Trident tanks 9% on weak Q4 performance; declares 36% dividend

Trident stock falls: Shares of textile fabric manufacturer Trident dropped as much as 8.93 per cent to hit an intraday low of Rs 36.91 per share. 

The fall came after the company reported a weak set of fourth quarter of financial year 2024 (Q4FY24) earnings.

Trident’s net profit declined 54.8 per cent to Rs 59 crore in Q4 of financial year 2024, from Rs 130.6 crore in the same quarter a year ago (Q4FY23). 

Despite this, revenue showed a positive trajectory as it soared 7 per cent to Rs 1,682 crore in the March quarter of financial year 2024, from Rs 1,573 crore in the March quarter of previous fiscal year.

However, the company's earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, decreased 23.5 per cent on a year-on-year (Y-o-Y) basis to Rs 205 crore, as opposed to Rs 268 crore.

Moreover, the Ebitda margin squeezed 480 basis points (bps) to 12.2 per cent in Q4FY24, from 17 per cent in Q4FY23.

The company also declared the first interim dividend of Rs 0.36 per share for the financial year 2024-25 (FY25). Trident fixed May 28, 2024 as ‘Record Date’ for taking record of the equity shareholders of the company. 

Additionally, the board will consider and approve raising of funds worth Rs 500 crore by issue of Non-Convertible Debentures (NCDs), by way of public or private offering, in one or more tranches and further recommended enabling resolution for approval of shareholders 

The market capitalisation of the company is Rs 19,441.07 crore, according to Bombay Stock Exchange (BSE).

The 52-week high of the stock is Rs 52.85 while its 52-week low is Rs 31.65 per share. 

At 1:48 PM, shares of Trident were trading 5.87 per cent lower at Rs 38.15 per share. In comparison, S&P BSE Sensex was trading 0.05 per cent higher at 74,045.28 levels.