India's Trident posts slump in Q1 profit on weak yarn demand

Trident

27/07/2023 12:36

July 27 (Reuters) - Indian towel-to-paper maker Trident
Ltd  TRIE.NS  reported a 29% fall in its first-quarter profit on
Thursday, hurt by weak demand in its key yarn segment.
    Consolidated net profit after tax fell to 913.4 million
rupees ($11.15 million) for the quarter ended June 30, from 1.29
billion rupees a year earlier.
    Profit after tax for the company, which makes bedsheets,
towels, yarn and stationery paper, fell for the fifth straight
quarter.
    Trident continues to see slow demand from the last quarter
of fiscal 2023 when India's textile industry faced cuts in
customer spending amid inflationary pressures.
    The Punjab-based company's consolidated revenue from
operations fell 11% to 14.94 billion rupees, hurt by weak
demand.
    Revenue from the yarn segment, which makes 43% of the total
revenue, fell 37%. Revenue from the towel and bedsheets
businesses rose 12% and 7.7%, respectively.
    Additionally, the company has approved the sale of a stake
in its unit, Trident Global Corp Limited.
    Trident shares closed 0.6% higher ahead of the results. 

($1 = 81.9325 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; editing by
Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))