Trident Limited reports Q1FY24 financial results and future expansion plans

Trident Limited, a vertically integrated manufacturer of textiles and wheat straw-based paper, recently disclosed its financial outcomes for the quarter ending June 30, 2023. The company also shared its strategic plans for capacity enhancement and its recognition by the European Patent Office.

In Q1FY24, Trident Limited reported a net revenue of INR 14,782 million, down from INR 16,717 million in Q1FY23. The company’s EBITDA stood at INR 2,393 million, which represents a 16.2% EBITDA margin. After-tax profit was reported at INR 903 million, with a PAT margin of 6.1%.

Despite a slight increase in Net Debt to EBITDA ratio to 1.17x and a rise in Net Debt to Equity ratio to 0.28x in Q1FY24, these figures illustrate Trident Limited’s continued commitment to improving its financial obligations.

Breaking down the numbers, the textile business generated an income of INR 12,071 million in Q1FY24, compared to INR 13,436 million in Q1FY23, with an EBIT margin of 8.3%. The Paper & Chemicals Business revenue was INR 2,599 million in Q1FY24, as compared to INR 3,234 million in Q1FY23, with an impressive EBIT margin of 28.7%.

In other news, Trident Limited was awarded a patent for “Process of manufacturing a fabric with homogeneous pores” by the European Patent Office, highlighting the company’s dedication to innovation.

Regarding capacity enhancements, Trident Limited plans to spend approximately INR 20,900 million on expanding its Yarn, Towel, Bedsheets & Chemical business capacities. These projects are currently at various stages of development and implementation.