Indian textiles firm Trident posts lower Q3 earnings on weak demand

Trident

24/01/2025 13:12

Jan 24 (Reuters) - India's Trident  TRIE.NS  reported a
decline in third-quarter profit on Friday, as inflationary
pressures hindered demand for textiles during the festive
season.
    The textiles maker reported consolidated net profit of 797
million rupees ($9.24 million) for the three months ended Dec.
31, down 27% from a year ago.
    Trident, which supplies home textiles to major global
retailers such as Walmart  WMT.N , Target  TGT.N , IKEA, and JC
Penney, reported a 9% fall in revenue to 16.67 billion rupees.
    Revenue fell across all four of Trident's segments. Sales
from its yarn segment, accounting for 41% of total revenue, fell
5%, while sales in the towel, bedsheets and paper and chemicals
segments fell 10%, 13% and 17% respectively.
    The fall in demand comes despite the third quarter
coinciding with the country's festive season, where retailers
typically mark a boost in demand as consumers splurge on
products.
    Persistent inflationary pressures have been dampening
textile sales, reducing consumer demand and discretionary
spending, said analysts at Antique Stock Broking.
    India's retail inflation accelerated to 6.21% in October,
and although the following two months showed a slowdown, the
figure remained well above the central bank's medium-term target
of 4%.
    The fall in revenue also outweighed expenses, which declined
about 7.2% to 15.79 billion rupees, mainly due to lower raw
material costs.


($1 = 86.2240 Indian rupees)

 (Reporting by Ashna Teresa Britto; Editing by Varun H K)
 ((AshnaTeresa.Britto@thomsonreuters.com;))