Trident (TRIDENT) Q4 2000 earnings summary

Executive summary

• FY ended Dec. 31, 2000: net profit Rs 398.44 lacs vs net loss Rs 444.35 lacs; sales rose 64.10% to Rs 29,936.06 lacs.

• Exports more than doubled to Rs 13,501.49 lacs, equal to 45.10% of sales; no dividend was recommended as resources were retained for expansion.

Financial highlights

• Turnover was Rs 30,369.56 lacs vs Rs 18,486.09 lacs; profit before interest, depreciation and taxes was Rs 5,790.54 lacs vs Rs 3,992.37 lacs.

• PBT was Rs 405.44 lacs vs a loss of Rs 444.35 lacs; PAT was Rs 398.44 lacs, after Rs 7.00 lacs tax provision.

• Interest expense rose 26.63% to Rs 3,249.63 lacs and depreciation rose 14.17% to Rs 2,135.47 lacs.

Outlook and guidance

• Terry towel capacity expansion of 3,500 tonnes/year was targeted for completion by July 2001; management expected production and sales to reach new highs after completion.

• Completion of the yarn expansion project included installing the remaining 7,104 spindles during 2001; stated priorities were cost reduction, value addition, brand equity and scale economies.

• Domestic towel sales were planned, with targeted orders from K-Mart, Croscil and Target Stores.