Trident (TRIDENT) Q4 01/02 earnings summary

Executive summary

• 15-month period ended Mar. 31, 2002 included the Varinder Agro Chemicals merger from its appointed date of Sept. 1, 2001; results also reflect the expanded Paper & Chemicals businesses.

• Wal-Mart named the business its International Supplier of the Year 2001; management cited customer focus, operational initiatives and planned capacity expansion as supports for future growth.

Financial highlights

• Sales, net of excise, were Rs 47,174.91 lakh; total income was Rs 47,430.62 lakh for the 15-month period, versus Rs 29,433.57 lakh sales for the year ended Dec. 31, 2000.

• PBIDT was Rs 10,115 lakh; PBT Rs 2,037.64 lakh; PAT before the transitional deferred-tax charge Rs 1,429.41 lakh; balance carried forward after that charge was Rs 254.50 lakh.

• Financial expenses rose to Rs 4,463.63 lakh and depreciation to Rs 3,824.71 lakh; prior-year comparison covers 12 months and excludes the merged Paper & Chemicals operations.

Outlook and guidance

• Planned expansions included 9,000 TPA of Terry Towel capacity with 100 looms; 60,480 yarn spindles plus 2,016 spindles for water-soluble yarn; and 125 TPD of paper capacity with 180 TPD pulping capacity.

• Yarn modernization plans covered replacement of existing machinery and added combing capacity; Terry Towel plans also included preparatory and dyeing capacity to support the loom expansion.

• Management expected economic recovery and operational improvements to support results; textile opportunities were linked to WTO quota removal and the end of the MFA regime by 2005.