The shares of the fabric manufacturer fell up to 8 percent after the company’s net profit decreased by 55 percent YoY and 45 Percent QoQ in the fourth quarter.
With a market capitalization of Rs 19,435.97 crore, the shares of Trident Ltd were trading at Rs 38.14 per share, decreasing around 6 percent as compared to the previous closing price of Rs 40.53 apiece.
Looking into the company’s performance, Trident Ltd’s revenue decreased by 8 percent on a quarter-on-quarter basis from Rs. 1,835 crore in Q3FY24 to Rs. 1,682 crore in Q4FY24. Further, revenue increased by 7 percent year on year, from Rs. 1,573 crore in Q4FY23 to Rs. 1,682 crore in Q4FY24.
Trident Ltd’s net profit decreased by 45 percent on a quarter-on-quarter basis, from Rs. 109 crore in Q3FY24 to Rs. 59 crore in Q4FY24. Further, net profit decreased by 55 percent year on year from Rs. 131 crore in Q4FY23 to Rs. 59 crore in Q4FY24.
The company’s profitability measures show an decline in return on equity (RoE) from 10.51 percent in FY 21-22 to 8.09 percent in FY 22-23, while, during the same period return on capital employed (RoCE) decreased from 12.27 percent to 10.80 percent. In contrast, the net profit margin (NPM) was 5.14 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 73.19 percent while Retail shareholders own a 22.85 percent stake in the company and foreign Institutional Investors own a 2.65 percent stake.
Trident Limited is an India-based firm that manufactures, trades, and sells textiles (yarn, terry towels, and bedsheets) as well as paper and chemicals. The company operates in two segments: textiles, paper, and chemicals. The Textiles division manufactures yarn, towels, bedsheets, and colored yarn (including utility service).
Written by:- Abhishek Singh
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