Any current/future new fundraising through debt or equity?

The company plans to raise funds through QIP (Qualified Institutional Placement) and NCD (Non-Convertible Debentures). This fundraising is based on a shareholder-approved enabling resolution passed annually at the AGM. Proceeds will be used for various business purposes including: - Augmenting financial resources for organic and inorganic growth. - Meeting capital requirements for ongoing consolidation. - Satisfying working capital needs. - Repaying existing borrowings. - General corporate purposes. - Financing investment opportunities. No specific quantum or timeline of the fundra

Any current/future capex/capital investment/strategic investment?

Ongoing capex projects before COVID-19 included Yarn Manufacturing units and Paper Upgradation project. Due to the COVID-19 situation, these projects are currently under review. The company is reassessing the implementation schedule and viability of these projects considering the changed economic scenario. No new specific future capex or strategic investment plans are mentioned explicitly. The company is focusing on leveraging existing scale, technology, and systems to consolidate and grow its business. Business expansion includes capacity ramp-up in PPE production (10,000 PPEs/day) to meet de

Future growth expectations in sales/revenue/volumes?

Q1 FY21 was majorly impacted by COVID-19 lockdown and supply chain issues, affecting capacity utilization. The company is optimistic about improved capacity utilizations and revenues in remaining quarters of FY21, provided no adverse COVID-19 impact occurs. Exports increased by 11% over Q4 FY20, with exports contributing 74% of overall revenue in Q1 FY21. Bed Linen segment revenue grew 37% Q-o-Q despite lower volumes due to better product mix. The company aims to leverage India’s position as a major cotton producer and alternative to China to grow textile exports. Focus on hygiene and wellness

Future growth expectations in earnings/operating earnings/profits/EPS?

Q1 FY21 saw a significant impact with a 46% revenue decline and 92% profit after tax decrease due to COVID-19 disruptions, making comparisons with prior periods limited. The company expects improved capacity utilization and revenues in the remaining quarters of FY21, contingent on no further adverse COVID-19 impacts. Home Textile segment is poised for growth by leveraging scale, technology, and strong market presence, especially as India gains from the shift away from China as a sourcing hub. The introduction of higher-value products (e.g., anti-microbial treatment, anti-viral category)

IN US

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Trident LtdQ2 FY20Textiles & Apparels

Trident Ltd Q2 FY20 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹26.8P/E: 32.4Market Cap: ₹13.2K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→Q1 FY21 was majorly impacted by COVID-19 lockdown and supply chain issues, affecting capacity utilization.
→The company is optimistic about improved capacity utilizations and revenues in remaining quarters of FY21, provided no adverse COVID-19 impact occurs.
→Exports increased by 11% over Q4 FY20, with exports contributing 74% of overall revenue in Q1 FY21.
→Bed Linen segment revenue grew 37% Q-o-Q despite lower volumes due to better product mix.
→The company aims to leverage India’s position as a major cotton producer and alternative to China to grow textile exports.
→Focus on hygiene and wellness categories has risen, supporting higher demand for home textile products.
→Digital strategies for buying processes and new product categories like anti-microbial treated home textiles are being explored.
→Paper segment expects muted volume and realization growth but is diversifying into kraft paper and packaging products.

Margin guidance

Category 3

→Q1 FY21 saw a significant impact with a 46% revenue decline and 92% profit after tax decrease due to COVID-19 disruptions, making comparisons with prior periods limited.
→The company expects improved capacity utilization and revenues in the remaining quarters of FY21, contingent on no further adverse COVID-19 impacts.
→Home Textile segment is poised for growth by leveraging scale, technology, and strong market presence, especially as India gains from the shift away from China as a sourcing hub.
→The introduction of higher-value products (e.g., anti-microbial treatment, anti-viral category) and a new e-commerce vertical supports revenue growth.
→Export growth (+11% over Q4 FY20) and better product mix (37% QoQ growth in Bed Linen segment revenue) indicate improving profitability trends.
→Cost optimization, including productivity-linked pay and debt reduction initiatives, aims to improve operating margins and earnings.
→Overall, the company remains cautiously optimistic about gradual recovery and growth in earnings and profits in FY21 post-lockdown.

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Fundraise plans

Yes

→The company plans to raise funds through QIP (Qualified Institutional Placement) and NCD (Non-Convertible Debentures).
→This fundraising is based on a shareholder-approved enabling resolution passed annually at the AGM.
→Proceeds will be used for various business purposes including:
→ - Augmenting financial resources for organic and inorganic growth.
→ - Meeting capital requirements for ongoing consolidation.
→ - Satisfying working capital needs.
→ - Repaying existing borrowings.
→ - General corporate purposes.
→ - Financing investment opportunities.
→No specific quantum or timeline of the fundraise is mentioned on page 12.

Order book

The document does not provide specific details on the current or expected order book or pending orders for Trident Ltd as of Q1 FY21. However, related information includes: - The Home Textile industry faced order holds during lockdown, with gradual reopening leading to recovery. - Retailers in the US market faced stress due to lockdown, and the company follows a prudent sales strategy evaluating customer risks. - Export orders saw an 11% growth over Q4 FY20, with exports constituting 74% of overall revenue. - PPE kit production capacity is 10,000 units per day, serving domestic demand and government bodies. - The company has introduced new product lines such as anti-microbial treated textiles, responding to market demand. For precise order book or pending orders data, direct contact with the company or investor relations is recommended.

Capex plans

→Ongoing capex projects before COVID-19 included Yarn Manufacturing units and Paper Upgradation project.
→Due to the COVID-19 situation, these projects are currently under review.
→The company is reassessing the implementation schedule and viability of these projects considering the changed economic scenario.
→No new specific future capex or strategic investment plans are mentioned explicitly.
→The company is focusing on leveraging existing scale, technology, and systems to consolidate and grow its business.
→Business expansion includes capacity ramp-up in PPE production (10,000 PPEs/day) to meet demand surge.
→Utilization of cash accruals and cost optimization initiatives are underway rather than fresh borrowings for investments.

How does Trident Ltd rank vs peers in Textiles & Apparels?

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1Trident Ltd

Rev 4Mar 3

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