Indian textiles firm Trident posts Q1 profit drop as cotton prices surge

Shoppers Stop

24/07/2024 13:06

BENGALURU, July 24 (Reuters) - Indian textiles firm
Trident  TRIE.NS  reported a 21% fall in its first-quarter
profit on Wednesday as it struggled to keep a tight lid on
expenses amid rising cotton prices.
    The company supplies to stores including Shoppers Stop
 SHOP.NS , DMart  AVEU.NS  and online retailers Flipkart and
Myntra.
    Cost of cotton, a key raw material for Trident, has been
elevated for more than a year, hurting profits.
    Trident reported a consolidated net profit of 737.3 million
rupees ($8.8 million) for the quarter ended June 30, compared
with 934 million rupees a year earlier.    
    The company's revenue from operations rose 17% to 17.43
billion rupees during the quarter from a year ago.
    However, cost of raw materials rose nearly 18% during the
quarter, causing a near 20% surge in total expenses.
    This ate into the company's profit.
    Trident's core yarn segment, the key revenue contributor,
saw a 49% surge in revenue. The smaller paper and chemicals
segment saw a near 5% drop in revenue, as paper prices continued
to be under pressure due to heavy imports.
    Shares of Trident closed 1.3% higher ahead of results.


($1 = 83.6810 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))