Trident Q3 profit declines 25% to Rs 109 crore

Trident Ltd, a prominent player in the textiles industry, faced a setback in its third-quarter performance, reporting a nearly 25 per cent decline in profit. The company attributed this downturn to a notable increase in expenses, despite heightened consumer demand for home linen during the festive season.

During the quarter ended December 31, Trident witnessed 16 per cent surge in total expenses, primarily driven by a significant uptick in raw material costs, particularly for cotton, which serves as the company's primary raw material. Consequently, its profit dwindled to Rs 109 crore.

Following the announcement of its quarterly results, Trident's stock saw 2.6 per cent decline, reflecting investor sentiment in response to the lower-than-expected performance.

Despite the profit setback, Trident saw 12 per cent increase in revenue, hitting Rs 1,835 crore during the festive season, when consumers typically indulge in purchasing home linen items like bedsheets.

Trident's diversified business portfolio, which includes manufacturing paper and chemicals alongside its textiles operations, contributed to the revenue growth. Particularly, the company noted a robust 25 per cent and 36 per cent increase in revenue from its yarn and bedsheets segments, respectively. However, revenue from its towels division experienced a decline of 8 per cent.

These three segments collectively accounted for 86 per cent of Trident's total revenue, underscoring the significance of its textiles business in driving overall financial performance.