Indian towel-to-paper maker Trident Q4 profit falls as inflation hits demand

Trident

24/05/2023 16:00

BENGALURU, May 24 (Reuters) - Indian towel-to-paper
maker Trident Ltd  TRIE.NS  reported a 28% drop in its
fourth-quarter profit on Wednesday, as stubborn inflation hit
demand for its products.
    Consolidated net profit for the quarter ended March 31,
declined to 1.30 billion rupees ($15.73 million) from 1.81
billion rupees a year earlier.
    Consolidated net profit after tax for the company, which
makes bedsheets, towels, yarn and stationery paper, fell for the
fourth straight quarter.
    Sluggish domestic sales for Trident continue from the last
quarter, when India's textile industry faced cuts in customer
spending on inflationary pressures, and saw a decline in exports
for five straight months. 
    The Ludhiana, Punjab-based company's consolidated revenue
from operations fell about 16% to 15.73 billion rupees, as
higher retail inflation in the quarter drove customers to
tighten discretionary spending, hitting demand. 
    Revenue from its yarn segment sank 34%, while the towel and
bedsheets businesses posted approximate declines of 3% and 4%,
respectively. 
    However, the company's paper and chemicals arm rose 22%.
    Shares of Trident closed 0.29% higher ahead of results on
Wednesday. 

($1 = 82.65 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Shilpi
Majumdar and Rashmi Aich)
 ((Hritam.Mukherjee@thomsonreuters.com; +91 9830427878;))