Trident (TRIDENT) Q4 1997 earnings summary

Executive summary

• 1997 turnover rose 19.57% YoY to Rs 7,686.18 lacs; net profit fell 12.48% to Rs 395.86 lacs amid higher raw-material prices, lower cotton-yarn realizations and MAT.

• Performance was supported by productivity gains, cost reduction and economies of scale; yarn production increased 20.25% YoY.

• No dividend was recommended for 1997, with resources to be conserved and reinvested in the Rs 95 crore expansion.

Financial highlights

• Sales revenue increased 18.68% YoY to Rs 7,476.78 lacs; other income was Rs 209.41 lacs.

• Exports rose 7.13% YoY to Rs 2,083.57 lacs; excise contribution to the exchequer was Rs 242.75 lacs.

• Cash from operations was Rs 215.27 lacs; net cash from financing activities was Rs 296.51 lacs, while investing activities used Rs 448.20 lacs.

Outlook and guidance

• 1998 turnover was projected at Rs 8,124.45 lacs, with gross profit of Rs 1,680.61 lacs and net profit of Rs 565.41 lacs.

• Unit II’s 43,392-spindle expansion was expected to begin production in H1 1999; higher capacity, product mix and scale were expected to support profitability.

• Cotton-yarn demand and export prospects were viewed positively, supported by cotton availability, skilled labor and shifting consumer preference from synthetics to cotton.