Trident has reported net revenue of Rs 931.3 crores in Q3 ending December 31, 2014, compared to Rs 1,020.9 crores in the third quarter of financial year ’14. Net sales declined due to lower yarn realizations. De-growth from yarn was partly mitigated by increased terry towel offtake. Trident is the flagship of the Trident Group and a leading manufacturer and exporter of textiles and paper products. The company repaid 4.5 per cent of the outstanding term loans during the quarter.

The results in the third quarter are a reflection of the challenges faced by the textile industry in terms of volatile cotton costs vis-à-vis lower yarn realizations which impacted earnings. Now, with new cotton available at lower levels, Trident expects margins to normalize from the fourth quarter onward.

EBIDTA margins stood at 17.1 per cent vis-à-vis 18 per cent due to declining spreads in the yarn business. This was partially offset by improved margins in the terry towel business. EBITDA margin in the textiles division improved to 15.5 per cent from 14.5 per cent. This was on account of healthy margins in terry towels. In paper and chemicals, EBITDA margin improved by 80 bps to 28 per cent as compared to the same quarter the previous year.

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