Trident tumbled 10.22% to Rs 22.40 at 14:23 IST on BSE after net profit declined 26.92% to Rs 32.30 crore on 4.6% growth in net revenue to Rs 913.30 crore in Q1 June 2014 over Q1 June 2013.
The Q1 result was announced after market hours on Wednesday, 6 August 2014.
Meanwhile, the S&P BSE Sensex was up 60.97 points or 0.24% at 25,726.24.
On BSE, so far 3.71 lakh shares were traded in the counter as against average daily volume of 1.53 lakh shares in the past two weeks.
The stock hit a high of Rs 24 and a low of Rs 21.35 so far during the day.
Trident attributed the growth in top line during the quarter to improved utilization rates resulting in increased product off-take across products viz. Terry Towel, Yarn and Paper combined with improved realizations as a result of enhancing the product mix towards value-added products.
EBITDA declined 5.3% to Rs 184 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin dipped 212 basis points to 20.2% in Q1 June 2014, from 22.3% in Q1 June 2013.
The company's outstanding net debt as on 30 June 2014 stood at Rs 2589.40 crore. Trident repaid long term loans amounting to Rs 105.42 crore during the quarter.
Commenting on the company's Q1 performance, Mr. Rajinder Gupta, Chairman at Trident said, "The performance during the quarter is reflective of the progress on several strategic initiatives. The commissioning of our new Terry Towel facility in Budni is under stabilization. However, it has started adding to the overall efficiencies and is reflected in the improved margin profile of this business. The full benefits of these capacities will be visible from FY 2016 onwards. In the paper business, our focus is on improving productivity and operational efficiencies".
Mr. Gupta added, "While we consolidate operations in the near term, we are confident of delivering sustained growth through large capacities and improved product offerings in the longer term. At the same time, measures to strengthen our balance sheet will help us contain debt and financial costs relative to the increasing size of our operation which will deliver enhanced value to our shareholders".
Trident's board of directors at its meeting held on Wednesday, 6 August 2014, given its approval for Yarn modernization project of its spinning plants located at Sanghera, Punjab and Budni, Madhya Pradesh to modernize/upgrade its existing capacities at a total capital outlay of Rs 104 crore. The project is expected to be implemented by July 2015.
The Board also given its nod for infrastructure development project including centre of excellence, housing colony for employees, office building etc. at a total capital outlay of Rs 243 crore. The project is expected to be implemented by October 2016.
Trident is the flagship company of Trident Group. It is a leading manufacturer of terry towels, paper, yarn and chemicals.
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