Trident Q4 PAT declines 45%, EBITDA falls 11%

Trident on Thursday announced a 45% year-on-year decline in its net profit for the fourth quarter of the fiscal year 2024 at ₹159.6 crore. The company’s total income grew 8.2% YoY to ₹1,699 crore during the quarter. Following the announcement, shares of Trident were trading lower by 0.34%.

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter declined by 11% YoY to ₹228.4 crore while EBITDA margin contracted to 13.6% from 16.4% in the corresponding period last year. The firm’s net profit margin declined to 3.8% compared to 7.4% in the same period of FY23.

For the financial year 2024, the company’s net profit declined 20.81% YoY to ₹350 crore. The consolidated revenue grew 8% YoY to ₹6,867 crore. EBITDA rose by 2.7% YoY to ₹998 crore. At the end of FY24, Trident’s net debt stood at ₹1,534 crore, up 50% YoY.

In FY24, the company invested an additional ₹785 crore on capex to complete the total investment of ₹1397 crore for the completion of ongoing spinning, sheeting and towel projects and an additional capacity increase of Cogen Power Plant and Solar Power Plant.

Deepak Nanda, managing director at Trident said the company faced challenges in textiles due to subdued cotton prices while paper prices were under pressure due to higher imports. “Our investments this year of ₹785 crore have added to our production capabilities which will start reflecting in numbers from next year. We continue to focus on reducing net debt and strengthening the balance sheet. Despite the capex and loan towards buying cotton during the season, our net debt has not increased to that extent,” he said.

The board of directors announced a dividend of ₹0.36 per share.

Shares of the company have risen by nearly 4% since the beginning of the year. The stock has gained over 9% in the last one year.