IDBI Capital: Trident Q2 Review - Textiles Margin Improves; Order Backlog Strong
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Trident Ltd. reported weaker than expected Q2 FY21 results. Its sales/Ebitda were 21%/15% lower than our forecasts.
Although its sales fell 12.5% YoY to Rs 12 billion, improvement in textiles segment margin was a key positive.
Textiles Ebit margin improved 141 basis points YoY to 12% and order backlog has improved significantly.
Also, Trident’s net debt fell to Rs 9 billion, compared to Rs 12 billion in March 2020.
We raise our FY21/FY22 sales estimates by 10-12% on rising order backlog.
Also, our FY21-FY22 Ebitda forecasts are higher by 20-25% due to anticipated improvement in margins.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.