Trident Ltd. share price target

Trident's Q3FY18 results were slightly below our expectations with sales at Rs11,372 mn (4.4% below our estimate) and EBITDA at Rs2,316 mn (2.7% below our forecast). During the quarter, Trident rationalized its employee costs (down 24.9%...

In Q2FY18, Trident Ltd. reported sales revenues of Rs 1,155 cr flat on annual comparison & 2%QoQ), EBIDTA of Rs 209 cr (11% YoY &19 QoQ) with EBIDTA margin at 17.6% (correction of 232 bps on annual comparison). Total comprehensive income was reported at Rs 49.4 cr (15.2% YoY).

Trident Ltd. declared its Q2FY18 results recently. Net Revenues grew marginally by 0.6% to `1155 crs. in Q2. EBITDA for Q2 de-grew by 19%on a Y-O-Y basis to `173 crs. Margins contracted by 370 bps to15% due to higher raw material cost and rupee appreciation....

Trident Ltd. Q2FY18 reported sales at INR 1155cr which were flat y-o-y while EBITDA at INR 175cr de-grew by 18% from INR 213 Cr in Q2FY17 with margins falling from 18% in Q2FY17 to 15% in Q2FY18.

Shift from yarn to value added products, Improving share of value added products to help the company strengthen its margins, Capex behind, asset sweating to enable gradual de-leveraging of balance sheet, BIG beneficiary of export competency of Indian textile industry

Trident Ltd. declared its Q1FY18 results recently. Net Revenues grew by 1.8% to `1168.4crs. in Q1. EBITDA for Q1 de-grew by 2.7% Y-O-Y basis to `229.7crs. Margins contracted by 90bps to 19.7% due to higher raw material cost and rupee appreciation. Domestic business also witnessed subdued growth due to GST rollout; however, it is expected to be positive...

Trident has delivered a revenue growth of 2% and a slight fall in margins. However PAT has improved 14% due to lower finance costs. This performane is inline with the management guidance of a...

Trident's Q1FY18 EBITDA margin was better than our estimates; however, sales growth was slightly below forecast on lower than expected towel volumes. Trident's sales stood at Rs12,785 mn (-7.1% QoQ, + 3.7% YoY). Nevertheless, EBITDA margin was ~300 bps above our estimate at 21.8% (+209bps QoQ, -27 bps YoY) on stronger-than-expected margins in Paper business. Margin improvement was led by Paper & Chemicals division with EBIT margin of 35.6% (+1082bps QoQ, +718 bps QoQ) on lower raw material costs. However, plant utilization was lower at 83% (89% in FY17) due to weak demand....

Robust Manufacturing Capacity; Focusing on Increasing Asset Utilization: Stable revenue growth; however margins affected slightly - In Q4FY17, Trident recorded revenue of Rs. 12,683 Mn which is up by 13.0% QoQ. In FY17, the company reported a revenue growth of 27.4% YoY which is highest in thepast five consecutive years. During FY17, EBITDA improved by 23.5% however margins were affected by 59bps due to increase in raw material cost and Rupeeappreciation (which became a cause of concern for Indian exporters and remains a key headwind in margin growth). In Q4FY17, the company has witnessed an uptick in PAT of Rs. 997 Mn which grew by 26.8% on QoQ basis and on YoY basis it is 63.6%.

Profitability hit by higher raw material costs: EBITDA margin was lower than our estimates (16.6% vs. our estimate of 21.3%) mainly due to higher-than-expected raw material costs (cotton prices) and rupee appreciation. Raw material costs as a percentage of sales stood at 52% in Q4FY17 vs 47%...