Trident shares rally 7% as unit acquires stake in step down subsidiary

June 14, 2024

Category: General

Country: India

Region: Asia

Trident Home Textiles, the wholly owned subsidiary of Trident, made further investment in its wholly owned subsidiary namely Trident Global BV.

SI Reporter New Delhi
2 min read Last Updated : Jun 12 2024 | 1:51 PM IST

Trident Ltd's share price shot up by 6.8 per cent at Rs 40.48 per share on the BSE in Wednesday’s intraday deals. The stock price surged as the company’s unit acquired additional stake in its step down subsidiary.

Trident Home Textiles, the wholly owned subsidiary of Trident, made further investment in its wholly owned subsidiary namely Trident Global BV, (a step down subsidiary of Trident Limited) on June 11, 2024, the company disclosed in an exchange filing on Tuesday.

Trident Home Textiles has invested in 15,000 ordinary shares of nominal value 1 euro each of Trident Global B.V. The company was incorporated with the objects of wholesale business of textiles, paper, non-food consumer goods and clothing accessories.

In the fourth quarter of the financial year 2024, Trident witnessed a decline of 54.8 per cent in net profit, falling to Rs 59 crore from Rs 130.6 crore in the same quarter of the previous year (Q4FY23).

Despite this, the revenue increased by 7 per cent to Rs 1,682 crore in the March quarter of financial year 2024, up from Rs 1,573 crore in the March quarter of the previous fiscal year.

However, Trident's earnings before interest, taxes, depreciation, and amortisation (Ebitda), or operating profit, decreased by 23.5 per cent on a year-on-year (Y-o-Y) basis to Rs 205 crore, compared to Rs 268 crore.

Additionally, the Ebitda margin contracted by 480 basis points (bps) to 12.2 per cent in Q4FY24, down from 17 per cent in Q4FY23.

At 13:39 PM; the stock of the company gave some of its intraday gain and was trading 4.81 per cent higher at Rs 39.67 per share on the BSE. By comparison the BSE Sensex climbed up by 0.60 per cent.

Trident Limited is involved in the manufacturing, trading, and sale of textiles, papers, and chemicals within India, US and internationally.

Courtesy: Business-standard.com