Trident (TRIDENT) Q4 1998 earnings summary

Executive summary

• Group turnover rose to Rs 24,162.30 lakh in 1998 from Rs 21,340.90 lakh in 1997, alongside rapid growth and diversification through new project commissioning.

• Yarn operations recorded higher turnover but swung to a net loss, while capacity expansion and planned amalgamation were central to the growth strategy.

Financial highlights

• Yarn-business turnover increased 4.72% to Rs 8,049.19 lakh in 1998 from Rs 7,686.18 lakh in 1997.

• Net loss was Rs 241.81 lakh versus net profit of Rs 395.86 lakh in 1997; reported PBT loss was Rs 216.31 lakh versus profit of Rs 441.36 lakh.

• Sales revenue rose 5.49% to Rs 7,887.51 lakh; exports were Rs 1,425.02 lakh, despite unfavorable realizations.

Outlook and guidance

• 1999 projections: sales Rs 14,500.65 lakh, gross profit Rs 2,473.53 lakh and net profit Rs 304.87 lakh.

• Management expected improving domestic and international yarn prices and better cotton supply to support profitability; the expansion was expected to add scale and improve product mix.

• Plans called for exporting about 50% of production from the expansion project.