly focusing on vertical integration and higher-value branding to counter global demand volatility.
Investors may note that while the yarn division has delivered strong profitability, the performance of the home textiles business remains a key area to monitor, given the competitive nature of the export market. The company's future financial performance will likely depend on how effectively it balances capacity utilization with changing demand trends in international markets. Monitoring the operational progress and the strategic impact of the new marketing subsidiary on margins will be essential for assessing the company’s long-term growth strategy.